Indian Founders Turn Major Fund Sponsors: CaratLane’s Mithun Sacheti, Binny Bansal Back Xeed Ventures

• ByStartupStory     |    April 15, 2024

India’s startup and technology landscape is witnessing a significant shift as prominent founders transition into becoming major backers of domestic funds. In a notable development, Mithun Sacheti, the founder of CaratLane, and Binny Bansal, co-founder of Flipkart, have emerged as anchor Limited Partners (LPs) in Bengaluru-based Xeed Ventures, an early-stage fund spearheaded by Sailesh Tulshan, according to sources familiar with the matter.

The Rs 600 crore fund, formerly known as 021 Capital, has also secured backing from Premji Invest as an LP. Bansal, known for his involvement in numerous funds, and Sacheti, who recently clinched a significant deal by selling his stake in CaratLane to Tata group’s Titan, are actively deploying capital across various investment vehicles. Sacheti is a general partner and LP in Singularity Growth, a fund supported by seasoned capital markets investor Madhu Kela.

“Bansal and Sacheti are the anchor LPs in Xeed which was relaunched as Tulshan’s independent fund a few months ago. 021 was perceived as being an extension of Bansal’s family office…,” said a source familiar with the development.

Xeed Ventures, a play on the word “seed,” aims to invest below $1 million per venture and intends to make 20-25 investments from the fund, with a focus on enterprise, B2B, and fintech sectors. The fund has already amassed 70% of its targeted capital and has initiated new investments. In addition to Bansal and Sacheti, several other founders have also contributed funds, according to sources.

Xeed has already finalized investments in ventures such as Charcoal.inc, a direct-to-consumer brand, and Kredit.pe, a financial services startup.

Sailesh Tulshan, Binny Bansal, Mithun Sacheti, and a spokesperson for Premji Invest did not respond to queries from ET.

021 Capital, launched in 2019 by Tulshan, initially managed the personal investments of Sachin Bansal, unrelated to Binny Bansal. Premji Invest and Sacheti were backers of 021 Capital Fund-I. Inspired by Peter Thiel’s philosophy on innovation and entrepreneurship, some of 021’s notable investments include Brightchamps, Spotdraft, Increff, and Bharatagri.

Apart from Bansal and Sacheti, other influential founders and operators have also ventured into backing funds. This includes Nikhil Kamath of Zerodha, Sujeet Kumar of Udaan, and Kalyan Krishnamurthy of Flipkart. Some founders, such as Snapdeal’s Kunal Bahl and Rohit Bansal, have transitioned into full-time investors after starting with angel investments a decade ago.

Follow Startup Story