Become a Creator today!Start creating today - Share your story with the world!
Start for free
00:00:00
00:00:01
Redefining Wealth Management | Brijesh Damodaran @ Auxano Capital
0 Plays2 seconds ago
Join us as we explore the inspiring journey of Brijesh Damodaran, Managing Partner of Auxano Capital, as he transitions from a corporate financial controller to a leading entrepreneur in wealth management. Discover his innovative "three-bucket strategy", insights into private market investing, approach to adapting to regulatory changes, and the importance of building trust through client relationships.
Brijesh Damodaran is the Managing Partner of Auxano Capital, a venture capital firm investing in tech-enabled, next-generation businesses, focusing on Seed and pre-IPO stages.
Akshay Datt, a serial entrepreneur having run ventures in Employability Training and hiring, is the host of "The Spotlight", presented by the Founder Thesis podcast. He has interviewed 500+ founders to date.
Connect:
Brijesh Damodaran: https://www.linkedin.com/in/brijeshdamodaran/
Akshay Datt: https://www.linkedin.com/in/akshay-datt/
Founder Thesis: www.founderthesis.com
Recommended
Transcript
Introduction and Motivation
00:00:00
Speaker
Namaskar. My name is Bresheesh, and I am from Arizona capital.
00:00:17
Speaker
Yes, tell me about becoming an entrepreneur. What was the journey to that?
00:00:24
Speaker
Yeah, fine. So, I did not want to go to the grave, not doing whatever I wanted to do. So, I didn't want to have a river. So, that was the only reason why I wanted. I said, let's take this path. And why wealth management? The wealth, again, the process of human nature, you know, what, you know, like, what, where I believed,
00:00:48
Speaker
I can ride maximum value, and I will enjoy what I want to enjoy, you know? Like professors, time comes to work. So every single day, every single moment, I'm enjoying. It all looks like a work, but it's like of playing the playground. We love sports, and we're a sportsman. So you just move that, and here you are making a difference in people's life, your life. And as you are working, or as you're doing, you're also having fun.
Early Struggles and Overcoming Challenges
00:01:18
Speaker
so so that you were You were a financial controller in ah an American company. ba has say you know what ah like Tell me the journey.
00:01:31
Speaker
like well ah just start gap case is start yeah First few sets of customers. case ai Oh, that's interesting. That was totally corporate and this was totally different. So when I started out, everybody even knows the difference difference between 7C, unit cap, cap, small cap, short term liquid.
00:01:59
Speaker
it which name they can up butta likeki soon So, you know, as in my full-in days and as a vegan professional, I had gone through numbers. So, numbers were something which was, you know, part of me. And that's all, you know, and then, okay, let's see, what it was capital, what was the capital? So, I wanted to do something wherein you don't need then that capital because then you have to at the bootstrap or the race and at that time when I was you know raising capital was much difficult or different I would say as compared to today so and I like the place that key by the force of elimination I found out so I as I said here I wanted someone to manage my personal well
00:02:48
Speaker
way back in 2023 and the only solution I was getting was insurance and insurance and insurance. I'm not saying insurance is bad, insurance is required, but that is not the only solution to create wealth and growth. So I checked with my peers, my CVS and this was a problem statement.
00:03:08
Speaker
So I said, you find someone who can speak their language and someone who understands the corporate world can work out and then break my homework. That's how I started. So the first six months I had zero clients and I had my
Client Acquisition and Persistence
00:03:25
Speaker
expenses to go. So I had taken an 18 month, like you go cold planning, I did, you know, kept an 18 month. Kapura culture, I live the same lifestyle, which I was doing a corporate life and yet you not allow Anything in my family, private sector, any formality manner. Yeah, so you need to have that mental strength. And again, I did not call any of my friends or family saying that, hey, folks, you know, this is something which I'm shuttered out. No, why don't you allocate it to me? I would say, why should I love it to you? Because you are a greenhorn. You don't have an experience. You're a corporate guy. So why should I give it to you? Sad.
00:04:06
Speaker
oh But some of them actually, you know, said key five, let's start. But having said that, the whole journey has been, you know, unknown folks. or folk who I got in touch in the late effort of my life, who stuck it out fresh first. And ah there were few who said, let's start. were doing what is dead, but Kia, since you're coming, you, because now I really need to walk on my way. So a
Investment Strategies and Client Relationships
00:04:37
Speaker
combination of all factors. So what is important as you start is you believe in yourself.
