Sayali Rai, a Bombay-based entrepreneur with expertise in finance and marketing. She comes armed witha bachelor's degree in finance and marketing from NYU Stern School of Business and an MBA in finance at Babson College in Boston. She has worked at Citibank as an investment banker, post which Sayali founded Fincocktailin August 2020.
In a conversation with the Women Entrepreneurs Review, Sayali talks about sound investment strategies for new investors. She also sheds light on critical topics such as decentralized finance, parameters of investing in startups and the state of women-led startups’ funding woes.
Here are choice excerpts from the conversation.
In an era of increasing market volatility and economic uncertainty, what innovative investment strategies would you recommend for individual and institutional investors to safeguard and grow their wealth?
Market volatility and economic uncertainty have been prevalent in recent years, particularly after COVID-19. However, India has shown resilience in its equity markets, GDP, and financial markets, despite being behind in inflation. Three key factors should be considered to navigate this era: diversification, knowledge and constant learning, and relearning patience. Diversification is essential as it helps investors understand which asset will perform best at different times. Knowledge and continuous learning are crucial as there are numerous alternative investments, such as B2B lending and Bitcoin, which can be risky but offer new investment opportunities. Relearning patience is essential as it helps investors make sound investment decisions and understand the long-term success of various asset classes, including stock markets and commodities like gold. In today's world, patience is often overlooked, leading to better investment decisions.
How do you integrate sustainability and social impact considerations into your investment decisions? What advice do you have for investors looking to balance financial returns with positive societal impact?
Business and social impact have historically come at a cost, as cheaper options often lead to environmental and labor abuse. However, with a socially conscious consumer, brands must evolve and consider sustainability. Companies must be conscious of the environment and consumer expectations to survive in the future. This shift is becoming automatic for many companies, and investors are seeing new categories like ESG funds and alternative investments based on sustainability. This shift will require investors to look for sustainable social investing, not just random profit-driven investments.
With your experience in supporting startups, what criteria do you prioritize when evaluating potential investments, especially in industries undergoing rapid transformation?
I prioritize three criteria for a company's success: the founder's energy and capability, what problem the company is solving, and what makes the company unique. The founder's energy and capability are crucial in a rapidly transforming industry. The problem the company is solving needs to be large enough to be sustainable and applicable to a large enough population. The uniqueness of the company is what sets it apart from competitors like Zomato and Swiggy. For example, Facebook's success in social media is due to its unique ecosystem, unlike other platforms like Friendster and MySpace.
How do you foresee the role of decentralized finance (DeFi) in shaping the future of financial literacy and empowerment? What steps can organizations take to integrate these concepts into their educational initiatives?
Decentralized finance (DeFi) is a financial service built on blockchain, primarily Ethereum, aiming to decentralize banking transactions and make them transparent and easily accessible without intermediaries for borrowing, trading, asset management, etc. It involves smart contracts and decentralization, making the ecosystem democratic and accessible to everyone. DeFi aims to improve financial literacy by making information transfer and access easier. However, there is still a long way to go in achieving this goal.
As an investor and advisor, how do you balance the pursuit of profitability with maintaining ethical standards and supporting ventures that align with your values?
The dilemma of balancing ethical practices within a company, especially in fierce competition, can be resolved by the founder self-forming the culture and ensuring it is important to both the founder and top management. Compromising profits to maintain ethical standards is rare, but essential for success. As far as it does not hinder the work environment, it's fine.
What specific challenges do women entrepreneurs face in securing investment and growing their ventures? How can the financial industry better support women-led startups and promote gender equality in entrepreneurship?
Women entrepreneurs face numerous challenges, including being looked down upon, not being taken seriously, and not receiving equal opportunities. To overcome these challenges, women entrepreneurs need to take themselves seriously at home and share their responsibilities. This will enable them to be equal partners outside of their professional capacity.
To better support women-led startups, the financial industry should focus on the qualifications and experience of the founder rather than the gender. This will help ensure equal opportunities and better support for women-led startups.
When investing in a company, it is important to focus on the company's merits and not the founder's gender. This approach allows for a more inclusive and diverse selection process, as it allows for a more diverse and inclusive workforce. By focusing on qualifications and experience, women entrepreneurs can be given equal opportunities and a more diverse workforce, ultimately leading to more successful and successful ventures.
Message to Readers
I emphasize the importance of determining one's purpose in entrepreneurship. While a lifestyle business is acceptable, a growth-oriented business requires more effort. Women entrepreneurs should make conscious choices about their business, recognizing that their happiness with revenue and growth is not wrong. This is a crucial step for women entrepreneurs to make, as they often shy away from making conscious choices. I urge all women entrepreneurs to make this conscious decision.
