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It's no secret that Ratan Tata is one of the most prolific investors in India. But did you know that He also supports startup companies? His investment in a startup gives it credibility and he plays a mentor role as well. So what does this mean for startup companies? Well, it means that Tata puts the nation's welfare first and is a champion of the startup.
Ratan Tata is a business leader in India
In addition to being a successful business leader, Ratan Tata is also a philanthropist and industrialist. He is the former chairman of Tata Sons, and served as the company's chairman from 1990 to 2012. Currently, he continues to serve as the head of the group's charitable trusts. Read on to learn about the many ways that he gives back to the community.
One of the most prominent things that the Tata Group has done for the Indian economy is invest a significant percentage of its profits into helping underdeveloped Indian communities. The company spends approximately four per cent of its net profits on corporate social responsibility. During his tenure as chairman, the Tata group disbursed about $800 million through trusts. For example, one of the trusts was established to help families of those killed in the Taj hotel disaster.
In spite of the enormous challenges that he faced, Ratan Tata is widely considered to be an exceptional business leader in India. Since the company's initial revenues were just $2 million, Tata's annual revenue has grown to $21.7 billion. That's seven times more than when he took over the company in 1991. Today, the business leader has just eight years before he plans to retire.
After earning his Bachelor of Architecture from Cornell University in 1962, Ratan Tata joined the family business, Telco. This later morphed into Tata Motors, which manufactures Jaguar and Land Rover. Ratan Tata also worked in the Tata Steel Company, shoveling limestone and working in the blast furnace. He continued to work as a member of the Tata Group until he was appointed head of Tata Sons in 1974.
He invests in startups
The founder of the Tata group, Ratan-Tata, has been a major investor in startup companies in India. His investments have helped many startups emerge as giants in their respective sectors. One example of such an investment is Ola cabs. The funding and publicity from Ratan-Tata's investment has helped startups boost their finances and brand. Besides the cab-hailing app, he has also invested in fintech startups like Mswipe. This latest investment by Ratan Tata comes at a time when the startup ecosystem in India is undergoing a consolidation.
In addition to investing in various startups, Ratan Tata also supports several existing companies. Among these startups, he has partnered with a few of them, including Urban Lader, a startup selling furniture online. Ratan Tata has also spoken with the founders of Urban Lader, which has benefited from his extensive experience in business. While Tata did not reveal the amount of money he invested in Lenskart, he said that his role was more of an adviser and mentor.
While many Indian start-ups struggle to compete globally, this is not the case. While India is home to a vast population, many small countries have produced global startups. For instance, Sweden has a population equivalent to Bangalore, yet it has spawned global companies such as Skype and Spotify. However, India has a population of only 1.25 billion people. It is difficult to compete with such a vast market in a small country.
The Bharat Fund is an organization that brings together government, academia, financial investors, and corporates. The fund is dedicated to encouraging young entrepreneurs to solve India's biggest problems. Its programs include risk-capital, market access, prototyping support, and guidance. This initiative is supported by various organizations and is the brainchild of the Tata Group. With its funding, these startups can grow into successful businesses.
He is a prolific investor
A renowned philanthropist and prolific investor, Ratan Tata has invested in at least ten startups in India. His first investment in India was Altaeros Energies, which is run by MIT graduates. Investing in startups from India is becoming a valuable asset for these entrepreneurs as the Tata name is seen as a powerful force multiplier.
Some of the recent investments by Ratan Tata include FirstCry, an e-commerce platform that connects people with professionals for their home or office needs. He also invested in Lenskart, an online eyewear marketplace, founded by Amit Chaudhary in 2010. In February 2010, Ratan Tata made a strategic investment in Snapdeal, which has since received funding from Alibaba and Ebay. The company now has over three crore products listed across 800+ categories.
In addition to Paytm and Snapdeal, Tata has invested in several other startups including Ola, an online lingerie store, and the women's clothing brand Kaaryah. He has also supported the development of startups like Urban Ladder and Zipdeal, in addition to numerous others. Tata's list of startup investments is long and varies by sector.
