- Tell us something about yourself.
I am Tushar Kansal – Founder/ CEO of Kansaltancy Ventures (https://www.Kansaltancy.com ) – an accomplished professional, a “Thought Leader/ Influencer”. Over the years, I have supported Companies & Investors in diverse sectors (90+ Recommendations on LinkedIn). I help by means of Venture Capital, SME/ Mainboard IPO. Debt, Consulting, Virtual CFO & Strategic Services, leveraging 450+ Investor/ Lender connects. The range of deals is USD 1-50 million. I contribute to a portfolio of 360+ Startups in 60+ countries with Loyal VC, the INSEAD-led Canadian VC Fund, as their Venture Advisor. An avid reader and a Hindi singer, I am a Speaker at Ivy League Institutions/ Corporates. My expert opinion is often sought by leading Channels/ Publications like CNN-News18, VCTV (Venture Capital Tv), Business World & TechThirsty. More than 500 talks of his including TedX are in the public domain – Check Google/ YouTube
I share my vision with the world via my Blog “Indus Churning”. I have experience spanning multiple specialties from Venture Capital (Brand Capital), Big 4 Consulting (Deloitte & Touche), LSE-listed Sistema’s India unit (Raised USD 2.5 billion for MTS India) to CFO of USD 325 billion Guggenheim Partners-owned company (DLI). I received an MBA in Finance from University of Delhi, B.Tech from “The Technological Institute of Textile & Sciences”, affiliated to the “Textile Institute Manchester, UK” and part of the leading Industrial & Education house in India “The Birla Group” & Leadership studies from the Harvard Business School
Links:
https://linktr.ee/tusharkansal
https://www.youtube.com/c/TusharKansal
Playlists:
300+ Talks/ Events – https://www.youtube.com/playlist?list=PLgrWugpMQEmY8UWwJOEiZ1ICcsSD9tgBk
51 VCTV (Venture Capital Tv) shows – https://www.youtube.com/playlist?list=PLgrWugpMQEmbyMzpcsJQkYYDIu6JxiZUh
9 Shows on Har Ghar Startup channel (owned by Mr. Suniel Shetty) –
https://youtube.com/playlist?list=PLgrWugpMQEmaLlW0abg4f-LtqIXZoPXoX&si=DHIn-TzNfKArBSDa
21 Podcasts – https://open.spotify.com/playlist/6Aj0Mfy7WFEIN7vEkLozvr?si=knBbbDsxQLKr7cENrvqgOg&pi=a-C2lcge_fSweQ
I have won Awards/ Citations as given below:
– “Dynamic Entrepreneurs of 2023” by Times of India
– “Tribute to Entrepreneurs on National Startup Day 2024” by Hindustan Times
– “Innovative Leaders 2024” by Times Now
– “15 Business Leaders to lookout in 2024” by Economic Times
You may talk to me here –> https://topmate.io/tusharkansal or reach me on my LinkedIn https://www.linkedin.com/in/tusharkansal/ or email tk@kansaltancy.com
- What key challenges did you face in the initial stages of building Kansaltancy Ventures, and how did you overcome them?
The initial stages of building Kansaltancy Ventures in 2016 presented several key challenges. At that time, the concept of Startups was relatively new in India, supported primarily by the Startup India Initiative launched by our PM Shri Narendra Modi. This initiative had only 416 registered Startups, and terms like ‘Investment’ and ‘Venture Capital’ were not widely understood. The knowledge gap in the market posed a significant challenge as very few people were familiar with Investment processes and how Venture Capital worked.
To address this, we played a pivotal role in educating and supporting the Startup ecosystem. Over the past nine years, we have guided more than 5,000 Startups, helping to build foundational knowledge for both Entrepreneurs and Investors. We also contributed to shaping the Investment landscape by conducting over 500 Talks, Panel discussions, and sessions that are accessible on platforms like Google, LinkedIn, YouTube, and Spotify.
Another major challenge was the limited availability of Capital within the country. Access to funds was restricted, and there was a significant reliance on foreign Venture Capital (VC) funds. Additionally, government interest in Investment support was minimal, and there were very few accelerators to foster growth. This lack of infrastructure created a challenging environment for Startups to thrive.
To overcome these barriers, we began organizing and participating in panel discussions, notably through platforms such as Venture Capital TV, where we participated in 51 shows. These initiatives brought attention to the Investment ecosystem and attracted people who sought expertise in the field.
Furthermore, many companies were uncertain about the type of funding they required, whether Debt, Venture Capital, IPO, or Angel Investment. We provided clarity and guidance in these areas, leveraging our comprehensive expertise across Debt, Venture Debt, Equity, and various forms of Investment. This approach included creating and nurturing an Angel Investment network that continues to grow.
Today, we offer a full spectrum of financial solutions, ranging from Debt and Venture Debt to Equity and Angel Investments, guiding companies through funding stages up to SME IPO and mainboard IPOs. This holistic approach has solidified our position as a key player in the Indian Startups and Investment landscape.
