Ratan Naval Tata, the former Chairman of Tata Sons who passed away at 86 on October 9 in Mumbai’s Breach Candy hospital, emerged as a significant figure in India’s startup ecosystem, offering crucial support to young entrepreneurs and startups. After his retirement in 2012, the industry stalwart Tata shifted his focus towards nurturing the new wave of entrepreneurship in India, playing the role of an investor, mentor, and guiding force for countless startups.
Ratan Tata made his first notable startup investment in 2014 when he invested in Snapdeal, marking his entry into the entrepreneurial ecosystem. Since then, he backed 46 startups, as per Tracxn, across sectors such as e-commerce, technology, fintech, health tech, and more.
Beyond financial investments, Ratan Tata was also known for offering invaluable mentorship to startup founders. His business acumen, built over decades of experience leading one of India’s largest conglomerates, made his advice highly sought after. Founders often credited Tata for guiding them on business strategy, leadership, innovation, and scaling their ventures. His humility and approachable nature also made him a mentor figure for many young entrepreneurs.
Tata was a strong advocate of risk-taking and innovation in business. He believed that startups should not shy away from challenging the status quo or disrupting traditional industries.
However, he hadn’t thought out to become a startup investor. In 2019 during an interaction with VC firm Chiratae Ventures Chairman Sudhir Sethi, Tata had recalled that his role as a startup investor was accidental.
“I entered the startup investor partly by accident. During the years that I was with the Tata group, I always looked at the startups as a sector that is exciting but somewhat untouchable because somewhere or other there will be conflict of interest with Tata Group,” Tata told Sethi in a talk, PTI had reported.
He has said, “When I retired I was free from it and I started making small token investments from my own pocket in what I considered to be exciting companies. So, what I did was to take some more risks than I might have taken under different circumstances,”
One of the defining features of Tata’s approach to startups was his emphasis on ethical business practices. He encouraged founders to not only focus on profit but also on building companies that positively impact society. His personal values of integrity, responsibility, and social impact reflected in his support for businesses that aim to make a difference, whether in healthcare, education, or financial inclusion.
Overall, Ratan Tata’s involvement in the startup space provided a massive boost to India’s entrepreneurial landscape. His backing enhanced investor confidence in the Indian startup scene and inspired many traditional investors to explore early-stage ventures. His influence played a pivotal role in making startups a mainstream part of India’s economic fabric.
“In my case it was selection from intuition, in fact I would say talking with the founders, drawing conclusions from their attitude, maturity and their seriousness meant more to me than any other thing or factor,” the then 81-year-old had said.
“I don’t believe in taking right decisions. I take decisions and then make them right.”
“Risk is part of the process of success. Failure teaches us what works and what doesn’t, and it gives us resilience to pursue success with more vigor.”
“I admire people who are very innovative, people who break rules and create something new and different.”
“I think that when you’re doing something new, you’ve got to have the passion and commitment to follow it through.”
“Ups and downs in life are very important to keep us going, because a straight line, even in an ECG, means we are not alive.”
“None can destroy iron, but its own rust can! Likewise, none can destroy a person, but his own mindset can.”
“The early Rockefellers made their wealth by hiring people smarter than themselves. Be unafraid to hire people who are smarter than you.”
“If you want to walk fast, walk alone. But if you want to walk far, walk together.”
“I’ve always been a strong believer that the people who go through those difficult times, when they come out of it, become much stronger and much more resilient.”
“A founder who is not passionate about what he or she is doing is not going to succeed in the long run.”
Satish Sinnarkar
Editor, IECT
