Mukund Jha, co-founder and former CTO of Dunzo, is in advanced discussions to raise Rs 50-80 crore (approximately $6-10 million) from Together Fund for his new generative artificial intelligence (Gen AI) startup, according to sources familiar with the matter.
The fundraise follows Jha’s departure from the cash-strapped hyperlocal company Dunzo in October 2023, as reported by Moneycontrol. This move aligns with a broader trend of top executives from established startups launching their ventures, a shift that appeals to both operators and investors. Experienced leaders often prefer having a substantial stake in their own company rather than being minor stakeholders in a larger, mature startup.
One source stated, “Jha is building a Gen AI company that aims to automate much of the quality assurance (QA) processes for businesses. This initiative represents an intersection of AI and SaaS.” QA checks involve creating and running tests, identifying errors, and providing feedback to ensure that a final product meets a company’s quality standards.
Jha has reportedly engaged with Y Combinator, although the current status of those discussions remains unclear.
Mukund Jha and Together Fund did not respond to Moneycontrol’s queries.
Jha, who was with Dunzo from 2015 to 2023, previously worked at Google in New York and has founded two companies: Wisdom.ly, a group video platform for virtual meetups and conferences, and Habet, an intelligent goal-tracking platform. He is raising funds as Dunzo struggles to secure a round to maintain operations amidst dwindling business prospects.
Together Fund, established in 2021 by Freshworks’ Girish Mathrubootham, Manav Garg of Eka Software, and Shubham Gupta, formerly of Matrix Partners India, initially raised $85 million in its first fund and expanded to $150 million in its second fund, announced in 2023. The fund has invested in over 20 companies across horizontal SaaS application areas like recruitment, sales intelligence, and marketing, as well as vertical SaaS companies in healthcare and new categories like cloud for connected devices.
