Rs 600 cr fund announced by investor Madhusudan kela’s family office

• ByStartupStory     |    March 4, 2022

Singularity AMC, backed by investor and former Reliance Capital executive Madhusudan Kela, has set up Singularity Growth Opportunities Fund-1 (SGOF-I) to provide growth capital to technology-driven companies.

The Fund will target a corpus of Rs 600 crore (around $80 million), of which the company has raised around Rs 350 crore (around $46 million) and Rs 150 crore (about $20 million) has been deployed across six companies. The funds will be used to invest in insurtech, fintech, software-as-a-service (SaaS), education loans and services, digital customer communication, differentiated beauty and personal care, among others. 

Five of its investments comprise B2B device lifecycle management platform Servify, cloud telephony platform Exotel, education-focused lending startup Eduvanz, innerwear brand XYXX and personal care brand mCaffeine. “The sixth investment has been committed and will be invested by the first quarter of FY23,” said Yash Kela, founder and chief investment officer of Singularity AMC

“We plan to invest in around 12-14 companies with 1-2 deals in a quarter. By December 2023, we should have deployed our fund entirely. We aim to make a gross return (internal rate of return-IRR) of around 30%, he added.

“We aim to be the preferred provider of growth capital and differentiated capital markets access for technology-driven companies in India. Over the next five years, Asset management platforms will emerge which act as a bridge between tech and capital market ecosystems and we aspire to be the leaders. We believe that a lot of growth stage companies will be ripe to access the capital markets in 3-5 years, 3 out of our 5 companies would likely get listed in this time frame,” said Yash Kela.

Singularity AMC is promoted by Madhusudan Kela-founded family office Singularity Ventures which started in 2016. The asset management firm was established in August last year by Kela’s nephew Yash Kela to focus on investments in new-age companies across financial services, consumer brands, telecom networks and precision manufacturing. The family office makes co-investments as a limited partner (LP) through funds such as Artha Venture Fund, Sixth Sense, 3one4 Capital Iron Pillars and Trifecta Leaders Fund, among others.  

On the growing market, Yash Kela said “We wanted to see how Indian capital markets absorbs these companies, these valuations. So we wanted headway for ourselves when we can navigate some of these companies in that direction… I think companies that we are participating have a liquidity of three to five years and then one of their possible outcomes can be a listing on Indian or international capital markets.”

Post investments, Singularity also plans to facilitate bridge equity, co-investment and partial secondaries buyout options.

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