Pantomath Capital Management is an investment company that launched its second category, Alternative Investment fund. The company launched the fund in April with a target corpus of 240 million USD including a green shoe option of Rs 1000 crore at a base amount of Rs 1000 crore. The startup intends to use these funds to invest in small businesses and make an exit through initial public offerings in the next three years. The venture debt round saw participation from several new and existing investors
Image Source. Pantomath Capitak
The fund was launched under the leadership of the co-founder and CEO of Pantomath Capital, Madhu Lunawat with a target corpus of Rs 2000 crore. The fund marked its first close at Rs 1000 crore. This fund is valid for five years from the time of its first close with an additional two years. The investment company claims to have invested Rs 500 crore across 12 investments. The investment was made to help the companies scale their business while enabling them to achieve their market expansion plans. The company will invest in growth-stage consumer goods companies and Indian trade companies to promote the Made in India scheme. The preferred size for the investment is reported around Rd 75 crore.
The founder of Pantomath, Madhu Lunawat told inc42 in an interview that the Bharat Value Fund was launched to capitalize on the huge demographic opportunities in the mid-market sector presented by the Indian economy. She showed confidence in the Bharat Venture Fund and highlighted that this will deliver robust returns. The company believes that the BVF will become a cornerstone of the portfolio for its investors and enable them to achieve long-term growth. The fund will help them in economic growth and financial success. This Mumbai-based company operates in the sectors involving wealth management, stock broking, fintech, and others.
The investment company is growing rapidly and is backed by fund management and distribution verticals. The firm announced the first close of its second Alternative Investment fund for vehicles and deployed all of its committed money for its first Cat II AIF India Infelction Opportunity Fund. The company made 12 investments from Rs 500 crore including investments in Vardhman Group, Nurture Well Foods, and MKC Agro Fresh. The first close of this fund was in November taking the total corpus size to Rs 2,500 crore.
Earlier this month, the company invested $8 million in the co-working startup Incuspaze during its maiden funding round via the Inflection Opportunity fund. The firm was founded by Mahavir Lunawat and Madhu Lunawat to provide financial solutions to growth-stage and early-stage companies. The Non-banking financial services of the company offer the best credit solutions while the asset management vertical of the firm provides business investment opportunities. The company contributes to and promotes the Make in India program.
The platform offers financial advice across corporate Finance and other sectors. The data intelligence platform, traxcn mentioned that the company has facilitated around six funding rounds and 4 M&A deals. The company previously bought a 37 percent stake in the broking company Asit C Mehta Financial Services through a subsidiary. The firm also invested in Fundgini.com, which is an artificial intelligence-powered deal-making platform. The company bought around 75 percent shares in the firm during July last year.
The development came just when the increased investor’s interest in the Indian startup ecosystem. Inc42 mentioned that around 93 percent of the 50 startup investors see 2024 as a turnaround year for the Indian startup ecosystem in terms of funding. Pantomath Capital Management also invested Rs 500 crore in the seed funding round of Nurture Well Foods. The private equity firm provides investment banking and structured finance services to its customers through its online platform.
The Indian startup ecosystem is expected to grow in the next few years that’s why the government has been launching different programs. The government of India recently launched a scheme to enable small businesses to join Open Network for Digital Commerce and online product selling. The initiative is taken to help these small enterprises compete in the digital market as it reduces the overall expenses at low commissions in the online marketplace.
The subsidiary of NADARD, NABVENTURES also launched agri fund with an initial corpus of Rs 750 crore to help Indian agriculture startups scale their operations. The Rs 250 crore investment was made by the Ministry of Agriculture while the remaining Rs 250 crore will be from other institutions. The fund aims to enhance the agri-produce value chains by enabling the startups to grow in size and create new rural ecosystem linkages & infrastructure.
Conclusion:
The private equity firm Pantomath Capital Management provides banking services and financial solutions to growth and early-stage startups. The company launched a fund with a target corpus of 240 million USD including a green shoe option of Rs 1000 crore. The company claims to have invested Rs 500 crore in around 12 investment rounds. The company intends to make investments in startups across different sectors and make an exit via an initial public offering in the next three years. Pantomath Capital Management previously launched a fund that made a final close for Rs 1000 crore. The total length of the funs is five years from the first close with an additional two years.
The startup ecosystem in India is predicted to increase in the next few years this is why the government is trying to launch various new schemes and the investment firms are also making huge investments in the startups to get profit. Earlier, this year the government of India launched a fund focused on the agritech sector. The fund was used to promote innovative and tech-driven initiatives in the agriculture market. This Bharat Value Fund was also launched by the inflection opportunity fund to take profit from the huge demographic opportunities in the mid-market sector through the Indian economy. The CEO of Pantomath, Madhu Lunawat launched this fund in April with a base amount of Rs 1000 crore.
