Astarc starts seed fund to diversify business

BENGALURU: Business conglomerate Astarc Group is launching a seed fund Astarc Ventures. The group which has a net worth of over $400 million (Rs 2,545 crore) is launching the fund as a strategy to diversify the group’s businesses and build companies in emerging verticals.

The Mumbai-based firm that has presence in industries like automotive, retail, agriculture and IT is starting with a $2 million (Rs 12 crore) seed fund and aims to increase it to $10 million (Rs 63 crore).

"Our aim is to invest in tech enabled companies in emerging industries such as mobile payments, digital healthcare, Internet of Things, 3D printing and data analytics," said Salil Musale, executive director of AstarcVentures. Astarc Ventures is already in talks with about four companies that are addressing pain points in industries like retail and healthcare.

Musale said the seed fund will be run professionally by a team and will have the highest levels of corporate governance. "Our aim is to actively engage with portfolio companies wherever needed so that they can scale faster without diluting the vision of the entrepreneurs or micromanaging the business," said Musale.

The group which began its operations in 1983 in a niche sector of automotive decals and graphics later diversified into other industries and now has a workforce of over 1,300 people globally.

A number of corporate leaders are launching their own funds and backing young companies as the country witnesses an entrepreneurship boom.

NR Narayana Murthy, co-founder of Infosys, has set up a venture capital fund called Catamaran, Ranjan Pai, CEO of the Manipal Education and Medical Group, along with former Infosys director TV Mohandas Pai, has launched Aarin Capital, a private equity fund with a focus on life sciences, technology and internet sectors.