Wipro Consumer Care Ventures, the venture capital division of the major consumer goods company Wipro Consumer Care & Lighting, is preparing to liquidate some of its investments from its initial ₹200 crore fund. The firm is now transitioning its focus to a newly established second fund worth ₹250 crore, with plans to make three to four new investments annually.
Portfolio Evolution and Strategic Exits
Having commenced investments from its first fund back in the 2019-20 period, Wipro Consumer Care Ventures has built a diverse portfolio of approximately 15 companies. Its early investments were notably in the male-grooming segment, backing startups like Ustraa and LetsShave, from which it has since fully exited. According to Sumit Keshan, the Managing Partner at Wipro Consumer Care Ventures, the focus for the upcoming year will be on executing a couple of strategic exits.
Keshan revealed in an interview that the fund has already undertaken a partial exit from Ustraa when it merged with VLCC, and it retains a stake in VLCC as a result. He also highlighted that the fund was the sole investor to successfully exit from MyGlamm (now part of the Good Glamm Group) and generate a profit. With the first fund now fully deployed as of this year, the venture capital arm is poised to begin deploying capital from its second fund early next year.
New Investment Focus: Packaged Foods and Pet Care
The investment strategy is undergoing a significant shift. While the fund initially concentrated on personal care and male grooming, it is now expanding its horizons. Packaged foods and pet care have emerged as key sectors of interest. This strategic pivot was demonstrated earlier this year when the fund led an investment in the health food brand Anveshan and made its first foray into pet care by investing in Goofy Tails.
The average ticket size for investments has also evolved, moving from an initial ₹12-13 crore to a current range of ₹10-25 crore. The firm typically acquires a minority stake of less than 20% in the startups it backs. Furthermore, the fund has adjusted its investment stage preference, now focusing on more mature companies at the pre-Series A and Series A rounds, a change from its earlier strategy of backing very early-stage ventures.
Broader M&A Strategy and Market Outlook
Beyond venture capital, Keshan also oversees mergers and acquisitions for the core FMCG business of Wipro Consumer Care & Lighting, which recorded revenues of ₹10,625 crore in the 2024-25 fiscal year. The parent company has an aggressive M&A history, having invested over $1 billion in acquiring brands across various markets over the past two decades.
Recent acquisitions include the Kerala-based packaged foods brand Brahmins in April 2023, and personal care brands Jo, Doy, and Bacter Shield from VVF (India) Ltd. Keshan stated that the company remains open to acquiring companies in skincare, packaged foods, and fragrances.
Commenting on the market environment, Keshan observed that early-stage deal flow remains robust, though mega-deals at later stages have slowed due to broader macroeconomic factors. He anticipates consolidation within the startup ecosystem, which will provide exit opportunities for funds like his, either through larger private equity deals, strategic sales, or potentially IPOs for sufficiently large companies.
