Build to Sell: How Favcy Is Rewriting India's Startup Exit Story

Inside the venture builder's bold bet on capital-efficient, acquisition-ready startups — and why early exits are the next big thing

The Problem with India's Traditional Startup Model

Not every founder wants to build forever. Not every investor can wait forever.

Picture this familiar scene in India's startup ecosystem: a talented founder raises a pre-seed round, builds a promising MVP, then spends the next 24 months chasing more capital instead of chasing customers. Investors, meanwhile, wait... and wait... often with little to show in returns for years.

That's the startup game as we know it. But what if there was a different playbook — one that made early exits the norm, not the exception?

Introducing Favcy's Build-to-Sell (BTS) Model

Meet Favcy Venture Builders and their Build-to-Sell (BTS) model, a first-of-its-kind initiative in India's venture ecosystem that flips the traditional startup narrative on its head.

Why Build-to-Sell Makes Sense

Over the past 3 years, Favcy uncovered a fundamental mismatch in Indian startup expectations:

• Founders don't always want to spend a decade building the same company

• Investors aren't always ready (or able) to park capital for 8–10 years hoping for a home run

• India's early-stage ecosystem lacks fast exits — most first-time angel investors have never seen one

That's a problem. And Favcy's Build-to-Sell model is the answer.

"The growth of India's startup ecosystem depends on maximizing early exits for all stakeholders — founders, investors, and employees. That's what brings confidence and cash flow back to the table."— Pranav Chaturvedi, Founding Partner, Favcy Venture Builders

How the BTS Cohort Works

Favcy's BTS cohort is a curated portfolio of 6 idea-stage ventures, built from scratch with a clear 36–48 month exit roadmap through strategic acquisition.

The Core Promise:

• ~30% annualized IRR for investors

• 3–4 year time horizon

• Frugal venture building with capital efficiency baked in

Each Startup in the Cohort:

• Co-built by Favcy's shared services team

• Valued at INR 5 Cr (based on historical MVP build costs and IP)

• Offering direct equity to up to 50 investors, with a minimum INR 6L ticket size spread across all 6 startups

This means investors are diversified, de-risked, and enrolled in a system designed for repeatable early exits.

Proven Track Record: From Idea to Exit

In just 3 years, Favcy has proven the BTS model isn't theoretical:

Success Stories:

• Tellerspot: Co-built in Feb 2023, was acquired in under 12 months, delivering a 30% IRR to its investors

• Urja Bolt: An EV infra startup, scaled to a ₹1.5 Cr ARR in 18 months and is now valued at ~₹18 Cr. The founding team went from minority EIRs to owning 70% of the venture

These are ventures that went from zero to exit-ready in record time — without burning investor capital or founder morale in the process.

The Smart Valuation Strategy

Valuing pre-revenue startups is tricky. Favcy uses logic built on real-world execution:

• Each startup's IP-backed strategic roadmap = ~INR 50L

• INR 50L is also Favcy's average cost to take a startup from 0 to MVP

• That MVP historically grows to a ₹15–₹20 Cr valuation in 12–18 months

• So, raising INR 50L at a ₹5Cr valuation = smart dilution (~10%) without hurting future rounds

Simple. Logical. Executable.

The Venture Building Model

Favcy doesn't incubate. It builds — using a shared resource pool of operators, strategists, designers, product owners, and engineers.

The Structure:

• Founders (EIRs) come in at 5%

• Can scale up to 70% based on milestones

• Companies are 100% Favcy-owned at the start

• Capital is deployed only where needed, only when needed

That means lean burn, fast iteration, and real accountability. No bloated teams. No six-month "stealth" mode. Just structured sprints toward product, traction, and value creation.

Risk Management: What If a Startup Fails?

Favcy's downside protection clause kicks in:

• If a startup is written off

• Investors get equity in the parent entity, Favcy

That's skin in the game Favcy is willing to stand behind — because it's already walked the talk.

Current Progress and What's Next

Cohort 1 Results:

• 3 ventures from Build to Sell Cohort 1 - 91United, Regal Sutra and Sattva Halwai are live and kicking

• The first cohort 1 startup, 91 United has already doubled in valuation and raised a subsequent round

Cohort 2 Launch:

• Currently building the 2nd Build-to-Sell cohort of startups in top-performing sectors

• The 1st Religion-tech startup of cohort 2, "Neeom" has been launched with terrific response

Community Growth:

• 700+ Members have joined the Build to Sell Tribe

• 35+ Investors have joined the mission

• Ecosystem Partners like Lead Angels, Dholakia Ventures, and Done Deal are on board

• Successfully raised 2.5 cr across the build-to-sell startups

The Future of Indian Startups: Fast Exits as Strategy

India's startup ecosystem is still young. Most VC funds are only now seeing their first exits after a decade.

The BTS model from Favcy is pioneering a new route — one where:

• Founders build fast, sell smart

• Investors get real returns, not just updates

• Venture building finally becomes a flywheel for repeatable, early wins

Conclusion

Favcy's Build-to-Sell model isn't just a thesis. It's already a case study. And it's only just getting started.

Fast exits aren't a shortcut. They're a strategy — one that's reshaping how India thinks about startup success.

Ready to explore the Build-to-Sell opportunity? Connect with Favcy Venture Builders to learn more about their revolutionary approach to startup exits.