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Tag: IIFL

  • Prudent Investment Managers Planning to Establish a Fund of INR 500 Cr for Early-Stage Startups

    Prashasta Seth, the former CEO of IIFL Asset Management, formed Prudent Investment Managers, which has launched a fund of INR 500 Cr, or around $57.8 million, to invest in early-stage companies. Seth told a media outlet that the fund, which will be a Category II Alternative Investment Fund (AIF), has already obtained INR 250 Cr in pledges from several family offices and will close sometime in June of this year.

    Prudent is currently submitting a CAT II licence application to SEBI. PE funds, real estate funds, and funds for distressed assets are all included in Category II AIF. According to Seth, despite not having a formal fund structure, Prudent has invested over INR 160 Cr in unlisted companies since its founding. Among its most recent startup investments are Snapmint and The Money Club. The business intends to strengthen its strategy of combining the investment philosophies of venture capital and private equity with the new fund.

    According to Seth, pre-Series A and Series A firms with viable business plans and solid unit economics will be the main targets of funding. By assisting founders that value long-term viability over quick, unsustainable growth, the fund seeks to close the gap in early-stage investing.

    A Methodical Investment Strategy

    Prudent intends to use a focused investment strategy, providing early checks of INR 30 Cr to INR 50 Cr each to support 10 to 15 businesses. According to Seth, Prudent’s strategy places a strong emphasis on large bets and steady follow-on funding over several rounds, in contrast to standard VC companies that distribute investments across a wide portfolio.

    The fund will concentrate on businesses with “sound unit economics” and will not be sector-specific. At the concept stage, we don’t compete. Rather, we concentrate on businesses that have solid unit economics, real revenue, and tested business concepts. “We want to minimise losses and provide consistent returns of 5X to 20X,” Seth continued.

    Investors’ Profile

    Speaking of investors, Seth stated that Prudent counts roughly 25 family offices as clients and has over INR 750 Cr in assets under management (AUM). This corresponds to an average cheque size of INR 20 Cr to INR 30 Cr, he stated. On the unlisted side, a large number of these clients have also invested in the business throughout all of the transactions the firm has completed.

    Small family offices with portfolios ranging from INR 50 Cr to INR 200 Cr make up the majority of these, not the well-known ones. They will act as the brand’s anchor investors. After leaving IIFL Asset Management in 2020, Seth founded Prudent. It offers advising and portfolio management services. Seth says that during his time at IIFL Asset Management, the company’s AUM increased from INR 500 Cr to INR 25,000 Cr.

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  • For Next Year’s Public Markets, BlueStone Names Axis, IIFL, and Kotak

    In order to assist with its intended $250 million (INR 2,000 crore) initial public offering by the second quarter of next year, the new-age jeweller startup BlueStone has reportedly recruited Axis Capital, IIFL Securities, and Kotak Mahindra Capital Co., according to a media source.

    The company plans to submit its papers later this year, according to a media report, and the IPO is expected to be between $200 and $250 million in size, with a valuation of $1 to 1.5 billion. If all goes according to plan, the IPO will probably be the first by a new age jewellery company.

    Pre-IPO Funding  of BlueStone

    A media site reported that BlueStone closed an INR 900 crore pre-IPO investment round in August, more than doubling its worth to $970 million. One of the early investors, Kalaari Capital, sold a portion of its stock in the round, which consisted of a combination of primary and secondary transactions. In February, BlueStone intended to go public with an IPO for INR 2,000 crore.

    Competing with Melorra, Giva, and CaratLane, it is operated under the parent company’s name, BlueStone Jewellery and Lifestyle Pvt Ltd. The last year has seen a surge in investment activity in India’s new-age jewellery market. While Giva concluded a INR 255 crore fundraising round earlier this week, Melorra got a bid to be acquired by Kolkata-based jeweller Senco Gold Ltd., which went public last year. In February, Titan acquired the remaining shares of CaratLane, converting it into a fully owned subsidiary.

    Growing voluntary incomes and a growth in the number of young middle-class people are driving investor interest in this industry. In contrast to traditional enterprises like Malabar Gold & Diamonds and Kalyan Jewellers, who still control a large portion of the wedding jewellery market, this has helped new-age businesses.

    Expansion Curve of BlueStone

    BlueStone was founded in 2011 by Gaurav Singh Kushwaha, Sudeep Nagar, and Ganesh Krishnan. The company sells jewellery, including nose pins, bangles, bracelets, rings, earrings, chains, and pendants. Prior to opening shopfronts in 2018, the business exclusively operated online. It already operates more than 200 stores around India, and as more people use hybrid payment options, the number will rise. The company has been able to tighten cost management by localising design, manufacturing, and production.

