Sagar Sheth

Early-stage investor Transition VC has closed its first fund at ₹700 crore, nearly double its initial target of ₹400 crore. The fund received commitments from institutional investors, corporates, family offices, strategic partners, and industry leaders. Raiyaan Shingati | Mohammed Shoeb Ali 🔗 Read full article link in comment #transitionVC #investment #vc #funds #startupnews

97

2 Comments

Total potential ESOP wealth in India stands at INR 14.2 lakh crore! That’s 22% of India’s mutual fund industry AUM — and more than twice the PMS industry’s AUM. Let that sink in. But the biggest ESOP wealth creators are not who we usually think. Nifty 100 companies generate more ESOP wealth than the entire startup ecosystem. HDFC Bank alone created INR 5,282 crore of ESOP liquidity in 2024 — twice as much as India’s entire startup ecosystem did that year. It’s clear that ESOPs are massive wealth-creation engines hiding in plain sight. Yet our quiz last week revealed some surprising facts: Over 65% of ESOP holders with more than ₹1 crore in ESOPs are unaware of vesting calculations, the impact of dilution, or whether their employer’s ESOP policy is favourable. When Revant, Shantanu, and Chirag invited me on the Asymmetric Podcast, I stumbled upon research that made me question many of my own beliefs about this underrated wealth-creation tool. We break down India’s ESOP story in under 75 minutes, covering: - Salary vs Salary + ESOP - Ranking different ESOP policies - Cases where ESOP wealth was lost - The Flipkart Mafia - Life-changing ESOP stories of non-founders - How founders should allocate ESOPs - And a big surprise at the end I promise this will be worth your time — even if you have just 1 unit of equity in your company. Link to the full episode in comments! #ESOPs #WealthManagement #Dezerv #AsymmetricPodcast

375

15 Comments

Today SEBI notified regulations for mutual funds to offer alternative strategies as specialised investment funds (SIF) at a 10 lakh minimum. 10 key implications: 1. Investors will see innovation in the long/short category. SIFs can do long biased & market-neutral long short across stock selection, sector rotation and asset class timing. The possibilities are vast and we may get world class absolute return funds. 2. Balanced advantage & multi asset funds will see competition for share of wallet from moderate risk investors. 3. Advisors will need to upgrade their understanding of derivatives and modern capital markets to keep up with clients. 4. Category III AIFs that do derivatives will struggle to remain relevant with unfavourable taxation. Unless the maximum leverage is raised beyond 2x. 5. There will be a talent war for alternative fund managers with proven track record. There are maybe ten fund managers who could potentially be the CIO of a SIF. 6. Long-only PMS portfolios offered to accredited investors at 10L will be unaffected. Long-only portfolios in general are unaffected. 7. The credit default swap market in India will get institutional support to develop. 8. Alternative asset managers will increasingly seek mutual fund licenses like PPFAS, Helios and others have done. 9. Derivative strategies being offered to retail investors via broking platforms will move to the better regulated and better managed SIFs. 10. SIFs are being offered adjacent to the mother mutual fund brand - a great move to convey trust but also reduce reputational risk. Ionic Wealth Srikanth Subramanian Shobhit Mathur Dharmendra Jain Kamakshi Iyer Gaurav Aggarwal Harsh Gupta Madhusudan Ankita Pathak Abhishek Murarka Yajash Mehta Piyush Thakkaar Siddharth Khatkhate

331

18 Comments

It was a pleasure to join The Economic Times to discuss Atomic Capital's ₹400 Cr+ maiden fund closure and our vision as an Operating VC to transform India’s consumer tech landscape. In this conversation, I shared perspectives on India's start-up ecosystem: 1. India's consumer outlook: India is a consumption-driven economy, and it will only grow further, driven by a rising middle class. We are seeing significant contributions to growth from Tier-2/3 cities within our portfolio, and we believe this momentum will remain strong. 2. Consumer and Consumer Tech focus: With ₹10–30 Cr cheques for a curated 10–12 start-up portfolio, we are backing consumer brands, consumer tech companies, and consumer enablers reshaping India’s $2T consumer market. 3. Operating VC playbook: Unlike traditional VCs, we act as operational partners—driving value through hands-on support in strategy, hiring, and scaling, while minimizing risks and maximizing impact. We work with founders—who usually possess strong product expertise and supply-side intuition—to interpret demand-side signals and unlock scale. 4. Capital efficiency: We partner with founders to maintain capital efficiency while growing topline, enabling sustainable, long-lasting businesses rather than a race for fundraising. 5. Criteria for funding: For us, investing is a professional marriage, and the founders and their team are most important—alongside capital efficiency and revenue momentum. 6. Advice to founders: Prioritize proactive organization building and capital efficiency. A ruthless focus on unit economics and execution ensures sustainable scaling beyond initial product-market fit. Ideas are only 1% of success; execution is 99%. Atomic Capital Nikhil Patil Manish Jain

