Suzuki launches Rs 340 crore investment vehicle for Indian startups
In a significant move to boost early-stage startups in India, Japanese automotive giant Suzuki has announced the creation of a venture investing arm called Next Bharat Ventures. This newly formed venture, wielding a substantial corpus of Rs 340 crore, aims to become a catalyst for firms making noteworthy social impacts through innovative business models.
The initiative is structured as a subsidiary of Suzuki, indicating the conglomerate’s serious commitment towards nurturing startup ecosystems. According to Vipul Nath Jindal, the managing director and chief executive of Next Bharat Ventures, the implications of this venture are vast. Not resembling a convential corporate venture capital (CVC) entity, it operates as an independent unit under the Suzuki marque. Jindal, who previously spearheaded Suzuki’s innovation center in Japan, emphasized the autonomous nature of decision-making power vested with the local team concerning investments.
Next Bharat Ventures is setting itself apart by advocating for a residency program, an innovative approach targeting startups at their nascent stages. The inaugural cohort of this program is poised to commence in October this year, welcoming applications right away. This move bears resemblance to similar initiatives by global counterparts like Antler and Y Combinator. However, Suzuki’s version distinctively zeroes in on startups that promise to trigger a social overhaul alongside their entrepreneurial pursuits.
With its base in GIFT City, Gujarat, Suzuki eyest Bengaluru—a city renowned for its vibrant startup culture—as the likely venue for this residency program. The flexibility offered to the participants, as mentioned by Jindal, signifies Suzuki’s understanding of the critical balance between networking, learning opportunities in the city, and the on-ground presence often needed by impact-driven entrepreneurs.
Over the course of the next three to four years, Next Bharat Ventures aspires to fund up to 20 ventures annually. Investment cheques could vary, ranging between Rs 1 crore to Rs 8 crore, focusing primarily on for-profit organizations with a clear societal benefit. Sectors such as agritech, supply chain management, financial inclusion, and rural mobility have been identified as initial targets for these investments.
Emphasizing the long-term commitment required in nurturing businesses within these sectors, Jindal elaborates on the investment horizon stretching to 15 years—deviating from the typical investment term of 10+2 years. This decision underscores Suzuki’s role as ‘patient capital’, eagerly awaiting sustainable, impactful results from its investments. Furthermore, the strategy to support ventures that uplift workers in the informal economy, such as gig and waste management workers, alongside initiatives aimed at rural development involving farmers and artisans, reveals the investment vehicle’s community-focused agenda.
In a broader scheme to infuse strength into the ecosystem, Next Bharat Ventures also plans to act as a fund-of-funds (FoF). By investing as a limited partner in smaller funds, it aims to catalyze the growth of a myriad of ventures across its target sectors, signifying a multi-layered approach to fostering innovation and social impact through entrepreneurship in India.
This substantial investment by Suzuki in the form of Next Bharat Ventures not only highlights the potential seen in Indian startups but also demonstrates a pioneering approach towards contributing to society through business. As the venture unfolds, it’s poised to create a significant ripple effect across the startup ecosystem, nurturing ideas and innovations that aim for a better tomorrow.
