Introduction
In the dynamic and fast-evolving landscape of India’s startup ecosystem, venture capital (VC) firms play a pivotal role in fostering innovation and growth. Among them, Gemba Capital stands out as an institutional micro VC firm redefining early-stage investments. In an engaging conversation, Govind Lohia, Principal at Gemba Capital, shared the firm’s innovative strategies, its vision for supporting entrepreneurs, and the future of venture capital in India.
Gemba Capital’s Unique Approach to Investing
Govind Lohia’s journey in the startup ecosystem as an operator and an investor has shaped his deep understanding of entrepreneurs’ challenges in a competitive and ever-changing market.
At Gemba Capital, the focus is sharp: pre-seed and seed investments, with typical first cheque size of around ₹2 crores and 30% reserve for follow-on investments. Firm has backed over 120 founders across 50+ startups since inception., carving its niche as a leader in the micro-VC space. Some of the notable portfolio companies are Plum (Insurtech), Grip Invest, Wint Wealth, Navadhan, Unnati Agri, Showroom, Zuper, ClickPost and LightFury games.
“We are a high conviction thesis driven investor and focus primarily on Fintech, Consumer Tech and B2B Platforms,” Govind explained. This selective approach underscores the firm’s commitment to targeted impact and meaningful engagement with founders.
Navigating the Challenges of Exit Strategies
One of the critical facets of venture capital—exit strategies—featured prominently in the discussion. Govind acknowledged the importance of timing and orchestrating exits. Indian public markets are not as deep as the US when it comes to tech startup listings. For startups, IPO and M&A markets in India are now beginning to show signs of liquidity which augurs really well for the entire startup ecosystem.
“While a successful exit is paramount, it’s also about foresight and adaptability,” Govind remarked. His perspective reflects the nascent nature of the VC ecosystem, where patience and strategy go together with capital.
The Role of AI and Emerging Technologies
The transformative potential of AI was another key theme. Govind highlighted how AI is revolutionizing industries, from content creation to customer service. However, he emphasized that AI is an enabler rather than a substitute for strategic decision-making by founders.
“Startups that own their customer base—like Zomato—are well-positioned to harness AI effectively,” Govind observed, pointing out that many founders are already integrating AI intuitively into their business models. It will be exciting to see whether incumbents will win the AI race, or newcomers will disrupt the incumbents by leveraging AI.
Supporting Founders Beyond Funding
One of Gemba Capital’s defining principles is its commitment to supporting founders beyond capital. Govind shared how the firm aids portfolio companies in fundraising, customer introductions, building networks, tracking relevant performance metrics and strategic decision making.
“We look for resilience, founder-market fit, and strong leadership qualities,” Govind noted. His philosophy centers around founders with unwavering conviction in their vision, irrespective of external validation.
Evolving with the Indian Startup Ecosystem
The Indian startup ecosystem is undergoing a profound transformation, and Gemba Capital is evolving alongside it. Govind noted a shift towards full-stack platform approaches and a fine balance between profitability and growth, driven by a more mature and discerning ecosystem.
“Unlearning is vital,” Govind emphasized, highlighting adaptability’s importance for entrepreneurs and investors. With the rise of second-time founders and seed-stage investors, India’s startup ecosystem is steadily becoming more robust, sustainable and expansive.
Strengthening Investor-Founder Relationships
Govind concluded with a powerful message about building stronger investor-founder relationships. Transparency, open and timely communication, he stressed, are critical to fostering trust and collaboration.
“Sharing real challenges and insights can inspire and guide the next generation of entrepreneurs,” he said, underscoring the role of collective learning in shaping the future.
Govind Lohia’s vision for Gemba Capital is a testament to India’s evolving nature of venture capital. By emphasizing empathy, sector-specific expertise, and strategic support, the firm goes beyond financial backing to truly empower startups.
As India’s startup ecosystem continues to mature, Gemba Capital’s partnership, innovation, and adaptability model offers a blueprint for sustainable growth and lasting impact. This is venture capital at its finest: not just investing, but building the future, one visionary founder at a time.
