Ratan Tata's Investments: The Startups That Caught His Attention

The startup landscape is like a roller coaster— always on the crazy moves. Dreams are shaped, risks are taken, and innovations are always on the edge.

It’s almost correct to say that a successful startup is, in short, “risk meeting rewards.” As of June 2024, there are over 1.4 lakh recognised startups in India.

However, there is one name in the business world that has inspired many entrepreneurs— It’s Mr. Ratan Tata!

And when Tata decides to invest in an idea or a company, it’s more than just capital; it’s like a vote of confidence and a strategic bet on the future.

Get ready to explore how Tata’s investments have helped turn bold dreams into success stories.

Startup Investments by Ratan Tata

By providing not just financial support but also strategic guidance and market access, Tata plays a crucial role in empowering startups to grow and succeed.

Here’s the list of the startups where Tata has put its money:

1. First Cry
2. CarDekho
3. Lenskart
4. OLA
5. Tracxn
6. Paytm
7. Cure.Fit
8. Dog Spot.in
9. Bluestone
10. Urban Company
11. Upstox
12. Snapdeal
13. Zivame
14. CashKaro

First Cry

Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry has emerged as India’s one of the largest destinations for baby care products, operated under its parent company Brainbees Solutions Ltd.

It has redefined how parents shop for their little ones by offering a comprehensive range of high-quality products, from diapering, feeding and nursing, skin and health care essentials to toys, clothing, footwear, and even fashion accessories.

It operates through a hybrid business approach that combines online and offline retail.

• Its strong e-commerce platform targets tech-savvy modern parents.
• While its 400+ physical stores, including 350 franchise outlets, ensure it reaches even those who prefer traditional shopping.

The company’s overall growth trajectory attracted Tata Group in 2016, which invested ₹66 lakh to acquire a 0.02% stake in the company.

This strategic investment, albeit small in comparison to others in this list,reflects Tata’s belief in FirstCry's potential and its mission to make parenting easier and more joyful.

Get real-time updates on Brainbees Solutions Ltd.’s balance sheet, reports, and stock performance exclusively on Finology Ticker.

CarDekho

Founded in 2008 by Amit Jain and Anurag Jain under the umbrella of GirnarSoft, CarDekho has become a go-to platform for almost all automotive things in India.

GirnarSoft (its parent company) is a prominent software and web development service provider that‘s the mastermind behind CarDekho’s online platform. The company has attracted investments from renowned names such as Ratan Tata, Sequoia, Google Capital, Tybourne, and HDFC.

Coming to CarDekho, it simplifies the car-buying journey with its app’s unique features that make it stand out among its competitors, which are:

• 3D views of cars: You can visit the model page of your chosen car and give your phone a gentle shake to step into its 3D world.
• Feel the car: You can tap the screen to start the car and listen to its sounds as you press down on the pedals.
• Compare models: You can go to the ‘Compare’ tab on the app, select up to four models, and get a detailed comparison including specifications, equipment, and even photos of the cars’ key features.
• In-depth reviews and features: You can compare cars from the same segment and similar price ranges to get in-depth analyses. Also, you can know about your preferred car’s strong and weak points.
• Fastest breaking news: The app instantly updates you with the latest global developments and even notifies you about breaking news.

Overall, it covers a wide range of car brands and models available in India for its services. It’s already partnered with 5,000+ dealerships and sellers nationwide.

In 2015, Ratan Tata invested an undisclosed amount in the company.

Despite facing strong competition from platforms like Cars24 and CarTrade, CarDekho is expanding its product portfolio through strategic Mergers and Acquisitions (M&A) such as:

An M&A like the above might help it maintain and further enhance its market position.

To understand how strategic mergers and acquisitions can affect a company’s market standing, check out this article.

Lenskart

Founded in 2010 by Peyush Bansal, Sumeet Kapahi, and Amit Chaudhary, Lenskart has transformed the eyewear market (25% as of FY23) in India with its innovative designs and customer-centric model. Headquartered in Gurgaon, Haryana, it offers a diverse range of classic and trendy eyeglasses, sunglasses, lenses, and more.

In FY24, 58% of the company’s revenue from goods sales came from India, with Japan as the second-largest market contributing 14%, followed by Singapore, Taiwan, Thailand, and other regions.

It attracts customers with its simple tagline, “starting from ₹500,” making eyewear affordable to the masses. Moreover, its Omnichannel or Phygital model smoothly combines the convenience of online shopping with the experience of offline retail.

Lenskart's New Delhi facility produces 3 lakh glasses every month, while its automated factory in Rajasthan has an annual production capacity of 5 crore glasses.

Maybe you don't know this but, Lenskart is India’s first and only brand to use robotic techniques for delivering glasses with precision accurate to 3 decimal places.

Also, the company upsells premium lenses like anti-glare or blue light protection, providing an elevated eyewear shopping experience.

These strengths captured Ratan Tata's attention, leading him to invest an undisclosed amount in 2016 in the company's growth.

The company’s competitors like Titan Eye+, rely heavily on imports (~60%). However, Lenskart has developed in-house production and tech-driven operations. This could be one of the factors attracting Ratan Tata's attention to invest in its own group's competitor.

