Betting On Founder-Space Combinations Mohit Sadaani, co-founder, The Moms Co and an angel investor is bullish on the India story and is happy to see some great businesses being created right now
By S Shanthi
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Mohit Sadaani, co-founder, The Moms Co will continue to focus on businesses with strong fundamentals and a highly felt need from customers. "There's a lot of great businesses being created with this ethos' and I've had the opportunity to invest in a few over the last few years," he says
While he is optimistic that we are at the peak of the pull-back cycle and VCs and investors will come back in force into strong businesses over the next few months, he is conserving cash to invest only in the best of companies. As with any investor, I get to meet a lot of really high-quality businesses and founders but don't have the capital to deploy in all of them, he says.
I try to take bigger bets on the founder-space combinations that I have a higher conviction on. The outcome though, is never clear before a few years into the cycle.
He believes that businesses that have shaped up strongly over the last 12 months, showing a movement to strong P&Ls and consistent demand are hot right now, demanding the most investor attention. He also predicts bridge rounds to continue for a while, especially where founders and businesses have done a good turnaround or consolidation so far. "They could be either to wait for valuations to expand again, or to buy more time for the teams to complete their turn arounds," he says.
While he believes that focusing on unit economics and profitability should have been the norm, he also thinks that with a lot of investor money, sometimes the priority shifts to first capturing the largest market share possible. "This balance between growth and profitability is always cyclical, and we are deep into the profit-focussed side right now," he says.
Overall, he is bullish on the India story and is happy to see some great businesses being created right now. "I'm prioritizing investments inSaaS, climate tech, consumer brands and internet and AI enablers," he says.
FACTSHEET
- No. of startups invested in 25
- No. of exits: 0
- Focus sectors: SaaS, climate tech, consumer brands and internet and AI enablers.
- Ticket Size: 15-25L per company
