O3 targets $150m for India hospitality fund
Indian boutique investment bank O3 Capital has launched a fund targeting $120-150 million that will focus on domestic, early-stage hospitality sector investments.
The move represents a continuation of O3's expansion into asset management activities, following the launch last year of the firm's $10 million Uniqorn Ventures Fund. The latest vehicle - currently in the regulatory approvals phase - is expected to make its first close within four months. It will invest $10-20 million per transaction.
"We have the anchor investors in place for this fund and we have brought on board a person who will be the CIO for the fund," O3 Managing Director Deepesh Garg said, according to Livemint, adding that investments would seek minority equity positions in near-complete assets that need last-mile funding to become operational. "We have good visibility on our first close. The moment we get our approvals we will start investing from the fund."
O3 specializes offers consulting services on M&A and capital-raising transactions, as well as asset management services, to Indian companies, entrepreneurs and private equity funds. It claims to have closed more than 100 transactions in the past eight years, representing an aggregate value of about $4.2 billion.
Recent activity in India's hospitality space includes a $17 million Series B round led by Bertelsmann India for budget hotel chain Treebo and a $100 million Softbank-led investment for hotel booking marketplace operator OyoRooms. Last year, Aarin Capital backed a Series A round for Indian online travel agent TripFactory.
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