Private Equity

Karvy’s Venture Capital and Private Equity desk provides financial intermediary service bringing deserving seed/early stage investment opportunities to the institutional/HNI investors.

We advice seed/early stage companies and help them access further funding rounds while bringing well screened opportunities to the investors in the sector.

Background

The ‘seed’ and the ‘early stage’ investment ecosystem in the country has shaped up robustly complementing the heightened entrepreneurial activity. Recent exits (Redbus.in and JustDial.com) witnessed in this segment have valorized the asset class’ return potential. Several angel investors and funds continue to invest in Tech, Data analytics, Services, Education, Healthcare and Cleantech among others. To put it all in perspective:

  • About a $1bn has been invested into ecommerce alone in the last 3 yearss
  • Today India has
    • About 15 incubators in the country currently
    • About 40 seed stage funds writing checks anywhere between INR 25 Lakhs to INR 1 Cr
    • About 10 active early stage Venture capital investors investing anywhere between $2mm to $30mm
    • More than 10 family offices investing in wide span of investment sizes from $0.5mm to $10mm
    • More than 250 active angel investors in the country who are looking to invest in startups of their preferred sector through angel networks
  • International interest into Indian startups is evident from the likes of Microsoft starting incubators in the country to catch the talent early on in this geography.
  • The sector is optimistic with some successful exits like
    • ‘Redbus.in’ (6 year old bus ticketing company rumored bought at $138mm by Ibibo group) and ‘Just Dial’ - (local discovery engine with a successful IPO in June 2013)

The early stage ecosystem thus redefined offers promising prospects to the investors as well.

Portfolio Benefits

Karvy’s early stage co-investment products provide high risk - return profile to a passive financial investor’s portfolio available only to large institutions thus far. Transactions can be structured with control provisions in favor of a more serious investor interested in participating in the decision making of the company. Institutional investors can take comfort from our investment picks usually being seed funded, co-investment follow-on opportunities, with anchor investors leading the rounds post significant diligence.