Ever since the launch of the Startup India campaign, the country has witnessed the release of more and more startup accelerators. The latest addition to the startup accelerators in India has been initiated by the venture capital firm Kalaari Capital. Kalaari has released this accelerator for startups called Kstart. The primary objective of this move is to incubate promising startups and provide them a platform to pitch their ideas so that they can climb up the competition ladder. Kalaari will be providing the startups with a capital of up to $500, 000 via a convertible instrument.Kalaari will be having a new batch every quarter of up to five startups.

At present, Kalaari has about $650 million assets.  By the time each startup closes its Series A fundraising, the convertible equity instrument will convert into preferred stock. Kalaari also has plans to pull in potential co-investors who can act as catalysts for these startups. The former Cisco cheilf technology officer Padmasree Warrior and Airbnb global expansion head VarshaRao have already been roped in for this purpose.

Ratan Tata was also present during the launch and he expressed his amazement at the growth rates of the new companies he had invested in, over the past two years. The question, however, is of maintaining the rate.You can also have a high burn rate and they can taper off and become albatrosses around your neck.The rate and pace is something I am not familiar with, it is difficult for someone coming from the conventional industry to understand,” he said.