Investcorp aims to double private equity investments in India

Oct 10, 2021 | News

Investcorp, the alternative asset manager that lists Mubadala Investment Company as its biggest shareholder, plans to double its private equity investments in India as it looks to grow its portfolio in Asia’s third-largest economy, a senior company executive said.

The Bahrain-based company is looking at new deals in healthcare and pharmaceuticals, consumer tech and FinTech, Gaurav Sharma, head of private equity at Investcorp India told The National.

Investcorp has so far invested $300 million in eleven companies in India, which include logistics start-up Xpressbees, e-commerce platform FreshToHome and healthcare company NephroPlus, among others.

“We want to continue the pace of deployment we had in India in the last couple of years and will be looking to deploy that kind of capital [$300m] in the next two or three years as well to grow our assets,” Mr Sharma said.

Investcorp had assets under management worth $37 billion as of June 30 and continues to boost its investments around the globe. It made five new private equity investments in the US and Europe, two add-on acquisitions and 11 investments in businesses across Asia in the 12-months to the end of June.

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The company’s investments in India this year included Unilog, which provides e-commerce solutions to small and medium businesses based in the US, for an undisclosed sum. It also agreed to invest $10.36m in Mumbai-based luggage and bag company Safari Industries.The company’s investments in India this year included Unilog, which provides e-commerce solutions to small and medium businesses based in the US, for an undisclosed sum. It also agreed to invest $10.36m in Mumbai-based luggage and bag company Safari Industries.

Investcorp is looking to close at least one deal by the end of December in the pharmaceuticals sector, Mr Sharma said. A deal related to consumer-packaged goods is also being finalised. He declined to disclose additional information.
“India in terms of overall growth continues to be one of the fastest growing large economies of the world,” he said. “Twenty unicorns have come into being in India this year.”

The second-most populous country in the world continues to recover from the impact of the coronavirus pandemic as infections drop from their peak levels in April and May.

Last week, Moody’s Investors Service revised its outlook on India to stable from negative, saying downside risks had been reduced. The ratings agency affirmed the country’s Baa3 sovereign rating due to its large and diversified economy with high-growth potential, its strong external position and a stable domestic financing base for government debt, against its principal credit challenges.

Source: The National News

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