- How do you balance maintaining a hands-on role in Startup advisory while also growing Kansaltancy Ventures as a business?
We realized early that Startups struggle quite a lot and they basically require three things: one is a Network. Network from which they can get Investment and network from which they can get business, so we provide that. Secondly, they need Capital, so we provide Venture Capital, Angel funding and we do SME IPO also and they require Debt also like Loans so we do Debt for them also. The third thing they require is Management know-how, so we know the best practices globally which Startups follow and the Startup founders follow so we handhold these Startups bases that best practices and international know-how. And while growing Kansaltancy Ventures as a business, we charge on the basis of the work we do like the Business plan, Pitch deck, Teaser, Financial Model and Valuation. All the documentation we create is up to the Investor standards and secondly, we charge basis the funding which we get for the Founders and anybody who wants to talk to us can do it by the Topmate account which has charges which they need to pay while taking Advisory. And we take Equity also as a part of our Advisory but that is only in very very selected companies. Our founder Tushar Kansal is an independent director on the board of big companies like GP Eco solutions which has done SME IPO so he advises the Board of reputed companies.
- How do you approach guiding first-time Entrepreneurs who may be unfamiliar with the complexities of the Startup ecosystem, particularly in areas like funding and scaling?
The first thing is one can only help those who help themselves. You know even to guide someone you need certain qualities in the person who is receiving guidance. So, you know if I tell them that they need to see these videos and they need to follow these guys on the internet and see some YouTube, Spotify Podcasts, they need to spend some time on that. Secondly, first time Entrepreneurs make some basic mistakes – so you know I can’t really go out and tell everyone their basic mistakes, so for that we can tell you the content which is already available like you know more than 500 videos of mine are available on YouTube and Google and Podcasts are available i.e. 19 podcasts on Spotify and a lot of material on LinkedIn. Secondly, in the areas of Funding and Scaling again you know there are many videos which I did about what investors are looking for and what is Venture Capital and about Scaling Strategies. So for someone who is very serious about going on the Entrepreneurial route, there are no limitations on how much you can learn, learning is an ever going process and we are willing to help each serious Entrepreneur – I am available on my LinkedIn or you can email me as well and we can book a call on my Top mate and I’ll be happy to guide. There is so much to learn as it’s a very vast field and you know since I have been in the system post my MBA since 25 years, so I bring certain experience – so all that experience can’t be given in a very short time but definitely if you trust and respect the process then you know the mentoring will definitely be helpful. Networking is very important so the first time Entrepreneur should attend events apart from seeing videos and making notes and hear what people are saying and meet them and learn. So it’s a journey but it can be an interesting one if you do it properly.
- In your view, how can Startups maximize their valuation without compromising their core mission or values?
If you look at companies which wanted the maximum amount from the IPO and hence went overboard with the valuation like PayTM – which wanted the biggest IPO in the history of Indian Stock Markets and got that and today its share is below the IPO price and hence it has given losses to lacs and lacs of investors and has a bad name in the market. If you are targeting only valuation then you will not reach anywhere, you have to target your fundamentals of the company which means Unit Economics, which means what is your quality of your revenue, what is the operating profit, what is the net profit, are you growing with too much Debt or less Debt and how many resources you put in to achieve a certain level of growth. So, these things are more important and if you focus on these things like which should be your core mission and values then you will automatically get a high valuation. Why does L&T get premium valuation because it is so good in its work, it can make tunnels, it created the Ram temple, it made the Statue of Unity, it is creating a large part of the bullet train elevated Tracks etc from Ahmedabad to Mumbai, so it is the Go-To company when nothing else is working and that is why it commands a premium valuation, same case in Venture Capital if you are so good in your business and your fundamentals are strong then automatically you will get a good valuation.
One example is of the Quick Commerce companies. When VC valuations were plummeting and down rounds were happening, the Q-Comm companies were doing brisk growth and hence saw rounds happening at higher and higher valuations.
There is no end to Greed, so any valuation is a low valuation for Founders, but they must know the numbers running in the valuations of their Sector and position their Business optimally to get the best valuation!
- How do you prioritize which industries or sectors Kansaltancy Ventures will focus on, and what criteria influence these decisions?
We are sector agnostic but we don’t do Real Estate, Trading and Crypto. Naturally you know if a particular sector is going very hot with Investors, so naturally more money gets attracted towards that Sector and the chances of future rounds happening of that company also increases, and the amount which that sector gets also increases – so we also don’t go against the flow because there is no point betting against the market. So nowadays Artificial Intelligence is going very strong, Co-working is going very strong. Technology fascinates us always and Startups which have a Tech-edge to them, are always preferred over other Startups because Technology if applied rightly, makes the Startups scalable and any Venture Capitalist looks at scalability as the Number One factor before looking at other things. So nowadays FinTech is there, EdTech is on the backseat and Cyber Security is going strong, so we are picking these kinds of things. HealthTech is always strong because it has very good Unit Economics and the profit margins are very good.
- What are some misconceptions founders often have about Venture Capital or fundraising that you frequently encountered in your advisory work?