245

20 Comments

A few weeks ago, I was working with a mid-sized engineering firm in Delhi NCR: ₹75 Cr in topline, strong growth, expanding into new product lines On paper, everything looked good! EBIT margins were 12%, PAT margins steady at 7% But when we ran the numbers, something interesting came up Their Return on Invested Capital (ROIC) = 8.6% Their Weighted Average Cost of Capital (WACC) = 10.4% __ Mathematically, that means: For every ₹100 they reinvest, they’re losing ₹1.8 in value. Not on the P&L, but silently, in the opportunity cost of capital __ That’s the part most business owners miss If your ROIC < WACC, the more you grow, the more wealth you destroy. If ROIC > WACC, every rupee of reinvestment compounds your enterprise value Here’s the simple rule I tell every founder I work with: → ROIC = NOPAT / Invested Capital →WACC = (% Debt × Cost of Debt × (1 – Tax)) + (% Equity × Cost of Equity) You don’t need to be a math genius for this, you just need to check one thing quarterly: Are you earning more on your capital than it costs you to raise it? When we helped that firm optimise their working capital cycle and refinance a portion of their high-cost debt, WACC dropped to 9.1%, and their ROIC moved up to 11.3% That 2.2% spread doesn’t sound huge, but it turned a ₹6 Cr drag into ₹7 Cr of value creation annually _ That’s what real financial clarity looks like Because numbers don’t just tell you what’s happening, they tell you why it’s happening #Corporatefinance

48

5 Comments

Fleetx Raises ₹113 Cr in Series C: Powering the Future of Logistics with AI & IoT! I’m thrilled to announce that BEENEXT’s Accelerate Fund has doubled down on our investment in fleetx.io, co-leading their ₹113 Cr ($13.2M) Series C round alongside our partners at IndiaMART InterMESH Limited. This milestone marks another chapter in our unwavering belief in Fleetx’s vision to transform fleet and logistics operations through cutting-edge AI and IoT solutions. Since our initial investment, we’ve watched Fleetx evolve into a powerhouse in the logistics SaaS space. Here’s why we’re so excited about their journey: Remarkable Growth: Fleetx has scaled well since their Series B, crossing ₹100 Cr in ARR—a testament to their strong product-market fit and disciplined execution. With over 2,000 clients, including marquee names like Adani, Unilever, and Vedanta, Fleetx is becoming the go-to platform for digitizing logistics operations in India. Financial Discipline: With remarkable operating revenue growth, reduced EBITDA burn, company is targeting EBITDA breakeven in FY26. This capital-efficient growth sets a strong foundation for their next decade's journey. AI & IoT Innovation: Fleetx’s platform leverages vast logistics data to solve complex industry challenges, from vehicle tracking and predictive maintenance to safety and digital documentation. Their AI-driven insights are redefining efficiency for mid-market and enterprise clients, aligning perfectly with the digital transformation wave in India’s $400B+ logistics sector. IPO Readiness: With this funding, Fleetx is accelerating product development and scaling its enterprise sales engine, eyeing IPO readiness within two years. At BEENEXT, we back founders who combine deep industry understanding with capital-efficient growth, and Vineet Sharma and the Fleetx team embody this perfectly. Their metrics-driven approach and ability to deliver measurable value to clients like Ultratech Cement and Godrej make them a standout in India’s SaaS ecosystem. As Dinesh Agarwal, Founder & CEO of IndiaMART, aptly said, “Fleetx’s AI- and IoT-powered platform is becoming the operating system for the physical movement of goods.” We’re proud to continue this journey with Fleetx as they build a durable, resilient, and competitive SaaS company from India. Congratulations to the entire Fleetx team on this milestone. More about Fleetx’s Series C: https://lnkd.in/gbWEyRkK CNBC interview: https://lnkd.in/gx22cD_g #LogisticsTech #SaaS #AI #IoT #FleetManagement #StartupIndia #SeriesCFunding #IPO #IndiaMART #BEENEXT #Innovation #Entrepreneurship #TechForGood #DigitalTransformation Vineet Sharma Abhay Jeet Gupta

