PremiumMUMBAI : Sanjay Mehta, an entrepreneur-turned-angel investor, has earned a 16-fold return by selling his stake in logistics automation startup LogiNext.
Mehta, who has invested in more than 130 companies, including OYO Rooms and Box8, sold his entire stake in the firm to New York-based Tiger Global Management and Steadview Capital, in LogiNext’s recent $39 million equity financing round that valued the firm at nearly $100 million this month. Mehta had led a ₹3 crore investment, along with a few other angel investors.
“This is one company which has walked the talk. Whatever they pitched, they delivered—be it the numbers, the valuation, or the fund raise," said Mehta.
“There were deviations but they were for the better. For example, the firm was initially focused more on the Indian SME (small and medium enterprises) market, and then it moved to large enterprises and from there to the global play. But the global play changed everything for the company as it got customers from the Far East and the US, such as McDonald’s," he said.
LogiNext is a transportation software-as-a-service (SaaS) startup that provides delivery logistics automation, real-time route optimization, dispatch and workforce management and post-delivery processing and analytics of business-to-business (B2B) transportation or business-to-consumer (B2C) delivery business. The company serves clients such as Singapore Post, McDonald’s, and Decathlon. Mumbai-based Mehta also launched a venture capital fund called 100X.VC in July 2019. The venture fund plans to invest in 100 startups in one year.
“So far, we have done 20 deals from the fund and we want to do 20-25 a quarter and 100 deals a year. It is a target we are aiming at but it is not sacrosanct," said Mehta.
In terms of the fund’s investment strategy, Mehta said that he would stay away from companies with solo founders as they are difficult to scale up. “We also look at the founder’s potential to do things rather than what they have done. Their background is just a bonus but the most important thing is their vision and how mature they are," said Mehta.
“The aim is to invest between ₹25 lakh to ₹1 crore per startup and ensure that I become a feeder for the next round, so the VCs will get a ready pool," he said.
ridhima.s@livemint.com
