India-related SPAC raises $170mn on Nasdaq

Bengaluru: Private equity veteran Rohan Ajila and Manipal Technologies chairman Gautham Pai’s consumer sector focused SPAC (special purpose acquisition company) has raised $170 million in an IPO in the US. This probably marks the first fund raise by an India-related SPAC.

The SPAC, called Global Consumer Acquisition Corp (GCAC), is listed on Nasdaq. SPACs, also known as blank-cheque companies, are shell companies that launch IPOs with a promise to invest in or acquire a company within a set timeline – normally 18 to 24 months.

SPACs have become extremely popular among investment firms and startups over the past two years.


“We intend to focus on global consumer companies with a significant Asia presence or a compelling Asia potential, especially India,” said Ajila, co-chairman and CEO of GCAC. “This complements the expertise of our management team in cross border M&A, business development and Asia/India expansion,” he said.

At least two other India-related SPACs have said they intend to raise capital in the US. This includes one by Reliance Entertainment CEO Shibasish Sarkar and AP International Group managing partner Sanjay Wadhwa.