Dexter Ventures

Donald Trump’s reciprocal tariffs are a wrecking ball swinging at the US and the world economy - and don’t let anyone tell you otherwise. Back in 1930, the Smoot-Hawley Tariff Act hiked US tariffs, tanked trade by 66%, and kicked off the Great Depression - 10 years of misery. History screams, Trump’s tariffs will could also end badly. Yet there’s a slim chance it forces countries like India to step up. Here’s why it’s mostly a disaster, but not all doom and gloom. .. For China, it’s a deflation bomb. They’ve got a $1 trillion trade surplus - selling way more than they buy. Tariffs cut that, leaving factories empty and prices dropping as they scramble to sell cheap. Bad for them, but the US? Imports get pricier. The Fed said in 2023 that 2018 tariffs added 0.2% to US inflation. This could more than double that to 0.5%. And, US GDP growth’s pegged at 2.5% for 2025 (IMF)—tariffs could shave off half a percent, stalling jobs. .. India’s not escaping either, but it’s not a total knockout. The U.S. buys 18% of India’s $800 billion exports (including services) - $144 billion. Short term pain for these exporters is inevitable - 3 to 9 months of tighter profits, maybe layoffs in small firms. India’s 6.5% GDP growth might dip to 6%. The good thing is, pharma, a $50 billion chunk, is safe from tariffs. For others though, times are bound to be tough. And that takes me back to 1991. India faced a crisis - $400 million in reserves - and roared back with reforms. Today, with $700 billion in forex and a 1.44 billion-strong market, India’s tougher than most. .. The world’s a mess already: US-China spats, Ukraine-Russia, Israel-Hamas and tariffs pour fuel on it. Countries might gang up, forming new trade clubs to dodge the US bully. India’s got muscle - stronger politically, a big home market - and could lead a new trade order. Thus, I would say, it’s a 80% pain, 20% potential kind of a situation. You’ll feel it at the stores; India might limp, then leap. What do you think? Devendra | Dexter Capital Advisors

Ending FY25 with a bang, happy to announce another successful deal closure in the Consumer space! 🙏🙏 We were the exclusive advisor to The Bear House on their maiden institutional investment round of INR 50Cr, which JM Financial Ltd’s private equity division led. And what sweetens the deal? Our micro VC arm, Dexter Ventures, also participated in the round! .. Many would probably already know the founders, Harsh and Tanvi who were recently featured on Shark Tank India. But beyond that, what we loved about them was the clarity and first principles thinking that they displayed at different stages of our engagement. That made the work on their fundraiser even easier, as we were already convinced of what they were building. .. What’s that by the way? For those who may not know, The Bear House has truly emerged as a go-to apparel and everyday fashion destination for men, for their everyday life. Since being founded in 2017, the founders have proven a market fit with the rich love received for their chic and uncluttered urban-luxe designs which make sense both at work, and also outside. •⁠ ⁠What validates this is the fact that they remained bootstrapped and scaled to INR 140Cr+ as an online-only brand while also maintaining profitability •⁠ ⁠We sincerely believe as India’s aspirational class grows in number and income, the market and opportunity for the company are only going to expand rapidly and massively .. That said, a special mention to Gaurav, Bharat and Nidhi from Dexter Capital Advisors team, and Ankit and Yash Garg from Dexter Ventures team, who went all out to ensure a successful closure here. Best, Devendra Tags: Anuradha, Jayant, Delta Investment Advisors

As we approach tomorrow's budget, anticipation is high across all industry sectors. Economic growth has slowed considerably, GST collections are not growing as rapidly as they should, and the pvt sector hesitates to invest in new projects except in hospitality, oil & gas, and steel. This is mirrored in the subpar earnings from listed companies and the RBI, indicating a decline in 7 out of 9 core sectors. The global uncertainty with Donald Trump's return to the White House has further added to the cocktail, driving FIIs to withdraw investments from emerging markets back to the US, impacting India with Nifty50 down by about 13% and the Rupee fluctuating. And here, despite RBI's interventions, with forex reserves down by ~15% from peak, there's limited scope for further action. And additionally, there's visible resentment among the middle class, feeling heavily taxed and neglected by the Govt. .. In this context, the Finance Minister, Nirmala Sitharaman, faces significant challenges, especially with the fiscal deficit still high compared to pre-COVID levels, which might constrain her policy options. Nevertheless, there's much that can be achieved. -> Land and labour reforms, long stuck, are crucial for attracting manufacturing investments. The unimplemented labour reforms over the last four years are a setback for capital formation. -> Taxation reforms should prioritize relief for the middle class while avoiding tweaks to LTCG, STCG, or STT to boost economic confidence. The Govt must acknowledge the salaried class's contributions. -> On manufacturing, while large national champions have been supported, broad-based empowerment of SMEs through tax and regulatory reforms is essential to curb local bureaucratic overreach. -> Similarly, in the startup sector, ESOP taxation remains unresolved, potentially diminishing the attractiveness of this asset class. .. Along with continued investment in infrastructure and capex, these areas need fresh policy approaches. We could see substantial improvement if these are addressed in tomorrow's budget. Thus, I’m keenly awaiting which of these areas tomorrow’s budget touches on. Do share what’s your take. Would love to learn. Best, Devendra

