India’s startup ecosystem has entered a more mature and disciplined phase, where investors are increasingly prioritizing capital efficiency, governance, and long-term sustainability over aggressive growth at any cost. In this conversation with Indian Startup Times, Karan Gala shares his journey into venture investing, the evolution of LC Nueva Capital’s investment philosophy, and the sectors he believes are poised for significant growth in the coming years.
From fintech and healthcare to consumer internet and B2B tech businesses, Karan discusses what separates enduring businesses from short-term hype, why founder mindset matters more than pedigree, and how India’s next wave of startup innovation will be shaped by disciplined execution and technology-led transformation.
“The gap between zero-to-one businesses and structured support drew me toward venture investing”
Speaking about his professional journey, Karan Gala shared that he began his career in investment banking after qualifying as a Chartered Accountant.
“I started my professional journey in 2017 with Edelweiss and later moved to Axis Capital, both in investment banking roles. In 2020, just before COVID, I joined TVS Capital, a PE fund as part of their investments team, where I worked with larger and more established businesses,” he said.
While working with established companies gave him strong financial and operational exposure, he realized that early-stage startups often lacked structured support during their most critical growth phase.
“That gap is what drew me toward early-stage investing,” he explained.
Karan later joined Nueva Capital as a founding team member in partnership with Lighthouse Canton. Over the past five years, the firm has deployed nearly ~₹500 crores across 35 early-stage startups.
“My role has spanned the full investment lifecycle, from sourcing and evaluating opportunities to negotiations, portfolio management, exits, fundraising support, and strategic guidance,” he added.
Nueva Capital’s investment philosophy: Backing disciplined builders
Reflecting on the evolution of Nueva Capital’s investment thesis, Karan noted that the firm identified a major whitespace in the Indian venture ecosystem when it launched its first fund in 2022.
“There were funds making very early pre-seed bets and others writing larger Series B+ cheques, but very few investors were meaningfully supporting startups through the difficult journey in between,” he said.
According to Karan, Nueva Capital focuses on fundamentally strong businesses solving real problems at a stage where strategic capital and operational guidance can become transformative.
The firm has been among the first or second institutional investor in several startups, and have backed companies such as:
- Tanvi Beverages (TABP)
- Recur Club
- Internshala
Fintech, B2B tech, Healthcare, and Consumer Internet remain high-conviction sectors
Discussing sectors where Nueva Capital sees long-term opportunity, Karan revealed that fintech continues to remain one of the firm’s strongest focus areas.
“Nearly 50% of our fund has been deployed into financial services and fintech,” he shared.
According to him, India’s economic growth over the next decade will create massive opportunities for financial innovation.
Beyond fintech, Nueva Capital is particularly bullish on:
- Consumer internet
- Niche consumer brands
- B2B tech
- Healthcare
He added “All these sectors, powered by usage of AI will compound growth in the next decade”
Karan highlighted how changing consumer behavior and internet penetration are opening opportunities for differentiated Indian brands across categories such as beverages, beauty, electronics, food and fashion etc.
He also pointed to the rapid rise of B2B quick commerce as a major emerging opportunity.
“We believe this space is still in the early stages of disruption, especially in supply chain management and last-mile distribution,” he said.
Portfolio stories reflecting India’s evolving startup ecosystem
Karan also shared examples from Nueva Capital’s portfolio that reflect broader shifts happening within India’s startup ecosystem.
Rusk Media
A consumer internet company focused on content creation for OTT and media platforms, Rusk Media has benefited from India’s growing digital content consumption.
“As internet access and content consumption continue to increase in India, companies like Rusk Media are seeing phenomenal growth,” Karan noted.
Unorg
Unorg operates in the B2B quick commerce segment, serving small eateries and businesses across Uttar Pradesh, India by supplying daily essentials such as flour, oil, sugar, and packaged goods.
“This category is going to grow rapidly over the next few years, much like what we saw in B2C quick commerce,” he explained.
Tanvi Beverages
Karan also highlighted a South India-based beverage brand focused on Tier-2 and Tier-3 markets through affordable ₹10 SKUs.
“We backed the business early in 2021, and it has since grown nearly 10 times while remaining profitable,” he shared
Redcliffe Labs
Healthcare diagnostics is another segment attracting increasing investor attention.
“Diagnostics is becoming a critical and high-growth category in India, and we continue to remain very bullish on healthcare overall,” he said.
“Founders should stop treating valuation as a measure of success”
One of the strongest themes throughout the conversation was Karan’s emphasis on founder discipline and long-term thinking.
He believes too many startups today optimize their businesses primarily around fundraising rather than solving meaningful problems sustainably.
“Valuation is not a measure of success,” he stated firmly.
“What truly matters is building a business that is capital efficient, resilient, and built to last.”
Karan also cautioned founders against building businesses solely with exits in mind from day one.
“When exit becomes the primary lens, it often comes at the expense of building something with genuine and lasting impact” he said.
Governance and integrity will define enduring companies
Concluding the conversation, Karan emphasized that governance, compliance, and ethical business practices are no longer optional for startups.
“I always urge founders to treat governance and compliance not as obligations, but as foundational principles of how they build companies,” he said.
According to him, the businesses that attract the best investors and create the most long-term value are ultimately those built with integrity, operational discipline, and a deep commitment to solving real problems.
As India’s startup ecosystem enters its next phase of evolution, Karan Gala’s insights reflect a broader industry shift: from chasing vanity metrics to building fundamentally strong, sustainable businesses capable of delivering enduring impact.
conclusion
Conclusion
India’s startup ecosystem is steadily moving toward a more mature and sustainable phase, where disciplined execution, governance, and capital efficiency matter more than rapid growth at any cost. Through Nueva Capital’s investment approach, Karan Gala believes the next generation of successful startups will be those focused on solving real problems with long-term vision and operational resilience.
From fintech and healthcare to consumer internet and B2B tech, Karan remains optimistic about India’s evolving innovation landscape and the opportunities emerging across sectors. His insights underline a growing shift in venture investing, where strong fundamentals, ethical leadership, and sustainable business models are becoming the true indicators of long-term success.
-Interview conducted by Sandhya Bharti
