India's Multiples targets up to $1b for Fund IV
Multiples Alternate Asset Management is looking to raise up to USD 1bn for its fourth India-focused fund, with the International Finance Corporation (IFC) proposing a USD 60m commitment.
An IFC filing puts the target at USD 800m to USD 1bn. In addition to its allocation to the fund, the development finance institution (DFI) is considering putting a further USD 40m into a discretionary co-investment pool. Multiples closed its third fund on USD 685m in 2021, short of the USD 750m target, and there was a co-investment sidecar.
IFC committed USD 20m to Fund III, while IFC Asset Management – which is responsible for third-party capital managed by the DFI – contributed USD 50m. Other LPs include Asian Development Bank, Canada Pension Plan Investment Board (CPPIB), and India’s National Investment & Infrastructure Fund (NIIF).
Multiples was founded in 2009 by Renuka Ramnath (pictured), formerly CEO of ICICI Venture, and raised $450 million for its debut fund in 2011. A second vehicle of USD 690m – comprising a core fund of USD 550m and a co-investment pool of USD 135m – closed in 2016.
Fund IV will continue in the vein of its predecessors, pursuing growth investments in mid-market companies across the financial services, consumer, technology, and healthcare sectors. There are expected to be 10-12 investments with cheque sizes falling in the USD 50m-USD 150m range, IFC said.
Recent investments include a USD 30m commitment to neobank Niyo, leading a consortium that put INR 6.8bn (USD 83m) into BDR Pharmaceuticals, a manufacturer of active pharmaceutical ingredients, leading an INR 8.7bn Series D for non-bank financing company (NBFC) Kogta Financial, and re-upping in a USD 150m round for direct-to-consumer meat and seafood supplier Licious.
Licious became a unicorn in October 2021, not long after Multiples co-led the company’s USD 192m Series F; it was most recently valued at USD 1.6bn. Acko crossed the USD 1bn threshold around the same time when Multiples co-led a USD 255m round with CPPIB joining as a co-investor. It is also a backer of fantasy sports platform Dream Sports, most recently valued at USD 8bn.
Few independent Indian PE firms have surpassed USD 1bn in fund size. Kedaara Capital closed its third fund on USD 1.1bn in 2021, while ChrysCapital scaled back one of its earlier funds to below USD 1bn and True North set the hard cap for its sixth vehicle at USD 1.1bn but ended up raising USD 600m. ChrysCapital, currently in the market with its ninth fund, is said to have beaten the USD 1bn target.
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