Singularity Growth Capital Fund

To be the premier provider of technology-driven firms with growth finance and distinctive capital market access.

• India has the lowest percentage of IT companies in its entire market capitalization.
  • US ~40%
  • China ~22%
  • India <1%
• However, India has a thriving startup environment, garnering $67 billion in private investments since 2012.
  • In 2019, VCs invested $12 billion in four areas: consumer technology, software/SaaS, fintech, and B2B commerce, compared to $15 billion in the Indian stock market by FIIs across sectors.
• The average time it takes to become a unicorn has shrunk from 22 years (for firms founded before 2000) to 4 years (companies incorporated in 2016-21)
• The time difference between succeeding rounds is rapidly closing.
• Stock markets have recently reacted positively to technology-driven enterprises.
• A number of venture-backed IT companies are planning to go public in FY 24 due to attractive valuations.
• SEBI has also made a crucial step to make the listing procedure for start-ups easier.
• Singularity is concentrating its efforts on developing a robust transaction pipeline of tech-driven businesses with promising capital market prospects.

Singularity University will invest in 10-15 future leaders in Consumer and Business Technology, with big addressable markets and hence optimum capital market outcomes.

Focus on Series B to Series D

• For Series B and Series C, there is a large and increasing difference in domestic capital.
• Over 50 funds investing in Series A have strong transaction flow in Series B and C.
• Stages B-D provides the highest risk-adjusted returns since they are important inflexion points.
• Because we invested in or worked with the founding teams of over 30 renowned India GPs, we have deep links to them.

Synergy-driven market approach

• Instead of taking a competitive strategy, form partnerships with renowned PE and VC companies.
• Due to unique solutions, we have two entrance points into selected firms.
• Examining firms in the expansion stage with a good chance of succeeding in the capital markets
• B2C and B2B, Products and Services, Software and Platforms will all be included in the portfolio.

Uniquely positioned team

• • Madhu Kela, a co-sponsor, is a legend in Indian asset management.
  • Yash Kela, a co-sponsor, has a track record of 6 years in venture capital.
  • Managing Partner has had a 90 percent departure rate in the past, with Rs 3,000 crores returned.
  • The only new team with excellent technology and growth capital expertise.

Bridge Equity: Between Series B and C, or Series C and D, there is equity. Bridge equity is required by three out of every four businesses. Fresh rounds are time-consuming, hence internal rounds are favored. Better entrance valuation compared to a full round, and a smoother deal procedure owing to less competition.

Co-Investment: Support one or more lead investors; the company’s preferred fund is frequently short of $3-10 million, so they may co-lead the round. Because the firm does not require many backups, the round closes rapidly.

Partial Secondaries buyout: Obtaining a 3-10% investment from current investors Angel investors, seed investors, and other early-stage investors will be excluded. Part of the company was sold to a venture capital firm. Founders have little money to repay their loans. Compared to the principal component, the entry valuation is significantly higher.

• Insuretech platforms
• Education loans and services platforms
• Digital customer communications
• Differentiated beauty and personal care
• Women’s consumption on the internet
• Enterprise software and services
• Mobility related products and services
• Health-tech platforms
• Gaming and gamification platforms
• Financial services infrastructure

Qualitative

• Ability to become and stay in the top three players in the section; cannot be disrupted by larger players undercutting them.
• Product of high quality; strong consumer interaction; digital maturity of more than three years
• Stability / previous experience / core team equity stake
• The primary investor’s quality; the founder’s relationship with significant investors; Alignment of investors and founders for a five-year exit
• A core group of people who aren’t fond of squandering money

Quantitative

• • Good GM ( at least >40%); Good CM1 ( at least >20%)
  • Consumer: 1st year CM1 / CAC > 1x; Business: Strong B2B bus dev team and/or partners
  • Enough TAM for at least 3 players to grow at 40-50% CAGR for 5+ years, yet taken together <50% of the market
  • Strong recent growth rate; Visibility of 35%+ projected 5-year growth rate
  • A core group of people who aren’t fond of squandering money
  • Multiple; Possibility of raising a second round from a top-15 VC or international investor