Ravi Adusumalli, the founder and managing partner of Elevation Capital (formerly SAIF Partners), is a towering yet understated figure in India's venture capital landscape. For over two decades, he has been one of the earliest and most steadfast backers of the Indian startup ecosystem, playing a pivotal role in the growth of iconic companies like Paytm, MakeMyTrip, Swiggy, and Urban Company. His investment philosophy, shaped by years of navigating the unique dynamics of the Indian market, is a treasure trove of wisdom for founders and investors.
On Founders and What He Looks For
- "I look for founders who are as hungry to win today as they were when they first started their company."
Learning: The most successful entrepreneurs maintain their initial drive and ambition, regardless of the success they've achieved. This hunger is a key indicator of their potential for long-term greatness.
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - "I enjoy working with founders who are relentless and constantly iterating."
Learning: The startup journey is never a straight line. Founders who continuously learn, adapt, and refine their approach are the ones who ultimately succeed.
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - "I believe that storytelling is one of the most underrated characteristics of a strong founder."[1]
Learning: The ability to craft a compelling narrative is crucial. It helps in raising capital, hiring top talent, and acquiring early customers when there's little more than a vision to share.[1]
Source: Elevation Capital, https://elevationcapital.com/perspectives/ravi-adusumalli - "The difference between a good and great storyteller is often the difference between building a good company and building an iconic company."[1]
Learning: Exceptional storytelling can elevate a company from merely successful to truly legendary, creating a powerful brand and a loyal following.[1]
Source: Elevation Capital, https://elevationcapital.com/perspectives/ravi-adusumalli - "Often, nothing is obvious early on other than the founder's passion and it is contagious."[1]
Learning: In the earliest stages, a founder's infectious passion and unwavering belief in their vision are often the most tangible assets an investor can bet on.[1]
Source: Elevation Capital, https://elevationcapital.com/perspectives/ravi-adusumalli - Give more weightage to the pedigree of the founders, and trust that as long as the market size is at least decent to start with, the founder will find ways to expand the opportunity.[2]
Learning: Exceptional founders have the ability to grow their market and vision over time. Backing a top-tier team is often more important than the initial market size.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - "You have to find founders who understand the nuances that work in India and the nuances that don't work in India."[2]
Learning: Deep local insights are critical. Founders who possess a nuanced understanding of the Indian market are far better positioned to build successful companies.[2]
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - The team at Urban Company, for example, has consistently, every year, figured out how to make the opportunity larger.[2]
Learning: A key trait of great founders is their ability to continuously expand their vision and the scope of their market opportunity.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1
On Investment Philosophy and Strategy
- "I love working with founders that are looking for a partner, not just capital. Capital is a commodity."[1]
Learning: The best investor-founder relationships are true partnerships. The value an investor brings should extend far beyond the money they provide.[1]
Source: Elevation Capital, https://elevationcapital.com/perspectives/ravi-adusumalli - "We want to give every founder we partner with an unfair advantage."[3]
Learning: A top-tier VC firm should aim to provide its portfolio companies with a distinct competitive edge, whether through its network, expertise, or strategic guidance.[3]
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - "I enjoy partnering with founders early on when there is nothing more than a story to tell."[1]
Learning: The most rewarding and impactful investments are often made at the very beginning of a company's journey, based on the strength of the founder's vision.[1]
Source: Elevation Capital, https://elevationcapital.com/perspectives/ravi-adusumalli - "Finding a large enough market is non-trivial in India."[2]
Learning: Identifying markets with the potential for massive scale is a significant challenge in India, requiring deep analysis and a long-term perspective.[2]
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - "In most cases one can almost always convince oneself that the market's not large enough and we've made that mistake a couple of times."[2]
Learning: It's easy to be overly cautious and underestimate the potential of a market. Sometimes, you have to bet on the founder's ability to create a market where one doesn't obviously exist.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - His advice to startup founders mostly has to do with strategy, top-level hiring and controlling cash burn rates.[4]
Learning: A good board member focuses on the most critical strategic issues and avoids getting bogged down in the day-to-day operational details.[4]
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - "He understands the difference between noise and signal."[4]
Learning: A key skill for an investor is the ability to filter out the short-term hype and distractions and focus on the fundamental drivers of a business.[4]
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - Living away from the startup hubs has helped him gain perspective and avoid the herd mentality.
