Early-stage investing continues to lead the charge in the world of venture capital finance, says Nishit Garg, Asia partner, RTP Global. He points to the added focus on due diligence in the post-Covid period. Edited excerpts:
How much funding have you raised till date? What is the strength of your current portfolio?
In June 2023, we announced our $1-billion Fund IV and, to date, we have invested in more than 120 founding teams of tech startups across the globe. These range from AI to consumer tech, fintech, B2B, SaaS, climate-tech, agri and edtech companies. Our capital comes almost entirely from reinvesting proceeds from our previous successful investments.
Which fund are you deploying currently? How much have you invested till now?
We are currently deploying Fund IV. Two-third of the capital will be allocated to RTP Global’s early-stage investment strategy and one-third to provide ongoing support to RTP IV’s ‘breakout’ portfolio companies.
What is your investment thesis?
RTP Global’s investment thesis is to back exceptionally ambitious founders who use technology to reshape the world, right at the start of their journey.
We also see huge potential in seasoned operators at renowned tech companies as they have the sector knowledge, domain expertise and exposure to growth, which make up the traits of a successful founder. We believe they can build something transformative.
A founder-first approach is in the firm’s DNA, and our fund is structured accordingly. We can be flexible with our capital, which means we can stay with the founders for the long term, help navigate through the good and bad times, and stay true to our founders’ wishes.
Which sectors are you bullish on?
We’re particularly excited about sectors such as EV and AI, which are experiencing significant growth in India and across Asia.
What sort of exit do you prefer? How many exits have you made so far?
Our notable exits include Datadog in the US, Delivery Hero in Europe, and Freecharge in India. In 2024, many funds, including ours, were focusing on ways to navigate exits with well-defined processes.
The recent buoyancy in the Indian IPO market is very encouraging and we foresee IPOs becoming a significant exit option. I also anticipate an increase in M&A activities and consolidations, which may lead to more exits.
How is the current funding scenario?
Early-stage investing continues to lead the charge, and we expect this momentum to pick up. Following a much-needed market correction post Covid, the added focus on due diligence has created a healthy ecosystem, which will continue to thrive.
India’s ascent as the No. 1 startup nation is inevitable. The digital disruptions catalysed by Indian founders across sectors like commerce and AI/ML leave me convinced. For venture investors who recognise this tremendous potential, the opportunities for growth in the Indian market are unmatched.
Published on February 16, 2025
