In an exclusive conversation with Indian Startup Times, Mahavir Pratap Sharma Co-Founder and Chair, RAIN (Rajasthan Angels) and Founding Chair, TiE India Angels reflected on the dramatic shifts reshaping India’s startup ecosystem.
The period between the 2021 valuation surge and the post-Covid funding winter has been a defining moment for founders and investors alike. But for Mahavir Pratap Sharma, this transition has not merely been about survival. It has marked the professionalisation of angel investing in India.
With over 40 active investments, Sharma has emerged as a strong advocate for disciplined scaling, grassroots mentoring in Tier 2 and Tier 3 cities, and a renewed focus on profitability over vanity metrics.
From Valuation to Validation
When asked about the biggest shift in the ecosystem over the last five years, Mahavir Sharma did not hesitate.
“The growth-at-all-costs model has corrected itself,” he told Indian Startup Times. “High CapEx and high OpEx are no longer the goal; it’s about bottom-line profitability in the long run.” He explained that startups today are more cautious, resilient, and structurally sound than they were during the funding frenzy. According to him, the ecosystem has matured significantly.
“Startups have become sturdier and stronger,” he shared, adding that founders are now better prepared to navigate policy changes, global disruptions, or economic shocks. For him, this pivot toward sustainability is not a slowdown it is a strengthening of the foundation.
Building a Portfolio with Purpose
Over the years, Mahavir Sharma has invested in more than 40 startups across sectors. But beyond financial returns, he told us that purpose plays a crucial role in his decision-making.
“When an investment impacts the environment or recycles waste, it gives satisfaction beyond just making money,” he shared.
Companies like Regrip, focused on tire recycling, and organic waste recycling ventures particularly resonate with him. Alongside sustainability-focused startups, his portfolio also includes fintech and consumer-facing brands such as GetEpay and CoHoMa Coffee, as well as niche innovators like QRL Biosciences, O ‘ Hi, and Study Caller.
During the interaction, he emphasised that diversification is essential but conviction is even more important.
Mentoring ‘Bharat’: The Tier 2 & 3 Advantage
A significant portion nearly 40–45% of India’s new startups are emerging from Tier 2 and Tier 3 cities. He believes this is where the next big wave of innovation will originate. “Regional networks play a very different role,” he told Indian Startup Times. “Physical presence matters. Hand-holding and mentoring are often as important as the capital itself.”
Unlike metro-based networks, Mahavir Sharma explained, regional angel groups like RAIN can stay closely involved during the early stages of growth. For first-time founders in smaller cities, mentorship can often determine whether an idea scales or stalls.
He repeatedly stressed that empowering “Bharat” is not a sentiment it is a strategic necessity.
The Founder Lens: What He Looks For
When evaluating a pitch, Mahavir Sharma told us that the product and sector are secondary. The real investment, he said, is in the founders.
He looks for:
- Domain Expertise — Can the founder truly execute this idea?
- Coachability — Strong-willed, yet open to guidance.
- Resilience — The ability to pivot without losing direction.
At the same time, he is alert to red flags.
“A bad track record or ethical doubts are immediate deal-breakers,” he shared. Extreme stubbornness concerns him just as much as extreme flexibility. “If a founder refuses to listen, it’s risky. But if they change their idea every week, that’s equally worrying.”
The 90% Gut, 10% Data Rule
While he does analyse metrics such as customer acquisition costs and marketing spend, he admitted during the conversation that early-stage investing is not purely data-driven.
“At the angel stage, data only tells part of the story,” he explained. “A strong inner conviction that the product is unique and can raise the next round is critical.”
He described this balance as 90% gut and 10% data, especially when betting on ideas that are still evolving.
Looking Ahead: Deep Tech, AI, and Sustainability
As the discussion shifted to the future, Mahavir Sharma expressed optimism about several emerging sectors.
He sees long-term opportunity in Deep Tech, despite its extended gestation cycles. He also believes that the intelligent integration of AI particularly open-source AI into healthcare, agri-tech, and consumer analytics will define the next wave of innovation.
But sustainability remains central to his outlook.
“The sustainability part of it will become critical,” he emphasised, noting that global regulatory and environmental shifts will increasingly influence investment patterns.
Advice for First-Time Angels
Before concluding, Mahavir Sharma offered candid advice to aspiring angel investors.
“Don’t treat this as a part-time hobby,” he told Indian Startup Times. “It requires commitment and understanding of risk.”
He recommends building a diversified portfolio of 15 to 20 startups over two to three years, rather than concentrating capital into a single bet.
“There is no shortage of startups,” he added thoughtfully. “Everything may sound exciting, but they won’t all work.”
The Bigger Picture
As the conversation drew to a close, Mahavir Sharma left us with a broader reflection on India’s growth story.
“No country has excelled because they had money,” he said. “They excelled because they had innovation at the grassroots level.”
For Mahavir Sharma, the next phase of India’s startup evolution will not be defined by capital inflows or valuation spikes but by disciplined founders, thoughtful investors, and innovation emerging from every corner of the country. And as he told Indian Startup Times, the real opportunity lies not just in funding startups but in mentoring them to endure.
Interview Conducted By: Vanshika Tayal
