'The country is a good test bed for enterprise adoption, but to scale rapidly, companies will need to look outside the country for customers.'
B Capital, the investment firm co-founded by Facebook's Eduardo Luiz Saverin, is making a major push to back companies in artificial intelligence (AI) and robotics in India and Asia, according to general partner Karan Mohla.
In a video interview with Peerzada Abrar/Business Standard, Mohla highlighted the growing market for AI and robotics products, anticipating a surge of innovative companies from India and Asia to meet diverse needs.
With over $8 billion in assets under management across multiple funds, the firm is also eyeing investments in sectors such as healthcare, climate tech, and fintech.
What are the sectors that you're particularly excited about right now?
We're very active in SaaS, AI, and B2B applications. Alongside that, we focus on healthcare, climate tech, and, opportunistically, deep tech and consumer tech -- where you see more activity in Asia than in the US. We support companies at every stage, from early days up to pre-IPO.
The area that we are very excited about right now -- and which includes certain tailwinds -- is artificial intelligence (AI).
We are seeing a lot of interesting work on foundational models related to AI infrastructure.
We are starting to see applications both for enterprises and users.
We expect to see a lot of interesting companies emerging from India and Asia in this area because the context is very different from most other AI-native applications being built in the US, Europe or China.
We are also excited about deep tech, robotics, space tech, and advanced manufacturing.
What was typically done in academic and research organisations has now surfaced as commercial and business value propositions, where they are able to raise venture capital.
A few months back, we did our first robotics investment in Eureka Robotics, a Singapore-based firm.
Other areas include climate tech, healthtech, and fintech. We are also focusing on building cross-border businesses from India for the US, especially in the context of the China Plus One strategy.
Do you see any impact of innovations related to robotics and AI -- like ChatGPT and DeepSeek -- on your investment decisions?
We've done two robotics investments in the past year -- one in the US and one in Asia -- and we're working on one more now.
Aside from a few highly technical use cases, hardware innovation has become somewhat commoditised.
The real innovation lies in how you integrate AI, computer vision, and software intelligence with the hardware.
It's not just about the physical form but the “embodied AI” -- where the software dictates precise, intelligent movement and actions.
For example, our investment in Eureka Robotics is built on this concept.
They are building on top of existing hardware and partnering with hardware manufacturers and distributors.
You need to be able to sell to large enterprises -- either in the US, Western Europe or Japan. We are looking for such companies.
India's strength lies in software engineering and development. Historically, the country did not have much success in robotics. But that has started to change.
Countries like Japan have expertise in hardware but lack full capability on the software side.
Founders from India have a phenomenal opportunity to build companies that cater to these requirements.
A fund like ours can help in commercialisation and provide access to large customers. We are trying to partner with founders building at this intersection of AI and robotics.
In the US, we have backed Apptronik, which has built AI-powered humanoid robots and recently raised about $350 million in funding. We are very excited about what can come out of India in a similar way.
IMAGE: Karan Mohla.
Photograph: Kind courtesy, B Capital
What opportunities do you see for AI, combined with affordable smartphones and expanded networks, to scale up services in areas such as healthcare, education and finance?
We are seeing very interesting opportunities in edtech, healthcare and financial services that combine AI with relevant data.
For instance, consumers have been using WhatsApp and UPI, but now they are engaging with more transactional services around education, financial services and healthcare.
Taking users to adopt services using digital public infrastructure (DPI) requires a different kind of technology, which relies on relevant data and AI.
You should see us coming out with some interesting work on that front in the next couple of months.
India is probably one of the most attractive markets for AI-led solutions in different industries where you can build large businesses.
The country is a good test bed for enterprise adoption, but to scale rapidly, companies will need to look outside the country for customers.
This is something SaaS and healthcare companies have done well in the past.
But for AI, reaching those kinds of customers outside India is important. Enterprises are spending on AI solutions -- especially in the US --at a different pace.
There is a big opportunity for the best products and innovations from anywhere in the world to sell into those markets. We are looking to back companies that cater to both local and global markets.
Is there a change in your investment strategy to bet big on areas such as AI and robotics?
We are globally integrated as a firm, and that gives us a unique perspective.
We're able to draw learnings from our investments in the US and apply those insights to how we invest in India.
This dual approach helps us partner effectively with founders across geographies.
Our core model has not changed. What has evolved are the sectors we target.
There is always a good time for investments because of certain catalysts within industries. For instance, the technological leap we have witnessed in robotics due to advances in generative AI is huge.
We are seeing similar shifts in areas like climate tech and energy.
This was not possible three to four years ago -- or at the same pace.
Technology is now more affordable and accessible, and government policies have become more supportive.
We now feel more positive because of these developments. We are constantly re-evaluating the right moment to enter new areas based on technology, cost, and policy dynamics.
What role does B Capital play in helping portfolio companies go global?
Capital is much more than just funding -- it is a catalyst for global growth.
My first experience helping a consumer company go global was in 2018–19.
We supported their expansion into Southeast Asia and the Middle East. They built a substantial business over time.
It was unusual at the time for a consumer business in India to go global.
We work closely with founders to assess if their product needs any tweaks for global markets, understand customer similarities, and build the right go-to-market strategies.
For example, we helped a math learning company enter markets in Southeast Asia and the Middle East, and a carbon accounting firm succeed in the US.
Our network -- both in Asia and the US, along with partners -- plays a vital role in this process.
What are the challenges companies face when entering new markets, and how do you support them?
One of the biggest challenges is balancing focus and resources when expanding internationally, especially for early-stage companies.
It is not just about having a great product; it is also about managing the complexity of entering new markets.
We help companies determine if and when their product is ready for global expansion.
Through strategic partnerships, market assessments, and leveraging our global network, we guide founders through the process of adjusting their go-to-market strategies and navigating regulatory environments.
Feature Presentation: Rajesh Alva/Rediff
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