Bangalore: It is every venture capital, or VC, manager’s dream to have a hidden Google Inc. in his or her portfolio. While such a huge business still seems to be far away for India, there are several promising start-ups in VC portfolios here that managers expect will give them spectacular returns.
Although most investors shy away from picking their favourites among their portfolio companies, here is a list of firms that six VC managers feel will shine bright in the next two-three years.
Spectacular returns: (from left) Helion Venture partner Kanwaljit Singh (Madhu Kapparath / Mint) and Draper Fisher Jurvetson India executive director Mohanjit Jolly (Hemant Mishra / Mint)
JiGrahak Mobility Solutions (P) LtdWhat does it do: Ngpay is the brand name of a mobile commerce (or a virtual mall) service provided by JiGrahak. There are 80-plus merchants already on board, including large companies such as Kingfisher Airlines Ltd, HDFC Bank Ltd, and card and gift retailer Archies Ltd, in addition to bill payment services for most telecom firms and utilities in metros and other cities. The firm has at least a quarter of a million registered users and transactions (sum is undisclosed) are increasing.
Investors: Helion Venture Partners
Likely exit: Initial public offering (IPO)
Why it is hot: Mobile phone is increasingly—albeit, slowly—becoming the device of choice for data services in India. It is poised for even deeper penetration in the smaller markets. “Due to lack of Internet penetration, the mobile phone could leapfrog and become the default device for e-commerce in the next few years,” says Kanwaljit Singh, managing director, Helion Venture Partners.
Yatra Online Pvt Ltd
What does it do: Yatra is an online travel company that provides information, pricing, availability and booking facility for air travel, hotels, buses and car rentals across 5,000 cities around the globe.
Investors: Norwest Venture Partners, Intel Capital, Reliance Capital, TV18 Group
Likely exit: IPO
Norwest Venture Partners managing partner Promod Haque. The VC managers expect to get high returns from some of their investments.Hemant Mishra / Mint
Why it is hot: Yatra will do well because of the market in which it is playing—a rising middle class spending increasingly on travel—particularly as the markets rebound in the country. Yatra has been very focused on building on its vision to become the largest multi-channel travel provider serving the Indian market, says Promod Haque, managing partner, Norwest Venture Partners, adding that the firm has garnered a 35% share of the online travel segment.
Café Coffee Day (CCD)
What does it do: The national café chain is a part of Amalgamated Bean Coffee Trading Co. Ltd and competes with the likes of Barista Coffee Co.
Investors: Sequoia Capital India, JPMorgan, IFC, Deutsche Bank, Templeton Darby Investments
Likely exit: IPO