Five months back, we hosted a pickleball tournament for the startup ecosystem folks in Bengaluru. And that was a great success with over 100 founders, VCs, bankers, and more participating. But what added to the delight was seeing founders and others from Mumbai and Delhi contact us, asking about our plans to do something similar in those cities. And it made sense because even if Bengaluru is India’s startup capital, Delhi and Mumbai are equally serious destinations for the startup community. In fact, as per Inc42, in FY24, they together attracted as much startup funding as Bengaluru did. And anyway, in all humility, Delhi is the capital of startups going for IPO as of date. Thus, we in the team started to work on taking our pickleball tournament out of Bengaluru. I am happy to share we are coming to Dilwalo ki Dilli! .. Coming 22 Feb, in Delhi’s Mehrauli, we in association with HSBC India, will be hosting a pickleball tournament for the startup ecosystem! And this is made possible by our lovely set of partners. -> Venue partner: REPPP by Rackonnect - Chat, Meet & Play with players nearby -> Organizing Partner: Elephant Racquet Club -> Gifting Partner: DeHaat Honest Farms -> Energy Partner: Nutty Treats -> Caffeine Partner: Sleepy Owl Coffee Though we have kept the event invite-only. But, feel free to reach out to Dexter team members for an invite :) Best, Devendra CC: Dexter Capital Advisors, Dexter Ventures, Delta Investment Advisors, Anuradha, Tarini, Arushi, Rishabh, Jayant

We closed 2024 on a delightful note, with 9 deal closures 🙏🙏 Having welcomed 16 new team members across levels and capabilities, 2024 is a year when we doubled down on growth. Backed with that energy, we have entered 2025 on a high note, with big ambitions and shared aspirations that we are gunning for. And, to support our drive ahead, we are looking for senior leaders to join us as we build Dexter Capital Advisors larger. Thus, hiring for VP / Principal / Directors across our Bengaluru, Mumbai and Delhi offices. If interested, please drop us a line or share your CV at devendra.agrawal@dextercapital.in with the subject: “VP / Principal / Directors Roles at Dexter” Our team will get back super soon :) Best, Devendra

Happy to announce another successful deal closure by our team! 🙏 Dexter Capital Advisors was the exclusive transaction advisor to RAS Luxury Skincare for its $5mn Series A fundraise. The round was led by Unilever’s investment arm (Unilever Ventures) with participation from Amazon Smbhav Fund. And what added to our delight was the existing investors Sixth Sense Ventures and other notable HNIs doubling down. .. But, just sharing that won’t do justice to the amazing journey this has been. Shubhika, Suramya and Sangeeta founded RAS in 2017 by taking the bold call to build a completely vertically integrated org, from 100% organic farming of ingredients to conducting R&D and manufacturing the final products. All in-house. The bet, backed with solid execution has brought the company immense love. This has helped cement its standing in the luxury skincare market itself is at an inflexion point. .. And what made us happier were the kind words from the CEO (Shubhika): “We sincerely appreciate the unwavering support and expertise of our banker, Dexter, in navigating and closing our funding round seamlessly. Their strategic guidance and commitment have been instrumental in the success of this milestone for RAS!” .. That said, much cheers to Varun, Jay and the team who went all out to ensure a successful closure. And of course, kudos to all other team members who deliver so strongly for us, every passing day - Rishabh, Anuradha, Abhijeet, Gaurav Goyal and all others. PS: We are always on the look for opportunities to work with such good founders and companies. Thus, if you think we can be of help, do reach out to me at devendra[dot]agrawal@dextercapital[dot]in :) Best, Devendra

It's astonishing how Indian and US stock markets are on very opposite trajectories 😅😅 Out here, more and more companies are getting listed and raising massive sums. Meanwhile, in the US, the count of listed companies has fallen from 7.5k in 1997 to ~4k today. .. And there is another important thing. -> In India, the enthusiasm for going public through IPOs is at all-time highs, be it for young startups, small companies or big ones, whether on the main board or the SME board. This is all driven by a robust domestic capital market and an investor base hungry for new opportunities -> Plus what is helping is the fact that Zomato, Paytm, Swiggy, Mobikwik and Nykaa have shown that markets have a ton of appetite for these new-age companies, even if loss-making Meanwhile, in the US, a growing number of tech companies prefer to stay private, raising billions to delay or bypass public markets altogether. .. Companies like SpaceX, OpenAI, Stripe, and Databricks have achieved valuations that would make them giants if publicly listed. Yet they opt for the privacy and flexibility of remaining non-public entities. This approach has led to vast wealth creation for founders, few—accredited investors, employees, and early-stage investors but leaves the general public out of these investment opportunities. The implications of this divergence are profound. 1> In India, the IPO route democratizes wealth creation, allowing a broader investor base to participate in the growth story of companies 2> In the US, the vast majority can't partake in the financial upside unless through indirect means like funds or platforms that have high entry barriers or premiums .. But, what matters is the enabler. The US markets are flush with ample private capital, allowing companies to grow without the pressures of public scrutiny, regulatory demands, or the need to appease activist investors. -> That is not a luxury in India, at least for now, as much of private capital comes from funds which have an end life of 7-10yrs mostly -> Thus, until other forms of private capital grow (and it is growing from the likes of family offices, corporate VCs etc), for Indian startups and SMEs, going public ends up being one of the best means of access to capital for expansion beyond a point -> And of course, this also provides increased visibility and public validation of their business model And, it also establishes a liquid market for shares, beneficial for employees with stock options and early investors looking for an exit. What's your view on this? Devendra

