A year ago, Sunil Mahajan, CEO of Kleeto, approached a few seed funds and venture capitalists to raise working capital for the record management solutions company. Forget funding, many of them did not even give Mahajan a patient hearing.
Kleeto faced an unusual problem — its capital requirement was very small. That made it a pariah for the investors it contacted. The investors were besotted with ecommerce startups, which required bigger capital and ergo, represented bigger ambitions and bigger markets, although they carried bigger risks. "VC funds had no appetite to invest in B-to-B profile like ours," says Mahajan.