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Paragon Partners starts $200 mn India-focused mid-market PE Fund

The fund founded by Siddharth Parekh and Sumeet Nindrajog raised $50 mn and announced first investment of $10 mn in Capacite Infraprojects

Siddharth Parekh, Sumeet Nindrajog
Paragon Partners founders Siddharth Parekh (left) and Sumeet Nindrajog

Siddharth Parekh, younger son of Deepak Parekh chairman HDFC, and entrepreneur Sumeet Nindrajog today announced that they have raised $50 million in commitments, marking the first close of their $200 million private equity fund, Paragon Partners Growth Fund I ("PPGF-I"). The fund was established in August 2015.

With its first close, PPGF-I also announced that it has completed the funding of $10 million in Capacite Infraprojects, an EPC player based in Mumbai. PPGF-I will get significant minority stake in the company.

Capacite is engaged in the construction of buildings (including super high rise structures) and factories, for large real estate developers, corporates and institutions. With this investment of $10million as growth capital, PPGF-I will gain significant minority stake in Capacite.

Siddharth Parekh, Co-Founder, Paragon Partners, commenting on the first close, said, "We believe the next decade in India will see a strong resurgence of growth in key sectors such as manufacturing, financial services and infrastructure. Paragon Partners aims to become the capital provider of choice in these sectors, which form the backbone of the Indian economy. We are thankful to have the support and confidence of some very credible domestic and foreign investors."

PPGF-I plans to invest in 10-15 mid-market companies in India, with an average deal size of $10-20 million. It will focus on five core sectors, including consumer discretionary, financial services, infrastructure services (capex light), industrials and healthcare services. The Fund has an advanced pipeline of investment opportunities across these sectors.

In line with this, Paragon Partners has recruited a full team consisting of six investment and operating professionals and a CFO, with several years of India Private Equity experience.

Sumeet Nindrajog, Co-Founder, Paragon Partners added, "We are delighted to partner with Capacite, and in particular, Rahul, Rohit, Subir and the rest of the management team, whom we have known for a number of years. Within a span of 3 years, the company has witnessed exponential growth under a credible and experienced leadership team and a strong focus on best in class customer service. Following a hands-on approach with a strong operational focus; we believe Paragon Partners will further add value and help scale the business."

"Within a short span of three years from inception, Capacite has achieved significant scale with an expected top line of Rs 1,000 cr for the current financial year, backed by a gross order book of Rs 5,400 cr. We are delighted to partner with Paragon Partners, as Capacite embarks on its next wave of growth," said Rohit Katyal, Director Capacite.