ChrysCapital bullish on future of tech, pharma and financial services

The firm worked closely with ManKind Pharma and ran an internal cost reduction program which saved them close to Rs 100 crores

With India's economy on an upward trajectory, domestic private equity firm ChrysCapital is keenly focusing on the nation's consumer technology, financial services, and pharmaceutical sectors. They are playing an instrumental role in guiding their investee companies in devising future strategies, such as M&As, to boost revenue, disclosed a senior official.

Parampreet Singh Bhasin, a director at ChrysCapital Advisors, highlighted the inception of Enhancin, a distinct vertical within the firm. Enhancin provides counsel to businesses on a myriad of facets ranging from M&As, customer acquisition, and leadership recruitment to geographical diversification. "The appreciating NAV (net asset value) of these firms more than offsets our investment of time and effort," stated Bhasin, previously associated with the consulting entity Alvarez and Marsal. Setting it apart, ChrysCapital doesn't levy consulting fees on its investee companies, unlike its counterparts.

Established in 1999, ChrysCapital currently manages assets amounting to $5 billion dispersed over eight funds, investing in diverse sectors such as financial services, technology, and pharmaceuticals. Notably, in June this year, the firm acquired HDFC Credila, an overseas education financier, in conjunction with BPEA EQT. This acquisition was marked at a pre-money valuation of Rs 10,350 crore. In the same month, ChrysCapital invested Rs 830 crore in the online eyewear merchant, Lenskart. To date, the company has furnished returns of $6.5 billion to its stakeholders through more than 70 exits.

Commenced in 2017 with a solitary member, Enhancin has burgeoned into a robust team, currently advising 14 enterprises. The unit collaborated intensively with ManKind Pharma, orchestrating an in-house cost curtailment initiative, saving nearly Rs 100 crore. Further, the firm is assisting ManKind in instituting novel business divisions, including e-pharma and modern trade. Additionally, Enhancin's association with GeBBS Healthcare Solutions has proven invaluable, particularly in terms of revenue administration. Although GeBBS, a hospital management entity oriented towards the US market, faced challenges during the pandemic, it rebounded post-Covid. "Despite a stagnant revenue in our initial two years of investment, GeBBS doubled its revenue in the subsequent two years," revealed Bhasin.

Concluding, Bhasin noted that Indian business leaders are inclined to seek strategic advice from their investors. This collaborative approach not only augments the overall company value but also enhances the worth of the major shareholding owned by these promoters.