India's Paragon leads $16.5m round for domestic machinist

The firm is investing via its Paragon Partners Growth Fund I (PPGF-I) alongside unidentified co-investors. The capital will be used to scale up MMPL's operations as it expands into new technologies catering to the global automotive, industrial and aerospace sectors.

Founded in 1973, MMPL manufactures engine parts from six facilities in the Bengaluru area for clients including Bosch, Eaton and Volvo. The company's increasingly complex output includes pump bodies for gasoline direct injection systems and an emerging class of engine platform for single-aisle aircraft.

"MPPL has a proven track record of execution characterized by consistent on-time performance with extremely low defect rates and innovation in process engineering for value creation. The contracted customer base provides a highly visible revenue stream in the mid-term while the company's expansion into new-generation assemblies will drive revenue growth and better margins," Sumeet Nindrajog, Paragon co-founder and senior partner, said in a statement.

The deal represents the second investment for PPGF-I, which committed $10 million to Mumbai-based construction contractor Capacite Infraprojects and achieved a first close of $50 million in March. Paragon says the vehicle is on track to reach its $200 million target corpus by the end of the year.

PPGF-I seeks mid-market opportunities in the Indian consumer, financial services, infrastructure, industrials and healthcare sectors. Paragon plans to make 10-15 investments from the fund, with an average check size of $10-20 million for ownership stakes of 15% or more.

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• Topics
• South Asia
• Industrials
• Support services
• Expansion
• India
• manufacturing
• automobiles
• Growth capital