00:04:42
Speaker
Every single day, you give your best. And at some part of time, you know, a lot of serendipity, hard work all come together. ramgu So your way of earning was you were essentially like ah doing mutual fund investments for your clients and you would earn a percentage of the amount they invested, maybe like a one percent or something like that, one or two percent.
00:05:08
Speaker
So when I started to become one, so the rules changed.
00:05:17
Speaker
And as I quit the job and I started in, the rules changed more. So it was like I said, wow. And then 2008 happened. I said, Kefi, now everybody has buttons, even state, even slate. So you can show your difference in USB.
00:05:36
Speaker
So you took that, brought in a new thought process, shared the USP, and made investing easier and simpler for the investors to understand. So we have a something called a three-bucket strategy, and which is so simple that anyone can do it. Now, since anyone can do it, the human mind is structured towards complex things. We said, here, I have a three-bucket strategy.
00:06:03
Speaker
you know anything for 0 to 3 years you will not invest in equity or anything which can you lose capital but in 25 years you know put in you know more conservative instruments and 7 plus you can put in you know very aggressive kind of instrument so that gives charity this gives that clarity to anyone who can do things so our clients or investors today don't tell us what to do they only say no this is you know put in the first but that comes easier so We moved away from product being the solution to time So we didn't change anything. We only, you know, prompt in the engineering world. They ask burie me hello mar yeah yeah bro change yeah and right which i said And that has helped me a lot.
00:06:53
Speaker
oh any chances of, you know, miscommunication or happy understanding, it gets eliminated by this approach.
Adapting to Industry Changes
00:07:02
Speaker
And this is so elementary that we don't care. And we want everyone to know that. And having said that, you know, we believe that India, today has a lot more potential for, you know, the national instruments to come in and move forward because typically most of the investments were either in real estate or or in fixed deposits. So, the business of the castle can take you over the same point of time. Some of the locations can come into the national instruments and this can grow. So, you can still follow this.
00:07:33
Speaker
book and you said the the rules saying how were you earning then like was it but and so consulting and why is there any with so no it does always to andam i will refuse come did the na but So that is one reason where, you know, one area where one has the ecosystem needs to come into play. See, early stage, if you recollect, no deal about, I think it was 2008, you had an upfront commission. but So that means if you sell a product, well, then you get an upfront of 2% for 1% depending on work. That means a lot, you get upfront 2000, and then you get a trail, which can, again, can come upfront, say 1% or much more.
00:08:17
Speaker
Now, what happened was that a friend got became zero. So, first step one again became zero. So, that changes your cash flow. So, as I said, I say cash flow is important and certainly the cash flow, you know, becomes, you know, whatever you make the business plan, it is zero and you cannot recover it any how many manner, but that's all already changed.
00:08:42
Speaker
this bad They're called entry-lord. Exactly, exactly. This is called entry-lord. So the moment I became one, entry-lord became zero. I said, wow, I'll settle down in case more even steals. So I look i look i look at threat as an opportunity. So how do you convert a threat into opportunity? And then and then and make that opportunity as a strength. So that helped.
00:09:06
Speaker
so you have to respond to the ecosystem. We found that danger is only constant. And that's how we know. That's how we have evolved. Respect change, adapt to change, then evolve. yeah and And at the same point of time, your basics remain the same. But how you are able to evolve, adapt, and respond is the key. So the business was essentially structured as a distributor. And it has stayed that way. Absolutely. say etc See, if you say, technically, it has stayed that way.
00:09:40
Speaker
ah But on a more larger level, we call it we we can say like a multi-family offices. Because if we don't sell. We have customized solutions from that. So technically, yes, you are right. But in a more, ah well I would say, application manner, we are much more. yeah ah What I was wondering is that why you didn't decide to go and become a portfolio manager that PMS wrote No, so that's where AFs come into play over period of time. See, the thing is that you have to adapt and adapt and know when to get in. So if you get in early, then also if you're challenged. If you get in late, then also if you're challenged. Though, not that you want to get the timing right, but you also have to see that how is the financial regime of the economy coming.
