This Mumbai Woman Entrepreneur Empowering Fintech Startups With Her Incubator

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In the bustling city of Bengaluru, known for India’s vibrant startup landscape, Afthonia Lab stands as a beacon of support for fintech startups.

The idea for Afthonia Lab, founded by Tanul Mishra, began with a simple realization during her entrepreneurial venture, Eatelish. She successfully exited the startup in 2018.

Those early days in the startup world highlighted a significant gap in India’s ecosystem for supporting fledgling businesses.

The Gap in India’s Startup Ecosystem:

The US and China, with leading global startup hubs, boasted over 2,500 and 1,500 incubators and accelerators, respectively. These were mainly tailored to specific industries like insurance or space technology.

On the other hand, India, the third-largest startup ecosystem as of 2018, lagged behind with only about 500 incubators, most of which were tied to corporations or academic institutions.

“Recognizing the gap, I decided to establish an incubation center specifically for fintech startups, drawing on my prior work experience in payments and regulatory frameworks,” said Tanul Mishra, the founder of Afthonia Labs, in an exclusive conversation with Empowering Indians.

In 2019, Tanul Mishra, a Mumbai-based woman entrepreneur, launched her fintech incubation center.

From Limited Pocket Money to Limitless Ambitions:

Tanul, who was born and brought up in a family of doctors, grew up with defined boundaries around money and resources. Little did she know that one day she would become an entrepreneur.

“Doctors in the 80s and 90s weren’t as affluent as they are perceived today. I went to school by a school bus and had limited pocket money,” added Tanul, reflecting on her childhood in Bengaluru.

After her graduation, Tanul’s career spanned media, telecom, and payments. She co-launched Eatelish in 2012, a food service bringing artisan food makers from across India directly to consumers’ doors.

After building Eatelish to a certain level, she exited the startup to bridge the gap in incubation support in India’s startup ecosystem.

Afthonia Labs: A Comprehensive Growth Partner for Fintech Startups:

The Bengaluru-based fintech incubator is designed to be a comprehensive growth partner for startups. Given the capital-intensive and regulation-heavy nature of the fintech space, it requires a nuanced approach.

Afthonia’s incubation program offers customized blueprints for startups to help them achieve critical inflection points. This is done by providing access to capital, markets, networks, and domain-specific mentorship.

“We are stage-agnostic. Startups at any stage—whether conceptual, early MVP, or even those with initial traction—can join us. It’s their vision that matters and how we can help them scale,” explained Tanul Mishra, the founder of Afthonia Labs, in the Empowering Indians interview.

The team at Afthonia follows a proprietary evaluation process to select startups, engaging founders in conversations that go beyond their business plans. These dialogues, involving mentors and domain experts, help craft a roadmap for each startup’s journey, ensuring their potential is fully realized.

Tanul further explained, “We bring multifaceted value to the table. Building a startup without an incubator often means relying on personal networks and cold outreach. But investors and industry leaders are overwhelmed with such requests. So, being part of an incubator adds credibility and enhances accessibility.”

Afthonia acts as a bridge between startups and the larger ecosystem, saving founders time and money, accelerating their growth, and bolstering their market reputation.

In return, Afthonia acquires a small equity stake in its portfolio companies, negotiated on a case-by-case basis.

Success Stories at Afthonia:

Since its launch in 2019, the Bengaluru-based fintech startup incubator, Afthonia Lab, has incubated over 25 startups. One of them has already been acquired by a US-based company. Most of their portfolio is either cash-flow positive, profitable, or well-funded.

The lab has also extended its reach globally through initiatives like a partnership with Invest New South Wales to help fintech and cybersecurity startups enter the Indian market.

Among its success stories is Block Survey, Afthonia’s first portfolio startup, which leverages blockchain for data privacy. The startup has thrived under Afthonia’s mentorship, securing funding from Gossamer Capital and Stacks Accelerator, and establishing a strong presence in the US market.

Another notable success is Funngro, which connects young talent with corporations through TeenLancer programs. So far, the platform has attracted over 4,000 companies, facilitated 60,000 monthly projects, and amassed 40 lakh users.

Tanul Mishra with Funngro founder Payal Jain

Overcoming Challenges in the Evolving Indian Incubation Landscape:

Like every company, Afthonia Labs has faced its share of challenges. Despite its achievements, the Bengaluru-based fintech incubator encountered hurdles along the way.

“When we started, incubation was not a well-understood concept in India. There was a lot of myth-busting and awareness-building involved, especially around the value an incubator can add,” explained Tanul Mishra, founder of Afthonia Labs, in the Empowering Indians interview.

Operating with a lean team of just five members, Afthonia emphasizes strategy over operational bulk. This approach mirrors that of investor teams, focusing on intellectual and strategic support rather than day-to-day operations.

Vision and Way Ahead:

For Tanul, success isn’t measured in numbers but in impact. “We don’t talk about our revenue; we talk about how well our startups are doing,” she said.

By focusing on building a thriving ecosystem, Afthonia Lab is setting the stage for India’s fintech revolution.

As Afthonia’s portfolio grows and its global partnerships expand, it remains steadfast in its mission: to be the wind beneath the wings of fintech startups, enabling them to navigate challenges and soar to new heights.

With a firm belief in the power of collaboration and innovation, Afthonia Lab is not just incubating startups—it’s shaping the future of India’s startup ecosystem.