    From INR 787.8 crore in FY23 to INR 1,303.4 crore in FY24, BlueStone’s revenue increased by 65%. Its INR142.2 crore loss narrowed by nearly 15%. The largest institutional investor in the Bangalore-based startup is Accel; other backers include Prosus, Iron Pillar, Peak XV Partners, and Steadview Capital. In June, Motilal Oswal produced a report estimating the value of India’s retail jewellery market for FY24 at approximately $80 billion. Regional and pan-Indian businesses made up organised retail, which accounted for roughly 36-38% of the industry.

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  • IIFL Wealth Hurun India 40 & Under Self-Made Rich List 2020

    IIFL Wealth and Hurun India today released the IIFL Wealth Hurun India 40 & Under Self-Made Rich List 2020, a ranking of the self-made entrepreneurs with a wealth of INR 1,000 Cr, aged forty years and under from India. Wealth calculations are a snapshot of 31 August 2020. This list follows on from the IIFL Wealth Hurun India Rich List 2020 released on 29 September 2020.

    “The IIFL Wealth Hurun India 40 & Under Self-Made Rich List represents the hottest rising stars in business from India, and all of them have achieved the remarkable milestone of entering the IIFL Wealth Hurun India Rich List before the age of 40”, said Anas Rahman Junaid, MD and Chief Researcher, Hurun India

    “Some of them have fully or partly exited their core businesses and are setting up investment funds and backing other young entrepreneurs. This will have a compounding effect on the growth of disruptive entrepreneurship in India”, continued Anas Rahman Junaid, MD and Chief Researcher, Hurun India.

    Shaji Kumar, Senior Managing Partner, IIFL Wealth Management commented “The IIFL Wealth Hurun India Rich List has captured the wealth creation taking place across the country. It is very encouraging to note that the IIFL Wealth Hurun India 40 & Under Self-Made Rich List 2020 has 17 Indian-Origin Entrepreneurs, aged under 40, who have together added wealth close to INR 45,000 crore. All these young leaders are self-made and the majority of them are disruptors in the digital space. We see many such young leaders scaling their businesses with the right mix of technology and innovation.”

    Self-made under 40

    The list includes the details of all the entrepreneurs featured in the IIFL Wealth Hurun India Rich List 2020, who are at or below the age of 40. 11 of the 12 startups covered in the list are, or have been unicorns, defined as startups with a valuation of more than USD 1 Bn.

    Rank Name Wealth INR Cr Change % Company Age City of Residence
    1 Nithin Kamath & Nikhil Kamath 24,000 58% Zerodha 40,34 Bengaluru
    2 Divyank Turakhia 14,000 8% Media.net 38 Dubai
    3 Amod Malviya 13,100 274% Udaan 39 Bengaluru
    3 Sujeet Kumar 13,100 274% Udaan 40 Bengaluru
    3 Vaibhav Gupta 13,100 274% Udaan 40 New Delhi
    6 Riju Ravindran 7,800 117% Think & Learn 39 Bengaluru
    7 Binny Bansal 7,500 36% Flipkart 37 Bengaluru
    7 Sachin Bansal 7,500 23% Flipkart 39 Bengaluru
    9 Ritesh Agarwal 4,500 -40% Oravel Stays 26 New Delhi
    10 Bhavish Aggarwal 3,500 13% ANI Technologies 35 Bengaluru
    11 Deepak Garg 3,200 14% Rivigo 39 Gurugram
    12 Herman Narula 2,900 45% Improbable Worlds 32 London
    13 Deepinder Goyal 2,200 16% Zomato Media 37 Gurugram
    14 Ankit Bhati 1,600 14% ANI Technologies 34 Bengaluru
    15 Sriharsha Majety 1,400 0% Bundl Technologies 34 Vijayawada
    16 Devita Rajkumar Saraf 1,200 -33% VU Technologies 39 Mumbai

    Source: Hurun Research Institute, IIFL Wealth Hurun India Rich List 2020

    Nithin Kamath, 40, & Nikhil Kamath, 34, co-founded the online trading platform Zerodha and grew it to become India’s largest stockbroker by the number of clients. With a wealth of INR 24,000 Cr, Nithin Kamath & Nikhil Kamath secured the number one rank in the IIFL Wealth Hurun India 40 & Under Self-Made Rich List 2020.

    With a wealth of INR 14,000 Cr, Divyank Turakhia, 38, ranks second in the list. He became a billionaire in 2016, after Media.net, a company that he founded in 2010, was sold for circa USD 1 Bn. He is currently on a break, setting up a family office and searching for the next big opportunity.

