Top Executives Together Float VC Firm PROMAFT Partners, Rs 1000 Crore Maiden Fund

Raghav Bahl, former investment head of Alibaba Group India, and Soham Avlani, former partner at 9Unicorns (now 100Unicorns), have launched PROMAFT Partners, a new venture capital firm. The firm has announced its maiden fund of INR 1,000 Cr aimed at investing in startups that have demonstrated a strong product-market fit. Bahl and Avlani have taken on the roles of founding general partners at the VC firm.

PROMAFT Partners’ fund is sector-agnostic and intends to invest in 10-12 startups initially, with plans to make two to three investments annually, as stated by Bahl. The VC firm disclosed that its fund has garnered support from prominent family offices in India, along with backing from Vijay Shekhar Sharma of Paytm and founders of leading startups such as Zomato, PharmEasy, Livspace, VideoVerse, and Browserstack. The founders of these startups will also serve as mentors to the portfolio companies of the fund.

“We encourage our entrepreneurs to prioritize sustainable growth, focusing on core business fundamentals,” Bahl remarked. He emphasized that the firm’s prudent investor base allows entrepreneurs the advantage of building for long-term success.

During his tenure at Alibaba, Bahl led investments in notable startups including Xpressbees, BigBasket, Paytm, Ola Cabs, and Travel Triangle. Avlani, meanwhile, spearheaded investments at 9Unicorns in companies like Rezolve.AI, Hoopr, LiquiLoans, Baaz Bikes, and Castler. Leveraging their extensive investment experience, the duo aims to support startups in crafting effective go-to-market strategies, refining business strategies, and securing talent and financing.

They pointed out that the current phase presents a compelling opportunity for investment in the Indian startup ecosystem, describing it as a period ripe for ‘double trophy’ investments. This perspective stems from the ongoing correction in startup valuations amidst what they refer to as a funding winter. In 2021, Indian startups collectively raised $42 Bn, a significant increase from $11 Bn in 2020, but funding dropped sharply to $10 Bn in 2023 and totaled $5.3 Bn in the first half of the current calendar year.