Singularity AMC, backed by investor and former Reliance Capital executive Madhusudan Kela, has secured the first close of its Rs 1,500 crore Growth Opportunities Fund II at $60 million (Rs. 500 crore), and expects to hit the final close in 2-4 quarters.
Founded in 2o21, Singularity invests in early- and growth-stage Indian startups and has invested in companies such as Servify, mCaffeine, Pernia’s Pop-Up Shop, Exotel, WebEngage, and XYXX, among others.
The fund received commitments from a select group of investors, including returning ones.
Singularity’s first fund of Rs 560 crore was launched in 2021 and secured a final close in March 2023. The fund has invested in 17 companies such as All-Cargo Logistics (listed), pre-IPO stage companies such as Jana SFB, Samhi Hotels, Private Growth companies like Lohum Cleantech and in businesses where they are actively involved such as Oro and Bombay Shirt Company among others.
Typically, the firm said it will look at making investments of around Rs 75-175 crore per investment across 14-18 deals.
Singularity Growth will continue to follow its thematic growth equity investment approach and invest in sectors such as energy transition, consumer, financial services, enterprise software, and differentiated manufacturing. The fund will selectively invest in some listed growth equity opportunities as well.
“About 70% of the fund will go into companies which earn a revenue between Rs 150-600 crore,” Kela told Inc42.
”The [second] fund is currently positioned to offer a combined approach of investors as well as operators which can provide strategic solutions to businesses with a clear strategy of growing and expanding in response to demand owing to a dynamic market,” said Yash Kela, Founder and Chief Investment Officer.