    Amod Malviya, 39, along with their co-founders Sujeet Kumar, 40, and Vaibhav Gupta, 40, share the third position. On the back of strong investor interest in Udaan, their flagship B2B commerce company, their wealth increased by 274 %. For the second consecutive year, each of them is the biggest wealth gainers in IIFL Wealth Hurun India Rich List 2020. The valuation of Udaan increased from INR 20,000 Cr in October 2019 to INR 52,500 Cr in February 2020.

    With a wealth of INR 7,800 Cr, Riju Ravindran, 39, of online education platform, Byju’s secured the 6th spot in the list. On the back of Byju’s achieving a valuation of USD 10 Bn in August 2020, Raveendran registered a 117% increase in wealth compared to last year. Byju’s ranked third in the Hurun India Unicorn Index 2020.

    With a wealth of INR 7,500 Cr each, co-founders of Flipkart, India’s leading e-commerce platform, Binny Bansal, 37, and Sachin Bansal, 39, shares seventh position in the list. Since their exit from Flipkart, Binny Bansal has been investing in several start-ups as an angel investor and Sachin Bansal has co-founded and is the CEO of Navi, a neo-bank start-up headquartered in Bengaluru.

    The COVID-19 pandemic has taken a toll on the hospitality business, globally and temporarily applied breaks to Oyo’s growth story, thereby declining the wealth of Ritesh Agarwal, 26, by 40% or INR 3,000 Cr. With a wealth of INR 4,500 Cr, Agarwal is the youngest in the list.

    With a wealth of INR 3,500 Cr and INR 1,600 Cr respectively, Bhavish Aggarwal, 35, and Ankit Bhati, 34, co-founders of ride-hailing company Ola Cabs ranks 10th and 14th in the 40 and under list. In July 2020, Ola incentivised Aggarwal and Bhati by way of issuing equity shares at a nominal price of INR 10 per share – resulting in a 13% increase in their wealth compared to last year.

    Deepak Garg, 39, co-founder and CEO of the logistics company, Rivigo, registered a wealth of INR 3,200 Cr and ranks 11th in the IIFL Wealth Hurun India 40 & Under Self-Made Rich List. In September 2019, KB Global invested INR 35 Cr in Rivigo at a valuation of INR 7,593 Cr and the Rivigo entered the Hurun India Unicorn Index 2020.

    With a 45% increase in wealth to INR 2,900 Cr, Herman Narula, 32, co-founder and CEO of Improbable Worlds, a gaming software company, ranked 12th in the under 40 list. In 2012, Narula co-founded the company with Rob Whitehead and Peter Lipka.

    With a wealth of INR 2,200 Cr, Deepinder Goyal, 37, co-founder of online food delivery platform, Zomato ranks 13th in the IIFL Wealth Hurun India 40 & Under Self-Made Rich List. On the back of the most recent valuation of Zomato, his wealth increased by 16% compared to that of last year. In January 2020, Zomato acquired Uber Eats India in an all-stock transaction. The deal gave Uber 9.99% ownership in Zomato.

    With a wealth of INR 1,400 Cr, Sriharsha Majety, 34, ranks 15th position in the IIFL Wealth Hurun India 40 & Under Self-Made Rich List. His wealth has remained unchanged compared to last year.

    Only self-made women in the IIFL Wealth Hurun India 40 & Under Self-Made Rich List, Devita Saraf, 39, ranks 16th in the list, with a wealth of INR 1,200 Cr. Saraf derives her wealth from Vu Technologies, a television manufacturing company, which she founded in 2006.

    Cities where they live

    15 of the 17 entrepreneurs reside in India. India’s Silicon Valley, Bengaluru has the highest number of self-made entrepreneurs aged under 40.

    Table 2: Geographical distribution of IIFL Wealth Hurun India 40 & Under Self-Made Rich List

    Rank City of Residence No. of Individuals in the list Richest Person Wealth INR Cr
    1 Bengaluru 9 Nithin Kamath & family 16,900
    2 Gurugram 2 Deepak Garg 3,200
    2 New Delhi 2 Vaibhav Gupta 13,100
    4 Dubai 1 Divyank Turakhia 14,000
    4 London 1 Herman Narula 2,900
    4 Mumbai 1 Devita Rajkumar Saraf 1,200
    4 Vijayawada 1 Sriharsha Majety 1,400

    Source: Hurun Research Institute, IIFL Wealth Hurun India Rich List 2020

    Industry-wise break up

    Logistics and Retail are the major contributors of wealth for entrepreneurs under the age of 40. Three of the entrepreneurs who have exited their previous ventures are actively investing into new opportunities.

