Silicon Valley-based, mobile accelerator Tandem Capital, in a step towards its global expansion has announced that it is soon going to launch its operations in India. The fund will help Indian entrepreneurs to create and build mobile companies with a cross-border approach.
Backed by former Infosys director Mohandas Pai and Manipal Group’s Ranjan Pai with support of Rohit Bhagat, former Chairman, Asia Pacific at BlackRock, it will be investing in 20 early-stage ventures over the next year with Habit Fund. It will be looking to work with passionate entrepreneurs using mobile technology to help people live and work better.
On a differentiating note, Tandem Capital not only provide financial backing and occasional access to mentor networks like other accelerators but also takes an entirely unique “muscle capital” approach. It help in shaping each company they support through strategic, operational support apart from the cash investment.
“There are thousands of promising entrepreneurs in India that need guidance and support,” said Ranjan Pai, Head of Manipal Education & Medical Group. “We are thrilled to bring the incredible success Tandem has had building disruptive companies in the US to India.”
Tandem will provide seed capital of around $200,000 ( INR 1.11 crore) and will also invest throughout the growth cycle of the companies. It will be housing its selected startups either in Bangalore or in the Silicon Valley based on the startup’s business model and will work closely with them in the initial six months.
Started in June 2007 by technology entrepreneurs Doug Renert and Sunil Bhargava, Tandem Capital is based in Burlingame, CA. Till now, Tandem has raised two funds, firstly, a 12-million fund which invested in nine startups and recorded seven exits. Secondly, $32-million fund raised in 2011, with investors like Ram Shriram, and Dan Cooperman, so far there have been no exits from it. Tandem has an equity stake of 10% in these companies.