Why and How Startups raise Funds From Ratan Tata?

From the moment Ratan Tata resigned as the chairman of Tata groups on his 75th birthday, he has been looking out for interesting start-ups to invest in. Ratan Tata has always been a philanthropist and has provided innumerable contributions to various charities throughout his lifetime.

With his new look into the developing start-up culture in India, various small start-ups have enquired on how to seek Ratan Tata for investment opportunities. Hundreds of small companies with innovative ideas seek the assistance of the Tata trust for a chance to develop their idea into a full-fledged company.

Why do small companies and start-ups look for the support of Ratan Tata?

The basic reason for any start-ups to look for big investors is to source funds for their day to day activities and also to offer scalability for their products or services. But with the former chairman of Tata groups backing a company for investment, there is something more than just money that the company gets.

The trust and confidence of the people and other investors is the major gain the company gets when it is backed by Tata groups. This provides the company with a unique endorsement that sets it apart from its peers in the same field. It also gives enough traction and publicity for the business without any spending on the promotion of their products or services.

The last and the most important part of it is the experience that one gets from the suggestions provided by the former chairman of Tata groups. As it rubs off, the company can look for guidance from the industry giant which gives them a huge leap in business.

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How to contact the famous Angel Investor for your start-up idea?

Contacting Ratan Tata to communicate your idea
Contacting Ratan Tata to communicate your idea

There are a few ways that can be used to gain the attention of Mr. Ratan Tata regarding investment opportunities. Some of the classical ways are as follows:

1. The easiest way to connect with Mr. Ratan Tata would be to speak with someone from Tata trusts that is in charge of dealing with requests for investments. This way can take a long time to get a reply and the process is tedious.

2. The next way would be to use a formally edited e-mail stating the purpose of the mail. It is also necessary to ensure that the idea or request can be clearly understood so that it can be forwarded to Ratan Tata himself if it is worth his time. Some of the e-mail addresses that can be corresponded to are srtt@­tatatrusts.org, rntata@tata.com, rnt@tata.com, or talktous@tatatrusts.org.

3. Alternatively, contacting Mr. Venkatramanan from Tata trusts would give a chance to meet Ratan Tata for presenting the idea. This idea is better and also more professional as all proposals are directed to him before shortlisting the ideas that are worth mentioning to Ratan Tata.

4. The best way to get in touch with the former Tata group chairman would be to write a letter explaining the idea and reasons for seeking investment. Talking about the risks and the opportunities that the idea provides will provide an edge over the thousands of ideas that are directed at him for investment. Since Ratan Tata is a simplistic, down to earth person, writing a letter also appeals to the approach.

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What type of companies look for investment from Tata Trusts?

A few of the famous companies funded by Ratan Tata
A few of the famous companies funded by Ratan Tata

Tata groups has never been confined to one sector or industry under the guidance of Ratan Tata as chairman of the group. The same is followed by the Indian industry giant when he invests in start-ups and companies. The investment portfolio is never limited to just the tech industry. He looks into ideas that improve the standard of life or provide services that lead to new solutions for existing problems.

Let us take a look at the different companies in each industry that have received backing from the former chairman of Tata groups.

E-commerce

The e-commerce industry is the fastest growing technology-based industry since 2005. The business ideas that received backing from Mr. Tata in the e-commerce sector are Snapdeal, Urban Ladder, CarDekho, Paytm, Blue stone, Firstcry, and Zivame. All of these companies were backed by Tata trusts between 2014 and 2016.

Digital Payments

Payment gateways are an important part of any online business nowadays. So, innovative ideas in this field were also backed by Tata groups since 2015. The US-based digital payment transfer company Abra and the Indian cashback and coupon site Cashkaro were the 2 companies supported by Tata in this sector.

On-Demand services

The use of On-demand services has become extensive and is growing more each day due to the busy work schedules of people. Ratan Tata has not left a stone unturned even in this sector. Popular companies like Ola and UrbanClap were once start-ups that were backed by Ratan Tata. Holachef is also a start-up that was supported by Tata Trust way back in 2015 when food-tech start-ups were emerging in the Indian Market.

Energy

Ratan Tata was interested to invest when 2 MITians approached him for a tech-based start-up idea named Altaeros, for promoting renewable energy solutions.

Electricals

The Coimbatore based company Ampere received funding from Tata Trusts in 2015. The company manufactures e-cycles, e-scooters, and special purpose waste management vehicles for the government.

Various companies in other sectors and industries like Mobile Tech, Media, Healthcare, etc. also received funding and investment opportunities from the Tata Group.

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Few known Indian examples that benefitted from the Tata group investment

1. The most famous investment that urged other start-ups to urge Mr. Ratan Tata’s collaboration was the case of Nidhi Agarwal, the founder of Kaaryah. Thousands of people with innovative start-up ideas started to look for ways to contact Mr. Ratan Tata after he invested in the women’s formal clothing business Kaaryah which was rejected by hundreds of investors. She got in touch with the Tata Groups via e-mail and her idea was financed within 3 months of her e-mail.

2. The NGO ‘Motopaws’ was one that did not get the Tata groups backing for improving the lives of people. It is an NGO that puts collars with reflective stickers for stray dogs. This way motor vehicles can see the animal even during night time. This reduces night-time motor accidents killing animals drastically. The founder of the NGO Shantanu Naidu from Pune got this opportunity by corresponding with Mr.Tata by a simple letter to share his concerns with a fellow dog lover.

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About Sandhya Raju

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