In a landmark move to strengthen the Indian startup landscape, Japanese automotive leader Suzuki Motor has unveiled its first investment fund in India, named Next Bharat Ventures. With a robust corpus of Rs 340 crore (approximately $45 Million), this fund is specifically crafted to support impact-driven entrepreneurs, particularly those in Tier-II and below regions across the country.
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Next Bharat Ventures goes beyond traditional investment; it is a purpose-driven initiative aimed at nurturing social impact startups. The fund is dedicated to sectors such as agriculture, financial inclusion, rural supply chains, and rural mobility, with the goal of supporting startups that bring significant value to underserved communities.
Next Bharat Ventures will run an innovative residency program, with the inaugural cohort starting in October 2024. Applications for this program opened on Thursday, welcoming aspiring impact entrepreneurs to apply.
The program will be modeled after prestigious accelerators like Antler and Y Combinator but will uniquely focus on social impact. During the four-month hybrid residency, selected entrepreneurs will receive comprehensive mentorship, access to extensive resources, and networking opportunities with industry experts and peers. After completing the program, startups will be eligible for equity investments ranging from Rs 1 crore to Rs 8 crore, enabling them to expand their operations and increase their impact.
A primary goal of Next Bharat Ventures is to empower "India's next billion" by supporting entrepreneurs from lesser-known regions. The fund emphasizes businesses from Tier-II and Tier-III cities, addressing the specific challenges these areas face.
The fund will concentrate on sectors like AgriTech, supply chain management, financial inclusion, and rural mobility. This focus aims to benefit workers in the informal economy, such as gig and waste management workers, and those involved in the rural economy, including farmers and artisans.
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"Next Bharat will invest in growth-stage impact firms and early-stage impact entrepreneurs through its flagship residency program," said Vipul Nath Jindal, CEO and MD of Next Bharat. He continued, "To enhance synergy among our early-stage portfolio, we engage in Fund of Fund operations, investing in Indian Early-Stage Venture Capital firms. This strategy will also help establish strong strategic synergies for the Next Bharat Impact Fund."
Jindal highlighted the core values of Next Bharat, which are centered on nurturing and empowering impact entrepreneurs driven by cause, contribution, and community. "We aim to empower underrepresented regions, drive economic development, and foster a culture of innovation that tackles the unique challenges faced by these communities," he explained.
The launch of Next Bharat Ventures is in line with Suzuki Motor Corporation's broader vision for India. In June 2023, Maruti Suzuki India, a subsidiary of Suzuki Motor Corporation, selected six startups, including DriverShaab, Route2Jute, OiHelp, Hopun Innovations, Backyard Creators, and Salutem Ridegear, under its nurture program conducted in collaboration with IIM Calcutta Innovation Park (IIMCIP). Earlier this year, Maruti Suzuki India also acquired a 6.44% stake in Amlgo Labs, further demonstrating its commitment to innovation and startup support.
Toshihiro Suzuki, President and CEO of Suzuki Motor Corporation, articulated the company's vision, stating, "Bharat has about 1.4 billion people, but we have only reached about 0.4 billion with our mobility business. Our goal is to connect with the 'Next Billion' people of India, extending beyond mobility and becoming a part of India's future story."
With the introduction of the Rs 340 crore Next Bharat Ventures fund, Suzuki Motor Corporation is poised to make a significant impact on the Indian startup ecosystem.
By focusing on social impact and targeting underserved regions, Next Bharat Ventures aims to empower a new generation of entrepreneurs, driving economic development and fostering innovation across India. This initiative not only underscores Suzuki's dedication to India but also highlights the potential of startups to effect meaningful societal change.
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