Aroa Ventures will Invest for Startups

OYO’s Ritesh Agarwal Sets Up Aroa Ventures To Invest In Early Stage Startups

The firm will look for businesses with proven unit economics and 20% YoY growth

Aroa Ventures will invest between $500K to $5 Mn in its portfolio companies

Snapdeal cofounders Kunal Bahl and Rohit Bansal have also set up a similar fund for their investments

OYO’s founder and CEO Ritesh Agarwal has set up an investment firm in Singapore called Aroa Ventures to invest in early-stage startups working across consumer, technology and leisure infrastructure sectors.

Agarwal is looking for startups that have proven unit economics, 20% year-on-year (YoY) growth rate, and $1 Mn-$10 Mn in annual revenue. The company is willing to invest $500K to $5 Mn in its portfolio companies, the Aroa Ventures’ official website noted. The development was first reported by Entrackr.

Though it is not yet clear if the company has made any investment so far. Inc42 has reached out to OYO seeking more details about the investment firm.

Beyond capital, the firm will also help its portfolio companies accelerate their growth and deliver better risk-adjusted returns. The latest investment firm will be headed by Innov8’s former COO and Purist cofounder Gaurav Gulati.

According to the Aora Ventures’ filings in Singapore accessed by Entrackr, the company was registered last year with Agarwal and Thomas Hufnagel as the two shareholders through RACo Holding Company. But, Agarwal got the complete control of the company after taking over 100% stake in RACo Holding.

“We believe that the long-term environment will always be favorable for making value-add investments in companies with proven unit economics and high potential to scale.  At Aroa, we focus on growth-stage businesses in the consumer, technology, and leisure infrastructure sectors. We are operationally-oriented and seek to partner with entrepreneurs of high repute, building long-lasting businesses,” the official website read.