Florian Reichert: Navigating Indian Tech Terrain with Global Expertise

In the rapidly evolving landscape of Indian start-ups, Florian Reichert, Partner and Managing Director at Picus Capital, brings a unique perspective to the table. With a global presence and a focus on technology ventures, Picus Capital has made strategic investments in several Indian start-ups, including MoneyOnClick, Basic Home Loan, Lido Learning, and Meddo Health. In an exclusive interview, Reichert shares insights on Picus Capital’s approach, the Indian startup ecosystem, and the impact of the pandemic on technology adoption.

While the Indian start-up ecosystem witnesses the rise of numerous early-stage VC funds, Picus Capital sets itself apart by acting as an entrepreneurial sparring partner rather than a mere financial investor. Reichert emphasizes that Picus Capital goes beyond providing capital; it actively supports portfolio companies in key strategic decisions, recruiting, fundraising processes, and more. The firm collaborates with exceptional founders aiming to build category-leading businesses, focusing on sectors like real estate, finance, human resources, mobility, health, and ecommerce. Additionally, Picus Capital prioritizes sustainability, investing in ventures that contribute positively to society.

Picus Capital’s global presence enables it to leverage a vast network when working with portfolio companies. The team’s alignment across major ecosystems allows them to track global trends, share insights, and provide valuable mentorship to founders. In India, Picus Capital has invested in diverse ventures, showcasing its confidence in the market’s digital adoption and growth dynamics.

While many startups view Initial Public Offerings (IPOs) as an exit event, Picus Capital sees IPOs as intermediate steps in the journey of building category-leading businesses. The firm believes that listing on public markets can be beneficial for startups, offering favorable valuation for certain business models and access to larger capital pools. Picus Capital’s long-term philosophy aligns with its commitment to supporting businesses over an extended horizon.

Picus Capital maintains consistent global focus areas, including real estate, finance, insurance, human resources, renewable energy, ecommerce, and health. In India, the firm sees potential in ventures addressing infrastructure gaps, such as Meddo Health, which builds a clinic network to enhance healthcare quality. MoneyOnClick, another portfolio company, extends fair financial products to a broader Indian population beyond Tier I cities.

Reichert identifies several characteristics that make the Indian market compelling. The significant number of micro and tech entrepreneurs reflects the country’s robust entrepreneurial spirit. India boasts strong entrepreneurial talent with experiences from top local and international universities and successful tech companies. Additionally, India’s trajectory to become one of the three largest global economies, coupled with existing gaps in massive industries’ infrastructure, creates promising opportunities for entrepreneurs. The government’s support for digital solutions, especially in the payments sector, further enhances India’s appeal for tech ventures.

Acknowledging the monetization challenges in an emerging economy like India, Reichert notes that the focus on certain models, such as SME or enterprise software, may have limited potential. However, this limitation prompts Indian software companies to swiftly target international markets, particularly the US, resulting in successful global businesses.

Picus Capital plans to invest $300 million over the next few years, with approximately 25 percent allocated to Asia. The ticket sizes range from $250,000 to $750,000, emphasizing a long-term strategy where follow-on investments play a crucial role. The firm aims to support Indian companies with global ambitions, especially in B2B software solutions, where India has demonstrated success at a global scale.