Mindtree Co-Founders Launch Mela Ventures: Cultivating the Next Generation of Tech Innovators

Krishnakumar Natarajan and Parthasarathy NS, co-founders of the globally acclaimed IT services company Mindtree, have embarked on a new journey with Mela Ventures, their early-stage venture capital (VC) firm. The firm recently closed its inaugural fund at an impressive ₹320 crore, surpassing its initial target of ₹200 crore. After leaving Mindtree in 2019, Natarajan and Parthasarathy turned down offers from large global private equity firms, choosing instead to nurture promising startups and provide them with the guidance and capital they need to flourish.

Recognizing the challenges faced by startups in securing institutional capital, Natarajan and Parthasarathy decided to create Mela Ventures. This full-fledged VC firm has attracted high-quality limited partners and investors, including India’s Small Industries Development Bank and Japan’s Nippon India Digital Fund, along with several prominent family offices and ultra-high-net-worth individuals. The firm’s total inaugural fund of ₹320 crore positions it to support promising startups on their journeys to success.

Mela Ventures primarily targets startups at the pre-Series A stage, often serving as their first institutional investor. The firm typically provides initial investments ranging from ₹7-15 crore in exchange for equity between 15% and 19%, accompanied by a board seat. Natarajan and Parthasarathy’s objective is to facilitate the development of the next generation of business-to-business category leaders with substantial tech IP. Mela Ventures seeks to back companies at the intersection of significant technology trends, fostering innovative solutions. For instance, Infilect, a Mela Ventures portfolio company, is leveraging computer vision and AI-based data analytics to revolutionize retail inventory stock keeping. The firm aims to contribute to a global technology refresh that will unfold over the next decade.

Mela Ventures has already made around five investments, each carefully selected to align with their vision. General Aeronautics is one such portfolio company, where founders Abhishek Burma and Kota Harinarayana are combining drones and spectral imaging for applications that include the precise delivery of pesticides. This innovative approach not only enhances agricultural efficiency but also reduces the environmental impact. Mela Ventures is not just a financial investor that reviews companies on a quarterly basis. Instead, they are deeply involved in every aspect of their portfolio companies’ growth. Natarajan highlights their hands-on approach, stating, “We intensely work with the entrepreneurs, evolving their strategy, fine-tuning, helping them make breakthroughs with customers, helping them build the management team, helping them put operating processes in place.”

Krishnakumar Natarajan emphasizes that their focus with Mela Ventures is on nurturing the next generation of startups. He envisions creating “eight to 10 mini Mindtrees” within the next eight to ten years, contributing back to the ecosystem that once nurtured them. Several co-founders of Mindtree, including Subroto Bagchi, S Janakiraman, Rostow Ravanan (who is also on the investment committee), and former senior VP Kalyan Kumar Banerjee, have invested in Mela Ventures, further highlighting the alignment between the firm’s mission and Mindtree’s legacy of nurturing innovation.