Mentoring startups the Saatra way

"Startups are a group of individuals creating a different level of reality. Ola, Uber, Swiggy, Zomato, Flipkart, Amazon are improved ways of performing the same task, thus creating a new level of reality.

And, a mentor is the critical foundation for defining this new level of reality and building a successful startup," says Prabir Mishra, a professional mentor and founder of Hyderabad-based startup Saatra Capital Advisory LLP.

Also, co-founder of TrayamBhu Tech Solutions Private Limited, board member and an angel investor, he has experience of more than 22 years in the field of investment banking, corporate finance, funding, etc.

Founded in October 2015, Saatra Capital provides various services for startups to scale up into a successful business venture. Saatra stands for Startup Advancement and Transformation.

Registered under the advisory and consulting category with Ministry of Corporate Affairs, Saatra Capital is recognised as startup consultant by Ministry of MSME, an approved investment advisor by Sebi and knowledge partner for incubators across India.

"In 2015 and 16 while the startup ecosystem was emerging, many incubators were established. But there was a vacuum as they provide subject experts while handholding on valuation, accounting, bookkeeping, marketing strategy etc. was needed.

Hence, we came with our service to mentor startups, find painpoints, how to pitch for funding, problem solving, finding a team, end-to-end service.

In a gist, while a startup is in the process of growing, discipline in all aspects is needed for the startup to create a bigger value in future. We try to inculcate that kind of discipline in the startup, to help them grow to big," says Prabir Mishra.

The financial startupis also an advisor to a startup fund, family funds and HNIs in the city. Besides, it is associated with 10 to 12 business incubators across India like a-Idea, CCMB, Indian Institute for Millet Research, Research and Innovation Council of Hyderabad, TEZ entrepreneur zone of UoH, Icrisat, C Camp Bengaluru, KIIT - TBI Bhubaneswar, NAARMetc.

It has a team of six placed in Hyderabad, Bengaluru, Bhubaneswar and Mumbai, providing service to startups in Bengaluru,Hyderabad,Bhubaneswar, Mumbai, Coimbatore, Chennai, Gurgaon and Jalna. It has plans to enter Patna soon.

Mishra says, "startups from Tier 2 and 3 cities are making a buzz, also the rate of success is high from these cities as the diligence is more and people understand the problem area better here. Idea can be from anywhere, so we do not want to restrict our boundaries to metropolitan cities."

Till date, the startup has mentored 75 startups in which one startup has succeeded in getting a valuation of Rs 250 crore and its founder is now in the process of raising funds for a few other startups. At present, Saatra Capital has afocus on food and agri based startups as Mishra believes the big revolution is underway in these spaces.

While Saatra Capital does not charge a fee for mentoring,they get their fees after makinga transaction for their client like when a startup gets funded,made a structuring to raise funds, make a valuation or merger etc.

From 2015, Saatra Capital has bootstrapped Rs 50 lakh for its working expenses. The startup closed the financial year 2017-18 with Rs 40 lakh in revenue, FY19 withRs 65 lakh and targeting to end FY20 with Rs 1 crore. In addition, the founder's target in 2019 is to raise funds for minimum 25 startups and to consult more than 100 startups.

"Our focus is on the success game of startups rather on volume of startups we consult. In 2015, we used to consult on an average one or two startups but at present, we have more than 10 startups in different stages of progress.

Generally, success rate of startups is 3-5 per cent, which means out of 10 startups only three to five make it to the next level of funding. Till then if the startup is nurtured and guided then its success rate improves.

However, with us the success rate is 15-20 per cent. I cannot say that everyone who comes to me is successful but the success rate is higher than the market average," the founder claims.

Saatra Capital has a stringent selection criterion. Hence, allstartups walking in are not accepted. Initially, two-week time is taken to understand the startup, find a differentiator and analyse if the startup will make an impact. Later, they are signed up for consulting or the service required.

Prabir Mishra is looking to add two subject matter experts to his team, with the knowledge of funding, new technology and newer things emerging from startups as he is clear about having a lean knowledge team and take in limited startups to focus on them for achieving more success rates.

Also, Mishra is the co-founder of TrayamBhu Tech Solutions Pvt Ltd, a startup launched recently, with the PoC (proof of concept) in the pipeline. It stands to facilitate livelihood finance for small business retailers.

A ticket size of Rs 25,000 to Rs 50,000 will be provided by onboarded NBFCs to fund working capital. By end of 2019, the startup aims to connect with 50 thousand small retailers in Hyderabad.

"Saatra Capital believes in pure mentorship – a relation built to give and seek knowledge. Mentorship, having its roots deep in ancient Indian history, in present times is a navigator in the journey of every startup," he says.