Start-up Stars:Alpha returns are also possible through purpose-led investing - Rahul Gupta

Adgully has been turning the spotlight on the entrepreneurs who fought against all odds to bring their dreams to fruition in our special series – START-UP STARS. We at Adgully wholeheartedly support the ‘Vocal for Local’ movement and have been featuring numerous local/ homegrown businesses, brands, and Apps in the country launched in the last few years. 

The founding partners of ValuAble, Rahul Gupta and Siba Panda, have come together with decades of experience in banking and investment background to form the $100-million fund, which they are looking to invest in Indian start-ups.

In conversation with Adgully, Rahul Gupta, Founder and Managing Partner, ValuAble, speaks about the growth and entrepreneurial journey of ValuAble; overcoming physical challenges to become the first severely visually impaired to reach a leadership position in the banking industry; focussing on Scalable, Return led & Sustainable business; and much more.  

Could you provide a brief overview of your background and how your experience in banking and investments led to the formation of ValuAble?

As a young boy, born with severe visual impairment – no vision in one eye and approximately 15% in the other, coupled with partial hearing loss – I was armed with determination to prove that capabilities transcend circumstances. I studied at St Stephen’s College and the Delhi School of Economics.

The banking industry marked the start of my professional journey, where I was a Management Trainee in one of the premier Indian private sector banks. Over 17 years, I was amongst the youngest Senior Vice Presidents and the first severely visually impaired to reach a leadership position in the banking industry.

I orchestrated impactful projects, including 12 LP investments, over $2 billion financing, three Development Finance Institutions partnerships and leadership in the Carbon Disclosure Project Task-force.

But even at the pinnacle of corporate success, I took a leap of faith and founded ValuAble, a $100 million Inclusive fund. The fund’s mission is to generate economic value through investments in diverse stakeholders and cutting-edge technologies, fostering mainstream inclusion, and striving for ‘Freedom from Exclusion’. This endeavour has a broader objective of unlocking potential and guiding emerging champions.

Could you share an example of a start-up aligned with UN SDGs that ValuAble has recently invested in or planning to, and why it caught your attention?

As we have not announced the first close, the first deployment is still underway, however, one of the companies amongst many in the pipeline is a millets-based food company focused on young kids. This company has seen cash flow and has already received validation from renowned equity investors. Age is an important diversity dimension and there are enough studies to validate that great nutrition helps in better nurturing and nourishment of our young champions. There is also data that suggests neurodiversity can be managed to up-to 40% with right nutrition from an early age.

But to give you an overview, with average cheque sizes of 2.5-4 million and with minimum two turns of capital in 3 years, we expect to underwrite anywhere between 50-60 unique companies.

What challenges did you face when establishing ValuAble, and how did you overcome them?

The biggest challenge is dovetailing the idea that purpose and profitability can co-exist. The world generally keeps the two on extreme peripheries. Only a select few are able to appreciate that alpha returns are also possible through purpose led investing and it is not about mediocracy.

As for overcoming problems, I once read a quote: ‘I asked God for opportunities and God gave me problems’. It’s important to practice the art of seeing the glass half full and have faith in the divine journey that the soul is in the process of moving northward. Each challenge and our response to it just helped us in moving forward. It is well said by Swami Vivekananda ‘Every step I take towards life remains with me forever’. I believe there is a long road to travel and we just remain in gratitude for having the problems to address and remain relevant to the society at large.

What qualities do you look for in the startups you choose to partner with, beyond their alignment with UN SDGs?

We like to use, what I fondly call, the SRS method – Scalable, Return led, Sustainable (financially and otherwise).

We look for institution validation through an equity investor, however there are always exceptions.

As for the founders, they should be similar to what we call a PODCAST – Passionate, Open, Dedicated, Cultured, Agile, Sustainable and a Tenacious founder. The larger scope is that the businesses we look for are usually around Climate, Inclusion and Bharat.

What advice do you have for entrepreneurs seeking investment from ValuAble or other impact-focused funds?

Early life experiences shape perspective, challenges always fuel progress when met with courage and innovation.

You have to remain committed to illuminating the path of inclusion beyond numerical constraints. A business cannot be all about personal glory; it needs to be about unlocking potential and nurturing dreams. When you have this outlook, only then can you successfully pitch to purpose-led funds.

From your experience, what are the key qualities that make a startup stand out during the investment evaluation process?

We look for a well led out business thesis with a clear and sharp focus, but the founder being open to reflections is critical while we are finding feet.

Conduct and governance in a company have always been key for us. We take these factors in utmost priority while assessing business, sometimes even more than the business pères.

We see culture as an overachieving dimension to a successful business and work closely with industry experts to assess the Culture Quotient.

Historically, it has been consistently demonstrated that businesses with high governance standards outperform the market and command premium in the longer term.