VCs tap startup operators to sharpen investment game

VCs tap startup operators to sharpen investment game

From running businesses to backing them — India’s venture capital (VC) and private equity (PE) firms are increasingly tapping senior operators and startup leaders to power their next phase of growth.

As competition for top founders intensifies and scaling challenges become more complex, investors are moving beyond traditional financier-heavy teams and bringing in executives with deep functional and sectoral expertise. Over the past two years, this shift has quietly reshaped investment teams across many of the country’s biggest funds.

Why operators are entering venture

According to several industry executives and investors, firms are increasingly hiring leaders with experience in scaling internet businesses, building categories, and leading teams through high-growth phases to help founders scale faster and build more resilient companies.

“The playbook for value creation is evolving. It’s no longer enough just to provide capital and governance. Scaling companies today needs depth of expertise — whether it’s in brand building, supply chain, technology, or talent,” said Vivek Gambhir, Venture Partner at Lightspeed, told Moneycontrol.

“For me, the switch wasn’t about moving away from operating - it was about multiplying impact. Instead of being deeply entrenched in one business, I can now leverage that experience to help several founders navigate growth and scaling,” he added.

Gambhir, former CEO of BoAt, joined Lightspeed in 2024 to help deepen the firm’s operational expertise and portfolio engagement

Which startup leaders are moving into investing roles?

At least 16 senior operators have transitioned into investing roles in the past two years, spanning consumer internet, D2C, Big Tech and corporate leadership, Moneycontrol has learnt.

Several Flipkart veterans have made the switch. Moneycontrol exclusively reported that Smrithi Ravichandran is set to join Multiples Alternate Asset Management, and Adarsh Menon, former Senior Vice President at Flipkart, moved to Fireside Ventures. From the consumer internet space, Priyanka Gill transitioned from Good Glamm Group to Kalaari Capital, while Suhail Sameer took up a role at OTP Ventures after his stint at BharatPe.

Tech majors and D2C brands have also become fertile hiring grounds. Ashutosh Gupta left LinkedIn for Avataar Ventures. Meanwhile, Mohit Sadaani (The Mom Co) moved to DeVC, and Vivek Gambir joined Lightspeed India.

“There are simply more people now who have built and run companies,” said Kushal Bhagia, founder of pre-seed investment firm All In Capital, and former upGrad executive. “As they scale, investing becomes a natural next step for many of them after their operating journey. This trend will only increase as the ecosystem gets bigger.”

Newer funds have been particularly active. Claypond Capital hired Chandra Sekhar Garisa (Foundit) and Pranay Shetty (ShareChat). Prime Venture Partners brought on Brij Bhushan from Magicpin. Elev8 hired Ashpi Gupta from Walmart, while Ravi Jain (Ola Electric/Krutrim) joined TDK Ventures.

International moves include Anuj Tandon to BITKRAFT Ventures and Vardhan Dharnidharka to Stellaris from US-based Shiftsmart. Most recently, Verlinvest appointed former Swiggy marketing head Ashish Lingamneni as Operating Partner for India.

Why are VC firms hiring operators?

The shift is being driven by a maturing market and changing founder expectations. With more capital chasing fewer standout companies, investors are looking to offer more than just funding.

Operators bring hands-on experience, functional depth and networks that can help young companies scale more efficiently. This is especially valuable at the early stage, where execution speed and strategy can make or break companies.

“Because operators have lived that life for many years, they can draw from their experience and proactively guide companies. You can really cut to the chase on what’s required,” said Adarsh Menon, Partner at Fireside Ventures.

“Diversity of skill sets is always valuable. Operators bring empathy, operating experience, and strong networks — all of which become very relevant for founders,” he added.

Menon headed new businesses at Flipkart — including Shopsy, Cleartrip and Recommerce — before joining consumer-focused fund Fireside Ventures as Partner in November 2024.

What makes operators valuable to founders?

Executives with operating backgrounds bring credibility and empathy that resonate strongly with founders. Having built teams, raised capital and scaled companies themselves, they often engage with founders on more equal footing than traditional investors.

They also bring powerful networks built over years of running businesses. These can help founders with everything from sourcing and logistics to marketing, hiring and business development.

Bhagia said this often improves their chances in competitive deals. “Founders respect you more — it improves your right to win any deal because they prefer having someone on board who’s actually built teams, hired people, managed them, raised money, and so on,” he said.

How is this trend reshaping the venture ecosystem?

Some investors say this shift is also leading to greater specialization and depth in the ecosystem.

“It’s exciting to see India mirror a pattern that’s played out in the Bay Area, where many startup leaders go on to launch their own ventures or investment funds,” said Sandeep Patil, Partner and Head of Asia at QED Investors.

“This trend brings greater specialization into venture, with newer funds often focusing on areas that reflect the founders’ own operating experience. It also broadens the flow of capital to more diverse ideas, and creates a richer ecosystem through more conversations and shared learning,” he added.

What lies ahead for specialist hires in venture?

As global and domestic funds ramp up their India focus, the demand for specialist talent is expected to grow.

With a deepening talent pool and investors seeking to differentiate beyond capital, the trend of operators turning investors is set to accelerate in the coming years.