Bollywood is a trend-setter! We all enjoy reading what they are doing, how many philanthropic activities they have been a part of, donations they made at times of natural disasters or may be where they are spending their holidays. Everything they do is in limelight.
Then, these investment trends should not come as a surprise.
Tinseltown Investing in Start-ups – But Why?
Stars investing in start-up or other business lines in Hollywood is not new. But this trend is being followed by our Bollywood biggies now.
The idea of entrepreneurship and the thought with which the celebrities are investing in a start-up is also very different for each of them. The factors and reasons may vary from promoting their interest in society, easy money, additional income, relatable cause or the risk-taking ability, strong sense of social responsibility, belief in product and service, enough capital or simply growing money further. In a way, by involving themselves more than just being brand ambassadors, it seems they are securing their financial future.
Stars are influencers and their association with the brand as an investor means more engagement and alignment with the product for the business growth.
The list of Bollywood celebrities joining the investment club is huge but let’s look at a few:
Priyanka Chopra Jonas believes in the idea of ‘Power over the Business’. She stated in one of her interviews that a right entrepreneur will be able to identify the gap in the market, act upon it by creating the opportunity to allow the business to monetise. She believes if there is something new in the market (sustainability, good product and a reasonable price) that will work. With this understanding, she launched Anomaly (beauty/hairline product), Holberton School (education start-up) and Bumble (dating app). With her investment in Bumble in 2018, the company launched its services in India. Priyanka also believes in social responsibility and takes it very seriously.
Deepika Padukone, owner of a clothing line, All About You stated in an interview to Financial times that chose her investments in start-ups just like she would choose her film scripts. Thus, the investments in Bellatrix Aerospace (Space company), Blue Smart (Electric taxi), Epigamic (Greek Yogurt company), Furlenco (furniture rental) and Frontrow (learning platform). Like her unique choices, her reasons are also very different. The risk involved excites her and she finds it really interesting to interact with people from a completely different world. Her investments are purpose-driver and add value. She likes to get involved and engage with the brand intensely. These criteria explain her investments.
Katrina Kaif and Alia Bhat’s investments in Nykaa where Alia called it a purely emotional decision.
Anushka Sharma in Digit (insurance start-up), Aishwarya Rai invested in Ambee (monitors air quality).
The living legend, Amitabh Bachchan along with his son, Abhishek Bachchan invested $250,000 in Ziddu.com in 2015 (Singapore based block-chain research start-up). Akshay Kumar invested in GOQii. Similarly, Ayushmann Khuranna joined the club by invested in The Man Company.
What’s in it for me?
Bollywood is one of the biggest industries in India. And, India is home to the world’s second-largest start-up ecosystem. Superstars already get huge payments for their projects so capital is not an issue. This combination creates a perfect set-up for looking forwards to investments i.e., easy and extra money and good use of money. Celebrities are guided for investment when returns are sure-shot.
Both Start-ups and Tinseltown have understood the new ways and they understand that start-up endorsements and the presence of Bollywood Stars as an investor would bring credibility, visibility to the brand. Stars are influencers and their association with the brand as an investor means more engagement and alignment with the product for the business growth.
This is not an effect of pandemic or corona times that celebrities are looking for investments. If you look at history, celebrities have been investors for a long time. However, the only change is now more female stars in the picture and pitching in for investments in start-ups that are growing exponentially due to their financial capability, individualistic approach to living life and growing wealth like any other logical mind irrespective of their gender would do.