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Tomorrow Capital to invest ₹100 crore in startups, exits ZenoHealth

Saransh Pandey

Intern
  • November 04, 2020
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    The fund is currently looking at startups in the healthcare, fitness, and education sector for the next round of early-stage investments

Tomorrow Capital, a Mumbai based $100 million venture capital fund, has exited from further investments in ZenoHealth (a generic medicine startup earlier known as Generico) to focus on other early-stage investment opportunities. The fund has set aside ₹100 crores for a fresh round of investments over the next 12 months and is in the process of identifying 2 to 3 new startups.

Backed by Abhinandan Lodha of Lodha Group, the fund has so far invested more than ₹100 crores over the last 3 years into four startups including ZenoHealth, Bonito Designs, and Multiliving Technologies. The ₹13 crore investment in ZenoHealth was in the form of debt and equity. The fund made a 7.25x return on the equity investment in a span of 2.5 years.
ZenoHealth grew from 5 to 60 stores in 24 months and is catering to over 8 lakh customers across Mumbai.

This is the first exit for the fund and has helped them validate their operating model which is being more deeply involved with the startup they are investing in, pointed out Prakash. In the case of ZenoHealth, the Tomorrow Capital team worked with the founders and assisted them in scaling up the operations, setting up systems and processes, and developing and implementing a marketing playbook for new stores.
The fund is currently looking at startups in the healthcare, fitness, and education sector for the next round of early-stage investments. Both sectors have seen huge growth since the covid-19 outbreak.

“We are looking at a bunch of startups. Our focus is largely on consumption-based sectors. We are more interested in healthcare, education, and home interiors. We hope to close 2-3 investments this year and put out another Rs100 crore," Prakash added.

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