There are only nine kulfis here. Photo credit: Insatiable Munch.
US-based accelerator and investment fund 500 Startups today announced the launch of a US$25 million fund.
The new 500 Kulfi, named after an Indian frozen dairy dessert, will focus on India, Sri Lanka, and Bangladesh. While I’ve had my bet on “500 Samosas” as its name, the newest launch is more evidence for my theory that the fund polls people about their favorite food in a region and then picks the second most popular choice, a la Korea’s 500 Kimchi, and Southeast Asia’s 500 Durians.
This comes amidst what feels like the first real wave of criticism for India’s startup ecosystem.
The fund will invest in early-stage startups that have “proven traction”, meaning that they’ve moved past their ideation phase.
The investments will be sector-agnostic, but 500 Kulfi announced plans to focus on “fintech, edtech, health and wellness, data analytics, content, and SaaS/SMB” startups – more or less everything. It will be led by 500 Startups partner Pankaj Jain.
The announcement arrives on the heels of what feels like the first real wave of criticism for India’s startup ecosystem in recent times. “While the industry has been tweeting and blogging about doom and gloom hitting unicorns and startups alike, we believe the long-term opportunity remains as solid as ever,” Pankaj wrote in a statement. “We see market changes as part of a natural cycle.”
“Some consolidation and stepping back from irrational exuberance is a good thing,” he added.
The announcement also listed India’s expected GDP growth rate of 7.6 percent, growing internet and smartphone usage, and its young population as reasons why “India is looking as sweet as Kulfi!”
Butterfly effect
Pankaj Jain. I swear this wasn’t our work. Photo credit: 500.co.
500 Startups has invested in more than 50 startups in the country till date. Its portfolio yields no easy predictions for the new fund.
“I like healthcare, education, and fintech because these have barriers to entry,” Pankaj explained earlier this year in an interview with Tech in Asia. The argument focuses on an important fact: startups in these sectors aren’t easily replicable and require a significant amount of work to be put into a product in order to stand out.
“I’d rather have you fail solving something very hard than start the next new social network.”
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