Learning: Physical distance from the echo chamber of the startup world can provide a clearer, more objective perspective on investment decisions.
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - "He is a very disciplined investor... Most of the VCs in India are playing a mark-to-market game... Ravi does not do that."[4]
Learning: True investment discipline means focusing on fundamental value creation rather than chasing the next funding round at a higher valuation.[4]
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - "He has shown good timing in backing companies at a very early stage."[4]
Learning: Identifying and investing in promising companies before they become obvious successes is a hallmark of a top-tier venture capitalist.[4]
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms
On the Indian Market and Ecosystem
- "When I first started investing in India in 2002, it was very, very difficult for a founder to even convince his family that he wanted to start a company. I think that was taboo."[2]
Learning: The Indian startup ecosystem has undergone a massive cultural shift, moving from a risk-averse environment to one that celebrates and encourages entrepreneurship.[2]
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - "We get a lot of companies come to us and say 'this worked in China, this worked in the US and this is going to work in India' that playbook is over."[2]
Learning: The "copy-paste" model of building startups in India is outdated. Success now requires a deep, first-principles understanding of the local market.[2]
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - "You don't need a tremendous amount of capital today to start a business... That's a global phenomenon, but something that's playing out in India as well."[2]
Learning: The rise of cloud computing and other enabling technologies has significantly lowered the barrier to entry for starting a tech company in India.[2]
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - The full-stack model is "something that uniquely works for India. It wouldn't work in the US."[2]
Learning: Indian startups often need to take control of the entire customer experience, from software to service delivery, to succeed in a market with unique infrastructure and quality control challenges.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - He predicts five to 10 companies in India will go public in the next 12 to 18 months (as of early 2021).[2]
Learning: The Indian tech ecosystem is maturing to a point where we will see a steady stream of companies accessing the public markets, providing exits for early investors.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1
On Building a Company
- "The journeys of most companies rarely reflect their 'up and to the right' slides from their initial fundraising deck."[3]
Learning: Be prepared for a long and challenging journey. The path to building a successful company is never as smooth as it appears in a pitch deck.[3]
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - "The journey is often long and challenging. Having been fortunate to have seen this journey several times, I'm excited to see how I can help make it a bit easier."[3]
Learning: An experienced investor can provide invaluable guidance and support to help founders navigate the inevitable obstacles of the startup journey.[3]
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - Companies have become much more focussed on building long-term, viable businesses, cutting their burn rates by 60 to 80 percent.[2]
Learning: The focus in the ecosystem is shifting from growth at all costs to building sustainable, profitable businesses with strong unit economics.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - Vijay Shekhar Sharma on his relationship with Ravi: "If a year is 365 days, I can tell we'll at least have 400 calls in a year."[2]
Learning: A deep, high-frequency level of communication and engagement between a founder and their lead investor can be a critical factor in a company's success.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1
On His Role and Firm
- "My goal is to help create an institution that is the founder's preferred partner in India for decades to come."[3]
Learning: The ultimate ambition is to build an enduring venture capital firm with a reputation for being the most sought-after partner for the best entrepreneurs.[3]
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - The rebranding from SAIF Partners to Elevation Capital was to better communicate the firm's ethos: investing early and backing ventures for the long term.[2]
Learning: A firm's brand should accurately reflect its core values and investment strategy.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - "The best part of being in venture capital is that every day you get to meet and work with founders and learn something new."[1]
Learning: A career in venture capital offers a unique opportunity for continuous learning and exposure to cutting-edge ideas and passionate individuals.[1]
Source: Elevation Capital, https://elevationcapital.com/perspectives/ravi-adusumalli - His focus has shifted from being the first investor in a company to investing later in the journey (growth stage).[3]
Learning: As an investor's career and fund size evolve, their stage focus may shift to where they can have the most impact and deploy capital effectively.[3]
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - "I think our best exits are yet to come."[2]
Learning: Maintaining a forward-looking perspective and believing in the future potential of the portfolio is key to long-term success in venture capital.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - "That's what we are most excited to do and that's where we see the largest opportunity" (on finding great founders as early as they can).[2]
Learning: Despite the evolution of the firm, the core passion remains in identifying and backing exceptional entrepreneurs at the very beginning of their journey.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1
Additional Learnings from his Journey
- Having a "worldview like no other" is a key advantage.[2]
Learning: An investor with a global perspective can provide unique insights and help founders understand broader market trends and opportunities.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - He is described as a "no-nonsense straight-shooter."[4]
Learning: Direct and honest feedback, even if it's tough to hear, is often the most valuable for a founder.
