Tomorrow Capital aims to invest 100 crore in the emerging start-ups. The company is a $100 million investment firm, based in Mumbai. It is currently looking for promising start-ups for strategic funding in the coming 12 months. The firm endorsed by the Lodha Group with Abhinandan Lodha, has forwarded the amount of $100 Crore and is determined to bring the next unicorn to the market with their distinguished business plans. Tomorrow Capital is a great firm looking for strategic foundations.
Instead of funding a plethora of ventures, it is focussed on building few brilliant platforms. Beyond the capital investment, it brings great proficiency into the table in domains such as distribution, brand creation,finance, and marketing. They ensure to build a great relationship with the entrepreneurs, so that later can get mileage out of their expertise while focussing on their end goal. According to Tomorrow Capital, they have almost ventured Rs 100 crore over the past 3 years in its first four investments. Apart from the previous records, they have also held in reserve next Rs 100 crore for the further capital funding over the upcoming 12 months in the early stage enterprises.
The business venture typically financed almost 7 to 30 Crore in each of their businesses, with a significant investment in 4 of the major startups. These entrants include Bonito Designs, a home interior design and execution firm in Bangalore; ZenoHealth (before Generico), a pharmaceutical firm based in Mumbai; Multiliving Technologies, a tech-based business model venturing in real estate and rental properties in Mumbai; and an edu-tech startup. Tomorrow Capital also announces a withdrawal from one of its large funding.
With its proposal to provide further funds to the rising ventures, Tomorrow Capital has made its clear exit from further investing in ZenoHealth. It was in late 2019, when Tomorrow Capital along with angel investor Gagan Goya, and Whiteboard Capital provided $3 million for the pharmacy retail venture ZenoHealth (earlier Generico). ZenoHealth is an all-purpose medicine organisation, founded by the alumni of IIT Bombay, Girish Agarwal and Siddharth Gadia in Mumbai in 2017.
ZenoHealth’s director Sidharth Gadia appreciated the alliance with the venture capitalist such as Tomorrow Capital. He affirmed the substantial momentum provided by this partnership, and how it actually helped them to sustain and thrive in their business model. Along with the funding, mentorship in this collaboration undeniably aid to the accomplishment of their ultimate goal. Rohini Prakash, co-founder and CEO of Tomorrow Capital explained the withdrawal in the statement as, “ We invested ₹13 crore in ZenoHealth during its pre-Series A round, when it had just pivoted to an offline store model and started its first few stores.
It was a mix of equity and debt funding which provided the necessary capital to allow the business to scale rapidly and was also beneficial in their run-up to the next round of funding. While we made 7 times returns, we are very proud of ZenoHealth which has grown 15x in terms of topline, number of stores and valuation.” Though it was the first exit of Tomorrow Capital, both firms have eventually gained much potential with the partnership. ZenoHealth successfully hitched almost $16 million of equity funding, with a $14m Series A round which is led by Lightbox.
ZenoHealth is a potential player in the pharmaceuticals, currently planning to expand from 60 stores to 150 stores by the year 2021. There was no announcement with regards to its other major investment in Bonito Design and MultiLiving Technologies. Director Prakash further added that they are eyeing up a new set of startups. They have made it clear that they are scrutinising the enterprises in the consumption based sectors, with heavy interest in healthcare, education and the home interiors. They are expecting almost 2-3 sponsorship within the next few months. The fund has made clear to invest its capital on new emerging consumer possible alternatives in the wide range domains such as healthcare, tourism, interiors, education, foods and beverages,clothing and sports and fitness.