The billionaire investor who walked away from a $4 billion private equity fund to become one of India’s leading philanthropists
Jan 31, 2025
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Ashish Dhawan, a prominent figure in India's investment scene and founder of ChrysCapital, shares his transformative journey from private equity to philanthropy. He discusses his ambitious plan to donate over ₹1000 crores in a decade, emphasizing the crucial role of collective effort in nation-building. Ashish also explores long-term investment strategies, the significance of early childhood education, and the pivotal synergy between philanthropy and government in driving social progress.
Ashish Dhawan's journey reflects a deep commitment to India's economic potential, transitioning from private equity to impactful philanthropy.
His focus on education reform underscores the importance of addressing learning poverty and fostering a culture of giving in India.
The podcast underscores the necessity of resilience and networking in successful investment strategies, particularly in emerging markets.
Deep dives
The Decision to Return to India
The speaker shares his decision to move back to India after his education and early career in the U.S., emphasizing a strong desire to invest in the country's potential. He reflects on the economic environment during the late 1990s, including the Asian financial crisis, and how it influenced his confidence to take risks. Despite limited experience in the Indian market, he was motivated by the belief that India would rebound from its economic challenges. His faith in the post-91 reforms and his personal connection to the country laid the groundwork for his entrepreneurial ambitions.
Overcoming Rejections in Fundraising
The early fundraising efforts faced significant challenges, marked by a rejection rate of about 98%. The speaker emphasizes persistence, explaining that their approach involved leveraging personal connections and referrals, particularly from his Harvard alumni network. An important turning point was securing an anchor investment that provided credibility, facilitating further commitments from other investors such as Microsoft and the Government of Singapore. This experience highlighted the importance of building a strong network and the necessity of resilience in the face of adversity.
Investment Strategy and Early Mistakes
The initial investment strategy was largely opportunistic and lacked a structured approach, resulting in significant losses, particularly in the tech sector during the dot-com bubble. Half of their early fund was allocated to dot-com companies, many of which failed during the market crash. However, certain investments like Spectramine proved to be successful, showcasing a balance in their early portfolio. These experiences reinforced the need for a more rigorous investment approach and led to a clearer focus on sectors with better growth potential, such as financial services, pharmaceuticals, and consumer goods.
Navigating Relationships with Promoters
Constructing relationships with business promoters was crucial in a landscape where private equity was not well understood. The speaker discusses how many promoters were hesitant to dilute their ownership and required convincing about the value of minority equity investments. He recounts specific cases, such as Mankind Pharma, where persistence and building trust over multiple meetings led to successful partnerships. The speaker recognized that having a credible fund serving as a strategic partner could offer significant advantages to promoters looking for growth without forfeiting control.
Shifting Towards Philanthropy
After concluding his tenure in private equity, the speaker transitioned towards philanthropy, with a focus on education in India. He co-founded Ashoka University and established the Central Square Foundation to improve early childhood education, addressing the alarming rates of learning poverty. His approach to philanthropy emphasizes starting small, learning, and scaling efforts based on direct impact measurement. By promoting philanthropy among peers, he aims to build a culture of giving and foster systemic change in India's education landscape.
In this powerful episode of the Create Wealth Podcast, our co-founder Sandeep Jethwani talks with Ashish Dhawan, a legendary figure in India's investment landscape and the founder of ChrysCapital, who left it all to become one of India's most influential philanthropists.
In this episode, Ashish talks about —
➡️ His long-term and value-driven personal investment thesis
➡️ His plans to donate over ₹1000 crores in the next decade and how others too can contribute to nation-building
➡️ His insights on economic growth, government policy, and the next decade of wealth creation
Whether you're an investor seeking long-term wealth creation strategies, an entrepreneur interested in scaling with purpose, or someone passionate about contributing to India's growth story, this episode is for you!
🎥 Watch the full episode here: https://youtu.be/5UkMMG2TfrM
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