Entering the Private Market with Oxano
00:10:33
Speaker
So I like the animal kingdom a lot. So if you look at animal kingdom, that is the issue of wild dogs is the highest.
00:10:40
Speaker
85%. So and know show if they want the hunts or pray 85% of the time, then they are bang on as compared to any other animals. So animal kingdom, the world of pedagogy has a lot of learnings. And can you use that and adopt that in your personal life? Why not? So it is free out there. That was the only thing which came on the plane.
00:11:06
Speaker
Okay. And ah like by, you know, first six months, you said that you were not able to raise any capital. Then how did that grow? Like year on year, how much was your ah capital that you were managing? So let me put it this way. Forget the capital amount. Let me put it this way. When you say the first six months, my young was, so was very low, next to nothing. It did not mean that I was not doing anything. I was actually meeting, talking, sharing, posting.
00:11:36
Speaker
No, and and that damn does no way in style of his blog ending on that side, right? So you are doing, and then both of you are also understanding the nuances, learning the final ones, you know, finding yourselves. All of that, you know, so a lot of hard work, you know, was being done, preparing yourself. Like, say, like someone said, no, saying gold ran only for less than two minutes. But for only that two minutes, the hard work, which you did, similarly, we also did a lot of hard work. And then finally, you know, folks said, this guy is not going like, oh, it looks like he's serious about what he wants to do.
00:12:13
Speaker
That's how it happened. So let's say, by the end of year two or the year three, hours earning whatever when I was I was my corporate life. And then slowly, you know it it grew. And for me, one man, army, or lone wolves, we have a team today who takes care of and manages the clients.
00:12:39
Speaker
How much do you manage to do for the wealth management business? Yeah, let me put it in a three digit million. So that's how we see numbers are, you know, are vanity. In crores, like two three digit crores you're saying? or How much more than that? So forty so but you know what has been kind, closer to that? So what has been kind? Amazing. amazing okay no But we still feel that we are still... so In terms of EU, it's an anti-game but also an indication of and of the trust people place. Other part is that we choose to work with home, share the similar mentality and we're not
00:13:22
Speaker
chase for the sake of chasing. so and But it's not a vanity game. Your yat take home ah amount is dependent on your AEM. But see, and at the end of the day, I have to enjoy working with it. When your phone call comes, I should have a smile, not a sound. So not you know that's that's how we look at it. If you have chased AEM, we don't necessarily have it. But we choose to work with them. We want to choose to.
00:13:50
Speaker
ah You know, what I want to learn from you is how did you acquire these plans because a lot of very intelligent people become wealth managers, but to reach this kind of scale which you have of almost 1000 crores is exceptional.
00:14:07
Speaker
How did you acquire it? It is not today. You see today is much easier or much harder depending on how. See, you just do the job, you know, that like, like I said, for six months, how do you work for clients? And the world of modern references is huge andbreak so ah show different it to you yeah okay yeah but early but and of families who trusted me and then they put in a word in that circle and then they put in the word of circle.
00:14:37
Speaker
And that's how we are growing. It's purely by, mostly by word of mouth, which mostly I word of mouth, is what, and then once a team came, he also did other activities, but has been mostly through reflexes and whatnot. And that is, I'm, she usually believe in it. That we word of mouth, Jai Ga? See, written returns is not the only factor, you know? In this, in the web management space, you have to get comfortable.
00:15:03
Speaker
We have to trust. Trust is the currency. Our returns is part of it. It's not the only thing. So let's say we never said anyone that wants you exit terms. If anyone said, OK, I'm getting this, can you get me more? I think that's the wrong statement you have, because one will never be satisfied with the returns, because there will always be someone out smart, out strong, the return pie.
00:15:27
Speaker
So we said, you what is your need? And how can we ensure that, you know, on the casual part, whenever you want, how sure you want, look at that. And you should be comfortable. What is what? So that's why the three-bucket strategy, which you talked about come coming to play, and that is the guarding factor. So that's where, that's how that's a good thing. Okay. Essentially, like, a balancing the risk and return for your clients based on their appetite. That is the the secret too. See, many a times you have to ask the right questions. So today in JAD JPT, you are another LLM year or two from engineering. It's basically giving you no doubt. So it is like, since I've been able to work in corporates, large corporates, large multinationals, how do you connect the drugs?
