Japanese multinational mobility manufacturer Suzuki looks to back early-stage startups with a venture investing vehicle- Next Bharat Ventures with a total corpus of Rs. 340 crore or around $40 million.
The investment arm is not to be a typical corporate venture capital (CVC) unit but to be set up as an independent subsidiary with the local team being in charge of the investments as stated by Vipul Nath Jindal, the former head of Suzuki’s Innovation center in Japan. Jindal, as the Managing Director and Executive of Next Bharat Venture, will be the head of the impact fund set to be based in Gujarat International Finance Tec-City, (GIFT) as the city offers special tax incentives, lesser regulatory requirements that offer operational flexibility and lower operational costs.
The unit will begin with its investment in October 2024 through a residency program similar to that of Antler and YCombinator with a special focus on firms that aim for social impact through their business. Jindal stated that the firm wants to be the patient capital for the investors in the difficult sector of business with the inclusion of businesses such as agritech, supply chain management, financial inclusion, and rural mobility that benefit the farmers, artisans, gig workers, and waste management workers of the Rural and Informal Economy. The Residency Programme aims to make 20 investments a year with a cheque size range of 1-8 crores over the next 3-4 years.
He added that the firm plans to provide the participants flexibility as startup founders need to move around often. Moreover, unlike the norm of 10+2 years, the investments will have a 15-year horizon. As Alternative Investment Funds (AIFs), the funding arm will be acting as funds of funds (FoF) and invest in smaller funds as a Limited Partner (LP) in addition to direct investments in companies.
