Singularity Growth, a growth-private equity platform, has secured Rs 500 crore in the first tranche for its Singularity Growth Opportunities Fund II
The fund, with a total planned corpus of Rs 1,500 crore and a greenshoe option of Rs 500 crore, aims for full closure within the next two to four quarters. Yash Kela, Chief Investment Officer, highlighted the first investment from Fund II and outlined the investment strategy, targeting Rs 75-175 crore per investment across 14-18 deals over three years. The focus sectors include energy transition, consumer, financial services, enterprise software, and manufacturing.
Deployment Strategy and Investment Targets
Yash Kela outlined Singularity Growth’s deployment strategy for Fund II, aiming to invest across various sectors, including energy transition, consumer, financial services, enterprise software, and manufacturing. The fund’s goal is to make investments ranging from Rs 75-175 crore per deal, with a total planned corpus of Rs 1,500 crore and a greenshoe option of Rs 500 crore. Kela emphasized the firm’s objective to make 14-18 investments over three years and highlighted the completion of the first investment from Fund II.
Exit Plans and Portfolio Management
Singularity Growth has set its sights on exiting 3-4 portfolio companies annually, starting from 2024. The company, which previously managed a corpus of Rs 600 crore in Fund I, invested in various ventures, including Allcargo Logistics, Servify, mCaffeine, Pernia’s Pop-Up Shop, Exotel, WebEngage, and XYXX. Yash Kela’s strategy involves a systematic exit plan to optimize returns and manage the portfolio effectively.
Future Outlook and Full Closure Timeline
The growth-private equity platform, Singularity Growth, anticipates deploying its second fund entirely by September 2024. With a current deployment of around Rs 150 crore across four deals from the total raised amount of Rs 850 crore, Singularity Growth’s Chief Investment Officer, Yash Kela, envisions completing the full closure of the fund within the next two to four quarters. The successful fundraising for Fund II positions the company to continue its strategic investments and contribute to the growth of promising startups.