Ratan Tata-Backed UC-RNT Fund, Which Was Set Up In 2015 Is Winding Down

(MENAFN- Live Mint) Ratan Tata-backed UC-RNT fund, which was set up in 2015 in partnership with the University of California to back Indian startups, is in the process of winding down.

The fund, set up in 2015, was initially envisaged as a $300-million fund at a time when the University of California was seeking to invest more actively in the Indian startup ecosystem. However, things changed soon after several senior-level exits at the fund, a Forbes article said in 2018. Thereafter, the fund's investments began to be managed by Kotak investment Advisors, the alternatives arm of Kotak Mahindra Capital, with the intention of an eventual exit. Besides the university's capital, Tata had invested in the fund through various vehicles.

“The fund's investments will be managed through an orderly exit. As regards the future plans, we are not aware of the future plans or fund raising in this regard,” said Srini Sriniwasan, managing director of Kotak Investment Advisors Ltd.

Some of UC-RNT investments include Ola Cabs, China's Ant Financial (Alibaba's payment arm), NestAway, LivSpace, Curefit, MSwipe, Axio Biosolutions and digital media publication YourStory, the Forbes report said.

UC-RNT has a fund life till 2032, but it appears unlikely that it will be revived significantly in wake of Tata's demise on late Wednesday.

RNT Associates and University of California did not immediately respond to requests for comments on late Thursday.

In its 2023-24 annual report University of California's investment arm UC Investments described its meeting with Tata as“serendipitous”, at a time when the university was seeking to expand its India investments.

“Jagdeep Singh Bachher (UC Investments' chief investment officer since 2014) was introduced to the legendary Indian industrialist Ratan Tata. Mr Tata, a savvy businessman and an investor known for his professional and personal integrity, extolled the country's entrepreneurial ecosystem,” the UC Investments' annual report for 2023-24 said.

Bachher personally had been worried about India's ability to return money as well as currency issues at the time. But UC Investments has since then invested in Indian fixed income market as well as Indian public market index, the report said. It is also invested in India through its partner Blackstone Group, the report adds.

“If it were not for the UC network, we would not have met Mr Tata and we likely would not have been in India right now,” Bachher says in the university's annual report.

The UC-RNT Fund also ended up helping startups meet other Tata leaders in India and overseas, Axio's founder Leo Mavely said on social media platform Twitter on Thursday. Mavely described his last meeting with Tata five years ago when all of the fund's investee companies made day-long presentations, with Tata asking“short but sharp questions in between”, Mavely said.

Axio is an Indian medtech platform which designs novel solutions for wound and surgical treatments.“Tata always asked the tough questions with a charm that nobody could match. He had a great in-depth understanding of healthcare and spent an entire day with a group of investee companies to understand our path forward,” Leo Mavely told Mint on Thursday over a phone call.“UC funding changed a lot of things for us as a company and we were able to explore new horizons and helped us meet people across the globe. I'm indebted to UC's team and Tata for having believed in us and I'll forever remember for his integrity.”

Kotak's Sriniwasan, who interacted with Tata in the capacity of the UC-RNT Fund, remembers him as someone who had great conviction on the young Indian entrepreneur.“He was extremely approachable... he was a big believer of technology but never solely looked at things from a commercial lens,” Sriniwasan said.

“The first thing that comes to my mind is if you are a young entrepreneur and are looking for a person to make sure that your moral compass is right, then Tata is the one. That's something he was very clear about. He never cared about failures,” Sriniwasan added.

Tata, who donned multiple hats, was one of the most prolific angel startup investors and had invested in many companies. Several prominent figures lauded the profound influence he had on the startup ecosystem. In addition to UC-RNT, he also advised several prominent venture capital firms including Kalaari Capital, Chiratae Ventures and Jungle Ventures.

“Our association with him was truly enriching as he went beyond just being a mentor or an advisor. He was one of the few people who could walk the talk,” said Amit Anand, the founding partner of Jungle Ventures.“He truly helped us connect the dots and build something that stood on strong fundamentals. He was less about crunching numbers and more about building values,” he added.

On Wednesday, Chiratae Ventures co-founder and chairman Sudhir Sethi also told Mint that Chiratae executives spent a few hours with Tata every quarter for six years after 2015, where Tata would advise on strategy, scale, and team building.

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