Russian conglomerate Sistema Public Joint Stock Financial Corporation, an lively investor within the Indian startup ecosystem via its Sistema Asia Fund, is considering of elevating a larger investment vehicle next year, a senior govt on the Moscow-headquartered fund instructed ET.
The $120 million Sistema Asia Fund counts cloud kitchen main Rebel Foods, non-banking finance firm Lendingkart and on-line meat and seafood model Licious amongst its investment portfolio.
The fund is concentrating on a larger corpus – $150-$175 million, in accordance to Sumit Jain, senior accomplice at Sistema Asia Fund Advisory.
“It’s a little early to talk about it – but we think we will do a slightly bigger fund next – potentially $150 up to $175 million. We think that for the stage we operate in, and the size of opportunity we’re looking at, actually warrants a slightly larger fund. And slightly larger cheque sizes, as we look at fresh deals from the new fund,” Jain instructed 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. Last year, Sistema had additionally exited its investment in Bengaluru-based gifting options firm Qwikcilver, which was acquired by Sequoia Capital and Mastercard-backed Pine Labs for an estimated $110 million.
“I’ll take you through the ones we have already exited. We had a company called Qwikcilver – which was bought by Pinelabs – we exited that almost a year and a half ago. That was a nice return for us and in quick time, too. The other one was Netmeds, acquired by Jio recently. Most of our portfolio is doing well, growing well. We will hold on to our portfolio for another 2-4 years, or even longer, as we have sufficient fund duration left,” he stated.
Sistema will even look to raise home capital, stated Jain, who joined Sistema in late 2018 after spending virtually a decade at residence-grown enterprise capital agency Kalaari Capital.
It usually invests $3-$5 million, whereas setting apart an equal sum for comply with-on rounds.
“We have two vehicles as part of our Sistema Asia fund. So, we have our India vehicle, which is a rupee-denominated fund, and we have a Singapore vehicle. And then, we put money into a company, both these funds invest in parallel in their pro rata proportions of the commitment into the same company. So, we have a bunch of Indian money, which has actually been arranged into our rupee denominated AIF…it’s not finalised, but we will definitely have a rupee denominated fund in our next one as well,” Jain stated.
Sistema Asia, a 2015-vintage fund, has struck about 11 investments to this point. It additionally counts the likes of digital health platform HealthifyMe, AI-based mostly speech recognition enterprise Uniphore and on-line shopper lending platform Kissht amongst its portfolio within the nation.
“The funds are still being filled in and commitments are coming as we speak… I can tell you that the predominant part of the fund is actually sitting in Singapore, and the India portion is a relatively smaller portion… But where you finally end up, even I can’t tell you right now,” Jain added.
Sistema continues to be a outstanding Limited Partner within the fund, however it can additionally scout for exterior traders to commit capital.
“We have other family offices, that investors have both from India and outside; we already have that capital in Fund One…We will continue to invite external LPs, both from India and outside, into the fund,” Jain stated.