TLDR:
- Matrix Partners India, an early backer of Ola, OfBusiness, and Razorpay, recently rebranded itself as Z47.
- Founder Avnish Bajaj considers the split and rebranding a natural evolution for the firm.
Avnish Bajaj, co-founder of Matrix Partners India, shared insights on the firm’s recent split and rebranding in an interview with The Economic Times. Established in 2006 during the first wave of venture capital in India, Matrix India has been a key player in backing successful startups like Ola and Ola Electric, OfBusiness, and Razorpay. The decision to go independent and rebrand as Z47, akin to Sequoia US splitting from its India and China units, was driven by the natural evolution of the firm.
Bajaj highlighted the industry shift with most VC funds in India originally established as affiliates of US venture capital firms post the dot-com bust. However, changes in leadership, offshoots, and splits in partnerships have become common, signaling the evolving landscape. Despite challenges like liquidity concerns, interest rate hikes, and funding crunches, Bajaj remains optimistic about the Indian venture capital market. Recent successes like the listing of Ola Electric on the stock exchanges and the anticipated IPOs of other portfolio companies, along with learnings from past frenzies, provide hope for a steady growth trajectory.
With a focus on generating 3x net returns for LPs, Matrix India aims to continue delivering value through its $550 million Fund IV and strategic investment choices. Bajaj emphasized the importance of maintaining a level head in the face of potential market booms and busts and underscored the significance of disciplined investment strategies for sustained success. The firm’s commitment to staying capital-efficient and generating value for its stakeholders remains unwavering amidst the ever-changing dynamics of the Indian startup ecosystem.
