Founded in 2006 by Prashant Choksey, and Pravin Chakravarty, Mumbai Angels is a leading global investor platform providing early-stage funding or seed funding to startups.
The company that was acquired in January 2023 by Bain Capital-backed 360One (formerly called IIFL Wealth Management) is a breeding ground for ready-to-scale incubated businesses and plug-in businesses for large corporations. The company has so far invested in more than 220 ventures with the latest being in technology platform business Safeearth as part of their seed VC on June 6, 2023. The co-investors in this deal were Anthill Ventures and Third Derivative.
Investment Strategy and Services Offered
The Mumbai-headquartered company is known for its in-depth research and due diligence before investing as well as exiting from a venture. The investing platform has outlined an investment algorithm as the first filter for curation. The factors considered in this algorithm include:
- Target Audience and Market Opportunity
- Product Market Fit
- Traction or Growth so far
- Defensibility (IP/Big Clients)
- Scalability of Model
- Unit Economics
- Co-investors
- Founders Pedigree
Mumbai Angels runs a co-investment program wherein it partners with like-minded individuals, family, networks, and investor funds to facilitate faster access to resources for growth. Mumbai Angels evaluate 8000-10,000 companies every year but select only 80-100 for investment.
The company’s MA Multiplier program offers support and growth enhancement services like cloud services, payment gateway, marketing services, escrow, and HR tech services to the companies in its investment portfolio.
Investments
The global investing platform boasts of global investor base of 720, up significantly from 450 in 2020. The investment company’s total assets under management stand at $130 million at the end of FY23.
| Investment Details | |||
| Financial Year | Funds Invested | Number of Deals | Average Size of a Deal |
| FY23 | Rs 80 crore | 66 | Rs 1.2 crore |
| FY22 | Rs 100 crore | 56 | Rs 2 crore |
At a time when the startup segment is facing a funding winter, Mumbai Angels invested over Rs 80 crores via 66 deals in FY23. The average deal size during the year was Rs 1.2 crore. This compares with Rs 100 crore invested across 56 companies in FY 22 when the average deal size was Rs 2 crore.
The company also exited six companies during FY23. The investment breakup of the company shows that the education segment received the most funding (15%) followed by food and beverages (12%), technology (10.6%), and consumer and finance (both 9.1%). Other prominent segments that received investment include the electric vehicle industry, marketplaces, content, logistics, legal, and HR.
Mumbai Angels invest through three funds:
- A Side-Car Fund- This pooled investment vehicle that makes investments by riding alongside another investor was launched in 2012. The fund allows investors to participate in follow on investments in Mumbai Angels’ portfolio companies or series A funding rounds.
- An Angel Fund with a corpus of Rs 1,000 crore and a green shoe option of Rs 200 crore.
- A Venture Capital Fund with a corpus of Rs 300 crore and a green shoe option of Rs 200 crore.
Mumbai Angels intend to invest in around 500 startups in the next couple of years while expanding its focus on supporting the growth of companies that form part of its portfolio.
