🍷 Sula Vineyards: Seed to IPO (a 4000 Crore Company) | Ep12: The India Opportunity Podcast 🍷
Chaitanya Rathi, Partner at Sharrp Ventures & Previously COO, Sula Vineyards and Mswipe
Hello everyone, welcome to The India Opportunity Podcast where you get a front-row seat to people building India’s future. We talk about unlocking the potential of the country with founders, investors, creators, and successful leaders from different fields to bring you real-life stories and behind-the-scenes of what it takes to be at the forefront of building the India Story.
The 12th episode of The India Opportunity Podcast is out now! You can watch it on Youtube or tune in on Spotify or Apple Podcasts.
Our guest today is Chaitanya Rathi, Partner at Sharrp Ventures, a $350Mn consumer fund. Chaitanya’s journey as an operator and investor has been nothing short of remarkable, where he previously grew Sula Vineyars and took it to its IPO. He has also headed a $100Mn fund as a part of the Everstone Group. He was also the Chief Operating Officer at Mswipe, a company that was valued north of $400 million. Some of his notable investments include Leverage Edu, Veeba, Epigamia, Indialends, Woodsmen Whiskey and many interesting consumer businesses built in India. He uniquely has the best bird’s eye view of the consumer sector, understanding the landscape and evolution really well which is coupled with his remarkable experience as an operator having grown companies like Sula & Mswipe. So much to learn in this conversation - look forward to doing a deep dive with Chaitanya on the consumer sector.
Takeaways
Childhood experiences play a significant role in shaping individuals and their future growth.
Operating experience can make investors better partners to founders, as it brings empathy, understanding, and practical advice.
Building sustainable businesses and developing an omni-channel strategy are crucial for long-term success.
India's consumer landscape is evolving, with more brands reaching significant revenue milestones and gaining recognition globally.
Funding is still available for good businesses, but founders need to focus on building sustainable and profitable models.
Investors should look for founders who have the capability to build good businesses and consider the market potential and personal preference for the product or service.
Quick commerce and consolidation are expected to play significant roles in the future of consumer brands in India. Opportunities for disruption in the Indian market exist in the good for you, better for you food sector and the low and no alcohol industry.
Leverage EDU is a favorite turnaround story, demonstrating grit and determination during challenging times.
Sula faced the challenge of zero revenue during the COVID-19 pandemic but remained determined to continue on the IPO path.
Price discovery during an IPO process is crucial, and founders should aim for a win-win pricing strategy.
Late-stage capital is still lacking in India, but early-stage funds are evolving to support businesses through series B and beyond.
When investing personal capital, the focus is on the founder and the potential of the market, while fund investments consider additional factors.
Rathi's personal ambition is to find satisfaction in both personal and professional journeys, while his professional goal is to work with 10 founders this year.
Outside of work, Rathi enjoys reading, watching sports and movies, and staying physically active.
Building strong relationships and practicing patience are important values to Rathi.
Chapters:
00:00 Childhood and Formative Experiences
06:15 The Value of Operating Experience
13:41 Building Sustainable Businesses
26:52 Funding and Evaluation Criteria
30:32 Identifying Founders and Market Potential
34:25 The Future of Consumer Brands
35:59 Opportunities in Good for You, Better for You Food and Low and No Alcohol
38:13 The Turnaround Story of Leverage EDU
38:34 Sula's Journey During the COVID-19 Pandemic
45:03 Price Discovery in IPOs
50:52 The Funding Landscape in India
51:55 Investing Personal Capital vs. Fund Capital
56:03 Personal Ambition: Finding Satisfaction
58:53 Reading, Sports, Movies, and Physical Fitness
01:00:48 The Power of Relationships and Patience
Follow Chaitanya here: LinkedIn
Follow Shrishti here: LinkedIn Twitter Instagram
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Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered financial advice. Viewers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.