Faad Network launches an accelerator program to guide and support early-stage startups

• ByStartupStory     |    November 12, 2022

“90% of startups in India fail within the first three years of operation because of two reasons – lack of mentorship or guidance, and they do not have adequate funding. So we are here to reverse that, to provide them with the right direction in order for them to succeed,” said Vraj Mehta from Faad Network in an exclusive interview with Startup Story. This very statement is the motto of Faad Network’s new accelerator vertical.

“Finshastra” – Faad’s new accelerator program

Faad Network, whose portfolio companies include Grip Invest, Kerala Banana Chips, and Blu Smart, has designed an accelerator program titled “Finshastra” to train early-stage startups and help them scale from 0 to 1.

The current cohort aims to shortlist five early-stage fintech startups and take them through a twelve-week play-designed curriculum, along with one-on-one mentoring from over 15 mentors, which includes unicorn founders, CXOs, and industry leaders, such as – Alok Bansal, co-founder-of PolicyBazaar, and Sorabh Aggarwal, co-founder of AngelBay. At the end of the curriculum, Faad Network will host a VC demo day for the shortlisted startups.

During the initial batch, the network would invest Rs 25 lakh each in these five startups on a convertible note round.

Mehta added, “They are in the process of selecting and finalizing the startups. More than traction, the network is emphasizing on founder capability as their parameter for evaluation. Another important criterion for judgment is the coachability of the founders.”

Why is the accelerator focused on fintech?

Vraj Mehta informed, “We planned to choose the fintech sector as the Indian fintech sector has had a prominent route in recent years. The evolution and rise of the fintech sector occurred due to the major cultural shift and the overall evolution of the Indian financial system, including a favorable regulatory landscape, financial inclusion, the introduction of UPI, easier line of credit, and so on.”

The fintech market is approximately expected to have an increment at the rate of 31% over the next five to seven years. The Indian fintech sector also has the highest global adoption, reaching about 87%. The Indian startup ecosystem is the third largest in the world and is expected to turn into a $1.3 trillion industry by 2025. 

What makes Faad Network’s accelerator program unique is its sector-specific approach. This enables them to deliver not just personalized mentorship tailored to the sector’s unique needs but also to develop a curriculum that will be of maximum advantage to startups by providing them with specific mentorship from industry leaders. In the learning process, a sector-agnostic approach might be overly broad and not benefit the startups in certain cases. 

Covid-19 and the future vision

India has the largest working population and a sizable middle-class community, ensuring the inevitable rise of the Indian startup ecosystem. Covid -19 accelerated the startup sector’s growth, which would have taken significantly longer otherwise. Over the previous few years, the market has seen a rapid expansion however, the market seems to be in a correction phase.

Regarding their future goals, Mehta mentioned that Faad plans to launch a structured series of cohorts focused on nurturing budding startups in the sunrise sectors of the Indian Startup Ecosystem.

About Faad Network Pvt. Ltd. –

The angel group was founded in 2015 by Karan Verma and Dinesh Singh. In their initial years, they began by offering various startup services such as legal, content services, and public relations, as well as business paperwork and co-founder matchmaking. Aditya Arora joined the firm in 2016 as an intern and was appointed CEO in early 2019.

In 2017, Faad Network made its first investment in the online eyeglasses marketplace ClearDekho. However, no equity transactions were involved, and it took some time until it matured into a full-fledged angel network in 2019. It generally invests $50,000 to $500,000 in seed and pre-Series A stage firms. It takes an agnostic approach to sectors but focuses on fintech, online gaming, healthcare, and wellness. So far, the network has made around 60 early-stage investments.

If you are interested in applying, click on the following link:

https://bit.ly/finshastraapp

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