144

Transition VC has announced the final close of its debut fund at Rs 700 crore, significantly above the initial Rs 400 crore target. The fund is backed by institutional investors, corporates, family offices, and strategic industry leaders, creating a network that strengthens thesis development, improves deal flow, and accelerates commercial adoption for portfolio companies. The fund invests at the post-product, pre-PMF stage and is building a complementary portfolio designed for shared insights, supply chains, and talent. Transition VC has already backed 17 startups and aims to support up to 25 companies across energy storage, electrification, industrial decarbonisation, alternate fuels, and next-gen manufacturing. Co-founded by Raiyaan Shingati and Mohammed Shoeb Ali, the firm is deploying early catalytic capital toward India’s energy transition infrastructure. #transitionvc #venturecapital #fundraise #vcfunding #energytransition #cleanenergyindia #climatetech #deeptechindia #startupfunding #postproductstartups #prepmf #engineeringstartups #industrialdecarbonisation #energystorage #alternatefuels #nextgenmanufacturing #sustainablefuture #greeninnovation #esgindia #cleantechstartups #indianventurecapital #vcnews #startupindia #investingindia #portfolioexpansion #innovationecosystem #foundersupport #impactcapital #climateaction #businessnews #indianeconomy #fundclose

66

Moving from 'permanently raising capital' to 'raising permanent capital' - this is the challenge from most Indian VCs. The sharp shift in US endowment investment dollar availability is going to accelerate this change in LP mix & terms of capital. Looking across funds that have made such shifts (Eg. US PE/Japan/Europe), having an existing profit pool helped make this transition easier. Will be interesting to see how Indian VCs achieve this shift.

56

1 Comment

🆕 Artha’s Select Fund closes at Rs 432 crore to back top portfolio startups ASF plans to invest in 12–14 startups over the next four years across spacetech, fintech infrastructure, premium consumer goods, and applied AI. By Puran Choudhary Read here: https://lnkd.in/gicjnUUq

5

GIFT AIF vs. Domestic AIF: A Strategic Guide for Fund Managers For fund managers, choosing between GIFT or Domestic AIF structures is a strategic decision. While both geographically operate from India, they represent fundamentally different regulatory universes, currency frameworks, and operational issues. The following outlines some of the key distinctions—though it is important to note that this is not an exhaustive list, and many more nuances exist. 1. Governing Regulator & Regulations: GIFT AIF: Regulator is IFSCA Domestic AIF: in contrast, is regulated by the Securities and Exchange Board of India 2. Minimum Corpus and investor ticket size: GIFT : Restricted schemes must have a corpus of at least USD 3 million with general minimum ticket size of each investor being USD 1,50,000. Domestic AIF schemes are required to raise at least ₹20 crore with general minimum ticket size of each investor being at least INR 1 crore.   3. Platform Play (Third-Party Fund Management) GIFT: IFSCA explicitly permits Third-Party Fund Management allowing regulated global managers to “plug and play” via an FME Domestic: SEBI regulations do not provide an equivalent platform construct. 4. Currency & Capital. GIFT AIFs: operates in freely convertible foreign currency (primarily USD), allowing for easy pooling of foreign capital. Critically, transactions within GIFT & outside India are not considered as transactions between person resident in India & person resident outside India. Domestic AIF: operates in INR, where inbound foreign capital is subject to FEMA regs. 5. Investor Base: GIFT: GIFT inbound funds are optimized for non-resident/foreign capital seeking exposure of Indian markets . GIFT outbound funds are optimized to provide Indian residents an environment with fewer FEMA restrictions. Domestic: naturally suit India-resident capital and purely India-focused mandates 6. Investment Scope : GIFT AIF: has a Global Mandate, allowing it to invest freely in India, overseas, or a combination of both, offering significant diversification. Domestic: primarily Domestic Mandate, where the majority of the corpus must be invested in India and overseas investments are heavily restricted and capped. 7. Tax Regime: GIFT: A distinct, favorable tax regime with Tax Holiday of 100% tax exemption for 10 consecutive years out of the first 15 years. Concept of Specified Fund with significant tax advantages Domestic: Subject to Standard domestic tax laws 8. Product Scope and Leverage GIFT : No restriction on leverage in GIFT City based funds Domestic: Significant restrictions on Category I & II (shortfall in drawdowns) and Cat. III based on exposure 9. Jurisdiction & FEMA Restrictions. GIFT Funds: operates under a foreign jurisdiction fiction, meaning there are no FEMA restrictions and capital can move freely between GIFT IFSC and the rest of the world. Domestic: fully under domestic jurisdiction and is subject to all FEMA restrictions.