00:16:16
Speaker
and how you can enter doch And then you ask the right questions. And don't post things. One common thing which all our clients or founders would say is that we never post things. And so many eight times, they also say that, but don't do it.
00:16:32
Speaker
So, it is both ways, right? So, we never push plans or, say, March, oh, yeah, please give me nothing of that. So, every recommendation or act, it's purely based on the need. Based on that, only we, that's where, you know, we have, we have had stable growth, per se. Okay, got it, got it, got it.
Oxano's Investment Structure
00:16:57
Speaker
So, you know, let's talk about Oxano now.
00:17:03
Speaker
As a wealth manager, you were essentially investing in public market, right? Like listed businesses. What made you want to go towards the private market or like venture funding or private equity or like all the different ways in which but basically Oksana is like in private wealth, private investing space, unlisted space of investing. ah What made you want to diversify this?
00:17:33
Speaker
See, as we're, as we recollect, you know, Flipkop was really acquired by one mud. Then, a lot of, you know, local, informal people, a lot of the world was coming in. So a lot of action was happening. So, I saw for, you know, one of the clients said, Kia, Kia orun. But I'm to try this, try this. So we tried to share. Then they said, you know, okay, let's invest. Oh, you say, invest? And said, no, why don't you invest?
00:18:01
Speaker
Then that's how we say, wow, because we are doing a lot of late work. And we he also have the list on. That's how the whole. This is an extension of like, and so as an asset allocator, right? We sell three buckets of energy. So, this would come in the third market. So, let's do. So, this was like nowhere to enter the system that we will realize. If anything happens, if the average means happen early, then it is, it carries combination of lugs and pretty and right and right place. So, keep that in mind and move forward and that's how the, that's how we started out and that's how the journey has been.
00:18:38
Speaker
Okay. And you started Oxano as an AIF alternate investment fund? No, so that happened 19, but before that we had to reduce SPVs and now as an AIF, we have got to wear an angel and a category two. That's all. Just help me understand these structures. yeah What is s SPV? What is AGL? What is category two? Like, you know, for an outsider who wants to understand how these things are structured or what are the regulatory norms here?
00:19:10
Speaker
So, AF is like ordinary investment fund and there are what categories as in category one, category one angel, category two, category three. Now, typically what happens is if typically it has a foreign investor who puts money in an AF. But the menu which you can invest or a commitment is like critical acts which is in category one. in so ah So, here you go have network of group roles.
00:19:40
Speaker
Uh, and this was besides your, your whole, you know, does it should have an experience in the space. Oh, and then they much money cannot happen in a company. It is more than 10 units or for your company. And it is close to basically no early stage investments, which is what, on yeah. So it's quite more work shape.
00:20:03
Speaker
Then you get a category 1, which says you have a million commitments, I want this crore, and you have no choice of either chance. It's like a blank pool, whereas a category 1 intern can decide whether you want a war or not, based on the opportunities it's been shared. In a category 2, it's like much wider, similar as commitment is a crore in India.
00:20:24
Speaker
But there can be various types. It can be dead. It can be, you know, CCPLs. It can become a original. ah CCPS and leadership of the market. What is the CCPL?
00:20:37
Speaker
So they're not this is my compulsory framework about preferences, the instrument which comes into place. So that can be there. And so that gives you know that flexibility. Then we've got a category three, which typically it's fully invested in public markets. So if it can be ah one step and a picture of funds where children should ask for various categories.
00:21:01
Speaker
And
Investment Criteria and Strategies
00:21:02
Speaker
the fund manager has to follow what is then the category of years of the in category of the AIF, you don't even have a choice and you can vote who or you wish to be. The fund mandate is that great. So that's where it comes into play. So let me give you an example. like can When it's the AIF was started and predict twelve in in December of 2012, the investment commitment in one was less than three weeks in growth.
00:21:30
Speaker
Today we have, you know, crazy, you know. Typically, you know, category two contributes, if I was interrupt this, right? It's very good, very regulated, well, of capital coming in. See, one more thing is that pollution has, as I sculpt, it's anti- over that which we've written last five years. In fact, every quarter, every month, SAP is getting over the retention fees and much better for the investors. I think, you guys, the most of every your good market is many fund growth. Yes. Okay. and Category three, I guess, is what like a portfolio manager, a PMS company would have a category three license.
