Gurugram (Haryana) [India], March 7: Mr. Sanjay Kumar, addressing attendees at the SPiCE Merger 2024 event in Colombo, Sri Lanka, regarding gaming investments, shared his learnings concerning investments in startups. Reflecting on his investment in Gamestacy India Private Limited., which was once chosen by Google as one of only three companies in India and thirty-five globally for its accelerator program, the company failed to monetize and build a business. Mr. Kumar emphasized the importance for investors to safeguard their investments by securing voting rights that provide visibility into the business’s governance, and if they are sole investors, then to ensure they participate in driving performance.
Additionally, Mr. Kumar underscored the prudence of investing in businesses in which one had domain familiarity as a direct financial investor. Although he previously served as CEO of a tech company, Altran Technologies India, Mr. Kumar noted that the gaming industry relies more heavily on technology applications post product development than during development itself, as the intellectual property for development is not particularly complex.
Mr. Kumar then went on to announce the launch of his new venture, in a domain he has been previously engaged with, i.e., food services, Rassense Private Limited. He outlined that this entity was created by the merger of two prominent food service companies, CRCL and WeGo Infinity, a corporate catering business in Bangalore and funded by Spark Capital through its Spark Equitized Credit Solutions Fund II.
Regarding the merger, and creation of this entity, Mr. Kumar highlighted his previous failed investment experience in Gamestacy, which came in handy as this time he engaged a broader team for structuring the transaction, including firms like Ernst & Young and a reputed national law firm to ensure compliance with Indian regulatory standards. Stressing the significance of advisors, Mr. Kumar emphasized the role of good advisors in ensuring tax and regulatory compliance aligns with local laws. Kumar emphasized the importance of conducting thorough due diligence on both the entity to be acquired and even more critical on the law firm or lawyers to be engaged in the process, as the quality of advice and engagement from this ecosystem significantly impacts a good transaction outcome.
With Rassense Private Limited now emerging as India’s largest domestically owned food service company with over 3500 employees, Mr. Kumar outlined his vision for integrating gaming and technology learnings into the delivery of food service solutions. Kumar stressed the increasing need for advanced technology solutions for tracking consumption patterns, production scheduling and inventory management, and abandoning reliance on experience or staff breadth for execution. Mr. Kumar also identified the opportunity for India to lead the world in utilizing cutting-edge tools for enhancing client solutions in the food service industry.
As a groundbreaking initiative, Mr. Kumar announced the launch of the world’s first food service company credentials presentation through an AI-generated video, signifying his belief in AI’s continuing significant role in business evolution. His insights into the transformative potential of gaming and technology, from enhancing hiring processes to improving food production, garnered enthusiastic applause from the audience.
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