Contrarian Drishti Partners makes its first investment in Aye Finance1 min read . Updated: 03 Apr 2014, 07:39 PM IST
The company did not disclose the deal value
Contrarian Drishti Partners and its founding managing partner Somak Ghosh have made their first investment in a start-up non-banking financial company called Aye Finance Pvt. Ltd, which lends to micro enterprises.
Micro enterprises are manufacturing entities that invest less than ₹ 25 lakh in plants and machinery or services firms with investment in equipment less than ₹ 10 lakh.
Contrarian Drishti did not disclose the deal value in a statement issued Thursday, but a person familiar with the development said that Contrarian Drishti and Ghosh picked up a 30% stake in Aye Finance for ₹ 3.25 crore. He declined to be identified.
Contrarian Drishti has applied to the Securities and Exchange Board of India (Sebi) to launch an angel fund under category 1 of Sebi’s Alternate Investment Fund mechanism. It is looking to raise around ₹ 60 crore for the fund, according to Ghosh, who was one of the three founders of Yes Bank Ltd, which he quit in September 2012.
The typical tenure of investments that Contrarian Drishti seeks to make is between five and seven years. The fund aims to achieve an internal rate of return of 22% and will make investments ranging from ₹ 50 lakh to ₹ 5 crore, across companies that cater to lower middle-class households and do not have easy access to bank credit.
The only other angel investment funds operational in India are Bloom Ventures and K Capital Partners.