Jan 23, 2025

The global reach of India’s startup ecosystem has pulled in investors from all geographies. While US funds dominate the landscape, even VCs from Europe, the Middle East and Southeast Asia are looking for upsides in the dynamic market, having seen the trajectory of Silicon Valley startups up close. Among these is Canada-based Ocgrow Ventures, which has been an active investor in the tech industry since 1995, when the product economy was still building steam in the West. The privately held VC fund that manages the assets and investments of Harish Consul and his family, primarily focusses on early stage investments. The firm, led by Consul, has invested over $100 Mn across more than 50 companies worldwide, including early investments in tech giants Amazon and Shopify. In India, Ocgrow Ventures’ portfolio includes 18 startups, including the likes of Garuda Aerospace , Rebel Foods, Gupshup, and Saveo . “We invested in all the above companies at the seed or Pre-Series A stages. Our focus is on young India centric companies, which target Gen Z market, the huge growth in the middle class of young consumer market looking for new consumer services ranging from higher end products & services, including wealth management fintech to new social commerce buying habits for this next generation,” Ocgrow Ventures’ Consul told Inc42 as he outlined the fund’s thesis for the Indian market. Consul, with over 35 years of entrepreneurial experience, highlighted India’s rapid rise as a global innovation hub in areas such as digital transformation, generative AI, fintech, and health technology. Despite some inherent growth challenges in India, Consul views India as a promising market for startups and innovation. In this conversation with Inc42, Consul sheds light on Ocgrow Ventures’ investment strategy, key sectors of interest for the Canadian VC firm, and the challenges Indian startups face as they scale. Edited excerpts Inc42: How has India’s private equity and venture capital investment ecosystem changed over the past two decades? Harish Consul: Ocgrow Ventures has been investing globally since 1995 and in India specifically since 2011 through our global fund. Over the last three to five years, the change has been dramatic. India’s startup ecosystem has matured rapidly, with founders driving innovation and growth. We’re deeply connected to India’s market, speaking regularly at global tech and investment conferences with an India focus. What sets us apart is our global network, which helps Indian startups scale internationally. A great example is Garuda, which started in India and is now growing globally with offices around the world. The mindset of founders has also shifted—from a “growth at any cost” approach to balancing growth with profitability. We believe companies can achieve both, and technologies like AI automation are already helping founders improve margins and reduce operational overhead. Inc42: When we look up Ocgrow, it’s often linked to real estate. Can you clarify the connection between your real estate background and your venture fund? Harish Consul: Ocgrow Group has two divisions. We originally started as a real estate investment company, and our family has been in that space for over 40 years. That remains a long-term portfolio of real estate assets. Ocgrow Ventures, on the other hand, is our global venture fund , which I founded. It focusses on investing in startups, particularly in India and globally, across sectors like AI, health tech, and consumer brands. Inc42: What is Ocgrow Ventures’ core investment thesis as a private equity fund? Harish Consul: We typically invest anywhere from $500K to $10 Mn in early-stage companies. Our philosophy is simple: back world-class founders who’ve already achieved product-market fit. These are companies with real paying customers and growing revenues. We’re looking for verticals that tap into massive total addressable markets (TAM), and right now, AI is a must for any company working in data analytics or similar spaces. But for us, it’s not just about the business metrics—though those matter, of course. What’s really important is the founders themselves. We spend a lot of time with them, getting to understand their passion and mindset. We’re looking for that hunger and laser focus—the kind that’s rare to find. It’s not just about saying you’re passionate; it’s about living and breathing what you’re building every day. That kind of grit makes all the difference. RECOMMENDED FOR yOU 21st January, 2025 We’re also very hands-on. We often take board or strategic advisory roles and help companies scale fast by leveraging our extensive global network. It’s all about helping them grow exponentially and build those valuable global alliances that can take them to the next level. Inc42: What are the key sectors Ocgrow Ventures is focussing on? Harish Consul: AI-native companies are definitely a big focus for us—what we see as the next wave of SaaS. These are businesses using AI to automate traditional industries by leveraging data, which we categorise as vertical AI sectors. We’re also highly active in the consumer space. While many are moving away from it, we remain bullish on select areas within consumer tech, fintech, drones, and agritech are also key areas of interest. Additionally, we’re very focussed on “Young India” and Gen Z-centric verticals. Enterprise AI platforms that use technologies like LLMs (large language models) to automate industries are another exciting space for us. Inc42: You seem bullish on AI. How do you view its current status in India, especially considering that native AI applications are still limited while top-layer applications face challenges? Harish Consul: That’s a fair point, but it’s changing rapidly. In just the last few months, we’ve seen a surge in AI-native founders building on