Investment Insights: Sistema Asia Capital’s Journey in Indian Startups
Andrey Terebenin, the Managing Partner at Singapore-based Sistema Asia Capital, recently shared insights into the fund’s successful investment journey, particularly focusing on their significant returns from the Reliance-Netmeds deal and their future investment plans in India.
Reliance-Netmeds Deal: A Lucrative Return
Sistema Asia Capital’s investment in Netmeds alongside Tanncam in 2017 proved to be highly profitable. While the exact returns weren’t disclosed, Terebenin mentioned that Netmeds witnessed exponential growth, expanding over four times within three years. This growth translated into substantial returns for the fund, marking Netmeds as a success story in their portfolio.
Investment Focus and Strategic Exit
The fund strategically invests in technology-driven startups with robust revenue streams and global scaling potential. Netmeds aligned perfectly with their investment criteria. However, with increasing competition in India’s online pharmacy sector, Sistema Asia Capital opted for an exit to rebalance their portfolio. Reliance’s timely offer provided an opportune moment for divesting their stakes in Netmeds.
Dynamic Indian Startup Landscape
The Indian pharmacy sector has witnessed significant activity, highlighted by Reliance’s acquisition of Netmeds and ongoing mergers like PharmEasy and MedLife. Sistema’s second successful exit in India reflects their adaptability and foresight within this dynamic ecosystem.
Future Investments and Fund Closure
Looking ahead, Sistema Asia Capital plans to invest in two to three more startups before the end of the year, signaling confidence in India’s startup landscape. With investments spanning consumer tech, enterprise tech, and various sectors, the fund remains agile in supporting startups’ growth trajectories.
Commitment to Growth and Scale
Sistema’s investment strategy typically ranges between $2-$4 million, with potential for additional rounds as startups scale. Their diverse portfolio, including prominent names like Rebel Foods and Licious, underscores their commitment to fostering innovation and entrepreneurial success in India.
In conclusion, Sistema Asia Capital’s journey reflects a strategic blend of investment acumen, sectoral expertise, and a keen eye for emerging opportunities, contributing significantly to India’s vibrant startup ecosystem.