00:22:20
Speaker
See, anyone can have it, but the like the PMS is like, in PMS, it started out as little as 10 lakhs and then 25 lakhs and also 15 lakhs. Whereas in VIF, it's like, you know, it's a completely different license. It's a different, unable, different license.
00:22:36
Speaker
ah Okay. Got it. Okay. So you you said for the first two, three years, it was s SPVs. So SPV means each time you invest in a startup, you create a LLP or something.
00:22:50
Speaker
so but of your but your bang on Okay. And that LLP pulls the money and goes as a single entry in the capital. So which companies did you invest in, in those two, three years? So we put money ren v on yeah report in in Tranbook. No, we will get a little bit more about these, you know, going forward. So this one, the e-rest, or the e-trends. And the early stage, like pre-seed, seed,
00:23:21
Speaker
Still, let me put this, we always had a thesis in the sense that, you know, we work money in running enterprises. So, never at that ancient stage or modern day, I think, in which state and all its post revenue. So, post revenue typically means that there is already someone at the cap table. So, close seed is by me. Okay, got it. And and ah why this thesis?
00:23:51
Speaker
Because we think we understand this only. The other part is that the ministers were coming in. They were emerging ministers. They were very conservative. They wanted to participate. But they also said, you're losing capital. No, it's not something you're comfortable with. It's fine. They know you have a long gestational period. You're OK with it.
00:24:17
Speaker
But it was in capital something which they didn't, they were not comfortable with. So that's, so, and again, in our case also, so if you want to lose capital, then we want to, so that's how the whole thing is. Okay. And 2019, you created the Angel Fund? Yeah, I couldn't have done that. Okay. How much is the EU for that Angel Fund?
00:24:42
Speaker
So we increase the fund size. So it's the last close still to that in play. So if I'm going to find and I think we can still take a few variants, we still have a six, eight months. quite absolutely Okay. Okay. And in different ways that, uh, the, uh, LPs here, uh, can choose which investments they want to participate. They have an option. Right.
00:25:08
Speaker
and Okay. Okay. Got it. Got it. And then you did the category 2 fund. When was that? Yeah, that was in 2022. Okay. And what was the size? We said, you know, that's an option where you can invest in growth opportunities and also in strategic or pre-op opportunities. So we said, can we do that? So that's a, you know, so that's a 15 million fund, which we haven't yet.
00:25:38
Speaker
And how much is close in that? We still have 3% workload. OK. OK. Got it. Got it. OK. How have but you evolved as a private market investor?
00:25:54
Speaker
yeah You've been doing public market investing for the decade three prior to this, and then you got into private market investing. So you know what has been your ah learning in private market investing? What works? How to decide which ah startup to back? and Because you know the data is lot less. When you do public market investing, there is so much data. You have managed heat and as financial statements for many years, and so on and so forth, which you can analyze and then decide. But how do you invest in private market
00:26:26
Speaker
OK, so we said, you know, can we look at emerging Americans? And then can we look at whether it's a category creator or not? And then sit to understand the promoters and that d the the entity, what very difference and and see, you know, and when and where exit can happen. So
Public vs. Private Market Investing
00:26:52
Speaker
it's already very easy. So many times and You know, what should happen in the ecosystem will change at all. And how the team, how the promoters respond, you know, do that from the place. So a lot of things is not in our hands. So let's say we don't like it. We can't exit because there's no liquidity. So you say, you know, exit event will happen, but then it will happen. with thelap and So it's,
00:27:18
Speaker
So, it's it's like the Johari window, unblown, unseen. I'm sorry. um But having said that, if the the but entity is disrupting and doing something, that is where you want to come into play and that is where it is. So, I have to read every message when I'm still learning. I will not say that.
00:27:44
Speaker
See, so the public markets are private markets. We don't give much spirit to luck. We don't give much debt to cut thousand equity. All of this comes into play. So you should be operating in knowing what you want to do and following the land-machine process. And then you move forward. So that is the right answer.
