Ratan Tata: The visionary who fuelled India's startup revolution

Ratan Tata, the iconic former chairman of Tata Group, died on October 9, 2024, leaving behind a legacy that transcends traditional business leadership. Even after his retirement, Tata continued to embody the spirit of entrepreneurship, emerging as a formidable investor and mentor to a multitude of startups across India. His commitment to nurturing innovation and supporting young entrepreneurs has significantly shaped the Indian startup ecosystem.

Ratan Tata, in a 2021 interview with CNBC-TV18, mentioned that his early passion for entrepreneurship stemmed from the excitement he experienced while working at Tata. During this time, he encouraged the company to explore budding computer and software startups in the Bay Area.

After stepping down from his formal role at Tata Group, Tata embraced a new identity as an investor through his personal investment vehicle, RNT Associates. His approach wasn’t just about financial returns—it was fueled by a deep passion for fostering entrepreneurship. He often referred to his investments as “learning experiences,” understanding the risks and challenges of building a business.

Tata’s portfolio spanned over 50 startups, including some of India’s most prominent names like Paytm, Ola, and FirstCry. His early investments in Paytm in 2015 played a crucial role in transforming the digital payments giant into a comprehensive financial services platform. Similarly, his backing of Ola that same year helped the ride-hailing company solidify its market position. FirstCry, a leading baby products e-commerce platform, thrived under Tata’s guidance, enhancing its omnichannel strategy and successfully going public.

His impact wasn’t limited to financial backing; Tata’s mentorship was often regarded as invaluable by startup founders. Entrepreneurs described his insights as transformative, providing clarity in times of uncertainty and helping them refine their strategies. Tata’s investment in Upstox, an online trading platform, yielded a staggering 23,000% return when he sold part of his stake, showcasing his ability to identify high-potential ventures.

Among his more socially driven investments, Tata backed Goodfellows, a startup offering companionship services for senior citizens—demonstrating his interest in social entrepreneurship and creating businesses that made a positive impact.

Many of Tata’s investments went on to achieve remarkable success, with companies like FirstCry delivering impressive returns during their IPOs. These achievements underscored Tata’s keen understanding of India’s rapidly evolving startup landscape, one that he helped shape through his relentless belief in innovation.

Ratan Tata’s entrepreneurial spirit, which lived on long after his formal retirement, has left a lasting mark on India’s startup ecosystem. His legacy as an investor and mentor will continue to inspire future generations of entrepreneurs, shaping a vibrant ecosystem that thrives on creativity and ambition.