NEW DELHI: Alternative investment platform Grip on Wednesday announced the launch of a startup equity investment product in collaboration with Securities and Exchange Board of India (Sebi)-registered Alternative Investment Funds (AIFs). Users will get to invest in the startup ecosystem with investment as low as ₹2 lakh.
Grip will provide curated deals to individual investors under which they can invest alongside venture capital funds and strategic investors in startups. “The platform will provide the detailed necessary information (such as company profile and performance, timelines, key investment highlights and risks, etc.), based on which its users can make an informed decision,” the company said in its statement.
It added that it is only an investment medium and does not provide any advice in relation to the listed opportunities.
“With more than a 250,000-strong investor community and partnerships with more than 80 companies, we find ourselves in a unique position. We can successfully play the role of a discovery and technology platform for such opportunities for individual investors that could generate attractive returns. At the same time, we can closely monitor the listed opportunities on a month-on-month basis and evaluate their performance and help them connect with AIFs to raise their required capital,” said Nikhil Aggarwal, founder and CEO, Grip.
Grip will enlist only those deals on the platform wherein the funding round is led by a reputed venture capital fund or strategic investor who carries out diligence and agrees on a valuation; Grip’s users participate along with such an investor and the fundraise is executed through a Sebi-registered AIF.
“We are happy to partner with Sebi-registered AIFs which help high performing companies in raising capital and provide our users access to unique opportunities to participate in such companies’ growth plans. Continuing to ride on last year’s momentum, the startup ecosystem mopped up record-breaking funding deals in the first quarter. We hope to provide our retail investor community to be a part of this growing ecosystem with our new product,” said Vivek Gulati, Co-founder, and COO, Grip.
The first opportunity on the platform made available to small investors was food robotics company Mukunda Foods, which recently raised funds from Zomato.
“My suggestion would be that everybody should allocate some part of their investment portfolio to alternative investments whatever they are comfortable with, whatever their risk appetite is but before you can run you must walk.” said Anupam Mittal, founder, People Group and Angel Investor during the launch of this feature. “There is an incredible future in Indian entrepreneurship, and I think angel investing is one way to participate in that. And that’s what I do, I do no public investing, I do 100% of my investing in early stage companies, yes I know its high risk but I am not recommending that for everyone.”