From Paytm To Ola: How Ratan Tata Backed Startups Fueled India's Economy?

Last year on October 9, 2024, Tata Sons’ Chairman Emeritus Ratan Tata passed away leaving a void in the business corridors of India, felt by every Indian citizen.

The eldest son of Naval Tata and Sonoo Commissariat, Ratan Naval Tata, credited with building a conglomerate synonymous with trust, also had a great deal to do in buoying India's burgeoning startup ecosystem.

Considering his investments as a learning experience, he backed ventures such as Paytm and Snapdeal, which have not only turned into major success stories, but have also bolstered India's present pace of development. 

Paytm, which began as a mobile recharge platform has now become a major fintech player, holding a market share of 9% and processing 1.2 billion monthly transactions.

On the other hand, Ratan Tata backed homegrown ride-hailing service provider Ola turned out be one of the biggest rival to Uber, besides having launched credible subsidiaries like Ola Electric, and ‘Krutrim’, its AI offshoot.

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The legendary industrialist's tales of following his conviction and ethos continues to leave millions in awe. 

Once he had received a letter from a design engineer working at Tata Elxsi, who had proposed a venture to create collars for street dogs to prevent fatalities among them. The engineer being Shantanu Naidu later became a member of Tata's close-knitted circle. The friendship eventually led to Ratan Tata pouring funds in Naidu's startup Goodfellows aimed at helping senior citizens.

Over the years, Ratan Tata has invested in over 40 startups, that have shown how India's modern-day businesses should function and expand.  

The list of successful startups-backed by Tata include B2B marketplace Moglix, eyewear label Lenskart, baby products brand Firstcry, and home services provider Urban Company.

Meanwhile, Tata Trusts, which own about 66 per cent of the $350 billion worth Tata Sons Pvt. Ltd., has used profits generated to democratize education, healthcare, and boost rural livelihoods, and scientific research.