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - Not all investments will be successful. His portfolio has included write-offs like Zovi and Homeshop18.[4]
Learning: Failure is an inherent part of the venture capital business. The key is to have a portfolio where the winners significantly outweigh the losers.
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - Leveraging experience from other markets, like China, can provide valuable insights.[4]
Learning: Understanding the evolution of similar business models in other emerging markets can help in identifying patterns and predicting trends in India.
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - The power of patience and long-term holding: Elevation Capital held a large stake in Paytm for many years, even after its value had multiplied significantly.[2]
Learning: Resisting the temptation to exit early and having the conviction to hold on to your winners can lead to extraordinary returns.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - He has been investing in early-stage tech in India for over 18 years (as of 2021).[2]
Learning: Deep, long-term experience in a single market leads to an unparalleled level of understanding and a significant competitive advantage.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - His firm picks one venture in one sector.[2]
Learning: A concentrated investment strategy of not backing competing companies allows the firm to give its full support and avoid conflicts of interest.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - He has a track record of significant exits, including MakeMyTrip (over 20x) and Justdial (over 12x).[2]
Learning: The ultimate measure of a VC's success is their ability to generate actual cash returns for their limited partners through successful exits.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - Paytm was the highest multiple for the firm.[2]
Learning: A single outlier investment can generate returns that cover the entire fund and drive the majority of its performance. This is the power law of venture capital.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1 - He serves on the boards of several major companies, including Paytm and Urban Company.[1]
Learning: Active participation at the board level is a key part of the value-add that a hands-on investor provides.
Source: Elevation Capital, https://elevationcapital.com/perspectives/ravi-adusumalli - His educational background is in Economics from Cornell University.[3]
Learning: A strong foundation in understanding market dynamics and economic principles can be a valuable asset for an investor.
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - He had early experience at Credit Suisse and Mobius Venture Capital before starting Elevation.[3]
Learning: Experience in both the public markets and the Silicon Valley venture ecosystem provided a strong foundation for his career in India.
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - He maintains a low public profile.
Learning: It is possible to be incredibly influential and successful in the venture capital industry without seeking the media spotlight.
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - He inspires both respect and fear from peers and entrepreneurs.[4]
Learning: A reputation for being a tough but fair and highly intelligent investor can be a powerful asset.
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - He is an active board member, traveling to India every 4-6 weeks for meetings (pre-pandemic).[4]
Learning: A serious commitment to the Indian market requires a significant investment of time and physical presence.
Source: The Economic Times, https://economictimes.indiatimes.com/small-biz/startups/ravi-adusumalli-indias-most-successful-tech-investor-you-havent-heard-of/articleshow/59169721.cms - He focuses on consumer tech and fintech investments.[3]
Learning: Developing deep expertise in a few specific sectors allows an investor to build a stronger network and make more informed decisions.
Source: Elevation Capital, https://www.elevationcapital.com/people/ravi-adusumalli - He caught the first wave of Indian internet companies, including Sify and Justdial.[2]
Learning: Having the foresight to invest in a nascent ecosystem before it becomes a hot trend is where the most significant opportunities lie.
Source: Forbes India, https://www.forbesindia.com/article/mentors-and-mavens/captain-turnaround-making-an-elevated-play/65899/1
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