The Role of Celebrities in Startup Investments: Trends, Benefits & Challenges

Discover how celebrities are shaping India's startup ecosystem with strategic investments. Learn about their motivations, sectors they invest in, benefits for startups, and the challenges involved.

The startup ecosystem off late has been afflicted with a serious case of celebrity. Of late, celebrities have taken a small, but significant role in bolstering startups in India.

At the same time, shows like Shark Tank India have played a pivotal role in democratizing the startup culture, bringing the world of entrepreneurship to nearly every household in the country. With approximately 12.5 million Indians tuning in to at least one episode, it became the most-watched Hindi-language SVOD non-fiction show to date, according to Ormax. The show not only highlighted the journeys of entrepreneurs but also showcased the role of investors, turning them into household names and inspiring a wave of interest in startups.

The inclusion of celebrities in this ecosystem has further amplified the recognition of smaller startups. Perhaps the best example of this can be seen through Bollywood actor Ranveer Singh’s involvement with ventures like Bold Care, a men’s sexual wellness startup, and SuperYou, a protein bar brand. His association with these startups helped them secure significant investments, demonstrating the powerful synergy between celebrity endorsements and investor confidence in driving startup success.

Similarly, Alia Bhatt leveraged her stardom to establish Ed-A-Mamma, a maternity and kids wear line. Prior to its acquisition by Reliance, Ed-A-Mamma was last valued at ₹150 crore—and now stands at a valuation of approximately ₹300-₹350 crore.

So what is currently driving celebrities to having a greater role in the startup ecosystem?

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Driving factors for celebrities entering startup investments

Following the boom of 2022, many celebrities began viewing startups as an ideal way to diversify their investments. By investing in startups, they can tap into high-growth sectors, thereby securing their financial future and increasing their wealth portfolio. For instance, Shilpa Shetty—who was an early investor in Mamaearth—said that at the time of her investment the company was valued at approximately ₹35 crore. Post IPO, Mamaearth soared to a valuation of nearly ₹11,000 crore.

For many celebrities, this is also a way of expanding their synergies and being associated with a product that aligns with their own personal brands. This is especially significant at a time when celebrity endorsements are on a significant decline. In January-June 2023, celebrity endorsements accounted for 28% of ads telecast on TV, down from higher shares in earlier periods. This indicates a decreasing reliance on celebrity power in advertising strategies

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Conversely, brands are increasingly turning to micro and nano influencers due to their higher engagement rates and perceived authenticity. These influencers often yield better conversion rates than traditional celebrities, leading to a strategic shift in marketing approaches.

Of course having a celebrity onboard does not mean only the celebrities benefit. For startups, this type of endorsement can help them reach newer audiences as the celebrities can use their fanbases to try out products. Like for instance, Bold Care benefitted significantly from Ranveer’s Singh endorsement—with the company registering a 10X boost in sales since the airing of their campaign with the Bollywood star and Johnny Sins.

That being said, the path to celebrity status and startup success isn’t always as simple as it seems.

Challenges of having a celebrity investor

Bringing on a celebrity investor also invites a whole host of challenges for a startup. For instance, startups may face unrealistic expectations due to the celebrity’s fame, leading to pressure that may not align with the company’s actual growth trajectory. There is also the possibility that the celebrity investor may not have the necessary expertise required to contribute actively to the company.

There is also the possibility of conflict arising if the celebrity’s stardom begins to overshadow the purpose of a company.

That aside, let’s take a look at how celebrities have shaped startup investments in India.

Sector heatmap: Celebrity investments

Though a few celebrities turned angel investors quite early, data sourced from Tracxn reveal many celebrities started investing actively in start-ups since 2020, and in 2022 alone, they have participated in 30 funding rounds. According to Primus Partners, Bollywood’s investments in startups saw a sharp dip in 2024 at $3.6 million. That being said here is a quick look at where celebrities put their money in last year.

That being said, here's a heat map of all the investments made by celebrities in India in 2024.

Here’s a few celebrity investors in India at the moment and their portfolio

Deepika Padukone

Investments: Through her firm KA Enterprises, Deepika Padukone has invested in prominent startups such as Blue Tokai Coffee Roasters, Epigamia, Bellatrix Aerospace, and Atomberg Technology, with contributions reportedly ranging between ₹3-5 crore in early-stage ventures.Notable Ventures: Deepika has also expanded her portfolio by increasing stakes in various startups, underscoring her dedication to supporting India’s entrepreneurial ecosystem.

Alia Bhatt

Investments: Alia Bhatt’s early investment in Nykaa paid off significantly, with its IPO boosting her stake’s value to ₹54 crore. She has also invested in sustainable brands like Phool.Co and baby care company SuperBottoms.

Portfolio Highlights: Alia’s strategic investments span diverse sectors, including Style Cracker, a styling platform, and Nykaa, reflecting her sharp business acumen.

Ranveer Singh

Investments: In 2022, Ranveer Singh entered the startup ecosystem with an investment in Sugar Cosmetics. He is also the co-founder of Bold Care, a sexual wellness brand, and has backed tech-focused companies like bOAt.

Vision: Ranveer’s investment choices highlight his focus on consumer-driven sectors, particularly beauty, wellness, and technology.

Priyanka Chopra

Investments: Priyanka Chopra’s portfolio includes stakes in the dating app Bumble, the tech startup Genies, and education-focused initiatives like Holberton School.

Global Reach: Her extensive international exposure informs her investment strategy, enabling her to identify and support high-potential ventures both in India and globally.

Shilpa Shetty

Investments: Shilpa Shetty has invested ₹2.25 crore in the health food brand WickedGud and holds shares in companies like Mamaearth and Kisankonnect, a farm-to-fork startup.

Health Focus: Known for her fitness advocacy, Shilpa’s investments reflect her alignment with brands promoting health and wellness.

What is your take on celebrity investments? Let us know. See you in the next WeWork Labs blog!