Ven Capital, one of the largest private equity (PE) firms in Japan, is looking to invest more in India. The PE arm of Japanese financial house SBI Holdings, which has invested in nine companies in India, might announce its 10th investment in India soon, a top executive said. The PE major would invest in the financial technology (fintech) space in India, Masaki Takayanagi, managing director, SBI Ven Capital, said during a recent visit to India. SBI Holdings owns the largest internet-based brokerage firm in Japan, SBI Securities, and an internet-based commercial bank, SBI Sumishin Net Bank. The SBI Group recently launched a fund focused on the fintech space. The fund will invest in eight emerging markets, including India. The SBI Group is looking to invest in the fintech space and online brokerages in India both at a group/strategic level and as a PE firm.
|BULLISH ON INDIA|
One school believes you make an investment of any amount, say $10 million or $20 million, and hopefully it will be billions in five years. The other school thinks paying $20 million is not right, as the company at this point of time should be valued only at $10 million. "We support the latter view. We don't want to blindly invest in something hoping it will be 100 times in five years. Our policy is to find good investment and enter at attractive price," said Takayanagi, and further expressed the concern on the current trend among e-commerce firms. "Some companies in the social space are focusing too much on building the customer base at the expense of monetisation. The owners feel they can give stuff free and build customer base, and expect somebody to buy them. While there may be some truth in this approach, monetisation is also important. Japanese social e-commerce businesses are good at this, and we can contribute and collaborate with Indian firms on monetisation," said Takayanagi. Japan's SBI Holdings has three other partnerships in India. In January 2012, it set up a $100-million PIPE fund with Edelweiss Financial Services to invest in small and mid-cap firms and the Japanese firm committed $75 million for this fund. In February 2012, SBI Holdings set up a $50-million joint investment fund with Satyam to invest in high-growth companies in the information and communications technology space. It also committed $15 million in a $75-million fund raised by Nirvana Advisors in January 2012