47

2 Comments

India's GCC Landscape Is Heating Up But the Real Play Isn't Just About Growth 1. Private equity firms are going all in on India. Investments in Indian GCCs by PE giants like KKR and Blackstone have quadrupled in the last five years, signaling rising strategic bets on the country as a global center of excellence. (Source-The Economic Times ) 2. Tech giants are leading the hiring spree. While legacy Indian IT firms slow down, players like Google and Meta are accelerating recruitment, particularly into AI, cloud, and next-gen capabilities. (Source- The Times Of India) 3. Hyderabad becomes a global innovation node. Eli Lilly just launched a cutting-edge GCC in Hitech City, with plans to expand from ~100 to 1,500+ professionals by 2027 focused on AI, automation, and digital transformation. (Source - The Times Of India ) In short: It’s no longer enough for GCCs to scale, they must innovate with agility, attract global missions back home, and build leadership pipelines that match ambition with execution. But here’s the million-dollar question: Are we building GCCs that just deliver or ones that decide? Without a shift to purpose-led leadership, we risk many of these GCCs being fast factories instead of strategic force multipliers. What’s your take?? what would it really take for India-based GCCs to boldly lead from here onward? #GCCIndia #GlobalCapabilityCenters #LeadershipHiring #AI #TechTransformation #TalentStrategy #WorkFromIndia #Innovation #FutureOfWork #ReturningNRI ANSR Talentiser Accenture in India GCC Pulse™ GCCpulse Covasant EY Technology Solutions KPMG India EY Electronics Wing, ITEC Department, Govt of Telangana Achyut Menon "AK" Viswanathan K S Vishnu BG Vishwanadh Raju Reshab Shaw LinkedIn News India Pari Natarajan Zinnov

37

6 Comments

🔬 BYT Capital Launches Maiden ₹180 Crore Deep-Tech Fund Deep-tech focused VC firm BYT Capital has launched its maiden ₹180 crore (Category II AIF) fund to back early scientific and engineering innovation. Founded by Amit Chand, Dinesh Kumar, and partners, the fund has already secured over half its corpus. BYT Capital plans to invest in 18 to 20 startups, offering initial cheques between ₹3 crore and ₹6 crore. A substantial 55% of the fund is reserved for follow-on rounds to help portfolio companies scale their technologies globally. The firm targets intellectual property-led innovation across sectors like space technology, life sciences, robotics, and clean energy. Founder Amit Chand emphasized that "DeepTech is the new infrastructure layer... It enables strategic independence, propels high-value manufacturing, and strengthens India's position in global frontier innovation." Read the story: https://ow.ly/E00l50XHjg4 #DeepTechFund #VentureCapital #InnovationIndia #TechStartups #StartupEcosystem #CleanEnergyTech #SpaceTechnology 

99

1 Comment

"Tell Me About a Deal You Followed" – Deal 25 Multiples Equity To Acquire Major Stake In VIP Industries Another big move in India’s consumer market. Here’s what’s happening 1. Basics: • Buyer: Consortium led by Multiples Equity • Target: VIP Industries Ltd. • Stake: 32% + open offer for 26% more • Deal Value: ₹1,437.78 crore for 32% Stake • Promoters: Dilip Piramal & family stepping back 2. What They Do: • VIP Industries is India’s largest luggage maker, behind brands like VIP, Aristocrat, Skybags, Carlton, and Caprese. • They run over 10,000 retail points in 45 countries. • FY25 revenue: ₹2,169.66 crore. 3. Key Metrics: • Promoters held 51.73% as of June 2025 • Market share has dipped with competition from Samsonite & Safari • Dilip Piramal to remain involved as Chairman Emeritus 4. Deal Logic: • Promoters easing out → professional investors step in • Multiples-led group diversifies — includes Caratlane founder Mithun Sacheti & family • Triggering an open offer under SEBI rules → potential control up to 58% • Expansion runway as India’s travel & luggage market revives 5. My Commentary: • This is more than a stake sale, it’s a transition from legacy family control to a PE-led growth push. • VIP still holds a dominant place, but competition is intense. • The big question: Can the new owners bring back market share and sharpen operations?

14

2 Comments

The first quarter of 2025 is off to a strong start, delivering the momentum that the ecosystem needed. With $7.9 billion invested across 270 deals, this is a clear sign that investor conviction is gaining strength. The 8% year-on-year rise is encouraging, but what’s even more significant is the quality of capital coming in. Big-ticket investments over $100 million accounted for more than $5 billion of the capital, signalling confidence in India’s ability to build and scale. IT and tech continue to lead the charge, drawing in nearly half of the total capital and reaffirming their role as the innovation backbone of the country. Healthcare and fast-moving consumer goods also remained on investors’ radars, reflecting a growing diversification of interest. The early signs this year point to a steady and maturing investment landscape, marked by confidence and a widening appetite across sectors. India’s growth narrative is striking the right chords. Read more: https://lnkd.in/gJEZAAeV #IndiaInvestments #PEVC #StartupEcosystem #InvestorConfidence #GrowthCapital

25

2 Comments