India Knowledge Fund all set to allocate $100 mn corpus
India Knowledge Fund, managed by SS Venture Service which is a joint venture between SBI Capital Markets and SBI Holdings Japan (earlier known as Soft Bank Investments), is now all set to start allocating its corpus.
By ET Online |
MUMBAI: India Knowledge Fund, managed by SS Venture Service which is a joint venture between SBI Capital Markets and SBI Holdings Japan (earlier known as Soft Bank Investments), is now all set to start allocating its corpus.
SBI Capital Markets and SBI Holdings Japan together contributed $100 million to the venture capital fund.
���We have initiated the process of fund allocation. We have already inked a deal with Mumbai-based Aptivaa Consulting engaged in risk management consulting and implementation solutions,��� said Sanjay K Randhar, director, SS Venture Services.
���We are also in talks with a technology company and one life science company where stake holding will possibly be made,��� added Randhar, but declined to give name of the companies.
According to a source familiar with the deal, the venture fund is likely to make a formal announcement in a month���s time and the total investment would be around $20 million.
The fund will only invest in knowledge driven companies with 2-3 year track record and having huge potential. As a strategy, the fund will pick up ���significant minority��� stake and invest $5-10 million in each company.
Such holding will be to the extent which will enable SS Venture enjoy considerable clout in company decision making, and having its own members on the management board.
���We don���t want ownership in a company but to support it to scale up,��� said Randhar.
The fund will consider three crucial factors while investing in a company--scalable business model, drive capability, operating space of the business with future potential.
The fund is expected to complete its fund allocation in two years��� time, after which it plans to launch more such funds.
Randhar did not commit a figure on the likely returns.
SBI Capital Markets and SBI Holdings Japan together contributed $100 million to the venture capital fund.
���We have initiated the process of fund allocation. We have already inked a deal with Mumbai-based Aptivaa Consulting engaged in risk management consulting and implementation solutions,��� said Sanjay K Randhar, director, SS Venture Services.
���We are also in talks with a technology company and one life science company where stake holding will possibly be made,��� added Randhar, but declined to give name of the companies.
According to a source familiar with the deal, the venture fund is likely to make a formal announcement in a month���s time and the total investment would be around $20 million.
The fund will only invest in knowledge driven companies with 2-3 year track record and having huge potential. As a strategy, the fund will pick up ���significant minority��� stake and invest $5-10 million in each company.
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Such holding will be to the extent which will enable SS Venture enjoy considerable clout in company decision making, and having its own members on the management board.
���We don���t want ownership in a company but to support it to scale up,��� said Randhar.
The fund will consider three crucial factors while investing in a company--scalable business model, drive capability, operating space of the business with future potential.
The fund is expected to complete its fund allocation in two years��� time, after which it plans to launch more such funds.
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Randhar did not commit a figure on the likely returns.
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