Ratan Tata is renowned for his business acumen and philanthropy, but few are aware of his significant contributions to numerous startups in India. Over the past decade, the Tata Group has invested in more than 40 startups, including prominent names like Ola, Lenskart, Urban Company, and Paytm.
Tata's foresight has been instrumental in transforming these startups into industry leaders. He often viewed these investments as opportunities to learn and gain insights into emerging trends.
His investment in Paytm, which started as a mobile recharge platform, has evolved into a fintech giant. Similarly, Ola, initially a competitor to Uber, has expanded into a multifaceted business, including Ola Electric, which contributes to India's electric vehicle ambitions.
Tata's investments have spanned a wide spectrum of industries, from home services (Urban Company) to baby products (FirstCry) and B2B industrial goods (Moglix). His strategic backing has not only fueled the growth of these startups but has also played a pivotal role in shaping India's startup landscape.
Ratan Tata, the chairman emeritus of Tata Sons, passed away on October 9, 2024, at the age of 86. He served as the chairman of Tata Sons from 1991 to 2012. However, he continued to mentor young entrepreneurs and invest in startups, which helped India become the world’s third-largest startup ecosystem. Therefore, the passing of Ratan Tata is a tremendous loss for India Inc., both for large corporates and the startup ecosystem.
Abhiraj Singh Bhal, the co-founder of Urban Company, wrote in a post on X that Ratan Tata told him in their first meeting that “India needs what you are building; keep the quality high and the rest will follow.” Kaushal Dugar, the founder of the tea company Teabox, reportedly said that Ratan Tata's investment in his company in 2016 made it successful, transforming it from “a bunch of misfits trying to change something that's been working for about 100 years,” as the traditional tea industry saw it. “Once Mr. Tata came onboard, literally everyone started taking us seriously in India, and we got the much-needed boost to grow,” Dugar stated.
Another significant venture that benefitted from Tata’s involvement is FirstCry, an e-commerce platform focused on newborn, baby, and kids' products. Supam Maheshwari, the founder and CEO of FirstCry, once said that a positive nod from a business leader of Tata’s stature is a great vote of confidence in the ecosystem they have created and validates their business approach, leading to a definitive path to profitability. Tata’s support not only provided financial backing but also instilled confidence in the startup's direction.