Investing in the Next Generation of Iconic Brands: Fireside Ventures The Bengaluru-based firm invests in diverse categories, including food and beverage, personal care, health and wellness, and lifestyle, aiming to identify high-potential startups.
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At Fireside Ventures, Dipanjan Basu and his team's investment thesis centered around the evolving needs of modern Indian consumers. They focus on early-stage consumer brands that leverage digital channels and direct-to-consumer models.
"Our strategy is to identify high-potential startups at the seed and series A stages and provide them with not only the capital but also the strategic support necessary to scale effectively," says Basu, Co-founder and Partner at Fireside Ventures.
The Bengaluru-based firm invests in diverse categories, including food and beverage, personal care, health and wellness, and lifestyle, aiming to identify high-potential startups.
Since its inception, Fireside Ventures has invested in 45 brands across three funds. Notable names include Mamaearth, BoAt, Kapiva, The Sleep Company, NatHabit, Pilgrim, Slurrp Farm, Traya, Frubon, Rozana, Newme, and Supertails.
Basu emphasises that they made 18 investments from their first fund, which was worth USD 50 million, and got two unicorns, Mamaearth and boAt. That fund has returned a significant amount of capital and ranks among the top-performing funds of the 2017 vintage.
Their second fund, closed in 2020 with USD 120 million, facilitated 14 investments.
"From Fund III, we have announced 13 investments and plan to ramp up our investments in the health segment. Till now, approx 50%+ of Fund III has been committed, and we are looking forward to investing in 12–15 more brands," adds Basu.
Commenting on the Fireside's investment outlook for FY 2024–25, Basu says, "The Indian consumer economy is at an interesting inflection point. We now have 150–200 million online shoppers, which is expected to grow to 400–500 million in the next 5 years, and a new set of Indian consumers will drive consumption growth."
According to Basu, this growth is set to disrupt existing sectors and create new opportunities, particularly in Gen Z-driven fashion, beauty, consumer health, and science-led food and beauty brands. Fireside also sees potential in new-age shopping platforms and the rise of virtual consumption.
The firm claims that it not only provides capital but also offers strategic support through comprehensive playbooks that guide startups in brand building, go-to-market strategies, supply chain management, technology, and governance.
"These playbooks aid businesses in scaling more quickly and efficiently with less capital. For instance, the 14 businesses in which we invested in Fund II during 2020 and 2021 have expanded 8X+ since our investment was made during the previous three years, and the majority of these businesses have positive unit economics," Basu highlights.
In addition to their strategic investments, Fireside is committed to building iconic and responsible brands that prioritise the planet, people, and customers.
Facts:
- Portfolio Size: 45
- Average Ticket Size: USD 1 Mn to USD 3 Mn
- Exits: 10+
- Total Assets Under Management: USD 400 Mn