00:28:08
Speaker
like The one thing which we did was in 20, you know, when there was highest of soap out there, we did not money at all. We actually we sat silent for nearly 9 to 10 months. So, you will say it that as an AIF, you're obligated to invest. You're right. But I'm going to be able to invest at any price. i kind i And I carry a future responsibility.
00:28:38
Speaker
So that's very important. So from that aspect, you know we did, and then once we found that are right. So let let's look at one thing. When Zomato started operation, there are two, three companies were still there. simmer in that way But only Zomato came to Zomato as they are.
00:28:58
Speaker
So, similarly, we said, let's follow the Octopus approach. So, when you have investments in Fintech, you have an enterprise, you have in comes your products, having Octopus approach helps. What is an Octopus approach? See, if you see, Octopus has multiple heads. Multiple limbs. Multiple limbs, right? And the core, it is an Octopus.
00:29:27
Speaker
So, we said, keep fine if you identify and say a fintech, can we look at investing in different parts of the limb so that it will get connected? We are not putting all money in the same thing. ah We are putting money in the entire a body. So, if you look at the bond healer, Akshay is a person, but Akshay has a head, she has eyes, she has nose. Can we do that?
00:29:53
Speaker
It can be a good, it can be right, it can be wrong, but if you know why you are entering, work if you know you are entering that becomes very important. And how exists can happen, can happen, could happen, and you are willing to wait for 5-7 years, yeah and also willing for getting pivoted, going through the ECG graph, ride the journey. So, when you get an exit, you will not enjoy it, but you will enjoy the journey more. Also, when you get an exit and you are all out of it, then it's like history. So, how do you continue to present? That journey is... and most important part is when I tell our nurses also like,
00:30:42
Speaker
When the exit happens, as in when the exit happens, also where time exit happens, so your IRL should be much more than what the public markets, you know, without the liberal backlash funded business wants. So, time to la vida, like in agarap, the IRL sujada, because that would be the the premium I am paying for loss of fi liquidity. So, so breathe.
00:31:05
Speaker
yeah okay okay okay so The difference between public investing and private investing is public investing has liquidity. You can sell and get your money back whenever you want to. But in private investing, you have to wait for an exit event. so Therefore, the premium for liquidity loss is needed. no no in In private also, yeah and not even data.
00:31:26
Speaker
Yeah. Okay. Right. You know, data government you know and it's next it's ma level. So, you know, that is, that is never a dull day in private markets. Some will appear for companies must bring fantastically well. Some will bring fantastically not so great. Some will bring okay. Okay. And then, you know, then, you know, so you have ah exhilaration a are you being all of that you know but those let's say the mix for the first half hour i'm having great call
00:32:00
Speaker
but next hour ah half hour yeah i may not have a great call but that is other days so you need to have themer person the right place What are some of the ah investments the the major investments that you have done?
00:32:15
Speaker
Select the job sector because you know, then if I take names and that will be like, you know, say this is my favorite child. But having said that, ifhan listen if not everything is in play. See, we, you know, certain sectors as in ah today, what is like quick commas and e-commerce, you know, started that much earlier.
00:32:37
Speaker
ah that we talked about Finn Tedfern that he's doing, you know, she was in bed, so Nothing more deep, direct deep, but also, you know, we like that space. ah Geospatial is also there. So what are you saying here on the world? I'd say no. Like, our training, which I got, when I was with my child at MG, you've worked in media sectors, and the students survived from it. They might die still.
00:33:05
Speaker
heart of but and two lineov as ti to you the workings of a thing. So the basic remains the same. The only thing is that how you are able to understand the industry. And if you apply that. So that's the approach. We have our own playbook, which we have more, you know, analytics or associate, of chip or even we have got other And so when your process is in place, it is much easier to run operations.
Sourcing and Evaluating Investments
00:33:39
Speaker
and census so we do no We are not the least hopeful. In the fund, we had a compliance officer arrive from Desi, whereas it only became mandatory by SEBI all year, but it takes up too much time.
