VC Decision-Making in India: Aavishkaar and Milk Mantra (A)

By Ilya A. Strebulaev, Justin Randolph
2013 | Case No. E482(A) | Length 26 pgs.

The case profiles the protagonist, Vineet Rai, managing partner of Aavishkaar Venture Management Services (an Indian, early stage VC firm with a focus on rural, underserved regions and sectors), as he initially formulates the concept for the Aavishkaar, and seeks to initially capitalize the fund. The case follows Rai through his ongoing struggles and perseverance for capital, after which it discusses the thesis, structure, and nuances of the fund. It then shines the light on a prospective investment by the fund in an Indian dairy company, Milk Mantra, and deliberates whether the specific investment is a prudent one at that moment in the fund’s life. It is recommended that this case be taught in conjunction with the GSB’s “Note on Angel Investing and Venture Capital in India.”

Learning Objective

To provide an overview of early stage investing in India and the country’s entrepreneurial ecosystem, via the use of an example of an Indian venture fund and a prospective investee. To discuss the differences and similarities between the venture capital process in the U.S. and India. To illustrate the challenges and opportunities of investing in a nascent geography and sector.
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