Godrej To Invest INR 100 Cr In Consumer Startups

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Godrej Consumer Products (GCPL) will invest INR 100 Cr to anchor Early Spring, a new INR 300 Cr early-stage fund, set up by Spring Marketing Capital. The fund will invest between INR 5 Cr and INR 20 Cr in startups between the seed and pre-Series A stages, focusing on categories such as home and personal care, health and wellness. GCPL will also offer its expertise and experience to help portfolio founders. Godrej is reportedly looking to create a portfolio of 15-20 startups with the venture fund.

GCPL’s investment comes at a time when funding raised by Indian startups has seen a sharp decline, however, many startup funds have either been closed or launched, signalling better times ahead. The funding raised by Indian startups has seen a sharp decline in the first quarter of 2023. According to Inc42’s ‘Indian Tech Startup Funding Report, Q1 2023’, Indian startups raised only about $3 Bn in the first quarter of 2023, down 75% compared to the year-ago period. This decline could be attributed to various factors, including the ongoing pandemic and global economic slowdown, which have impacted the investment sentiment. That’s a positive sign for the startup ecosystem in India. The launch of new funds indicates that investors are still interested in supporting startups despite the recent decline in funding. It also suggests that there are promising startups in the pipeline that are attracting investor attention. Overall, these developments bode well for the future of the Indian startup ecosystem.