Arihant Patni about new businesses, investment and the future of Indian innovation

Success stories of Indian start-ups such as Shiprocket and Bombay Shaving Company made headlines when it emerged as symbols of innovation and success. But behind these celebrated brands is an important support system of the patient, long -term capital provided by a new generation of investors. As traditional wealth management develops, dedicated family offices emerge as an important backbone for these businesses, which offer not only funds, but also the strategic guidance needed to navigate India’s dynamic market. One such investor who helped form the journey of these two new businesses, and many more, is Arihant Patni, managing director of Pathni Financial Advisors. Patni, a veterinary investor with more than 100 new businesses in his portfolio, spoke to Neil Borate, editor -in -chief at The Fynprint, about his perspective on wealth management and the Indian initial ecosystem in the latest episode of Let’s Munt Money offered in collaboration with Waterfield Advisors. Look at the full episode below, Patni, whose family Patni Computers founded, shared his journey from the witness of a business that is growing from start to a successful exit to a productive angel investor. He offered invaluable insights to family offices in the new age and emerging entrepreneurs. The origin of a wealth manager Patni’s journey to the world of investment has its roots in his family’s business legacy – his family began Patni Computers when he was born. “My memories probably go back before I can even remember them. But when I was growing up, I saw a lot of the Type A enterprise approach that is common to successful founders of the business. Business was always first. Business came home. There were arguments, there was an idea, “he said. He talked about his modest education and the sparing approach he saw. “We had to make difficult decisions and choices in terms of how to expand things, what to expand, and what not, and I think it is a very fundamental part of the early life of any business,” he said. This experience helped him identify with the struggle of founders. After selling Patni computers in 2011, the Family Office adopted a new prominence. Patni emphasizes the foresight of his father in the establishment of a dedicated team to manage their wealth, a practice that was unusual at the time, but is now getting a traction among the new generation of family offices. The initial thesis was to grow the accumulated wealth “responsible and with a certain vision”, mainly through public markets, before gradually diversifieding into alternative assets such as private equity and venture capital. A multi-given investment philosophy of Patni’s investment philosophy is multifaceted and distinguishes between his role in the family office and his personal passion for early phase investment. Although the public market strategy of the family office is largely data-powered, with a sharp focus on large and mid-stock, its approach to start-ups is more intuitive. ‘As an early angel investor, I think their data is limited. So it’s more about the conviction, the team and how you feel about the business, ‘he said. The allocation of the family office to new businesses began to increase, something he attributed to the mere energy and excitement of the initial ecosystem that arose in early 2010s. “We could play vicarious by founders who fund us, because there was so much excitement out there,” he said further. According to Patni, the Indian boot space has developed significantly over the past decade and a half with founders, investors and regulators who all learn and adapt. This makes private equity and venture capital a natural diversification for any family station worldwide. But he also offered a word of caution to compare public and private markets, calling it an ‘Apple and Lanangs comparison’. The main differences are time horizon and liquidity. ‘When we look at early phase businesses, we find good founders and good businesses who have the fire and have the ability to grow. I think it can be very profitable, ‘he said. He said about the need for patience and perseverance, he said: “I think to make any meaningful comparison, you need a 30 -year window, and we don’t have it. We’re just halfway through it. I think we’ll have a little more patience.” Some success stories have talked extensively about two of its successful investments, and emphasize the different roles that a family office can play at different stages of a business’s growth. Shiprocket: Patni’s fund, Nirvana, invested in hyphoquet in 2014 when the business model was different. The success of the company, he says, is proof of the dedication of the founders. “They made a visit when they had to, they innovate when they had to. The journey was on the credit of the founders and their hard work, but it is also for us as investors and believers in them to see that it is playing out, and it will be rewarding for everyone, ‘he said. Initially a platform for small retailers to go online, the founders quickly identified a pain point in the fulfillment of backward – from logistics, sent and warehouse. They expanded their offer, which, combined with the ‘explosion of e-commerce in India’, led to a recipe for success. This journey demonstrates the power of the vision of a founder, adaptability and a little happiness. Bombay Shaving Company: Patni’s investment in Thebombay Shaving Company came later, about 3-4 years ago, when the company was already an established player. Although the enrollment price is higher at this stage, the business model has been proven and the statistics are in place. He finds this stage “super interesting” because he works with experienced founders like Shantanu Deshpande who are “ready to take it to the end.” Patni explains that this later phase investment requires a different kind of caution. ‘Are your financial statistics in place? And is the founder as passionate and energetic as he or she was on the first day? ‘ are important questions. He believes that even with the acceleration of technology, a business journey takes at least 15 years to mature. The role of external advisors in Legacy Building and talks about the role of acknowledging external wealth advisors said: “I think the whole ability to zoom out and think as a 30,000 level is needed at the end of the day.” It is of the utmost importance to set reasonable goals and create a responsible plan for wealth creation. “Honestly, we can only measure something for ten years or 20 years,” he said, emphasizing on a long -term perspective on investment. When asked about Legacy, Patni, he added: “I have not yet completely formulated what legacy means to me. I am still doing things and honestly doing things for what I believe in. Generally, if you see it from a larger landscape, it means it all. He concluded the discussion with an advice for the next generation and against the grain of his own “Type a Marwari Business Family DNA”: “Not everything is done for money.” While making money and creating wealth, it is important to serve a greater purpose, he emphasizes that ‘recognition’ is not the only statistics for success. Angel Investment, he says, can be so – it may not always offer immediate financial returns or public recognition, but it can nevertheless be ‘very fulfilling’. Note for readers: Let Mint Money A Mint editorial IP is, in collaboration with Waterfield Advisors. In the series, Neil Borate will investigate the perspectives of personal finances of India’s competent corporate professionals, entrepreneurs and family owners. Stay tuned for future episodes! Visit www.waterfieldAdvisors.com for more information on Waterfield