00:33:54
Speaker
ah Talked about you know governance at person today. We had right from days you learn the right world No one asked in the question, but I asked you I said cute is my money I didn't know the if it's an author you give that they're smart this over So and weeks you know big phase not backlash. Do you know you're not done that? I'm what I come to be I said money is money you know and let's let's have an act shake and this over and You know, in some of the companies, in the portfolio for the promoters, do tell great, you know, thanks for it, because as you have had in the next chance. So, you know, so can we sort of, as we see, right, as we, as we can imagine things, can we have the strengths of that? I have had a corporate experience looking across the military. So, I leveraged that. Some of my team members have an entrepreneurial experience, I leveraged that.
00:34:45
Speaker
ah to mouth what slope ti and then ts his face only but's bad We have today, you know, have, you know, what in the very sea, no one didn't see you to our team, you know, so they can talk about him and they talk about strategy. We talk about your distributions of those can and also, you know, get into play.
00:35:04
Speaker
So we are not a typical VC matrix, they are more like, you know, whatever small it is, done tough business but same part of and data numbers are important. And if you know the data numbers, what you have, then you're also plan vector, surprises will count no negative it surpriseers we come. will come, let's say.
00:35:26
Speaker
Okay. How do you source deals? You know, like in terms of, because the best deals are ah like, there's a lot of competition for the best deals. So. Best deals are never in the horizon. Best deals get lost before it becomes a deal. You get to know the biggest post. Yes. Yes, yes, yes. Absolutely. so ah ah So today it's like, you know, people know us, people know our sectors, they know our workers. When you need to come to that, you know, we'll come inbound. Many small, the you know, high bankers share, keep their hair cute. Many of them, if we find something good, we have ourselves, you know, get in touch. So it's like, it's like all of it, you know.
00:36:11
Speaker
no Others would come in like, you know, some someone who's working in the corporate wants to start out that we believe in that person and take a five-bit score. The group and in interest so on. So, you remember, you think about it and it comes into play. so don So, we look at the horizon first. mag ge yeah also thickness and then if they like so better In fact, the very first investment which really ti on b zero or something like it was authority in ourva society and said great its one check and that's so that of the first deal we did was And then we're saying to the folks, yeah, and this is what we're doing. So then they were thinking too much or a year this has never happened.
00:36:55
Speaker
oh As a boss, we are doing it. Whatever the specific size, we had. And we did it. On hindsight, everyone says, oh, that was a great one. But when you're actually doing it, not many wanted to be part of it. But then when the saw did it, then the next issue didn't work. And plus, in 2017, we did a million bound. Which confused us?
00:37:24
Speaker
Uhh, I'd like to put it, this is in the mobility space. It's in the mobility space and, you know, a high lot of challenges and it was the promoters, the resilience which made the period come through and and recently we have raised more than 15 million year and a half back, you know, so we got some part exits, we still continue to appear in decent size shareholder and we see that. That's what I said.
00:37:53
Speaker
in the life of investment, if you're able to generate more than what the benchmark generates, that is important. So so you have to go through that ECG graph. What's your advice to founders ah when it comes to raising funds from OXONO? Like, you know, you look, how do you evaluate ah and and that whether this is an investment you will do or not. And, you know, therefore what is
Advice for Founders and Valuations
00:38:18
Speaker
your advice to them? How should they reach out? What state should they be at?
00:38:23
Speaker
Whatever else you look at. Taking. Is there an emerging mega trend? Is it going to be a category creator or an architect creator or a market buyer? Then and know what is the screen of the game? Are you looking at selling it all for what you wanted to create and you see? And and most importantly, there's a wavelength. Both of us will enjoy the journey.
00:38:55
Speaker
bay yeah but so but i made when they got gar wrote to well but be little diinia Someone can become 0 to 100 and back to 0. Someone can become 0 to 100 and the basics? right and no the link to yeah all order the best When you think, get the basics right, what are the basics? 0
00:39:28
Speaker
category created have a yain category
00:39:42
Speaker
with nine women, that means that you make a challenging one. No, that is still in the way that things can happen. Expect the local land. Expect the unable kingdom. Expect the loss of biology, you which is there in play. ah if yous you know like today If you then you need to have an endless line of capital so you order to continue that. Then you remain the last man standing. If you should don't have that kind of capital in play, then look at a university which is there in play.
