With Avg Deal Size of ₹1.2 Cr, Mumbai Angels Invested Over ₹80 Cr Through 66 Deals in FY-23

Mumbai Angels’ annual report reflects sustained growth with an average deal size of INR 1.2 Cr

The platform invested over INR 80 Cr through 66 deals during the financial year

Mumbai Angels, India’s leading private investment platform, has released its annual report for FY23, which reflects impressive numbers on all fronts, including investments, the number of deals evaluated, the average deal size, the total amount invested during the year, exits, and more. The platform invested over INR 80 Cr through 66 deals, with the average deal size being INR 1.2 Cr.

Building on its success so far, Mumbai Angels has evaluated 6000+ deals, with 160+ deals showcased during FY23. The platform has also made 6 exits and had 40+ startups raise additional rounds of funding, totaling up to over INR 550 Cr. Having a network of more than 720+ investors across 20+ countries and 60+ cities, Mumbai Angels has clocked an AUM (Assets Under Management) of $130 million in FY23. The platform’s annual report also showed that it has a 36% IRR (Internal Rate of Return) and 50+ investors for its Multiplier program, a specialized marketplace exclusive to its portfolio companies.

Further, Mumbai Angels’ number of investors rose from over 450 to 720+ in FY23, with 82% of the investors from India and 18% being international investors. The platform also invested majorly in the education (15.2%), F&B (12%), technology (10.6%), consumer (9.1%), and finance (9.1%) sectors. Apart from this, 7.6% of Mumbai Angels’ investments in FY23 went to the EV industry, while 6.1% each was dedicated to marketplaces and content, and 4.5% each went to the Logistics, Legal, and HR segments.

Ms. Nandini Mansinghka, CEO of Mumbai Angels, said, “The past year has been one of the most significant for Mumbai Angels. We became a part of 360 ONE, one ofIndia’s leading Wealth and alternates-focused Assetmanagers with an AUM of over USD 40 billion+. We also launched two new funds that can turn out to be game changers in this space. While these transformational events were taking place, our performance for FY23 remained consistent with steady growth on all fronts. As a leader in the private investment segment, we will continue to remain committed to nurturing high-potential startups while fulfilling our responsibility to stakeholders, including investors, entrepreneurs, and co-partners. We look forward to continuing our momentum and furthering our growth in the coming months/years.”

About Mumbai Angels

Mumbai Angels, India’s premier platform for private investment that is now a part of 360 ONE (earlier known as IIFL Wealth & Asset Management), one of the leading wealth and alternates- focused asset firms in India,hold an AUM of USD 130 Mn and a 200+ strong portfolio spanning a wide range of sectors, such as Technology, Consumer, Life Sciences, DefenseTech, SpaceTech, EV, AgriTech, FinTech, EdTech, Gaming, and Content, etc. Of the overall portfolio, the platform has exited/secured the next round of funding for 100+ of them. The platform has 750+ investors spread across 70+ Global and Indian cities.

Govt Planning No 'Angel Tax' on Startup Funding Via Recognized Investors

Despite no clarification given on demon of 'angel tax', that startups still haunts from, new regulations and contemplation are being revealed every passing day.

A day after Budget 2018 was presented, Department of Industrial Policy and Promotion (DIPP) announced that it is making an amendment where startups incorporated before 2016 that have got up to Rs 10 crore in angel funding won’t face the so-called angel tax.

Now, in a latest news coming from a source, government is considering a proposal to exempt investments from recognized angel investor groups in startups from the so-called angel tax.

The news report further stated that, as an additional step concerning angel investments, a committee has been set up under the Securities and Exchange Board of India (SEBI) to form a framework for regulating angel investments.

The 'demon' of so-called angel tax was introduced in Union Budget of 2012 under section 56 (2) (viib) of the Income Tax Act, 1961. This section says that any excess consideration received by a company will be treated as the income of the start-up if it issues shares to a resident at a price which exceeds the fair market value of the shares. The section does not apply if consideration is received from venture capital companies, venture capital funds or a certain class of persons notified by the government. Thus, a startup is required to pay an angel tax at the rate of whopping 30.9% on the capital raised in excess to its fair value.

Thereafter, in past few years, the finance minister has provided exemption from angel tax by excluding investments by non-residents, venture funds, angel funds, and the DIPP-registered startups. Astonishingly though, the startups and Angels of Indian origin are not excluded from taxation.

The latest move of government's new proposal may extend the exemption to angel investors of Indian origin as well.

Prominent angel groups such as Indian Angel Network, Venture Catalysts, AngelList and LetsVenture, among others, are currently presenting proposals to the SEBI panel on the outlines of the regulations regarding angel investments in the country.

To recall, in this year's union budget, it was announced that time for claiming a tax holiday/exemption by eligible startups has been extended till 1-April 2021.

Govt Planning No 'Angel Tax' on Startup Funding Via Recognized Investors

Despite no clarification given on demon of 'angel tax', that startups still haunts from, new regulations and contemplation are being revealed every passing day.

A day after Budget 2018 was presented, Department of Industrial Policy and Promotion (DIPP) announced that it is making an amendment where startups incorporated before 2016 that have got up to Rs 10 crore in angel funding won’t face the so-called angel tax.

