Netherlands-based Prosus noted that PharmEasy remains a significant underperformer in its India portfolio, posting an internal rate of return (IRR) of -38 per cent, in its H1FY25 disclosures on December 2.
Edtech company Eruditus recorded a modest IRR of 14 per cent, one of the lowest among the portfolio, according to filings.
Among its investments, B2B e-commerce platform ElasticRun delivered the highest IRR at 23 per cent. Other key players, including Meesho, PayU, and Swiggy, achieved IRRs in the range of 20-21 per cent, showcasing stronger performance than some of the portfolio’s weaker contributors.
Prosus noted a shift in the overall portfolio performance, stating “there is an inflection in the IRR, but more improvement (is) needed.” Last year, the investor highlighted its goal of achieving “an ambition (of) IRR of 20 per cent plus” and reaffirmed its commitment to reaching this target.
Looking ahead, Prosus signalled plans to ramp up its investments in India. “If we can have the required conviction in opportunities, our ambition would be to increase capital deployment to enhance our ecosystems, growth, profitability and value creation. Our focus has increased meaningfully over recent months,” the company said.
IPO plans
Prosus sees potential IPOs for fintech giant PayU, affordable e-commerce platform Meesho and omnichannel jewellery retailer Bluestone for the next 18 months.
This comes after Prosus booked profits of $2 billion on its investments in the IPO of food and delivery tech major Swiggy which recently got listed. It sold shares in offer for sale which generated gross proceeds of approximately $500 million. Post IPO, Prosus holds about 25 per cent stake in Swiggy on a fully diluted basis.
Prosus also sees edtech player Eruditus, fintech firm Mintifi, export-focused meat start-up Captain Fresh, home loan provider Vastu Housing and D2C house of brands player Mensa Brands with “future potential”.