00:40:15
Speaker
So, in a red option, it should be in blue option, or you can create a blue option. So, having said that, that's how the whole thing is done. Like when every, like one of the parameters which we say is that for owning one rupee, how much is spending? If you're owning a rupee and they're spending 100 bucks, no, we're not in that business. We don't want to be in that business. Now, you may have a valuation, but is the valuation realizable?
00:40:43
Speaker
Like someone says, you know, let's say, as a VC says, I've got five unicorns in a portfolio. Now, fine. and Is it realizable? If it is not, then it's better. Let's be realistic. So that is how. So today, DPI is the new bike.
00:41:01
Speaker
so what is so hold on here DPI is the new Mike. like so Mike is um likei is multiples of invested capital andpit distribution and of investments. So when you say, yeah what does that mean in simple terms? How you 100 become 300? That means your Mike is 3x.
00:41:26
Speaker
good When you say distribution, DPI is led. What do you have in the company? How much are paid back? If you have paid back, not out of 100 rupees, which are paid back Then you are depressed three times. So, a DPI is what is realized. Whereas Mooiq is what? You have allusion shows multiples. So, today, you know, people say, what is the exit? That's why DPI is a new wife, I say. So, simple.
00:41:57
Speaker
ahcps some cloud tell we see ne and So that is the burn. That is the heartbreak for the heartburn. You not find us in the media saying that we raised X amount by a month. Many times we say, you know our portfolio has a raised undisclosed amount. So we are told, he said, tell them, want you to get more PR. So they are not for PR. We want the dhanda, the business to talk about itself and be their own PR. Is it possible?
00:42:29
Speaker
Why not if you go to the business grade? So, we would allow when our investors made. That is the sign. So, but the next two, three quarters will be drawn towards that, how we can get that so that it can come.
Adapting and Evolving in Business
00:42:43
Speaker
So, that is the sign.
00:42:46
Speaker
This is the basic framework, but but if you say, what is advice? Simple being in a good No, no respecting the numbers and economics, not buying growth, looking at, no, having a forward vision. So when I say forward vision, I'm looking at fire region. Because I myself and say that, give it, no, then yeah have we are looking at it. We say, give it to your data.
00:43:12
Speaker
but managed ten person great but If you file or did that is the excel extraopolated you don't know what can happen, then that's your thing. So, you know, and that's a good vision. they clear can give next eighteen agreements robot And then you go through that path, you manage something which we really visited, or were, and you know, be a friend. And if you say something, but again, not to put, you know, good money after bad money, something cannot work.
00:43:38
Speaker
Or if something has to be visited, you know, the easy happen, the promoters are afraid and say, this is not what we would expect. No, investors, including market investors, accept it because the um they the show. They know much more having the, you know, on the yes of a crowd. But if the promoters had not shared that,
00:44:04
Speaker
Instead of today, we are sitting on a sit-down, it's unrealized. The compute will have mortality. So how do we do that? So that is very important. Ask, help, seek, it's very important. And having been, whichever, today, you believe just don't even do things. I said, no, I'm still learning this thing every day. Like today, an 18-year-old kid can use chat GPT-4 much better than any of the 30s of our viewers.
00:44:34
Speaker
And if and when they are going to enter the top market or become under four or five years, ah you need to go case at their level or slightly higher else, you know, you will be as a dinosaur. So in order to be very clear, as a cockroach, the animal can be done, he is a local animal. But I say cockroach as stills, right from the time even dinosaurs were there, dinosaurs had gone away, but cockroaches have continued.
00:45:00
Speaker
So, you know, you can be a bead or you can be bamboo, but depending upon the decision situation, it should be either of it. So, that is where I would always say adopt, spawn, you know, and change is the only constant. I have changed what my entrepreneurs are doing, you know, maybe they are adopting things and that is the only approach.
00:45:23
Speaker
which if you are all going to be the same and should be the same, but you know how are we able to adopt and respond and move? That is the only way in which we are made relevant and grow.
00:45:38
Speaker
Okay, amazing.
Conclusion and Gratitude
00:45:39
Speaker
Thank you so much for your time, Bridget. It was a real pleasure. No, can say thanks sir chair father for for having me. Thanks for this free, without creating conversation which you had. And I give you all the best for this. What you're doing is great. You're getting ideas out there. Cheers to that. Thank you so much. Cheers.