STARTUP-STORIES

Titan Capital Secures Rs 200 Crore Fund to Boost Support for Portfolio Startups

SUMMARY

1. Titan Capital, led by Kunal Bahl and Rohit Bansal, has raised Rs 200 crore for its new Titan Capital Winners Fund, marking its first external capital raise. The fund aims to enhance support for its existing portfolio companies and attract further investments from family offices, CEOs, and venture capitalists.

2. The firm has achieved notable returns on investments, including a nearly 200 times return on Urban Company and successful exits from Ola Cabs and Credgenics. Recent investments and IPO successes, like the listing of Unicommerce and the Mamaearth IPO, highlight Titan Capital's continued impact and growth in the seed-stage investment sector.

Titan Capital, the seed-stage investment firm co-founded by Kunal Bahl and Rohit Bansal, has successfully raised Rs 200 crore for its latest initiative, the Titan Capital Winners Fund. This marks the first time the firm has sought external capital, a significant milestone for the Gurugram-based investor.

The Titan Capital Winners Fund will allow the firm to double down on its existing portfolio companies, providing crucial support during subsequent rounds of capital raises. Bahl and Bansal, the firm’s largest limited partners, are leading the fund alongside a roster of prominent family offices, CEOs, founders, and venture capital experts. Notably, the fund might see additional limited partners through an optional greenshoe.

"With the Titan Capital Winners Fund, we aim to offer more substantial support to the founders of our portfolio companies, reinforcing our partnership and commitment to their success," Bahl and Bansal stated in a joint press release.

Titan Capital's Track Record

Since its inception in 2011, Titan Capital has made substantial strides in the investment landscape, backing over 250 companies. Its portfolio boasts successful startups such as Urban Company, MamaEarth, OfBusiness, Razorpay, Unicommerce, and Ola Cabs.

A recent highlight for the firm came on July 31, when Titan Capital achieved a near 200 times return on its seed investment in Urban Company. The firm initially invested Rs 57 lakh in 2015 and exited with Rs 111 crore, underscoring its knack for identifying high-potential startups.

Other notable exits include Ola Cabs, with Titan Capital achieving a full exit, and partial exits from Credgenics while maintaining shares in OfBusiness. The firm's investment strategy continues to yield impressive returns, with unrealised returns exceeding 100 times in several cases.

New Ventures and Expansions

In addition to its successful exits, Titan Capital has been active in supporting emerging startups. Recent investments include Boba Bhai, a quick-service restaurant brand specializing in bubble tea; Karban Envirotech, a smart appliances startup; and DevDham, a devotional platform.

The firm also made headlines with the IPO of Mamaearth's parent company, Honasa Consumer, raising approximately Rs 78 crore. Despite the significant gains, Bahl and Bansal have committed to reinvesting these proceeds into new ventures, further fueling their growth strategy.

Additionally, Titan Capital's investment in Unicommerce, an e-commerce enterprise software developer, saw a successful listing on August 13 at a premium. Unicommerce's shares debuted on the National Stock Exchange (NSE) at Rs 235, more than double its issue price of Rs 108.

Titan Capital's strategic expansion through the Winners Fund is set to enhance its capacity to support and grow its portfolio companies. With a proven track record and a keen eye for emerging opportunities, the firm is poised to continue its impactful journey in the seed-stage investment space.

As Titan Capital embarks on this new chapter, the investment community and portfolio companies alike will be watching closely to see how the Winners Fund shapes the future of innovation and growth in the industry.