Rukam Capital: Investing in Ventures That Are Shaping the Future

In 2024, the Middle East solidified its position as one of the fastest-growing startup ecosystems globally, raising $1.3 billion through 352 deals in the first nine months alone. When it comes to the UAE, Abu Dhabi, in particular, saw a 28% growth in its ecosystem value, earning the title of the fastest-growing emerging startup ecosystem in the region.

Venture capitals have a large role to play in this growth. According to Forbes, “MENA’s unique blend of cultural diversity, technological advancement, and a youthful population” has created a burgeoning potential that has in turn attracted investors from across the world. 

In this exclusive interview with Archana Jahagirdar, founder of Rukam Capital, we take a deep dive into her perspectives and investor outlook on the startup ecosystem in the MENA region. We will also delve into her journey, lessons, and reflections with Rukam Capital. 

From Mentorship to Capital

Founded in 2019, Rukam Capital is a venture capital firm that invests in early stage consumer products and services companies in India. However, Rukam Capital didn’t start out as a VC firm.

“I initially set out to create an accelerator because early-stage founders frequently expressed a need for it,” recalls Archana. Rukam Capital began with an accelerator model in mind, a response to the early-stage ecosystem’s reliance on mentorship during 2015-2016. “The prevailing belief then was that mentors could shape a company’s destiny,” she explains.

However, her firsthand experience revealed two critical gaps:

• Mentorship alone wasn’t enough to help startups scale.

• The demand for risk capital far outweighed the need for advice.

This insight led to a pivotal shift. “Advice and mentoring should come from those with skin in the game - investors or other stakeholders,” Archana asserts. This belief became the foundation for Rukam Capital, a fund designed to provide founders with not just financial resources but also strategic alignment and accountability.

Rukam Capital’s journey precisely traces Archana’s own evolution as a founder and investor. It’s also a reflection of how ecosystems evolve and how real impact requires adaptability, foresight, and a deep understanding of market realities.

Potential of the Consumer Tech Market in the UAE

As an investment firm, Rukam Capital focuses on startups with early stage consumer offerings. When it comes to sectoral focus, consumer tech stands out as both a strategic and timely choice for Rukam Capital. “Ultimately, for businesses to grow and succeed, they must align with consumer behaviour.”

Archana believes the Middle East’s unique demographics and digital adoption trends create fertile ground for innovation in this space.

“For any segment of the population to be served efficiently, technology must play a pivotal role,” she explains.

The UAE, for instance, combines a digitally native population with geographic challenges that demand seamless, tech-driven solutions. Traditional businesses that fail to innovate are quickly losing relevance, paving the way for tech-enabled startups to capture market share.

For Archana, this isn’t just about chasing growth numbers. Consumer tech represents the ability to create scalable solutions that align with the way people live, work, and connect. Investors follow traction and consumer acceptance. The Middle East is at the cusp of a consumer tech revolution, and the opportunities are immense.

Why MENA?

The Middle East is often described as a bridge between East and West, but Archana sees it as more than a geographic advantage.

“The Middle East connects the globe in a way no other region does,” she says. “This geographic advantage means that anyone looking to build a global company must acknowledge the importance of this region.”

This, combined with other factors - strategic location, policy support, and keeping up with global trends in technology & AI - makes the Middle East one of the most compelling regions for startups and investors alike.

The UAE, in particular, has positioned itself as a leader in the MENA region’s innovation ecosystem. From favorable tax regimes to initiatives like Dubai’s "D33" economic agenda, the country is actively shaping the future of business in the region.

Scaling Globally: Lessons for Startups

While the Middle East offers immense opportunities, Archana cautions startups against expanding globally without the right foundation.

“The only way an early-stage company can thrive is by being niche and laser-focused on a specific market,” she explains.

In her experience, global expansion should be preceded with three prerequisites:

• A repeatable, scalable product.

• Financial resilience to weather uncertainties.

• Deep consumer and market understanding.

This approach mirrors research by McKinsey, which highlights that startups with localized strategies are significantly more likely to succeed in global markets. For Middle Eastern startups, this means mastering their home turf before venturing further - a strategy Archana actively encourages through Rukam Capital’s investments.

A Vision for Growth and Purpose

Archana describes today’s era as a “golden age of human civilization,” one that presents unprecedented opportunities for innovation and progress. 

“Our focus is on creating new investment vehicles,” she shares, “ensuring we have enough capital to back the best emerging founders whose ideas will shape and define our collective future.”

This ambition reflects Rukam’s strategic approach to identifying and supporting founders who are not only innovative but also aligned with long-term, scalable impact. As the firm grows, the emphasis remains on creating opportunities that push boundaries, support entrepreneurial ecosystems, and contribute meaningfully to economic progress.

The UAE’s slogan, “Make it Happen,” is a guiding principle that resonates deeply with Archana’s own personal ethos and reflects in the way she envisions Rukam Capital to operate in the future as well.

Advice for Aspiring Entrepreneurs 

Starting a business is often seen as a leap of faith, and Archana believes it’s one of the best decisions an individual can make. “I’d say, best of luck, and give them a pat on the back because they’ve made one of the best decisions of their lives,” she says.

However, she is also candid about the challenges that lie ahead. “Founders need courage more than pedigree to navigate what will undoubtedly be a tumultuous journey, with more bad days than good days in the early years.”

For Archana, the key to resilience is staying anchored in purpose. “It’s essential to start a business for the right reasons, as that will serve as your North Star through all the challenges and rejections,” she advises.

She also highlights the importance of maintaining a positive outlook. “A happy and optimistic disposition is crucial to staying the course,” she notes. It’s this blend of courage, focus, and optimism that - she believes - defines successful founders.