Key Takeaways
- • Benaifer Malandkar, CIO at RAAY-Patni Family Office, says the family office began investing in startups in 2013 as an addition to a portfolio focused primarily on public markets.
- • RAAY takes a bottom-up, deal-by-deal approach rather than a portfolio-construction approach, prioritizing founder conviction, market breadth, and whether a business has a durable moat.
- • Malandkar flags valuation as contested: developed-market frameworks may not translate to India, and sector sentiment and capital supply drive premiums that lack a consistent rationale.
- • The family office is cautious about businesses led by spouses or closely related co-founders and weighs annual burn rate and marquee-investor entry when considering follow-on rounds.
- • Malandkar says Indian wealth owners have increasingly funded domestic venture funds over the past two years, and recommends investors without expertise access startups through experienced VC funds.
Summary
Family offices are increasingly looking beyond public markets to early-stage businesses in India, according to an interview with Benaifer Malandkar, Chief Investment Officer at RAAY-Patni Family Office, published by Indian Startup Times. Malandkar said RAAY began investing in startups in 2013, when the ecosystem was at a relatively early stage in India. She described the appeal as extending beyond financial returns to supporting founders with networks, experience and long-term capital.
Malandkar distinguished the family office approach from that of traditional venture capital funds, which typically build sector-diversified portfolios across areas such as fintech, deep tech and consumer businesses. "We as a family office, don't look at it as a portfolio approach," she said, describing a bottom-up assessment of whether a sector or idea has a sufficiently strong moat to sustain its position. Her first consideration is whether she believes in the founder, followed by whether the idea addresses a meaningful opportunity with the potential to reach a wider audience. She noted that predicting returns is particularly difficult at the earliest stages, and that businesses often evolve as market conditions, regulation and macroeconomic circumstances change.
On valuation, Malandkar identified two key factors: frameworks adopted from developed markets, such as the United States, which may not translate directly to Indian businesses, and the demand and supply of capital, which can inflate premiums in particular sectors. Deep tech has attracted significant attention, she noted, while other themes have seen periods of heightened interest. She said there is no consistent rationale for why some businesses receive substantially higher revenue multiples than others, and that valuation should be assessed against what a company could be worth in public markets over time. Due diligence also includes assessing total addressable market and founder relationships. The family office is cautious about businesses led by husband-and-wife or closely related co-founders.
For existing portfolio companies, Malandkar said the entry of a recognised venture investor onto the cap table can signal additional scrutiny and support a follow-on investment, alongside a review of annual burn rate relative to progress achieved. As a minority investor, the family office relies on annual general meetings to engage with founders. Exit planning is part of the initial evaluation, with the team mapping three or four potential exit routes and monitoring whether founders deliver against plan quarter on quarter and year on year.
On AI and startup investing more broadly, Malandkar cautioned individuals against investing without adequate expertise or resources for due diligence. She recommended that investors lacking this capability access startups through experienced venture capital funds, which she compared to mutual funds for startups. She expects family participation in startup funding to keep expanding, and said Indian wealth owners have increasingly funded domestic venture capital funds over the past two years, a shift from reliance on foreign institutional and developed-market capital.
Malandkar distinguished the family office approach from that of traditional venture capital funds, which typically build sector-diversified portfolios across areas such as fintech, deep tech and consumer businesses. "We as a family office, don't look at it as a portfolio approach," she said, describing a bottom-up assessment of whether a sector or idea has a sufficiently strong moat to sustain its position. Her first consideration is whether she believes in the founder, followed by whether the idea addresses a meaningful opportunity with the potential to reach a wider audience. She noted that predicting returns is particularly difficult at the earliest stages, and that businesses often evolve as market conditions, regulation and macroeconomic circumstances change.
On valuation, Malandkar identified two key factors: frameworks adopted from developed markets, such as the United States, which may not translate directly to Indian businesses, and the demand and supply of capital, which can inflate premiums in particular sectors. Deep tech has attracted significant attention, she noted, while other themes have seen periods of heightened interest. She said there is no consistent rationale for why some businesses receive substantially higher revenue multiples than others, and that valuation should be assessed against what a company could be worth in public markets over time. Due diligence also includes assessing total addressable market and founder relationships. The family office is cautious about businesses led by husband-and-wife or closely related co-founders.
For existing portfolio companies, Malandkar said the entry of a recognised venture investor onto the cap table can signal additional scrutiny and support a follow-on investment, alongside a review of annual burn rate relative to progress achieved. As a minority investor, the family office relies on annual general meetings to engage with founders. Exit planning is part of the initial evaluation, with the team mapping three or four potential exit routes and monitoring whether founders deliver against plan quarter on quarter and year on year.
On AI and startup investing more broadly, Malandkar cautioned individuals against investing without adequate expertise or resources for due diligence. She recommended that investors lacking this capability access startups through experienced venture capital funds, which she compared to mutual funds for startups. She expects family participation in startup funding to keep expanding, and said Indian wealth owners have increasingly funded domestic venture capital funds over the past two years, a shift from reliance on foreign institutional and developed-market capital.
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