Manipal Education and Medical Group head Ranjan Pai and former Infosys director Mohandas Pai have come up with a new fund namely, Habit Fund, which will be providing accelerator fund for early-stage social media, mobile and cloud computing startups, reports Mint.
Habit Fund is expected to process around 300 applications every quarter and provide fund between $150,000-$300,000 to the selected startups. Silicon Valley venture capitalist and entrepreneur Sunil Bhargava and Rohit Bhagat, former Asia Pacific Chairman of BlackRock Inc., will be managing the fund.
The fund aims to raise $75-100 million and already about $25 million has been committed. The fund has started accepting applications and with this four startups have been shortlisted and are close to receive funds.
In view of experts, many startups in India, are able to raise seed fund but fail to generate revenue in first year or two, thus making it difficult to raise funds in series A. However some also believe that getting capital at an early stage is very difficult.
Nevertheless with various interesting events happening in the Indian startup ecosystem with rise of investors & accelerators, it seems the opportunity cost to innovate will motivate several ‘entrepreneurs’ and we will see great times ahead.