It’s no wonder how many people want to be in VC space today 😅😅 It’s considered hot, in trend, and savvy. Plus, you get to flex around that you engage with so and so founders every now and then. But, frankly, this is also a big problem, because the expectations and realities are totally misaligned for most of such candidates. .. The VC ecosystem’ job is the find, invest in, enable and nurture those thousands of new-age Indian companies, a few hundred of which will disrupt the varied indices in the coming 15yrs. And it’s a tough job - -> Ask the analysts who spend days and nights analysing and talking to so many startups every single day, that it stops being a flex, and more of a fatigue for many -> Or ask the associates who end up firefighting the issues at portfolio startups alongside the founders, to help them get past hurdles, whatever they may be It’s not as glamorous as it seems from the outside. It’s a tough, but sure, rewarding career. .. But, how do you enter VC? The big firms can hire only so many. This is where the smaller, emerging funds become a good alternative entry to point tpo build a career here. They are a great learning opportunity, give solid exposure to a select few sectors, and help you scale-up superfast. And if nothing else, they open your doors to bigger firms, portfolio or ecosystem startups, and also help boost the credentials in case someone’s looking to go for an MBA from a good place. Thus, for people looking to build a career in VC, smaller funds provide a great opportunity. .. We at Dexter Ventures are also looking for gems. What we are looking for is someone with curiosity, hunger, and an analytical mindset with some exposure to finance and investing. While someone lacking investing and/or financial/analytical experience may not be a fit, however, if they’ve exposure in founder’s office, IB, or consulting background and want to take their first step into the world of VC, we woudl love to explore possibilities. Interested folks can share their details here and our team shall get back in touch: https://lnkd.in/grxDM5dY :) Best, Devendra

We are pleased to welcome Urvi Jain as an Management Trainee at our Bengaluru Office. A graduate from Ashoka University, she brings experiences from Grant Thornton (US), and will be working in close coordination with our General Partner, Anuradha, and will add richly to our capabilities and capacity. As we keep growing, addition of such valued members to our team only further emboldens our ambitions.

12 years as a dealmaker who has heard thousands of pitches has taught me, the perfect pitch is a myth. But, some founder presentations have that 'it' factor that immediately captivates investors. And, while there's no single formula for success, I've noticed a few common threads in the most compelling startup pitches. .. Firstly, it's about telling a powerful story, not just reciting facts. Founders who can frame their ideas within a larger narrative – about the problem they're solving, the lives they're changing, or the future they envision – leave a lasting impression. Think of it this way: investors are buying into a vision, not just a product roadmap. .. Secondly, there's an under-appreciated art to demonstrating deep market knowledge. It's not just about the size of the opportunity, but the nuances that only an insider would grasp. Founders who showcase granular insights about customer pain points, competitive dynamics, and go-to-market strategy signal that they're not just dreamers, but seasoned operators deeply immersed in their space. .. Thirdly, compelling pitches strike a delicate balance between ambition and realism. Audacious goals are exciting, but they need to be grounded in a clear understanding of execution challenges and a well-articulated path to profitability. This builds trust - investors want to back founders who will fight tooth and nail for their vision, but also those who operate with a healthy dose of pragmatism. .. Finally, it's the intangibles that often seal the deal. -> Passion can sometimes be cliché, but genuine enthusiasm is contagious. -> The ability to succinctly convey complex ideas is a superpower. -> Humility, and an openness to feedback, signal coachability. These qualities are what separate founders who build scalable businesses from those who merely have good ideas. .. Remember, as legendary investor Ben Horowitz said, "Ideas are easy. It's the execution that matters." The most captivating pitches are those that make you believe these founders are the ones ready for the gruelling, thrilling journey of building an enduring company. .. PS: We at Dexter Capital Advisors and Dexter Ventures are always eager to work with likeminded founders, VCs, angels and bankers. If you think we can help with your oursuits, feel free to drop a line at devendra[dot]agrawal@dextercapital[dot]in :) Best, Devendra