Mukesh Bansal Seeks Over $100 Million Valuation in New Venture’s Maiden Funding Round

Mukesh Bansal’s New Venture: A Potential Game-Changer in India’s Startup Landscape

A Foundry of Sorts

Mukesh Bansal, the Indian fashion e-commerce giant Myntra and fitness platform Cult.fit founder, is evaluating a new venture. Despite not having finalized his plans for the new offerings or their sequence, he already has a potential price in mind.

Bansal, who stepped back from conglomerate Tata Digital’s Neu business earlier this year, and Zomato co-founder Mohit Gupta have pitched several investors, including Peak XV, Lightspeed India Partners, Accel, and Nexus Venture Partners, in recent weeks. They are seeking terms that would value the holding company at over $100 million and as high as $250 million.

A Seed-Stage Valuation of $100 Million: A Rare Sight

A seed-stage valuation of $100 million is extraordinary in India’s startup landscape, where most such transactions typically value firms under $10 million. However, some of India’s serial entrepreneurs have bucked this trend. Notably, Kunal Shah, founder of CRED, and Jitendra Gupta, founder of Jupiter, have previously secured seed funding at considerably elevated valuations.

It appears that Gupta and Bansal are already in advanced stages of finding backers. The duo has told at least two investors that they have already received a soft commitment of about $50 million, people familiar with the matter said, though it’s unclear how much of that commitment will materialize.

A Foundry with Over a Dozen Products

Bansal and Gupta want to establish a foundry of sorts that would house more than a dozen products over the years. Investors would get a stake in both the parent firm as well as each new product’s holding entity, people who have been pitched by the duo said, requesting anonymity to speak candidly.

Uncertainty Surrounding First Product

Bansal and Gupta were still undecided as of two weeks ago regarding which product they will build first. According to a source involved in the investment discussions, the duo has presented a range of ideas to potential backers. These include:

• A Female-Focused Counterpart: A female-focused counterpart to Manyavar, a celebrated ethnic wear brand
• Infosys 2.0: A presumed upgrade to the multinational IT services and consulting firm

Bansal did not respond to a request for comment Monday.

Gupta’s Previous Comments

On a podcast published this month, Bansal suggested that he was thinking about his next steps:

"I have been a startup guy all my life. I worked in four startups in Silicon Valley; then I was part of Myntra journey and Cure.fit journey. I have also worked closely with two startups in the last five years — Groww and Skyroot."

A Systematic Approach

Bansal expressed his desire to take a systematic approach to building the new venture:

"I keep feeling that tug and I am now thinking how can I do more of that? What are other companies that I can build or co-build with somebody else? And what could be the method to still do it systematically, where you build the strong foundation and you design it for the long term."

Potential Impact

The new venture has the potential to make a significant impact in India’s startup landscape. With Bansal and Gupta at the helm, it is likely to receive substantial funding and attention.

Investors’ Interest

Several investors, including Peak XV, Lightspeed India Partners, Accel, and Nexus Venture Partners, have shown interest in the new venture. They are seeking terms that would value the holding company at over $100 million and as high as $250 million.

Conclusion

Mukesh Bansal’s new venture has the potential to be a game-changer in India’s startup landscape. With a potential price tag of over $100 million, it is likely to attract substantial funding and attention. The uncertainty surrounding the first product and the systematic approach that Bansal wants to take will be crucial in determining the success of this venture.

As the new venture takes shape, one thing is certain – it has the potential to make a significant impact in India’s startup ecosystem.