“Interesting Investment Opportunities Emerges in Challenging Times,” says Karan Desai, Founder of Interface Ventures

Date:

Trending

Speaking to the TechGraph editorial team, Interface Ventures’ Co-founder, Karan Desai said, “We believe that interesting investment opportunities emerge in slightly more challenging times.”

- Advertisement -

Read the complete experts:

TechGraph: Could you help give a sense of how far Interface Ventures has come since its existence? From when it began to where it is now?

- Advertisement -

Karan Desai: Interface Ventures has evolved considerably since the platform was launched full throttle in the first quarter of FY 23. It is now considered one of the go-to partners for a large ticket, structured debt solutions in the larger lending ecosystem, and prides itself on the top-quality client partners that it works with.

Interface Ventures is the Promoter shareholder of a fintech company that owns 3 retail lending/investment and savings-related assets which will launch commercially in Q1 of FY 24.

The company believes that these platforms will create exponential shareholder value given the very strong distribution network that Interface has in the financial services space.

TechGraph: What’s the investment philosophy that you follow at Interface Ventures?

Karan Desai: We follow a straightforward and transparent investment philosophy at Interface Ventures. We invest primarily in financial services platforms where we either have full operational control or hold a minority position.

Our focus is to invest in businesses that we understand the Promoters and can control the operational aspects of, which allows us to monitor the business’s growth.

We believe in creating value by leveraging our deep relationships in the financial services space to increase distribution and reduce customer acquisition costs. Our focus is on building sustainable businesses and creating long-term value rather than short-term profits.

TechGraph: What is Interface Ventures’ fund approach to the current market? Are you looking at new markets or using more stringent norms to evaluate a business?

Karan Desai: From an investment standpoint, we will double down on all the investment calls that we have already taken deploying more capital to scale them up faster. New opportunities will be considered opportunistically, only if they are directly synergistic with our existing bets.

TechGraph: What does the deal-making environment look like amid looming recession fears?

Karan Desai: We believe that interesting investment opportunities emerge in slightly more challenging times. Valuations tend to get more real, and people appreciate capital, backed by a strong support ecosystem a lot more.

There is likely to be consolidation across sectors with smaller players that don’t have adequate capital support being acquired opportunistically by their larger peers.

TechGraph: How are you handling the fund’s existing portfolio and responding to challenges faced by start-up founders?

Karan Desai: We honestly don’t see any challenges in any of our existing investments given that all the investments have been made with a clear philosophy of bootstrapping the platforms until they attain organic profitability and sustenance.

We invest in platforms that address very specific use cases and each of them has a partner-driven distribution model that will help us manage and control our CAC – the make or break for any start-up.

TechGraph: What is your view on the Indian start-up ecosystem?

Karan Desai: The Indian start-up ecosystem is more vibrant than ever now but like any young phenomenon, it now has to mature and reassess what its main priorities should be. We have emerged from a period where relatively easier international capital chased and funded hyper-growth for many tech startups in India.

With the recent tightening of liquidity, poor performance of tech IPOs, and multiple start-up failures, every start-up founder must go back to the drawing board, and the basics of business to build long-term businesses that can generate enough revenue to cover costs and ultimately deliver profit and return to shareholders.

TechGraph: How do you see the recent layoffs made by startups across the sector?

Karan Desai: It is a matter of concern in the start-up ecosystem. We hope there could be another way to handle this but it is a direct outcome of the easy money phenomenon that we saw in the startup ecosystem for the last 2-3 years.

Some start-ups prioritize valuation and hyper-growth over perfecting their business model, leading to overstaffing and overspending. However, I would like to note that not all start-ups are like that, and many founders prioritize the well-being and growth of their employees.

It is also important to understand that running a start-up can be a challenging and unpredictable journey, and founders often have to make tough decisions to ensure the survival and success of their business.

TechGraph: How do you see the angel & pre-stage investment scenario in the country over the next two-three years?

Karan Desai: India is a good story and there will always be investment interest in interesting businesses across their entire lifecycle. What is probably likely to be different in FY 2024 in particular is that investors will be a lot more discerning about where they put their capital, with more preference for profit-generating businesses or early-stage businesses that have a clear path to break even and a sustainable market advantage.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Loans in Crypto Wallet: Useful Feature or a Security Threat?

Integrating crypto loans into digital wallets is gaining traction, allowing users to borrow and lend crypto assets without the need for traditional financial institutions....

From Arcade to Adventure – The Evolving Face of Entertainment and Why It Counts

Entertainment has always been a reflection of the shifting expectations of society. Earlier, people used to gather around a campfire to share stories or participate in outdoor activities, building trust and connection with each other. Being communal events, they focused on physicality and face-to-face...

How Technology Helps Combat Various Viruses and Diseases

Technology has transformed the ways we approach vaccines, particularly for the flu. One noteworthy...

12 Eye-Popping Hacks to Make Your Next Business Presentation Sparkle

Business presentations are often necessary to gain new clients and showcase what it is...

The Impact of EdTech on Student Outcomes in Higher Education

The introduction of interactive whiteboards in the early 1990s marked a major shift in...

