ValuAble: The Venture Debt Fund Fueling Growth and Innovation in India’s Startup Landscape
CXOToday has engaged in an exclusive interview with Mr. Rahul Gupta, Founder & Managing Partner, ValuAble
- Can you explain in brief how you started ValuAble and how has been the journey so far?
ValuAble emerged from my 17-year banking experience, during which I noticed significant gaps that needed addressing while balancing my personal and professional situations. It became evident that there was a need to blend profitability with purpose, leveraging partnerships to bridge market voids and contribute positively.
This realisation led to the birth of ValuAble, with a vision to generate sustainable profits and make a meaningful impact on the ecosystem. The journey with ValuAble has been nothing short of a rollercoaster ride, much like any founder’s experience. It’s been filled with thrilling highs, challenging lows, and constant learning curves.
However, what keeps us going is our daily reflection on our mission and conviction in our purpose. The journey’s validation from investors and team members to partners and mentors reinforces our belief that we are on the right path.
- What are some major initiatives that ValuAble Partners has already taken in the field of Venture Debt, and what are its future plans and intentions?
ValuAble has spearheaded several major initiatives in venture debt, focusing on building strategic partnerships and offering unique value propositions to portfolio companies. One of our significant achievements has been establishing partnerships with banks, allowing our portfolio companies to access debt at a blended cost of capital, a first in the venture debt landscape.
Our future plans revolve around developing ESG (Environmental, Social, Governance) partnerships. These partnerships will enable our portfolio companies to assess themselves on the ESG scale from the outset, positioning them to raise funds from Development Financial Institutions (DFIs) and other socially responsible investors.
- Your views on How Venture Debt is Taking the Lead Over Equity in Shaping the Funding Landscape
The venture debt market has witnessed significant evolution over the past decade, thanks to the contributions of established players. This evolution has brought depth to the market, with a business model continually evolving and adapting to meet the changing needs of startups.
Venture debt plays a crucial role in shaping the funding landscape by providing a cushion for startups. However, equity funding remains essential, especially during a business’s initial stages.
The expanding number of venture debt investments highlights its growing importance in the capital ecosystem, showcasing its role as a vital component in the funding wheel. In the end, I would like to highlight Venture debt and venture capital work within the funding ecosystem, which are important wheels of our capital system. Both support ambitious entrepreneurs in bringing their visions to life.
- How do you assess the current state of funding for MSMEs and what advice do you have for entrepreneurs looking to secure financing?
Over the years, MSMEs have increasingly prioritised growth and profitability, understanding the opportunity costs associated with taxation and valuation. This realisation stems from robust capital markets, driving founders to seek avenues that optimise their upside potential. The emergence of new funds, particularly those focused on MSMEs and led by government fund-of-fund initiatives, indicates a promising trend.
This trajectory suggests a deepening and strengthening of funding support for MSMEs, empowering them to navigate challenges effectively and capitalise on growth opportunities within dynamic market landscapes.
- How does ValuAble help startups invest in more than their key competitors? What unique features or advantages does ValuAble have in terms of its course offerings or learning experience?
ValuAble does not advocate differentiation through leverage or compromised coverage, avoiding market disruption or competition with established players. Instead, we prioritise value addition by fostering banking partnerships and assisting companies in accessing responsible capital, aligning with sustainable business practices for long-term growth.
Our unique offering lies in our focus on responsible investment practices, including Environmental, Social, and Governance (ESG) considerations from the outset. By aligning with startups that embrace sustainable and inclusive business practices, we aim to impact society while positively generating sustainable returns for investors.
- What have been the biggest challenges you’ve had to overcome?
One of the most significant challenges I have faced has been navigating the transition from established job roles to the dynamic world of startups. The mindset shift required to adapt to entrepreneurship’s uncertainties and rapid changes is daunting and exhilarating. However, overcoming these challenges has been a testament to our resilience and determination. It has reinforced our belief in our mission and strengthened our commitment to creating a sustainable and inclusive future through responsible investment practices.
- When it comes to the company, what are you most proud of?
While financial success and strategic partnerships are still to be measured as we are in our early days, what truly makes us proud is our dedicated team. Our team members are the heart and soul of ValuAble, working tirelessly to make our vision a reality.
Their passion, dedication, and commitment to making a positive impact on society truly make ValuAble valuable. Additionally, we are immensely grateful to our advisory and governance members, whose guidance and support have been instrumental in shaping our journey and creating a lasting impact.
- What are the game-changing decisions you took as a leader for your company?
ValuAble is first an ideology committed to mainstream inclusion and freedom from exclusion by building a greener ecosystem where diversity can coexist, underpinned by the principles of equity. We feel humbled that, at some level, we are able to transmit these emotions to every stakeholder associated with ValuAble, especially our team members, who are not just employees but owners of this ideology. It gives us pride to see them taking everything in their stride and delivering with the same commitment, nullifying differentiation between owners and team members.
