Subhkam Ventures, the SEBI-registered venture capital fund, is raising its first third party fund, a senior official told VCCircle. The private equity firm is looking to raise Rs 200-400 crore ($50-$60M) from domestic markets and looking at a first close of Rs 100 crore by the end of this year.
"We will start active fund raising by September and should be able to make the first close by the end of this year," Manu Punnoose, MD & CEO, Subhkam Ventures told VCCircle. In a fund raising exercise essentially focussed on domestic capital, the fund will tap financial institutions as well as look for retail commitments from HNI's, added Punnoose.
This will be the first third-party fund from Subhkam Ventures, which has till now been warehousing proprietary capital and has made 25 investments and concluded seven exits. Subhkam Ventures was founded in 1999 by first generation entrepreneur Rakesh Kathotia, who also has broking businesses Subhkam Securities Pvt. Ltd and Subhkam Stocks and Shares Ltd.
Subkam Ventures will not change its investment strategy for the latest fund and will continue to focus on PIPEs and sectors like technology, financial services, infrastructure & allied services, manufacturing and environmental management. "Our strategy has evolved over the years and we will not change it. However, we will look at more growth equity kind of transactions," Punnoose added. The fund has till now invested in a ticket size of $3-$10 million and has now further increased the deal size to $5-$15 million now.
Subhkam recently invested an undisclosed sum in IRIS Business Services Pvt Ltd, which is better known for their financial portal Myiris.com. Of the investments that the firm has done, about a quarter of them form PIPE investments. Some of the investments that it has done include Sparsh BPO Services Ltd, Aqua Logistics Ltd, Reflex Technologies Ltd, Shakti Pumps India Ltd, MSK Projects India Ltd, Nagarjuna Agri Tech Ltd, Orbit Exports Ltd and Unicon Financial Intermediaries Pvt. Ltd.
It has also exited a few of its investments like Aqua Logitics, which went public earlier this year, The PE firm also recently sold stake in MSK Projects in the open offer that came after Welspun group acquired the company.
"We have established a good track record to go raise external money now," Punnoose added.