Mehtab Bhogal, co-founder of Karta Ventures, emphasizes the investment opportunities in distressed ecommerce firms. Karta Ventures targets businesses facing various challenges, including tax issues and founder disputes. Initially reliant on cold outreach, they now leverage word-of-mouth as their reputation grows. Bhogal highlights the importance of identifying hidden value and has adapted their strategy to favor companies with either balance sheet or income statement problems, seeking those capable of generating $15-$20 million in annual direct-to-consumer revenue to ensure manageable scaling and operational focus.
Mehtab Bhogal describes distressed company acquisition as salvaging, focusing on the value of parts—like in a crashed car situation.
Karta Ventures prefers businesses with either income statement or balance sheet issues, aiming for companies capable of scaling down to $15-$20 million in D2C revenue.
From 2018, Karta Ventures initially cold emailed over 2,000 companies to find deals, now relying on referrals as other investors shy away from turnarounds.
The firm targets distressed consumer brands, valuing turnaround potential and being proficient at unlocking value through financial restructuring and operational improvements.
Collection
[
|
...
]