Now, in a latest news coming from a source, government is considering a proposal to exempt investments from recognized angel investor groups in startups from the so-called angel tax.

The news report further stated that, as an additional step concerning angel investments, a committee has been set up under the Securities and Exchange Board of India (SEBI) to form a framework for regulating angel investments.

The 'demon' of so-called angel tax was introduced in Union Budget of 2012 under section 56 (2) (viib) of the Income Tax Act, 1961. This section says that any excess consideration received by a company will be treated as the income of the start-up if it issues shares to a resident at a price which exceeds the fair market value of the shares. The section does not apply if consideration is received from venture capital companies, venture capital funds or a certain class of persons notified by the government. Thus, a startup is required to pay an angel tax at the rate of whopping 30.9% on the capital raised in excess to its fair value.

Thereafter, in past few years, the finance minister has provided exemption from angel tax by excluding investments by non-residents, venture funds, angel funds, and the DIPP-registered startups. Astonishingly though, the startups and Angels of Indian origin are not excluded from taxation.

The latest move of government's new proposal may extend the exemption to angel investors of Indian origin as well.

Prominent angel groups such as Indian Angel Network, Venture Catalysts, AngelList and LetsVenture, among others, are currently presenting proposals to the SEBI panel on the outlines of the regulations regarding angel investments in the country.

To recall, in this year's union budget, it was announced that time for claiming a tax holiday/exemption by eligible startups has been extended till 1-April 2021.

NCR Emerged Ahead of Bengaluru as the Most Preferred Destination for Angel Investments : InnoVen Capital Report 2016

InnoVen Capital, Asia’s leading venture debt firm, announces the release of the ‘India Angel Report 2016’, the latest edition of its annual report analyzing investment trends by major angel groups in the country. The Report has been prepared in collaboration with the Association of Indian Angel Groups (“AIAG”) and is based on data provided by the following member angel groups– Mumbai Angels, Indian Angel Network, Chennai Angels, Hyderabad Angels and Calcutta Angels.

The Report reveals that deal activity by the angel groups grew significantly in FY16, amounting to Rs.1137 Mn in commitments across 69 deals, as compared to Rs.703 Mn across 47 companies last year. Valuations also rose, with the median pre-money valuation in FY16 at ~Rs.100 Mn, up 10% over the previous year.

In our ‘Startup Outlook Report 2016’ released earlier this year, we found that NCR had emerged the preferred destination for entrepreneurs, followed by Bengaluru. The latest Report reaffirms these findings, with NCR accounting for ~36% of angel deals. Reflecting India’s place as one of the largest consumer markets in the world, B2C startups attracted over two thirds of angel group investments, with consumer internet, food and e-commerce as top sectors. In the B2B space, startups in IT / ITES and marketing / advertising sectors received majority of the investments. A strong preference for revenue generating startups observed in recent years continued in FY16 , with ~71% of the startups backed by angel groups generating revenues.

This year, we also demographically analyzed startups and founders funded by angel groups. Our findings reveal that the average startup had two co-founders, and one-fourth of all startups in the sample had at least one female co-founder. Interestingly, the average founder had 8 years of experience prior to starting up and 28% of all founders were found to be serial entrepreneurs. Looking at academic backgrounds, ~67% of founders were engineering graduates and the majority of them had a post-graduate qualification, most commonly an MBA. 46% founders had an MBA whereas 15% had a post-graduate qualification in a technical subject. India’s elite academic institutions were well represented amidst founders – 23% of all engineering graduate founders were from the IITs, while 16% of all founders with an MBA were from the IIMs.

At an overall portfolio level, an analysis of over 150 investments made by angel groups between FY05 and FY15 reveals that of FY16, angel groups had exited 18% of investees, while 7% had wound down, with the remainder still operational, but not exited. More than 50% of these companies have raised follow-on rounds of funding within which 22% raised multiple rounds. Historically, almost 40% of investments made in companies in any given year have gone on to raise further equity eventually with 5% of the portfolio companies having raised more than 5 rounds of capital.

Commenting on the findings, Mr. Ajay Hattangdi, Group COO and CEO India said, “The India Angel Report is the product of our ongoing inquiry into the dynamics of the various components of the venture capital landscape. While by no means comprehensive, the Report seeks to provide some understanding of the trends within angel investing in India. It is meant for use by practitioners in the angel community, by venture capital firms who see the valuation trends as a bellwether for their own deal pipelines, by policy makers who have begun to appreciate the role of angel investments in the development of the entrepreneurial finance system, or by those generally interested in the venture capital industry.”

About the Report

The ‘InnoVen Capital: India Angel Report’ is an annual report that provides analysis and trends on Indian angel and angel group activity. The report has been prepared by InnoVen Capital India Private Limited (“InnoVen Capital”) in collaboration with the Association of Indian Angel Groups (“AIAG”) and is based on data provided by the participating angel groups to InnoVen Capital. The following angel groups participated in this edition of the report – Mumbai Angels, Indian Angel Network, Chennai Angels, Hyderabad Angels and Calcutta Angels. The full edition of this Report can be read here: India Angel Report 2016 and infographic version at http://goo.gl/lQ7mmB. The previous edition of the Report can be read here: India Angel Report FY15.

Image Source