Sistema planning to raise larger investment vehicle next year – ETtech

Illustration: Rahul Awasthi

Russian conglomerate Sistema Public Joint Inventory Monetary Company, an lively investor within the Indian startup ecosystem by means of its Sistema Asia Fund, is considering of elevating a bigger funding automobile subsequent yr, a senior govt on the Moscow-headquartered fund informed ET.

The $120 million Sistema Asia Fund counts cloud kitchen main Insurgent Meals, non-banking finance firm Lendingkart and on-line meat and seafood model Licious amongst its funding portfolio.

The fund is focusing on a bigger corpus – $150-$175 million, in accordance with Sumit Jain, senior associate at Sistema Asia Fund Advisory.

“It is a little bit early to speak about it – however we expect we are going to do a barely larger fund subsequent – doubtlessly $150 as much as $175 million. We predict that for the stage we function in, and the dimensions of alternative we’re taking a look at, really warrants a barely bigger fund. And barely bigger cheque sizes, as we take a look at recent offers from the brand new fund,” Jain informed ET in an unique interplay.

Sistema scored an exit in August when Mukesh Ambani-led Reliance Industries Ltd picked up majority stake in on-line pharmacy Netmeds, a portfolio firm. Final yr, Sistema had additionally exited its funding in Bengaluru-based gifting options firm Qwikcilver, which was acquired by Sequoia Capital and Mastercard-backed Pine Labs for an estimated $110 million.

“I am going to take you thru those we’ve already exited. We had an organization referred to as Qwikcilver – which was purchased by Pinelabs – we exited that nearly a yr and a half in the past. That was a pleasant return for us and in fast time, too. The opposite one was Netmeds, acquired by Jio not too long ago. Most of our portfolio is doing nicely, rising nicely. We’ll maintain on to our portfolio for an additional 2-Four years, and even longer, as we’ve adequate fund length left,” he stated.

Sistema will even look to boost home capital, stated Jain, who joined Sistema in late 2018 after spending nearly a decade at home-grown enterprise capital agency Kalaari Capital.

It sometimes invests $3-$5 million, whereas setting apart an equal sum for follow-on rounds.

“We’ve got two automobiles as a part of our Sistema Asia fund. So, we’ve our India automobile, which is a rupee-denominated fund, and we’ve a Singapore automobile. After which, we put cash into an organization, each these funds spend money on parallel of their professional rata proportions of the dedication into the identical firm. So, we’ve a bunch of Indian cash, which has really been organized into our rupee denominated AIF…it’s not finalised, however we will certainly have a rupee denominated fund in our subsequent one as nicely,” Jain stated.

Sistema Asia, a 2015-vintage fund, has struck about 11 investments up to now. It additionally counts the likes of digital health platform HealthifyMe, AI-based speech recognition enterprise Uniphore and on-line shopper lending platform Kissht amongst its portfolio within the nation.

“The funds are nonetheless being stuffed in and commitments are coming as we converse… I can let you know that the predominant a part of the fund is definitely sitting in Singapore, and the India portion is a comparatively smaller portion… However the place you end up, even I can’t let you know proper now,” Jain added.

Sistema continues to be a distinguished Restricted Companion within the fund, however it’s going to additionally scout for exterior traders to commit capital.

“We’ve got different household places of work, that traders have each from India and outdoors; we have already got that capital in Fund One…We’ll proceed to ask exterior LPs, each from India and outdoors, into the fund,” Jain stated.

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