Below is the import-export distribution percentage of Lenskart:

Want to know in detail about Lenskart’s success story? Read it here!

OLA

Founded in 2010 by Bhavish Aggarwal and Ankit Bhati, OLA has revolutionised transportation in India. Headquartered in Bengaluru, Karnataka, it offers other products and services such as:

• Ola Outstation: For intercity travel (includes cab services and self-drive cars)
• Ola Rentals: Provides flexible hourly cab rentals
• Ola Pedal: Bicycle-sharing services
• Ola Corporate: For companies to track their employees’ travel expenses

The company further diversified its services, such as Ola Auto and Ola Bike. This has helped it to address a broad range of transportation needs and potentially increase its revenue streams.

With a 50% market share (as per Uber’s 2020 report) and a presence in 250+ cities, OLA has established itself as a dominant player in the mobility space. Its network of 25 lakh driving partners ensures reliability and reach, making it one of the preferred choices for commuters.

The company made a bold entry into the Electric Vehicle (EV) segment by launching Ola Electric two-wheeler. With a focus to accelerate India’s transition to sustainable mobility, Ola has established itself as a major player in the EV market.

Ratan Tata recognised Ola’s potential in this space and in May 2019, he invested (an undisclosed amount) in Ola Electric Mobility (OEM). This move will most probably benefit OLA's commitment to driving more innovation in EV technology.

Aware of Ola Electric’s IPO and recent layoffs? Know about these in this article.

Tracxn

Founded in August 2012, Tracxn has emerged as a significant player in the market intelligence segment. It offers a global market intelligence platform to customers on a subscription basis.

Tracxn provides valuable insights into startups and other unlisted companies, making it easier to get hard-to-find information in a simple and efficient way.

The company serves a variety of critical business needs:

• Private companies’ data for deal sourcing
• M&A opportunities
• Deal diligence
• Private market analysis
• Tracking emerging themes

In 2016, Tracxn gained notable support when Tata invested an undisclosed amount. This shows that the company is gaining the attention of big market names due to its potential and innovation in the private market intelligence space.

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Paytm

Incorporated in 2010 as One 97 Communications Ltd. (its parent company), Paytm has become a household name in India’s digital economy, with its tagline “Paytm karo”.

From simplifying digital payments to offering financial services and marketing solutions, Paytm has redefined convenience for consumers and businesses. It provides services such as:

• Payment facilitator services
• Facilitation of consumer and merchant loan distribution
• Wealth management
• Digital products
• Ticketing business
• Services for telecom operators

Paytm’s presence was amplified during the 2016 demonetisation, becoming the go-to cashless solution.

• The platform grew from 12.5 crore wallet users (before demonetisation in 2016) to 18.5 crore users within 3 months.
• By 2017, it had reached 28 crore users, including the smallest villages in India.

Its user-friendly interface made it accessible across diverse demographics, regardless of digital literacy levels.

Also, its unique all-in-one approach combines a variety of services from digital payments to insurance— into a single app. With this, Paytm has enhanced users' convenience and loyalty.

Finally, its growth story gained a notable boost with a personal investment (~1 crore as per some sources) by Ratan Tata in 2015.

By introducing new features like the Soundbox, Paytm continues to address merchant and consumer needs, ensuring smoother transactions between them.

However, when Reserve Bank of India (RBI) banned its Paytm Payments Bank in 2024, its market presence has dropped drastically. Read the complete story of this restriction on Paytm here.

Meanwhile, its competitors such as PhonePe and Google Pay, are consistently growing their market shares as shown below:

Curious to know more about Paytm’s business model to understand its revenue streams and profitability? Continue reading in our article here.

Cult.fit (Earlier Cure.fit)

Established in 2016 by Mukesh Bansal and Ankit Nagori, CureFit is operating to level up the fitness industry with its holistic approach to health and wellness. CureFit’s offerings are divided across two brands:

• Cult.fit: It provides group workouts, online classes, sports facilities, and personalised solutions at fitness centres and gyms.
• Cult.sport: Sportswear, versatile home workout equipment, bicycles, and nutraceuticals come under this.

Partnerships with brands like HRX (Hrithik Roshan's fitness brand) and integration with platforms like Apple Health and Google Fit are enhancing its appeal among the tech-savvy audience.

Even its phygital strategy has combined physical gyms with digital fitness classes. During the pandemic, the company quickly scaled its digital offerings and got prepared for market changes before traditional fitness chains like Gold’s Gym.

In 2021, Tata Digital, a wholly-owned subsidiary of Tata Sons Ltd., recognised CureFit’s potential and invested ₹546 crore.

As of now, Cure fit’s revenue comes from different streams, such as fitness, food, and healthcare. Notably, fitness alone contributes 64% of its total operating revenue.

Dog Spot.in

Founded in 2007 by Rana Atheya, DogSpot.in offers a variety of high-quality pet products, making things easy for pet parents across India.

