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Chakra Suthra CEO Himesh Fernando and his team
Magicbit CEO Migara Amithodhana and his team
Mintpay CEO Urmila Chandrasekeram and her team
Sri Lanka’s first Angel Fund completed funding rounds for Chakra Suthra and Mintpay as of its most recent operational quarter.
Further, the Fund aided a third startup, Magicbit, in growing its team and setting up a new local office, from which it has shipped to 38 countries thus far.
Most importantly, Chakra Suthra, Mintpay and Magicbit being the most recent additions to the Angel Fund portfolio, have each started to scale due to the access to funding, mentoring and international markets developed via the Lankan Angel Network (LAN) and its global partners. This is despite several challenges thrown up by the many shocks Sri Lanka’s economy has faced since March 2022.
According to LAN, and the Angel Fund, Chairperson Chandi Dharmaratne, “LAN is excited to be funding these high potential Sri Lankan startups and we will continue to support and mentor these founders to scale their companies into global platforms. In the midst of the current economic situation in Sri Lanka, it is definitely reassuring to see our entrepreneurs continuing to stay resilient and playing a key role in the resuscitation of the economy.”
An AI-based platform that allows consumers to purchase goods online and pay later in interest-free instalments, Mintpay has grown from being a startup to becoming the preferred Buy Now Pay Later (BNPL) payments partner for leading retailers, entering into strategic partnerships with leading merchants in Sri Lanka including Softlogic, Abans, Ministry of Crab, Cool Planet and Nolimit.
Having captured the Fashion and Beauty retail vertical in Sri Lanka, Mintpay, now headquartered in Singapore, hopes to extend its services across other industry verticals such as travel and dining.
“The traction we’ve gained thus far in Sri Lanka has given us the confidence to accelerate our regional expansion efforts and also tap into new business verticals,” revealed Mintpay CEO Urmila Chandrasekeram.
Mintpay’s recent crowning as the winner of Venture Engine’s 2021/2022 cohort has also drawn the attention of many global VCs, which resulted in significant advance interest in the company’s next round of funding.
Chakra Suthra, another Angel Fund portfolio company, is a technology startup dedicated to developing innovative solutions to waste problems, with a vision of achieving zero waste for every home and business in Sri Lanka.
Chakra Suthra launched the unique concept of Trash2Cash in 2021. This was in the form of an interactive smart machine that allowed customers to deposit plastic bottles, glass bottles, cans and cartons and earn credit with it being redeemable against their bill at partner supermarkets.
The collected plastics get recycled into polyester yarn, recycled garments or household products in partnership with other recycling partners, while other materials collected also undergo upcycling and/or recycling.
Helped along by the completion of a funding round led by the Angel Fund, the Trash2Cash platform is currently in the early phases of an island-wide roll-out.
“We have identified the problems and bottlenecks in Sri Lanka’s recycling industry and have begun addressing these pain points. In doing so, we introduced the one and only recycling platform allowing consumers to monetize their packaging. Our goal is to revolutionise the recycling landscape of Sri Lanka and the region.
«We believe the timing is right to introduce innovative technology into recycling efforts, and more importantly that the Sri Lankan consumer is now ready for a mindset change,” commented Chakra Suthra’s CEO Himesh Fernando.
Meanwhile, Magicbit became the national winner of SLASSCOM Ingenuity Awards 2022 as «Startup of the Year». It also took its international successes to the next level by partnering with organisations in Japan, Sudan and Ghana.
According to CEO Migara Amithodhana, “Magicbit was launched during a global pandemic and we are developing the company during a recession. Although the conditions are not 100% favourable, Magicbit is steadily growing as a business focusing more on foreign markets.»
It is also noteworthy that Magicbit started a free IoT Code Club with the participation of over 100 students in partnership with Techkids.lk
Established in 2020 by LAN, and supported by ecosystem development partner the Ford Foundation, the Angel Fund aims to catalyse the growth of Sri Lanka’s startup ecosystem.
Evaluating startups monthly, the Angel Fund is dedicated to backing early-stage startups across multiple sectors. It supports them in various ways, from making investments to helping startups identify sources for future funding.
It also provides centralised services such as company secretaries, accounting and auditing for all its startups. This ensures all startups meet proper governance standards, which will help their future funding rounds.
Created by LAN, which started this journey by funding and mentoring startups in 2012, the Angel Fund supports high-potential startups that can be scaled across the country, regionally and globally.
LAN is a platform for angel and private investors who invest in high-growth early-stage Sri Lankan ventures intending to create an impact by reducing inequality. With over 100 local and global angel investors already attached, the Angel Fund is unprecedented in Sri Lanka because 20% of its investments come from members based in Canada, Dubai, Hong Kong, Qatar, UK and USA.
The Angel Fund is currently open and prioritises evaluating opportunities for investments across the island. Interested parties are encouraged to learn more by visiting www.lankanangelnetwork.com/angel-fund or emailing [email protected], to discover funding and mentorship opportunities.