top of existing layers. One example is an automation AI company we’re getting involved with—I’ll share more details later. We’re seeing incredible talent emerging from cities like Mumbai, Pune, Hyderabad, Bangalore, and Delhi. I don’t think India is lagging; in fact, I believe it’s on track to lead the charge in AI innovation very soon. Inc42: Can you elaborate on the “Young India” centric verticals? Harish Consul: Absolutely. India has a massive population under 30, and we’re seeing a rapid rise in Gen Z-focussed consumer brands. We’ve made several investments in this space, spanning sectors like retail, cosmetics, fashion, and skincare. Health and wellness are also key areas where we’re very active, particularly in health consumer products rather than delivery or restaurant services. The rising middle class in India is driving demand for these consumer plays. Founders in this space are doing some really interesting things, and we believe this trend will only accelerate as demand continues to grow. Inc42: Can you share specific examples of your Young India Centric investments? Harish Consul: Many of our investments in this space have been made in just the last six months, and some haven’t been announced yet. Broadly, these investments are sector-agnostic but all consumer-focussed, targeting the 18 to 30 age group that’s shaping India’s market landscape. Inc42: Your fund also focusses on global health tech and longevity ventures. Have you invested in any Indian health tech startups? Harish Consul: We’re very active in health tech and longevity and are currently evaluating several opportunities in India. This sector is experiencing massive growth globally. We are seeing advancements in preventative, personalised, and precision-based medicine—areas like microbiomes, stem cells, peptides, and IoT devices. In India, we’ve explored longevity clinics like Seva and invested in Savio, a pharmacy aggregator. However, we’re keen to connect with more Indian health and longevity startups. It’s a call to founders in this space to reach out to us—we see tremendous potential and want to deepen our focus here. Inc42: You also cofounded another fund – Hanu Ventures? How does it fit into this structure? Harish Consul: Hanu Ventures is another fund I co-founded with Nuno Martins, a  multimillionaire serial entrepreneur, venture investor, international keynote speaker, and scientist in Europe. It’s a part of Ocgrow Ventures but has a specific focus on health and longevity startups. We’re absolutely open to investing in India through both Ocgrow Ventures and Hanu Ventures, particularly in the longevity space. If there are Indian startups innovating in this area, we’d love to hear from them. We see immense potential in this space, and India is very much a part of our long-term investment strategy. Inc42: What challenges do you see for the Indian startup ecosystem? Harish Consul: India has made tremendous progress, but bureaucracy remains a major challenge. Regulatory hurdles, like delayed approvals for international investors and the complexity of compliance processes, are frustrating. The banking system needs modernisation—while UPI is world-class, global money transfers and forex operations remain outdated. Streamlining these processes would greatly improve the ease of doing business for both founders and investors. Inc42: Can Indian fintech startups resolve these challenges long-term? Harish Consul: Absolutely. We’re very interested in the FinTech space because young, tech-savvy founders understand these challenges firsthand. They live and breathe digital solutions. However, breaking into the traditional banking ecosystem can be daunting due to RBI regulations. While some founders have grown tired of navigating the red tape, those with the determination to challenge the status quo have a huge opportunity to drive change and innovation. Inc42: In the past, we’ve seen international funds like SoftBank and Tiger Global face setbacks in India, investing large sums but not achieving expected exits. Do these stories impact the momentum of international investors, particularly for larger rounds? Harish Consul: It’s true that such stories make investors more cautious, but I don’t think they dampen the global interest in India. India is emerging as a superpower and is on track to rise from the third-largest economy to possibly the largest in the coming decades. The ecosystem here is vibrant and brimming with talent, which makes it very attractive. What has changed is the approach—investors are now more focussed on prudent growth and profitability from day one. The era of “grow at any cost and worry about profits later” is over. Business models must demonstrate both scalability and financial sustainability. Sovereign funds, family offices, VCs, and private equity firms are all actively looking to increase their exposure to India. The momentum remains strong, and it’s an exciting time to invest here. Inc42: Where do you see Indian startups heading by 2025? Harish Consul: The Indian startup ecosystem is among the best in the world. India is on track to become the third-largest economy globally, and it’s already the fastest-growing major economy. Digitally, India is ahead of many other countries. In areas like facial recognition for boarding and payment systems, it surpasses even places like Dubai and North America. While the ecosystem is strong, challenges persist in the financial and regulatory environment. Still, Ocgrow Ventures remains very optimistic. More founders are choosing to stay and build in India, though some still migrate abroad. It’s a dynamic time, and India’s global influence is growing. Everywhere I go, people are talking about the India story, and we’re proud to be part of that journey—helping founders scale globally while staying rooted in India’s innovative spirit.