Pennar X Startup — matchmaking powered by build3
All across the world, with the rapid adoption of fast-emerging innovations and technologies, leading organisations are now looking to fuel their inorganic growth by partnering with startups. Unfortunately, more often than not, these organisations just can’t seem to get things right due to multiple reasons ranging from a lack of clear strategy to inexperience in harvesting innovation and from fear of failure to resistance to change. This is where a venture builder like build3 comes in.
build3 specialises in creating, launching, and scaling startups. At build3, we realise that in the manufacturing and engineering space, unlike software-driven companies, startups have to face the challenge of operating in an ecosystem where not just technical know-how but an understanding of market fit and legal frameworks is a prerequisite, where getting to the MVP takes longer and where capital requirements are higher. Success in resource-driven sectors is difficult and in order to overcome these challenges and proliferate a new era of entrepreneurship in hardware-dependent sectors in India, build3 has partnered with Pennar Industries Limited. The goal of this partnership is to develop and bring innovative products to the market, in select target areas, more quickly and efficiently than a traditional startup.
In contrast to traditional venture capital firms, we take a more hands-on approach to building companies from the ground up. The Pennar-build3 program will typically provide its portfolio companies with resources like funding of up to ₹10 Crores per startup, mentorship, strategic support, and operational support, as well as access to its network of experts, manufacturing capabilities, and partners. At build3, we have termed these resources as our 3Cs to the startups — capability, community, and capital (more on this on our website https://www.pennarbuild3.com). This helps startups focus on growth and scale and reduces the risk of failure.
There are at least five clear benefits that startups can obtain through this program that traditional venture capital fails to offer -
- Rapid problem solving — As part of this program, build3 will set a regular cadence (about once a week) with the founders to discuss, brainstorm and track the startup’s growth and address pain points rapidly. At build3, we guarantee to assist our founders with their issues within a maximum timespan of 120 hours.
- Instant market access — As a founder you know, building products is hard and getting customers is even harder. Here, Pennar Industries can help with -
Access to established customer base: Pennar has an established customer base and can provide startups with introductions to potential customers, speeding up the sales process. In some cases, Pennar can become a customer too (see, point 3).
Industry expertise: Pennar & build3 have industry expertise and a deep understanding of the target markets, which can help startups to better understand their customers’ needs and tailor their offerings accordingly.
Network of contacts: Pennar has a large network of contacts, including other corporate and suppliers, which can help startups to identify and connect with new customers rapidly.
Brand recognition: Pennar has a well-respected and strong brand recognition, which can enhance the credibility of startups and make it easier for them to win new customers.
3. Pennar as the customer or raw material provider — Building a bicycle company and looking for custom steel frames? Or building an automobile company and looking for a partner to build the chassis? Or creating the next generation of bifacial solar panels and looking for distribution partners? Pennar is available to do that for you.
More on the bicycle company to follow soon!
4. Assured growth capital — As founders, raising capital takes a fair bit of time and energy. In spite of proven growth and market validation, uncertainty and rejection often lead to pressure to perform which takes away focus from building the core products. By partnering with Pennar-build3, this uncertainty is removed from the equation. Assured capital is locked in based on pre-determined milestones and growth capital is made available once a clear path to long-term profitability is established. It’s a win-win situation for the startup, Pennar, and society at large.
5. Other synergies — By partnering with Pennar & build3, startups unlock several intangible benefits that can help their business grow fast. These include inexpensive access to technology and infrastructure beyond manufacturing (like specialised software, warehouses, and assembling areas in Mumbai, Hyderabad, or Chennai and a beach office at Candolim, Goa), access to community events powered by build3, banks providing financial products and hiring needs getting solved quicker.
Sounds interesting? To know more about the Pennar-build3 partnership, including our current target areas, and to apply to this program, please visit https://www.pennarbuild3.com
Next up: Is the Pennar-build3 program, the right partnership for your startup?