It focuses on providing pet essentials through its online stores by offering:

• Biscuits & Treats
• Grooming Products

With rising pet ownership and increasing awareness about pet wellness, the company is serving the needs of India’s pet-loving community. In 2016, Tata even invested in it (in an undisclosed amount) for future operations.

If you own a pet or are planning to and are confused about the cost of maintaining one, this article can help you understand it.

Bluestone

Founded in 2011 by Gaurav Singh Kushwaha, BlueStone has established itself as a prominent name in India's jewellery industry.

With a presence across 80 cities and more than 200 stores, the company is redefining the jewellery shopping experience for men, women, and kids by selling products of diamonds, gold, platinum, gems, and pearls.

Its products include:

• Earrings
• Chains
• Bracelets
• Rings
• Watches

BlueStone’s revenue turnaround is due to its omnichannel approach. By combining a strong online presence with the presence of offline stores, the company ensures convenience and a personalised shopping experience for every customer.

In FY24, its operating revenue reached ₹1,265.80 crore, a considerable rise from ₹770.7 crore in the previous year. Simultaneously, its losses reduced to ₹142.2 crore, compared to ₹167.2 crore a year earlier.

In addition to securing investments from Tata, BlueStone attracted ₹550 crore in funding in 2023 from prominent investors, including Nikhil Kamath, Ranjan Pai, Amit Jain, Deepinder Goyal, and 360 One. This round of investments brought the company's net valuation to nearly ₹3,652 crore.

Interested in knowing more about this kind of business news? Finology Insider has got you covered. Check it out and stay updated about the biz world.

Urban Company (earlier Urban Clap)

Founded in 2014 by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra, Urban Company has grown to become a major name in the home services industry. It currently operates across 6 cities/regions: NCR, Bengaluru, Mumbai, Chennai, Pune, and Hyderabad.

The company offers a wide range of home services, including:

• Beauty treatments
• Haircuts
• Massage therapy
• Cleaning
• Plumbing
• Carpentry
• Appliance Repair
• Painting

With its focus on achieving standardised services, it has become a highly customer-centric business. This has allowed the company to build a loyal customer base and get a good number of repeat orders.

In 2018, Ratan Tata made an investment in the company, the amount of which remains undisclosed. The company has also raised close to ₹3,696 crore (taking 2024’s currency exchange rate) to date from marquee investors such as Tiger Global, Dragoneer Investment Group, and Prosus Ventures.

Overall, despite facing tough competition and limited initial funding, Urban Company has eventually emerged as one of the category leaders and consolidated its position in the market.

Upstox

Founded in 2009 as RKSV Securities by Ravi Kumar, Raghu Kumar, Shrini Viswanath, and Kavitha Subramanian, Upstox is a discount broking firm in India that offers a variety of trading services including:

• Trading
• Investing
• Learning about the stock market.

In 2016, Ratan Tata invested in Upstox by acquiring stakes (1.33%) in the company. And he earned a whopping 23,400% return on his investment when Upstox bought 5% of the holdings as buyback. As a result, he holds 95% of his stake in the company.

After he joined the company as an investor, Upstox gained significant credibility across India, providing the much-needed boost for its growth.

Snapdeal

Founded by Kunal Bahl and Rohit Bansal in 2010, Snapdeal was one of the country’s earliest unicorns. The gurugram-based ecommerce company sells a variety of products at affordable prices, including:

• Fashion wear
• Home decor
• Kitchen appliances
• Electronics
• Cosmetics

In 2014, Tata invested in Snapdeal, providing crucial support that helped the company sustain its competitive edge in the rapidly growing e-commerce sector.

Zivame

Founded in 2011 by Richa Kar, Zivame is an Indian online lingerie retailer that spealises in women’s intimate wear. At present it has also marked its presence with its offline stores, and expanded its product portfolio by selling:

• Sleepwear
• Activewear
• Winterwear
• Shapewear

In 2015, Ratan Tata made an investment in the company. Although the invested amount was not disclosed, his involvement in it played a key role in improving Zivame’s technology and expanding its customer base.

CashKaro

Founded in 2013 by Swati and Rohan Bhargava, CashKaro operates on an affiliate model, providing users with cashback and coupons for over 1,000 partner websites, including Amazon.in, Snapdeal, Paytm, and Shopclues.

Ratan Tata invested in this startup in 2016, during a period when there was uncertainty about the direction of the business model.

It’s important to note that Ratan Tata was also a member of the advisory board at Kalaari Capital, a key investor in CashKaro.

The Bottom Line

The Indian startup ecosystem holds great promise with numerous opportunities, but it also comes with significant challenges that require strategic thinking and strong support systems.

Mr. Tata had been actively investing in startups, recognising the transformative potential of innovative businesses. But that alone doesn’t guarantee success for any startup.

So startups, beware!

Be prepared for the inherent risks and competition in the dynamic environment of business.

What do you think are the biggest roadblocks for startups in the Indian business ecosystem? And how can they be addressed?

Share your views in the comments below! If you found this info helpful, don’t forget to like the post!

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*Disclaimer: The stocks, companies, and policies discussed above aren't recommendations from Finology Insider and shall not be construed as a replacement for professional advice. Consult a professional or conduct the necessary research before making investment decisions.