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

By Ilya A. Strebulaev, Justin Randolph
2013 | Case No. E482(C) | Length 16 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 debates whether to make a follow-on investment in a portfolio company, Milk Mantra.

The case provides an update on Aavishkaar’s fundraising efforts to date (updating Case B), and then provides an overview of the events at Milk Mantra since Aavishkaar’s first investment (profiled in Case A). Given that progress at Milk Mantra is a mixed bag, the case raises the question as to whether it’s worthwhile for Aavishkaar to increase its investment in and exposure to Milk Mantra.

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. To ask students to formulate metrics for a portfolio company that will inform whether the company is worthy of additional capital.
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