- Oyo rooms co-founder Ritesh Agarwal launches venture capital firm for new startups.
- The firm will invest in the bracket of $500,000 to $5 million in startups that can create “disproportionate value.”
- Snapdeal co-founders Kunal Bahl and Rohit Bansal have also set up a similar fund for their investments
According to the company’s website, Ritesh Agarwal partnered with the COO of OYO’s coworking business Innov8 Gaurav Gulati.
The VC firm promises to invest in the bracket of $500,000 to $5 million in the early age startups that can create “disproportionate value.”
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“We believe that the long-term environment will always be favorable for making value-add investments in companies with proven unit economics and high potential to scale”.Ritesh Agarwal
The VC firm will back startups that have annual revenue of $1-$10 million with a growth of over 20% year-on-year and will help them in improving their business model. The firm will back startups in three sectors — consumer, technology, and leisure infrastructure.
Besides just backing startups, the firm will also focus on improving the business model, business growth, and deliver better risk-adjusted returns. The first and the latest investment will be headed by Innov8’s former COO and Purist cofounder Gaurav Gulati.
According to the report, the company was registered last year with Agarwal and Thomas Hufnagel as the two shareholders through RACo Holding Company. But, Ritesh Agarwal got the complete control of the company after taking over a 100% stake in RACo Holding.
Furthermore, Snapdeal co-founders Kunal Bahl and Rohit Bansal will also invest early-stage startups in their capacity.
Moreover, Ritesh Agarwal is now working for the recovery of OYO rooms (by ensuring customers about their health safety at OYO) and other early age startups by launching new venture capital firm Aroa ventures, based in Singapore.