In October 2024, India woke up to the news that Indian industrialist Ratan Tata had, unfortunately, passed away. Tributes poured in from public figures and other people who asserted how Ratan had changed their lives and what they admired about him.
As the former Chairperson of The Tata Group and Tata Sons, Ratan was someone celebrated for his philanthropic work and being adept at business. Many consider Ratan to be the one steering The Tata Group to make it a global conglomerate. There’s a sense that Ratan is associated with the corporate space and entities, like TCS, Tata Motors, Tata Steel, Tata Power and more. But, did you know about Tata’s contributions to India’s burgeoning startup ecosystem?
Here are 5 ventures you probably didn’t know Tata has backed:
#1: Paytm
In 2015, Paytm was just a mobile commerce company before it evolved into a whole digital ecosystem. At that time, it was reported Ratan Tata had invested an undisclosed amount in Paytm. Paytm founder and CEO Vijay Shekhar Sharma had remarked that there was no better advisor than Ratan to help build what Vijay considered to be India’s most trusted mobile payment and commerce platform.
#2: Ola
Along with Paytm, in 2015, Ratan, also, was said to have bought a stake in the ride-hailing company Ola. This was for an unspecified amount, but it was said that the stake was in Ratan’s individual capacity. Furthermore, in 2019, Ratan was said to have invested an undisclosed amount in Ola Electric Mobility. It was reported that this was part of the startup’s Series A round of funding, which was said to have been done to support Ola Electric’s ambitions to bolster EV development in India.
#3: Snapdeal
In 2014, Ratan was said to have invested in e-commerce marketplace Snapdeal, whose founder Kunal Bahl was, recently, announced as a Shark on Shark Tank India.
This was, also, for an undisclosed investment, which was said to be at a time when Snapdeal was down to its last $100,000 in the bank. So, according to Kunal, this was seen as a validation of Snapdeal’s journey.
#4: Tracxn
In 2016, Ratan was said to have invested in data analytics company Tracxn. Like other deals, the stake and deal size was undisclosed. According to founder Abhishek Goyal, he belonged to a generation whose formative years were spent observing Ratan’s way of building companies.
#5: Lenskart
In 2016, Ratan was said to have invested about ₹10 lakh in the eyewear company Lenskart. According to Lenskart officials, Ratan’s approach was said to be more of a mentor or an advisor than a financial investor. In 2021, it was said that he had exited Lenskart. A report outlined that Tata’s stake in the company would be taken over by an existing investor of Lenskart. It’s said that the return on investment for Tata ranged from about 5x to 28x.
So, it seems like Ratan Tata didn’t just invest in companies, but also, in ideas, people and India’s startup ecosystem. Even as someone who invested in these companies in his 70s and 80s, he seems to have been able to see the potential of the technology within these startups. There’s something to be said about someone who deals with the established putting his belief in young entrepreneurs and their fledgling ventures. Maybe, there’s a lesson there to have the conviction of investing in talent, determination and potential, regardless of experience, age or background.
Which other startups are you aware of that were backed by Ratan Tata?
