Best Startup Investments: In 2008, Flipkart was just an eight-member team without any office. They were running their operations from Sachin and Bini Bansil’s apartment in Bangalore. That’s when Axel, one of the world’s largest VC firms, decided to invest $1 million in the company.

This was not a typical funding in a promising startup; it was one of the boldest bets ever taken in India’s startup history. The implications and the impact of this investment were far-reaching. In a way, this investment signaled to the world that India’s market was ready to build massive internet-first companies, and hence it kick-started the modern VC industry in India.

Similarly, in 2011, when Anupam Mittal was talking to 25-year-old Bhavesh on the phone, he didn’t know that he was about to make one of the most legendary angel investments in Indian startup history. Basically, all the successful startups that we see today have become successful because of many things going right. And one of the most important things is getting the right investor at the right time.

So, let’s now understand the top five best investments in India’s startup history. Our criteria for this list are not just based on the rate of returns but also the impact and long-lasting implications that this funding has had on the company and the sector as a whole.

1. Accel’s Investment in Flipkart:
This was a turning point in India’s startup history. In 2008, Flipkart was just an eight-member team working from an apartment in Bangalore. E-commerce was untested, digital payments were rare, and global giants like Amazon weren’t even in India. That’s when Accel took a bold bet, investing $1 million in Flipkart’s seed round. This move attracted other global VC firms. Within a year, Tiger Global invested $10 million in Flipkart’s Series A.

Over the years, Accel invested $60 – 80 million in total, and when Walmart acquired Flipkart in 2018, Accel made $2 billion, earning about 30x returns. Beyond profits, this deal signaled that India was ready for large-scale internet companies and kick-started the modern venture capital ecosystem in India.

2. Info Edge’s Investment in Zomato:
In 2010, Sanjeev Bikhchandani, CEO of Info Edge, discovered a small restaurant discovery platform called FoodieBay (which later became Zomato). He liked that customers loved the platform and saw potential in solving a key problem, discovering good restaurants nearby. His first advice to founder Deepinder Goyal was to rename the company.

At the time, most VCs believed food delivery in India had a limited market. But Sanjeev thought differently. With experience from Naukri, Jeevansathi, and 99Acres, he understood the changing Indian consumer. In August 2010, Info Edge invested $1 million (₹4.7 crore) for an 18.5% stake. Sanjeev continued to invest in multiple rounds:

– $3.5M in Series A (2011)
– $2.3M in Series B (2012)
– $10M in Series C (2013)

By 2013, Info Edge had invested ₹86 crore, owning 57% of Zomato. Later, big VCs like Sequoia and Tiger Global joined, diluting Info Edge’s stake. At Zomato’s IPO in 2021, Info Edge sold a 2.3% stake for ₹3,000 crore and still holds a 15% stake, worth around ₹37,000 crore. In total, Info Edge turned ₹147 crore into ₹40,000 crore, earning 272x returns.

Beyond returns, this was a masterclass in picking the right investor. Deepinder benefited from Sanjeev’s experience and guidance, whether it was the IPO timing or acquiring Grofers. This mentorship played a huge role in Zomato’s success today.

Also Read: Kerala Launches KLOO App to Find Clean Restrooms Easily

3. Hero MotoCorp’s Investment in Ather Energy:
This investment was more strategic than financial. Ather Energy began in IIT Madras in 2013, initially working on battery packs. Soon, the founders decided to build complete electric scooters. In 2016, they unveiled their first product, S340, which caught Hero MotoCorp CEO Pawan Munjal’s attention. Hero invested ₹180 crore for a 26% stake in Ather, recognizing its potential in the EV space.

Hero helped Ather with manufacturing, marketing, and scaling, moving it from R&D to mass production. Till now, Hero has invested around ₹1,700 crore, which comes to a shareholding of a whopping 40% stake in Ather, valued at around ₹7,000 crore (4–5x returns). The most important thing here is to discuss the partnership, which is very rare in the Indian business industry. As a traditional automaker in the industry for decades, this partnership is the first collaboration between a traditional automaker and a startup to build a future sustainable mobility together. Such collaborations mirror mature markets like the Ford-Rivian or GM – Nikola partnerships.

4. Anupam Mittal’s Investment in Ola:
Anupam Mittal started his investing in startups in the year 2011, and right at that time, he heard about Ola, but initially, he declined that offer. Having lived in New York and Mumbai, he didn’t think cab-hailing was a big problem. However, a trip to Delhi changed his mind after he struggled to find a cab. He immediately contacted Bhavish Aggarwal and decided to invest around ₹30 lakh in Ola’s seed round, valuing the company at ₹5 – 6 crore, which gave him about 5% stake.

Within months, Tiger Global led a $3.87 million Series A, marking the start of ride-hailing in India. Anupam partially exited a few years later and reportedly made several hundred crore rupees, between ₹230 crore and ₹700 crore. He still holds a small stake, worth hundreds of crores, given Ola’s multibillion-dollar valuation. His overall gain, realized and unrealized, is estimated at ₹500 – 1,000 crore, a return of over 1,500x in 13 – 14 years.

5. Kunal Bahl & Rohit Bansal’s Investment in Urban Company:
The year is 2015. Jio hasn’t launched yet, and India is still paying ₹250 per GB of data. That’s when three guys in their mid-20s decided to organize India’s massive informal home service sector and make it accessible through the internet, covering everything from electricians and carpenters to home cleaning services.

This small company wanted to train these workers and help them earn more. It was a very difficult problem to solve. The founders didn’t have a proven track record, and such a business model hadn’t been proven anywhere else in the world.

When these founders approached Kunal Bahl for seed funding, he and Rohit Bansal agreed to invest around ₹57 lakh, before any other investor came on board. Kunal’s thesis was that Urban Company was solving a major pain point and that Indian customers were ready to pay for such services.

Kunal’s involvement signaled to other investors that this was a great opportunity. Soon, big institutional investors like Accel and SAIF Partners joined in. After the seed round, there was no looking back. Within months, they raised a $10 million Series A, and since then, the company has raised around $376 million and is now valued at over $2 billion. The ₹57 lakh that Kunal and Rohit invested in 2015 turned into a ₹111 crore exit in 2024, nearly 200x returns. As of now, Urban Company is preparing for its IPO in 2025.

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