'Our lens is always on unit economics'

Trident Growth Partners' Managing Partner RAJESH RAMAIAH on future roadmap, capital discipline and why chasing trends will not build lasting startups in India

- By Resham Suhail

INDIA'S startup ecosystem has been navigating a sharp reset since 2023. After years of unchecked exuberance, last year became a period of correction, venture funding plummeted to US$ 6.2 billion, marking a steep 62 per cent drop from 2022 levels, according to an industry report. That downturn persisted into early 2024, with H1 funding at US$ 3.8 billion, nearly flat compared to the same period last year.

According to leading investors and industry captains, the expectation was that 2025 would usher in a more stable, active funding cycle. Many predicted a pickup by midyear. But we are halfway though the year and momentum remains tepid. Deal flow is selective, valuations are cautious and optimism is tempered with realism.

Fuelling Growth

Trident Growth Partners, a growth-stage private equity firm focused on India, has raised Rs 1,000 crore in the first close of its debut fund and is targeting a total corpus of Rs 2,000 crore by 2025, including a greenshoe option. It is led by industry veterans Atul Gupta, Pranav Malhotra and Rajesh Ramaiah. The fund will focus on Series B and beyond.

In this interview, Trident Growth Partners' Managing Partner, Rajesh Ramaiah shares deep insights on capital discipline, founder-first investing, IPO outlook and why chasing trends would not build lasting startups in India.

Unit Economics Matter