Meta Legal Head Offloads Shares worth $577K

Meta Platforms Inc.’s (NASDAQ: META) Chief Legal Officer, Jennifer Newstead, has sold 921 shares,...

HR Chief Amy Coleman Reports Over 46,000 Microsoft Shares in SEC Filing

Microsoft (NASDAQ: MSFT) Chief Human Resources Officer, Amy Coleman, has reported her stock holdings...

BGC Group raises $700 Mn in bond sale to refinance debt

BGC Group, Inc. (NASDAQ: BGC) has finalized a $700 million private offering of senior...

The Long-Term Power of Investing: Selecting Undervalued Industries

Investing can seem overwhelming, especially for beginners, as the numerous options and strategies available can make it easy to feel unsure about where to...

Alphabet Legal Chief John Kent Walker to Sell $2Mn in Shares via Morgan Stanley

Alphabet Inc.’s (NASDAQ: GOOGL) Chief Legal Officer, John Kent Walker Jr., has filed to...

The Ultimate Guide to Choosing and Using Fonts in Your Design Projects

Fonts play a crucial role in every design project, from branding and web design...

‘Canada Ripping Us’: US President Trump Criticizes High Tariffs on Dairy and Lumber

U.S. President Donald Trump on Friday slammed Canada’s high tariffs on American dairy and...

Empowering Growth: Boosting the Robotics Sector with Targeted Support

India's robotics sector is emerging as a key area of technological progress, driving innovation...

Software and Technology Changing the Industry

The advent of software and technological advancements has been a game-changer across various industries. From enhancing productivity to transforming operational dynamics, tech plays an...

Jensen Huang Offloads $49.8Mn in Nvidia Shares

Nvidia (NASDAQ: NVDA) CEO and President Jen-Hsun Huang has disclosed the sale of 431,611 company shares, valued at $49.8 million. According to a regulatory filing with the U.S. Securities and Exchange Commission (SEC), the transaction carried out on March 19, 2025, was executed at $115.43...

Canada, Australia Partner to Build $6 Bn Arctic Radar System

In a bid to enhance Arctic and national security, Canada's Prime Minister Mark Carney...

Meta Chief Legal Officer Jennifer Newstead Offloads Shares as Part of Trading Plan

According to regulatory filings, Jennifer Newstead, Chief Legal Officer at Meta Platforms, Inc. (NASDAQ:...

Interview: Vserve CEO Siva Balakrishnan on SEO Secrets for Amazon Seller Success

In an interview with TechGraph, Siva Balakrishnan, CEO and Founder of Vserve, shared how...

Alphabet CEO Sundar Pichai Increases Stocks Holdings Amid Dividend Adjustment

According to a regulatory filing with the U.S. Securities and Exchange Commission (SEC), Alphabet...

Layer PR Wins SME News UK Awards, Expands to Bengaluru

Layer PR, a global public relations firm owned by TechGraph, has secured two major...

Google Acquires Wiz for $32 Billion in All-Cash Deal

Google LLC, a subsidiary of Alphabet Inc. (NASDAQ: GOOG, GOOGL) has signed a deal...
00:01:37

UK PM Kier Starmer Abolishes NHS England To Bring Health Services Under Govt Control

British Prime Minister Keir Starmer has announced plans to abolish NHS England and bring...
00:01:09

VIDEO: US President Donald Trump Calls NBC A ‘Worst Network’ On Television

During a press meeting at the Oval Office on Wednesday, US President Donald Trump...

From Startup to Success: Essential Steps for Landscaping Entrepreneurs

Starting a landscaping business is so exciting, blending creativity with the reward of transforming...

‘Canada Ripping Us’: US President Trump Criticizes High Tariffs on Dairy and Lumber

U.S. President Donald Trump on Friday slammed Canada’s high tariffs on American dairy and...

Nvidia Director Aarti Shah to Sell Shares Worth $2.37 Mn

Aarti S. Shah, a director at NVIDIA Corporation (NASDAQ: NVDA), has filed a notice...

Alphabet Board Member Frances Arnold Increases Stake Following Dividend Allocation

According to a recent regulatory filing, Frances Arnold, a board member at Alphabet Inc.,...

Elon Musk’s X Sues Indian Govt Over Content Regulation Clash

X Corp, an Elon Musk-owned social media firm, sued the Indian government in the...

Why Smart Cities Are the Future of Water Conservation

Water conservation has become an important factor due to climate change and worsened water...

Empowering Growth: Boosting the Robotics Sector with Targeted Support

India's robotics sector is emerging as a key area of technological progress, driving innovation...

VIDEO: US President Donald Trump Calls NBC A ‘Worst Network’ On Television

During a press meeting at the Oval Office on Wednesday, US President Donald Trump...

The Role of Edge Computing in AI-Powered Cloud Solutions

With businesses including artificial intelligence (AI) in their operations, cloud computing has grown in...

From Startup to Success: Essential Steps for Landscaping Entrepreneurs

Starting a landscaping business is so exciting, blending creativity with the reward of transforming...