Tomorrow Capital, a Mumbai based $100 million venture capital fund, has exited from further investments in ZenoHealth (a generic medicine startup earlier known as Generico) to focus on other early stage investment opportunities. The fund has set aside ₹100 crore for fresh round of investments over the next 12 months and is in the process of identifying 2 to 3 new startups.
Backed by Abhinandan Lodha of Lodha Group, the fund has so far invested more than ₹100 crore over the last 3 years into four startups including ZenoHealth, Bonito Designs and Multiliving Technologies.
The ₹13 crore investment in ZenoHealth was in the form of debt and equity. The fund made a 7.25x return on the equity investment in a span of 2.5 years.
“ZenoHealth grew 15x in last 2 years and exceeded our expectations both in terms of valuation and revenue. Given the valuation and sale the firm achieved we thought it was time to move out and put money into other early stage companies where we can achieve the same growth again,” Rohini Prakash, CEO, Tomorrow Capital told Mint.
ZenoHealth grew from 5 to 60 stores in 24 months and is catering to over 8 lakh customers across Mumbai.
This is the first exit for the fund and has helped them validate their operating model which is being more deeply involved with the startup they are investing in, pointed out Prakash.
In case of ZenoHealth, Tomorrow Capital team worked with the founders and assisted them in scaling up the operations, setting up systems and processes and developing and implementing marketing playbook for new stores.
The fund is currently looking at startups in the healthcare, fitness and education sector for the next round of early stage investments. Both sectors have seen huge growth since the covid-19 outbreak.
“We are looking at a bunch of startups. Our focus is largely on consumption based sectors. We are more interested in healthcare, education and home interiors. We hope to close 2-3 investments this year and put out another Rs100 core,” Prakash added.
