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Chiratae Ventures, one of India’s leading homegrown venture capital firms, has been instrumental in supporting the growth of numerous successful startups for over a decade. With a robust portfolio of 130 funded startups, 48 successful exits, and 8 unicorns, Chiratae Ventures has become synonymous with innovation and growth. As it continues to manage over $1.3 billion across seven funds, its focus remains steadfast on identifying and nurturing the next wave of disruptive technology startups.

A key part of this endeavour is Chiratae Sonic, its flagship seed investment initiative. Launched in 2021, this structured seed investment initiative was designed to discover and engage with disruptive seed companies by offering rapid funding decisions and unparalleled access to resources and mentorship. 

As the programme enters its latest phase in 2024, Kailash Nath, AVP-Head of Seed Investments, Chiratae Ventures, shares insights into the firm’s journey, the evolution of Chiratae Sonic, and the broader vision driving their commitment to building the next generation of global technology leaders.

Edited excerpts of the interview:

YourStory: Chiratae Ventures has established itself as a premier homegrown venture capital firm in India. Could you share some insights about Chiratae Ventures and its journey so far?

Kailash Nath: Chiratae is an investor bullish on the potential that Indian technology ecosystem has to offer. Over the years, we’ve partnered with some of the most innovative companies across various sectors. Our numbers reflect our journey: we’ve funded 130 startups, realised exits from over 48 companies, and seen four of our portfolio companies on public stock exchanges. 

Today, we manage $1.3 billion across seven funds and have supported the creation of eight unicorns. This track record speaks volumes about our commitment to nurturing startups from seed to IPO, and our focus on driving technological innovation in India and beyond.

YS: Let’s talk about Chiratae Sonic, your flagship seed investment initiative. What inspired the launch of this programme, and how has it evolved over the years?

KN: Chiratae Sonic was born out of our desire to engage more deeply with early-stage tech startups. India is brimming with entrepreneurs who are solving globally relevant problems leveraging proprietary technology platforms, and we wanted to create a platform that not only democratises access to capital but also accelerates their growth. 

Since the launch of the first edition in 2021, Sonic has been instrumental in identifying and supporting high-potential startups. We’ve invested around $25 million across 20 companies in the previous two cohorts at seed and pre-series-A stages. The 2024 cohort marks an exciting new phase as we continue to refine and expand the programme, ensuring that more founders can benefit from our expertise and resources.

YS: What makes Sonic 2024 stand out from its previous cohorts?

KN: Sonic 2024 builds on the success of our previous editions by introducing a faster, more streamlined process. We have maintained an unprecedented 48-hour turnaround time for initial reviews of seed and pre-A applications. To further support the growth of promising startups, we’ve expanded the funding scope this year, allowing companies to raise up to $2 million.

Our focus remains on rapid decision-making, and we’ve introduced a fixed application window that will remain open until October 31, 2024, to fast-track the investment process. Moreover, Chiratae Sonic 2024 offers an even broader array of mentorship and support, connecting founders with industry veterans and providing access to exclusive perks, such as substantial cloud credits and strategic partnerships within our portfolio.

YS: While Chiratae Sonic is open to startups across sectors, are there specific areas you’re particularly focused on this year?

KN: While we maintain a sector-agnostic approach, we’re particularly excited about platforms in deeptech, Generative AI, climate tech, and manufacturing tech (Factory 5.0). These are areas where we see tremendous potential for disruption and long-term impact. 

However, we’re always on the lookout for innovative ideas, regardless of the sector, and Sonic is designed to accommodate a diverse range of startups. Sonic’s previous cohorts include startups like BeepKart, Claimbuddy, Emitrr, HexaHealth, Metadome, LocaleAI, and Skyeair among others.

YS: What criteria do you use to evaluate startups applying to the Chiratae Sonic Program?

KN: Given the early stage of the companies we engage in Chiratae Sonic, the inherent risk is significantly higher – and hence, we place a very high bar for selecting the founding teams that we back. 

Firstly, we look for strong pedigreed founders with deep domain and client understanding, capable of building an A-team around them. In addition, given our belief in technology as an exponential factor in delivering large commercial outcomes, we look for long-term differentiators in technology and product, along with moats in business and revenue models. 

As Venture Capital investors, following our mandate to deliver risk-adjusted excess returns to our investors within the life of our fund, we look for large commercial outcomes among our investee companies within this duration. Hence, the scalability of the company leveraging the adoption of the technology base in the respective sector, along with future supply of capital from downstream investors and potential exit options, are other critical considerations. 

Our seed cheques range from $0.5 to $2 million and we are not restricted from investing in companies domiciled outside India. 

YS: Lastly, how can interested startups apply for Sonic 2024, and what should they expect during the process?

KN: The application window for Sonic 2024 is now live on our website and will remain open until October 31, 2024. Startups can submit their pitch decks and business plans through our platform. We have a streamlined review process, and applicants can expect an initial decision within 48 hours for seed funding requests up to $2 million. Beyond that, selected startups will gain access to all the benefits and support that the Sonic programme offers. This is the link.