Misconceptions are that Venture Capital is for everyone; Fundraising is for everyone so actually it is not true. Venture Capital exists at the intersection of scalable and futuristic businesses which have both macro and micro tailwinds to it. Like you know, demonetization came in so automatically the Fintech companies started rising. Covid came in and then HealthTech and the payment companies like PayTM started rising like contactless services. So, any sector which has headwinds or is going down, the market will ignore it. So, the misconception is Venture Capital is for everyone like you know sometimes I get companies from very traditional side of sectors like you know some standalone restaurant which does not have a branding perspective or maybe a furniture shop or a showroom, or a single manufacturing unit which is making a product which is commoditized, so automatically Venture Capitalists won’t pick it. And many companies look for Venture Capital but actually they are looking for Working Capital. Working Capital can be taken from Loan/ Debt also so why choose Venture Capital. There is a misconception that Venture Capital is cheaper than Debt but that is not the case because Venture Capitalists are expecting an Internal Rate of Return (IRR) of 25-35% minimum whereas the Debt interest rate is 9-12%. So naturally Venture Capital is costlier – so if you want Working Capital, then go for Debt instead of Venture Capital.
- How do you manage and cultivate relationships with investors to ensure successful funding rounds for your clients?
Your network is your NetWorth as they say – so a long-term relationship is required with Investors. We have been in the Business for almost 10 years, so all the active investors in India know us. Apart from that, most of the active investors in Singapore, Dubai, UK and many in the US know us. How have we built these relationships? Well, they respect us, they know that we know our business, they know that we know what Funding is and what Investment is and how serious you have to be while making Investment or giving your money to somebody. They know that Trust is a big factor, so they know that the Startups and Founders that are with us, won’t run away and hence they trust us with their money. They know if a Startup comes from us, it is bonafide. Also, because we also do a lot of events – I have been a speaker, and more than 500 videos of our work are on YouTube, Google, Spotify and LinkedIn. So, we interact with these Investors on a variety of things and do a lot of conversations with them about Startups and sectors including the finer points. it is also true that there is no fixed formula for making a relationship with a person, some people are more friendly and less technical, some people always like to talk technical, some like spending quality time, some maybe like to enjoy with you on a travel or at a bar. Some people like to talk about books and some people like to exchange knowledge on Personal Finance or markets so hence there is no fixed formula but as in all walks of life, Venture Capital sector also has all kinds of people but broadly you should have a respect in the market, you should be seen doing good work and you should be searchable on Google and people should be able to see what all you are really doing in life.
- Could you discuss a pivot or shift that a Startup made during your engagement that led to a successful outcome and what factors drove that decision?
Well there are many examples – you know in Covid, almost 70% Startups were about to shut down and they had to make a shift so many of them actually pivoted – many of them whatever business they were doing, started selling health products like disinfectants and gloves and started trading these products and most of them jumped onto the internet to offer contactless service and started planning towards that. So, pivots are very common in Startups but you know at the end of the day you have to focus on one or two products or services for which you find the secret sauce ie your secret formula of success. I will give you some examples of pivots and shifts here:
One example is of a snacking company – earlier they were offering mid-meal snacks. You know we like to munch in between meals. So, these guys were offering it and they were thinking that maybe they can do a B2B in this and like supply to offices and residential but they realized they were going against a healthy practice that actually one should not eat between two meals. So, they realised that India is right now staring at more than 20 crore people with Diabetes, we are the Diabetes nation of the world. So, they pivoted to Healthy snacking – offering snacks and drinks which are especially for people with Diabetes which is a rare product in the market because every product is selling truckloads of sugar in whatever they are selling like the food and drinking stuff.
One more example is of a client of ours who is from IIT Kharagpur and IIM Calcutta. This guy was the head of design at one of the five-star chains in the Middle East and made a lot of money. His Father-in-law and Mother-in-law were in India, and they suffered from Alzheimer’s and had a very bad old life/ the last years of their life. So, he came back to India and along with his wife who is a doctor, they set up old age high-end elder Care Unit in Gurgaon which was for the rich people with Rs 1 lakh+ a month pricing. But they were paying high rents, and the Facility was for only very rich people. So, he pivoted after some years because he realized that leaving your elders in the house in a hospital/ elder care kind of thing is not so popular as compared to actually providing that kind of quality services at the house where the old person is staying and that is an entirely different business model. So he built a service business for home care for elderly people who don’t have their relatives around and whose kids live abroad in a kind of situation.
I did a show on “Har Ghar Startup” channel on Tata Play No. 510 which was called “Business ki Pathshala” and the one entire episode was dedicated to pivots in business. I am sharing the link to that in this answer.
Link of the video: https://youtu.be/LKhvTIo00tk?si=1eEaUoefJKTGgvvR (Search for “Strategies for Scaling your Startups – Tushar Kansal, Kansaltancy Ventures – Har Ghar Startups” – on the channel “Tushar Kansal” on YouTube and you will find this episode)
