Prem Barthasarathy is the Managing Partner at Pontaq, the first UK-India Innovation Fund dedicated to investing in early-stage technology companies across sectors.
Under Prem’s leadership, Pontaq has forged partnerships with numerous private organisations and Indian state governments to enhance innovation exchange between the UK and these states. Additionally, Prem successfully launched the first UK-India Tech Hub in the UK, and Pontaq has been recognised as one of the six key companies in the UK-India corridor by the British High Commission. He also sits on the FICCI UK board.
In an interview with Asian Voice, he discusses the UK-India business relationship, industry trends and advice for businesses looking to make it in the UK.
How do collaborations with state governments in India positively impact the UK-India dialogue?
There’s always a supply and demand dynamic at play, and interestingly, it operates both ways. Initially, the demand in India was primarily for foreign technologies, especially in manufacturing and other areas over the past 10-15 years. However, India has now become a significant consumer of these technologies as well, leading to an inward infusion of intellectual property and manufacturing facilities. Initiatives like the 'Startup India' and 'Make in India' movements have fostered a thriving entrepreneurial environment and Indian founders are now solving global problems at a faster pace and at more competitive costs, creating opportunities that extend beyond India. The UK also faces its own set of challenges as a developed nation, making this a demand-supply equation that benefits both sides.
How do you see India evolving further and how do you envision the India-UK relationship developing in the coming years?
In my view, the next 15 years are pivotal for India. Thanks to the stability of the government and the policy changes we've seen, along with the real estate boom, there are numerous opportunities on the horizon. Additionally, India has become a much more expansive economy, with a rising per capita GDP. This creates a virtuous cycle where increased demand drives the need for more supply. Now, if we look at the India-UK relationship, with India in 3rd and the UK in 4th position in the Global Unicorn Index, I believe this is the right time for collaboration between India and the UK, particularly in the technology sector. With China taking a backseat and the US being quite far ahead, there's a significant opportunity for these two markets to work together. Collaboration between India and the UK will not only facilitate technology transfer within these two economies but also drive value for the rest of the world. This is something we've witnessed across multiple companies in our portfolio.
How can FICCI assist startups and other businesses?
Startups typically need capital, market access, and opportunities for joint IP creation. Market access can be divided into several aspects, including supply chain partnerships and go-to-market strategies. In my view, FICCI can play a crucial role by establishing partnerships with key players in these areas. It's not just about one-off delegations; instead, FICCI focuses on creating an ecosystem of players within specific sectors of interest, such as health or technology. This ecosystem approach facilitates proper matchmaking and allows for meaningful connections and collaborations. Delegations should not be the starting point; rather, they should serve as a way to close deals and showcase success stories. By fostering these relationships and building a robust network, FICCI can significantly support the growth and innovation of startups and businesses."
What advice would you give to startups and businesses looking to establish themselves in the UK market?
Startups should seriously consider establishing themselves in the UK for several reasons. The cost of setting up a company in the UK is significantly more economical compared to other regions. Additionally, the UK boasts a wealth of talent. If a startup gains acceptance in the UK, it opens doors to acceptance in other Commonwealth countries and European markets, which is a substantial advantage. Founders should recognise that it’s not just about the 70 million people in the UK; it’s also about how that population serves as a gateway to the rest of the world. Furthermore, in specific sectors like healthcare, obtaining approvals in the UK is generally more straightforward than navigating the lengthy FDA approval processes in the US. Success in the UK can even enhance a startup’s case for FDA approval in the US.
What are some emerging trends in technology?
In fintech, traditional areas like banking, payments, lending, and credit are becoming saturated. The focus is shifting to middle and back-office innovations to improve efficiency and automation. Regtech, while not flashy, is crucial for compliance and has strong growth potential. Insurtech, on the other hand, offers major opportunities in policy management, claims processing, underwriting, and actuarial services. Clean tech, including waste management, wastewater treatment, sustainable transport, and energy solutions, is critical for addressing climate change. Affordable healthcare innovations are vital for improving global health outcomes. Finally, AI governance is emerging as a key trend, requiring regulation similar to that in banking to ensure ethical and responsible use.
What factors have set Pontaq apart from others in the industry?
Pontaq's success is driven by our commitment to innovation. With nearly a decade of entrepreneurial experience, I’ve learned that leading through innovation is crucial. We invest in companies that offer either product or business model innovations, we treat every opportunity as if we’re pitching to ourselves, refining our business strategies and our focus on the UK-India corridor and strategic investments have fuelled our growth. Perseverance has been key—we identified an opportunity and pursued it with dedication. I’m proud of our leadership role and encourage others to join us in this dynamic ecosystem.
