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In the fast-evolving Indian startup ecosystem, venture capital firm Cactus Partners has carved out a reputation for investing with intent. Their approach is driven not by hype but by strong fundamentals, founder conviction, and a hands-on support model. “We are disciplined investors focused on businesses that have already achieved product-market fit and are ready for the 1-to-10 journey,” said Amit Sharma, General Partner at Cactus Partners.
Cactus invests primarily at the early growth stage, when companies have begun to prove their business models but require capital and strategic input to scale. “At this stage, most of the product risk is behind us. Founders know their customers and are building recurring revenue streams,” Sharma explained. The firm adds value through its Growth Acceleration Playbook, which provides portfolio companies with support in areas such as strategy, governance, team design, and international expansion.
While sector-agnostic in theory, Cactus maintains strong interest in manufacturing, consumer, and technology. Sharma notes that India’s regulatory environment and Make-in-India policy are pushing manufacturing into a high-growth phase. “Our portfolio companies like Lohum and Indigrid Technologies are strong examples of what disciplined manufacturing ventures can achieve,” he added. On the technology front, he sees immense potential in domains like AI, cybersecurity, health tech, semiconductors, space tech, robotics, IoT, and defense tech.
When it comes to startups outside metro cities, Sharma is clear: geography does not matter. “What we evaluate is the team’s understanding of the market, scalability, and execution ability. In fact, many tier II or tier III startups display higher capital efficiency and deeper customer insight,” he stated.
For Cactus, valuation discipline is key. Sharma highlighted, “It is not about whether a sector is overhyped or underhyped. We look at the fundamentals of each business and whether the valuation aligns with its long-term potential.”
Among its proudest investments are Lohum, a leader in critical minerals, and Indigrid, which is poised for rapid scale. “It is hard to choose one. We are proud of the entire portfolio and are pleased that the companies are performing well,” Sharma shared.
Cactus Partners has built a portfolio including names like Intangles, Auric, ParkMate, Ananant Systems, and Kapture CX. They exited Rubix in 2023 with an impressive IRR of 48 percent. For Sharma and his team, the focus remains clear: back purpose-driven founders and help build companies that compound steadily and prudently over time.
Looking ahead, “Our sectors of interest will remain the same—manufacturing, consumer, and technology. We believe these sectors will continue to see multi-year growth, and the business models will continue to evolve,” Sharma ended.
Facts:
- Fund size: INR 630 Cr (maiden fund)
- Current Portfolio: 9
- Exits: 1