    Table 3: Contributing Industries

    Rank City of Residence No. of Individuals in the list Richest Person Wealth INR Cr
    1 Bengaluru 9 Nithin Kamath & family 16,900
    2 Gurugram 2 Deepak Garg 3,200
    2 New Delhi 2 Vaibhav Gupta 13,100
    4 Dubai 1 Divyank Turakhia 14,000
    4 London 1 Herman Narula 2,900
    4 Mumbai 1 Devita Rajkumar Saraf 1,200
    4 Vijayawada 1 Sriharsha Majety 1,400

    Source: Hurun Research Institute, IIFL Wealth Hurun India Rich List 2020

    IIFL Wealth Hurun India Rich List 2020 – Key Highlights

    Hurun india finds 827 individuals with inr 1,000 cr, up three-fold as compared to 5 yrs ago.

    Mukesh ambani gains  INR 90 cr per hour since the “march lockdown”; ambani’s wealth increased by inr 2,77,700 cr to inr 6,58,400 cr and retains the richest indian title for the 9th year running.

    179 dollar billionaires, up 3 times since hurun india started in 2013.

    627 increased their wealth, of which 161 new faces; 76% of new faces are self-made.

    229 saw their wealth go down. 75 dropouts. 6 passed away.

    Self-made indian entrepreneurs in the list are on the up at 64%, from 54% of the list 5 years ago; 90% businesses in the list are family run, indicating the success of family run entrepreneurship in india.

    With a wealth of inr 32,400 cr, smita v crishna, 69, is the richest woman in the list. and with a wealth of inr 31,600 cr and increase of 71%, kiran mazumdar shaw, 67, is the richest self made woman and is within arm’s reach of becoming the richest woman in the country.

    21, of whom 17 are self-made, under the age of 40.

    With 217 individuals mumbai tops the list followed by new delhi (128) and bengaluru (67); new delhi has lost 5 rich listers, mumbai gains 41 and chennai overtook kolkata.

    11 professional managers made it to the list. with inr 11,300 cr, the richest is thomas kurian, 60, who encashed his stake in oracle; with inr 3,200 cr, ignatius navil noronha, 45, of avenue supermarts is the richest ceo based in india.

    Backed by the bull run of google shares, sundar pichai, 48, registered a 79% increase in wealth of inr 5,900 cr.

    Founders of b2b marketplace udaan gained 274% in wealth, on the back of a new round of fundraising, and are the biggest gainers, followed by chigurupati krishna prasad, 65, of pharma major granules india, who gained 218%.

    Founders of 11 unicorns made it into iifl wealth hurun india rich list 2020.

    19 saw wealth double, of whom 6 from pharmaceuticals and 3 from retail. pharma added 27 new entrants and 122 total entrants netting a cumulative wealth of inr 2 lakh cr.

    Backed by a 51% increase in d-mart share price, radhakishan damani, 65, storms into top10 with inr 87,200 cr.

    Backed by stellar ipo of happiest minds, the founder ashok soota, 77, with a wealth of inr 3,700 cr, debuts the list. Route mobile’s ipo launched sandip kumar gupta, 46, and rajdip kumar gupta, 45, with a wealth of inr 2000 cr each.

    Top 5 families hold 21% of the cumulative wealth of iifl wealth hurun india rich list 2020.

    With 91 lakh followers in twitter, ratan tata is the most followed entrepreneur from the iifl wealth hurun india rich list on indian social media, followed by anand mahindra who has 81 lakh followers.

    Star signs: rich list entrants born under the aries star sign had a good year and registered a 55% increase in cumulative wealth, followed by those born under scorpio at 52%.

    World’s largest rich list provider hurun launches 9th edition of hurun india rich list together with iifl wealth.

    Methodology

    The IIFL Wealth Hurun India Rich List 2020 has been researched and compiled by the Hurun Research Institute for the seventh year running, using a cut-off of 31 August 2020 when the rate of exchange to the US dollar was INR 73.67. The list relates to Indians only, defined as born or brought up in India.

    Valuing the wealth of India’s richest is as much an art as it is a science. Sure, Hurun Report has missed some, but our endeavor has been to develop the most comprehensive report of its kind with an objective to identify and acknowledge India’s top entrepreneurs and business owners. The source of wealth includes both inherited and self-made wealth. Hurun Report’s team of researchers have traveled the length and breadth of the country, cross-checking information with entrepreneurs, industry experts, journalists, bankers and all possible sources of information.

    For unlisted companies, Hurun Research’s valuation is based on a comparison with their listed equivalents using prevailing industry multiples such as Price to Earnings, Price to Sales, EV to Sales, EV to EBITDA and also other methodologies including Discounted Cash Flow, Tobin’s Q and so on. In certain cases of early-stage companies, Hurun Report has used the First Chicago Method for valuation.