Wipro Consumer Care-Ventures launches Rs 250 cr fund for startups

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Wipro Consumer Care–Ventures, the venture funding arm of Wipro Consumer Care & Lighting, is launching ‘Fund II’, a Rs 250 crore fund. It will continue focusing on investing in and supporting consumer startups in India and Southeast Asia. 


Fund II will invest in innovative companies that aim to fulfil the needs of consumers, focusing on long-term building and maintaining a sound governance mindset.


“We will look for e-commerce driven companies from Pre-Series A onwards, adopting a minority stake approach (up to 25 per cent), and continue our strategy of helping and nurturing startups as required,” said Sumit Keshan, Managing Partner at Wipro Consumer Care – Ventures.


“The focus will be on companies operating in personal care, skin care, home care, wellness, food, fragrances, beauty and personal care, etc. Our geographical coverage will remain India and Southeast Asia, where we believe we can add value beyond providing capital,” he added. 


Keshan noted that the fund has successfully added value to its investments by offering support in offline focus, R&D, sourcing (especially from overseas vendors), identifying third-party manufacturers, and finance discipline.


Wipro Consumer Care-Ventures is a Rs 200 crore venture capital fund launched about four years ago. To date, it has made 10 investments. The fund’s performance is robust, with a Multiple on Invested Capital (MOIC) running at over 2.2x and a strong Internal Rate of Return (IRR) above market benchmarks. To date, the fund has partially exited two of its investments, one of which recorded a tenfold increase in a short period. While a large majority of this fund has been committed, a few more new investments and several follow-ons will be made. The portfolio is varied, comprising investments in startups in India, Southeast Asia, and a venture capital fund.


“While there are current headwinds in the investment space, we believe there is a need for startups to focus on stability and scalability with a clear view towards profitability,” Keshan added.