Sep 15, 2013
- United States
Venture capitalist Vinod Khosla is giving support to ventures that he hopes can solve India’s problems in the financial inclusion and unorganized retail sectors, Indian journal Mint reported Sept. 1.
Khosla Labs, a tech incubator launched in November 2012 with Srikanth Nadhamuni, former technology head of the Unique Identification Authority of India, is funding firms that can be spun off as stand-alone companies and get funded by venture capital fund Khosla Ventures when they are ready to launch.
Nadhamuni said Khosla had for a long time been discussing large transformational projects in India, “like Aadhaar (the 12 digit number issued by UIDAI), where I headed the technology team for four years since inception. I was planning on transitioning from Aadhaar since the technology platform and operations were stabilized and the managed service provider had been commissioned,” Nadhamuni said
“I set up office in the garage of our house in October 2012. This was the beginning of Khosla Labs,” he told Mint.
Three entrepreneurs in residence are leading the first ideas being incubated by Khosla Labs. They are Sanjay Jain, a former Google product manager who built Google Map Maker; Gautam Bandyopadhyay, an Infosys veteran behind the company’s Airtel Money solution; and Sridhar Rao, a former Vodafone Essar executive who led the phone firm's mobile money initiative in India, Mint said.
Jain and Bandyopadhyay are running pilot efforts for a cashless, non-branch banking system powered by mobile phones. Rao is testing a product to assist small retailers to manage inventories. The start-ups hope to launch as companies and be funded by Khosla Ventures.
Khosla Labs doesn’t follow the Silicon Valley model of choosing entrepreneurs in hot sectors, providing seed finding and taking equity stakes.
“We thought that a better model would be to actually work with the entrepreneurs, so we bring entrepreneurs on board as entrepreneurs in residence,” Nadhamuni told Mint. “We all brainstorm, come up with ideas, and then go on to experiment, prototype the ideas, do market validation. If after all this there is traction, we fund them through the Khosla Ventures fund.”
The three entrepreneurs and Nadhamuni were “tight-lipped” about their products, Mint reported. “The mandate we got from Vinod was to solve problems around us, using technology at a scale. We are in a phase where we are working with multiple partners and figuring out. We are now beginning to pilot and test," said Jain.
Khosla Labs is testing a solution that could use Aadhaar numbers to enable transactions. Nadhamuni said it could have an impact similar to how PayPal uses e-mail addresses for money transfers.
“PayPal said, ‘If you have an email address, we can send money,’ and that was over 10 years ago,” Nadhamuni said. “Can we apply that with Aadhaar numbers?”