Singularity AMC, a prominent growth equity platform focusing on private investments and PIPE (Private Investment in Public Equity) deals, has announced that its second private equity fund, Singularity Growth Opportunities Fund II (SGOF II), has been oversubscribed, reaching Rs 1800 crore.
The fund was initiated in August 2023, with a target corpus of Rs 1,500 crore and a greenshoe option to raise an additional Rs 500 crore. Demonstrating strong investor confidence in the fund’s strategy and the targeted sectors—including energy transition, next-generation industries, consumer-focused businesses, healthcare, and financial services, SGOF II announced its first close at Rs 500 crore within a month of its launch.
SGOF II has already provided financial backing to eight companies:
- Lohum: A startup specializing in battery recycling technologies.
- HEG: A diversified platform involved in various aspects of energy transition.
- Sterling and Wilson Data Centre: A leading provider of EPC (Engineering, Procurement, and Construction) services for data centers.
- Sabine: An integrated healthcare company specializing in In Vitro Fertilization (IVF).
- Classic Legends: The manufacturer behind JAWA motorcycles.
- Qucev: A manufacturer focused on producing cost-effective and sustainable electric vehicles.
- Deal 7: A retailer specializing in luxury watches.
SGOF II is planning investments ranging from Rs 75 crore to Rs 175 crore in each of 12-15 companies over the next two years.
“As India progresses towards becoming a five trillion-dollar economy by 2028-29, we anticipate sectors such as energy, manufacturing, financial services, and consumer-related industries to be the primary drivers of economic growth. At Singularity, we maintain a bullish outlook on these sectors. We are pleased to announce the oversubscription of SGOF II at Rs 1800 crore. We have already invested in eight high-growth companies from this fund and plan to deploy the remaining capital over the next 2-3 years,” said Yash Kela, Founder & CIO at Singularity AMC.
SGOF II is structured to facilitate quicker DPI (Distributions to Paid Capital ratio). The fund intends to allocate over 40% of its investments to late-stage companies, more than 40% to established, profitable growth-stage companies, and over 20% to high-conviction opportunities in the venture capital stage.
“We are highly encouraged by the investor response to SGOF II, with nearly all investors from Fund I also participating in Fund II. The current portfolio of SGOF II is valued at Rs 492 crore, reflecting a Multiple on Invested Capital (MOIC) of 1.2x,” added Sandeep Bapat, Senior Partner & Co-CIO, Growth Equity Fund, Singularity AMC.
Since its establishment, Singularity has launched three funds: two private equity funds and one PIPE fund focused on listed companies.
Its first fund, Singularity Growth Opportunities Fund I, with a corpus of Rs 560 crore, was launched in 2021 and achieved its final close in March 2023. This fund invested in 16 companies, deploying a gross investment of Rs 613 crore across these ventures.
Five companies from the portfolio have already been listed on stock exchanges, and four additional companies are in advanced discussions regarding potential listings within the next 12-15 months.
The targeted outcome is to achieve a 3x MOIC, and the fund is on track to achieve approximately 1x Distributions to Paid-in capital (DPI) by FY26, roughly three years from the fund’s closure. The fund currently exhibits a 30% IRR.
Singularity AMC, mentored by seasoned market expert Madhusudan Kela and led by Yash Kela along with Caratlane founder Mithun Sancheti, was established in 2016. Its mission is to support high-growth Indian companies, aligning with the government’s initiative to promote a self-reliant Indian economy.
To date, the firm has invested in rapidly expanding companies such as Lohum, Silver Electrical, Aimtrex, Bombay Shirt Company, Jana Small Finance Bank, and Oro.
About Singularity AMC:
Singularity AMC serves as a key capital provider, offering differentiated Capital Market Access for Growth Assets. The firm invests in growth equity across both public and private markets, leveraging its extensive experience in capital markets and its expertise in creating leading Indian consumer internet businesses. Guided by Madhusudan Kela and led by Yash Kela and Mithun Sacheti (Founder of Caratlane), Singularity AMC is supported by a robust team of investors and operators.
In 2021, Singularity AMC introduced its inaugural fund of Rs. 560 Cr, which concluded its final close in March 2023. The fund has invested in 16 companies spanning consumer goods, enterprise SaaS, and fintech infrastructure platforms, with notable investments in brands such as m-caffeine, Servify, Lohum, Jana Small Finance Bank, ORO Inc, Veeda, and NSE.
Singularity AMC manages three funds: Singularity Growth Opportunities Fund I, Singularity Growth Opportunities Fund II, and Singularity Equity Fund I. The firm’s average investment size ranges from INR 75 crores to INR 150 crores. Its portfolio includes Bombay Shirt Company, Akshayakalpa Organic, Sterling & Wilson, Jawa, Sabine, Paytm, Waree, Swiggy, Jio Financial Services, Aptec, and Capacite, among others. With this solid foundation, Singularity AMC is well-positioned to drive significant growth in the Indian market, establishing itself as a preferred partner for founders in the growth stage.
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