Matrix Partners India

Funds managed

Fund nameAsset ClassLicense
Fund 1Seed, series A, B & C
Fund 2
Seed, series A, B & C
Fund 3 Seed, series A, B & C

About the AMC

  • Early-stage (seed, series A & series B) investors based in Mumbai, Bangalore and Delhi.
  • Matrix Partners began in Boston in 1977, and today invests actively in the USA, India and China. Matrix Partners India was established in 2006, and invests across a variety of sectors including consumer technology, B2B, enterprise, fintech, among others.
  • India – $1Bln+ Under Management, 60+ Investments
  • Global – 65+ IPO’s, 110+ Profitable Acquisitions, $4Bln+ Invested

Key staff

  • Avnish Bajaj (Founder & MD) – Avnish attended the Indian Institute of Technology Kanpur, where he graduated with a degree in Computer Science and Engineering. He then completed a Masters degree in Computer Science from the University of Wisconsin, Madison, in the U.S. and joined Apple Computer as a Software Engineer. During his three and-a-half years at Apple (during which time the company had four CEOs), Avnish developed an interest in management and left Apple to complete a Masters in Business Administration from Harvard Business School. While at Harvard, Avnish interned with McKinsey and Co. After graduating from Harvard, Avnish joined Goldman Sachs in their investment banking team during the dot com bubble days where he was exposed to a number of compelling business ideas that ultimately led to the formation of Bazee.Then founded Matrix in 2006.
  • Rajat Agarwal (Director) – From a young age, Rajat has always been determined to pursue excellence. A Gold Medalist in school, a Silver Medalist at IIT, and, again, a Gold Medalist at Indian School of Business, Rajat’s academic record speaks for itself. Post IIT, Rajat joined McKinsey as a management consultant, where over a five-year stint he worked on developing insights for multiple sectors, specializing in telecom and IT services. During his stint at McKinsey, Rajat worked on several topics that are relevant for start-ups – for example, setting up a lean organization, institutionalizing a strong performance management system, leveraging technology to drive sales force effectiveness, maximizing marketing RoI, fundamentally achieving a lower cost base and many more.
  • Vikram Vaidyanatham (MD) – Vikram attended the Rashtriya Vidyalaya College of Engineering (RVCE) Bangalore, where he graduated with a degree in Electronics and Communication engineering and played basketball for the state university. He worked for short stints with Samsung and then IBM Global Services, where he realised that he revels in more entrepreneurial environments and joined a small team in a News Corp company, NDS. At NDS, while living in Jerusalem and Bangalore, Vikram learnt how to work as part of a global team to take ideas from whiteboard to wide-spread rollout for millions of TV viewers across the world. In a couple of years, itching to be part of a start-up, Vikram joined the founders of Sensact Applications, a wireless sensor networks company.Vikram earned his MBA from IIM Bangalore. Joined McKinsey & Co. after his MBA and worked across a variety of sectors including mobile media, TV, retail, engineering construction and manufacturing. Working alongside the top management of India’s leading companies, Vikram understood the mix of entrepreneurial chaos and operational discipline needed to grow businesses in India.
  • Sanuj Shah (Analyst) – Sanuj’s interest towards technology driven businesses germinated during his undergraduate days at SRCC. To pursue the same, post graduation he worked with Deutsche Bank’s investment banking team to evaluate high growth FinTech firms across Europe. Post his stint with Deutsche Bank, Sanuj’s love for personal experiments took him to the Young India Fellowship (YIF) at Ashoka University, where he spent a year studying a plethora of subjects including Military strategy, Indian elections, and Shakespearean literature. Sanuj then joined Bain & Company, where he consulted top global hedge funds and private equity clients to diligence fast-growing startups and mature businesses on their market potential, competitive landscaping and customer perception. Sanuj brings in his versatile experience across banking and consulting, and his multi-disciplinary education to help founders build robust and sustainable businesses.

Investment Philosophy (for firm)

We are looking for the best and brightest founders and teams. In our experience, the quality, passion and commitment of a company’s core team are more important than any other element.

Some of their current investments are OLA, Chumbak, Razorpay, DailyHunt, FIITJEE, Limeroad.com, Quikr, Treebo Hotels etc. Their past investments include Muthoot Finance, W, ITZ Cash and others.

Media

Title: Matrix Partners– backed OfBusiness raises INR 200 crore, Source: Matrix partners blog, Date: 18th July 2018

http://www.matrixpartners.in/media/news/article/30

Though they prefer seed, series A&B funding, but this venture made them fund a new round (series C) of financing along with other investors such as Creation Investments, Falcon Edge and Zodius Capital. They raised a total of INR 500cr of equity and debt funding till date. The statement made my MD was  “OfBusiness captures the SME’s need for repetitive purchase finance with a unique business model. Their proprietary data advantage is reflected in the increasing efficacy of underwriting and support from marquee banking partners. We’re privileged to partner at an early stage with Asish, Ruchi and Bhuvan to create an SME financial services platform and welcome the new investors to the partnership.” 

Title: Matrix-backed MoEngage raises $25mn in a Series C investment round, Source: Matrix partners blog, Date: 11 February 2020

http://www.matrixpartners.in/media/news/article/87

MoEngage, an intelligent customer analytics and cross-channel engagement platform announced today that it has raised $25 Million in its Series C round of funding led by Eight Roads Ventures with participation from its US-based sister fund, F-Prime Capital. The round also saw participation from existing investors Matrix Partners India as well as Ventureast.

MoEngage is an intelligent customer engagement platform, built for the mobile-first world.

Title: Matrix Partners raises $300 million fund, eyes startups in emerging sectors, Source: Live Mint, Date: 9 January 2019

https://www.livemint.com/Companies/nbfs2kdH7aVBH64Fha62uJ/Matrix-Partners-raises-300-million-fund-eyes-startups-in-e.html

They think e-commerce and marketplaces are under-invested and fintech has been over-invested in. E-commerce is in a different avatar now, with tinges of social media and WhatsApp. SaaS and enterprise is taking off”. Bajaj indicated Matrix will stay away from “overheated” sectors.

Title: Matrix Partners – AMA Series with India Quotient, Source: YouTube, Date: 25th Mar 2019

https://www.youtube.com/watch?v=g4FVeDezRpo

How they think of investments across different stages:

Seed – Team + Idea

Series A – Team + Idea + reliable clientele

Series B – Team + Idea + reliable clientele + started with execution and scalability

Series C onwards – pure execution and when the business model has started proving itself, then by the time startups are profitable they tend to exit.

Title: What is Matrix Partners India betting on in 2020?, Source: StartUp Central, Date: 24 December 2019

https://www.youtube.com/watch?v=I47YrPJuJM0

They are going to be bullish in the consumer brand space in 2020. It’s going to be little challenging as we are going through an economic slowdown, and it will be difficult to raise money, and may not be profitable as much.

Analyst questions

  • Who are your investors? Where do you raise money from?
  • As mentioned in one of the articles of (OfBusiness) funds were raised from debt and equity funding, what other funding sources you prefer?As mentioned in one of the articles (just for discussion)
  • Do you have any preferred sector for which you are always up for an investment given they have a great planning and urge to get it executed?
  • Previously mentioned by Avnish Bajaj (Founder, MD), that focus has not been on particular number of investments and fixed deployment figures, but can you provide us with the approximate figures?
  • Given you have 65+ IPO’s, what other exit strategies have you considered?
  • Being more than 10 years into this industry, how have things changed for you, how has investment philosophy shaped over the time?
  • What differing challenges have you faced in India, compared to other countries?

Author

Share:

You must be logged in to post a comment.