Ratan Tata Leaves Behind Legacy Of Mentorship, Vision In Startup Ecosystem
Celebrating a legacy that blurred the lines between investment and mentorship, guiding entrepreneurs with wisdom and support
The chairman of Tata Sons, Ratan Tata passed away on Wednesday, leaving behind his empire and a great legacy that shaped the Indian startup ecosystem. His investment approach focused on nurturing entrepreneurial talent, going beyond mere financial support. He invested in startups as a mentor and advisor, sharing his expertise to help founders grow their businesses.
One of the most notable startups is Lenskart, a leading online eyewear retailer. Tata invested around Rs 10 lakh in Lenskart In April 2016, but his contributions extended far beyond financial support. Once Lenskart officials said, “The quantum of his (Tata's) investment is small, keeping in line with his investment thesis. His approach is more of a mentor/adviser rather than a financial investor,” as per media reports.
Recently, Lenskart raised USD 200 million in a secondary round at a USD 5 billion valuation, a testament to Tata’s foresight and the solid foundation he helped to build. Interestingly, despite having his eyewear brand, Titan EyePlus, Ratan Tata invested in Lenskart.
Urban Company, which was formerly known as UrbanClap, is another success story related to Tata’s mentorship. Founded as a marketplace for local services like plumbing and beauty treatments, Urban Company received an investment of an undisclosed amount from Tata in December 2015. The company has since become a prominent name in India. One of the co-founders shared his thoughts on Ratan Tata in an article on Urban Company’s profile.
He wrote “In a simple office, we met Ratan Tata, who listened intently as we shared our vision for a platform connecting people with reliable local services. He encouraged us, saying, ‘Gentlemen, what you are building is something India needs. I felt I had aged a bit as I left that office that day.”
Another significant venture that benefitted from Tata’s involvement is FirstCry, an e-commerce platform focused on newborn, baby & kids products. Supam Maheshwari, the founder and chief executive officer (CEO) of FirstCry, once stated, “A positive nod from a business leader of Tata’s stature is a great vote of confidence in the way we have created the ecosystem and validation of the business approach leading to a definitive path to profitability.” Tata’s hand not only provided financial backing but also instilled confidence in the startup's direction.
Ola, the ride-hailing company, also finds Tata among its early supporters. In 2015, Tata made a personal investment in Ola and then later contributed an undisclosed amount through his investment firm, RNT Capital Advisors. He even invested in Ola Electric.
Bhavish Aggarwal, Co-founder, CEO, Ola, expressed his gratitude at that time, saying, “Tata has been an inspiration and a mentor to me personally in shaping Ola’s journey over the years. I’m very excited to welcome him on board Ola Electric as an investor and a mentor in our mission of building sustainable mobility for everyone on our planet.”
Tata's investment in Paytm, initially a mobile recharge platform, marked a turning point for the company. He invested in One97 Communications, the parent company of Paytm, in March 2015. Hearing the news of Tata’s demise, Paytm CEO Vijay Shekhar Sharma pointed him as a legend and tweeted, “Entrepreneurs of the next generation will miss interacting with the most humble businessman in India.” Tata’s support was instrumental during Paytm's transformation and played a crucial role in the company’s growth.
Ratan Tata's legacy as a mentor and advisor will forever be cherished in India's entrepreneurial ecosystem. His approach to investing—one that prioritised respect, integrity, and quality— over profit, set the utmost standard for business leaders.
As the startup world mourns his passing, it also celebrates and thanks the ever-lasting impact of his vision, mentorship, guidance, value and unwavering commitment to building a better India. Ratan Tata may have gone, but not his legacy, that will inspire future generations.