He has made investments in companies in various sectors, including consumer internet, B2B marketplaces, and hardware. Some of his notable investments include Bengaluru-based coworking space startup Innov8, online lingerie company Buttercup, and rental marketplace RentOnGo, which recently closed a $9 million Series B round. He has also invested in local merchant discovery platform Crownit.
Aside from the above mentioned companies, Ratan Tata has also invested in the Chinese mobile phone maker Xiaomi. Although Xiaomi is based in China, it has a significant following in India, where it serves as the fourth-largest smartphone manufacturer. The company's recent move to ban cryptocurrency could result in a strong comeback. It may be hard to say when cryptocurrencies will be regulated, but there are hints that it will come back soon.
He prioritizes the nation
The former chairman of the Tata Group is a champion of the entrepreneurial spirit in India, and his advice to budding entrepreneurs is to always think about the nation before focusing on profits. He believes that an entrepreneurial spirit is a great way to create jobs, and that India needs to create an environment that fosters new business ideas. While he was in the news recently for his investments in startups, the former Indian prime minister also praised the late Sayajirao Gaekwad for his contributions to the country.
The Tata Group's support for rural development and education has been widely lauded. He supported the University of New South Wales Faculty of Engineering with a large donation from its subsidiary, Tata Consultancy Services. The company also donated to Carnegie Mellon University, which is working on autonomous vehicles, cognitive systems, and other innovations. Ratan Tata's net worth is estimated at 300 million pounds, but he doesn't own a single share of the Tata Group fortune. The majority of his shares are owned by charities.
After his successful career in the U.S., Ratan Tata opted to run the Tata Group as chairman. Although the Tata Group's leadership was not exactly unanimous, employees were not confident that Ratan Tata would be successful in the position. The Tata Group's executives criticized him for failing to save the company. However, the Tata Group's new chairman opted to invest in new technologies to attract foreign direct investments and make the company more profitable.
The Indian budget is optimistic about the startup community, and the government has acknowledged the important role that startups play in the country's economic development. The government extended the existing tax benefit for startups by a year, and announced a raft of measures to foster the new tech ecosystem. In addition to the budget announcements, the government is introducing the digital rupee, which will encourage the emergence of new age startups. This will help India's economic recovery, as well as provide jobs to the growing population.
He invests in Paytm
Ratan Tata, chairman emeritus of the Tata Group, has invested in mobile commerce firm Paytm. The company recently raised money from Alibaba, and recently announced it has crossed the $1 billion GMV mark with its mobile app. By the end of this year, Paytm plans to double this figure. In addition to Paytm, Ratan Tata has also invested in other e-commerce firms. In addition to Paytm, Tata has invested in Snapdeal, Urban Ladder, Bluestone, and CarDekho. It has also joined the advisory board of Kalaari.
Tata is no stranger to investment in startups. He has invested in dozens of startups throughout his career. His philanthropy has paved the way for many other entrepreneurs to become billionaires. Ratan Tata's RNT Capital Advisors has invested in over 30 start-ups. The firm's goal is to invest in companies with innovative ideas that will disrupt the marketplace. Unlike traditional venture capital firms, RNT Capital takes a long-term, founder-centric approach to investing.
The Tata Group has been investing in startups over the last several years. He is also a major investor in Chinese smartphone maker Xiaomi. His investment in Paytm further strengthens the credibility of the entire ecommerce eco-system in India. Ratan Tata's mentorship is invaluable to startups, and his latest investment in Paytm is the latest in a string of investments that indicate his commitment to the Indian e-commerce market.
Abra, a Silicon Valley bitcoin startup, was another company that Tata has invested in. Its software allows customers to store their digital cash and makes money every time they sell it. While its investment amount is undisclosed, the investment in Holachef has helped the company become popular. Foodpanda recently acquired Holachef, but it remains unclear if Tata will make another investment in the company.