Sumit Keshan, Managing Partner of Wipro Consumer Care - Ventures told businessline, the firm has made 10x returns from a partial exit in beauty and personal care startup The Good Glamm Group.
“We invested at a valuation of a hundred million dollars, when we exited the valuation was at $1 billion. So, we made bumper returns on that investment,” Keshan added.
Further, talking about the reasoning for the partial exit, he said that the driver for each investment is different.
“In certain cases, as dilution happens, our shareholding comes down from 7-8 per cent to 2-3 per cent. Then we have to take calls on each of the companies individually. If we are not there meaningfully, then we take the call to exit our holdings,” he added.
Opportunities for investment
Wipro Consumer Care - Ventures had set up a ₹200 crore fund three years back and has since committed 60 per cent of the amount. It has invested in nine companies including The Good Glamm Group, Ustraa, OneLife, LetsShave, Soulflower, and Power Gummies, among others. They have also invested in an Indonesia-based nutraceutical and wellness company called Youvit and a Singapore-based VC fund, DSG Consumer Partners IV.
Also read: The Good Glamm Group launches Good Community in alliance with WhatsApp
“Through DSG investment, we are looking to get more opportunities for investments in Southeast Asia. Through them, we probably will be able to get better visibility into what’s happening in that region and will probably be able to source more deals. That’s the key objective in terms of investing in it,” said Keshan.
Going ahead, Wipro Consumer Care - Ventures is interested in investing in health and wellness. Initially, they were not looking at health and wellness, but over time, their thesis has evolved to include these sectors.
“We are on a continuous lookout for companies in food, personal care, and fragrances. That’s something that’s on our radar as high priority,” he added.
Typically, the firm invests ₹10-25 crore in the startups for a minority 10- 20 per cent stake. While the firm does not enter a financial investment with a commitment to make an acquisition, Keshan noted that out of their 10-15 investments, they might end up acquiring two-three companies.