Indian investors keen on investing in Sri Lankan start-up units
Several Indian Investors have shown their willingness to set up large scale Indian businesses in Sri Lanka next year according to the Indian Angel Network.
This week Blue Ocean Ventures and the India Angel Network launched the Venture Engine 2015 in Colombo to enable entrepreneurs to get further funding to expand their businesses to stay afloat in a competitive market.
Venture Engine has been helping entrepreneurs to launch their own businesses since the inception of its fund in 2012 where many entrepreneurs have found success against all odds given the volatile nature of businesses. Venture Engine has disbursed funds over Rs. 500 million to 15 companies during up to now. Venture Engine is funded by Expolanka, Orion City and Dialog Axiata. It is run and mentored by strategic partner, the Lanka Angel Network.
Co-Founder of the Blue Ocean Ventures Prajeeth Balasuramaniam speaking at the launch said the fund was launched four years ago to help entrepreneurs to start their own businesses. He said the 2015 Venture Engine programme invites applications from prospective entrepreneurs all over the country to be evaluated for funding purposes. The closing date for such applications will be 12th May 2015. “Last Year we funded 10 companies with one million US dollars and this year too we hope to fund as many companies,” he said.
Chairman of Lan, Eric Wickramanayake said that entrepreneurs have an opportunity to raise Rs. 5-10 million of capitol without any collateral or assets, or security as needed by most financial institutions or banks. “We fund entrepreneurs for their business ideas without soliciting any kind of collateral or assets to start a business if they have the ability,” he said.
Venture Engine’s funding comes from local and foreign companies for entrepreneurs engaged in many fields such as eco tourism, fashion, technology and other related businesses. “We are also tied up with international agencies so that a good business proposal can be sent abroad for further evaluation and for funding,” he said.
Head of Marketing, Corporate Communications & CSR Expolanka Holdings, Paddy Weeraseera said Explolanka which was started 25 years ago has now amalgamated with a Japanese company and 51 per cent of its stake is now with a Japanese company. He said like many entrepreneurs Expolanka too had its up and downs raising capital with local and foreign companies and sometimes marrying into them. What was unique about Venture Engine was that it not only provides funding but advice as well. “We are proud that we have raised Rs. 500 million to help entrepreneurs in the country,” he added.
Chief Executive Officer (CEO) of the Orion City Jeevan Gnanam said Orion City parent company, St. Anthony’s Group, will continue to be a partner in the Venture Engine project to assist entrepreneurs. “We derive much value from entrepreneurs, working with starters and mentoring them to achieve success.”
He said it was a cumbersome process for entrepreneurs to obtain capital a few years ago where they had to go from pillar to post. Dialog’s Group Chief Officer Jeremy Huxtable said the Dialog’s entrepreneur success story in Sri Lanka was a case in point. Dialog was one of the largest quoted companies in the Colombo Stock Exchange that won a award this year at Barcelona. Chief Executive Officer of Talas.lk Lahiru Pathmalal said advice provided to entrepreneurs by Venture Engine was enormous. Co-Founder of Blue Ocean Ventures representing the Indian Angel Network, Ranjan Anandan said when Venture Engine started this project four years ago it was difficult to believe that it would provide funding to 15 companies to take off the ground. “The journey so far has been absolutely fantastic.” He said the Indian Angel network was similar to the Sri Lankan network and provides funding for over 280 investors and large companies in India. The network has been in existence for nearly a decade providing primary funding to the tune of over US$40 million for 78 companies. Several Indian investors have already invested in 10 Sri Lankan start ups here. “We are looking for the first company to be listed in the Colombo Stock Exchange under this programme.”
He said the Indian investors are looking forward to set up large companies in Sri Lanka next year in travel, tourism, education and in other fields.