Venture capital firm Fulcrum Venture India has earned 10 times what it had invested in Chennai-based real estate developer Casa Grande Pvt. Ltd by making its first exit from a company in its portfolio.
The company had invested Rs.5 crore in Casa Grande in fiscal year 2004 for a 50% stake. The management of Casa Grande has bought back the stake for about Rs.50 crore. The sale fetched the investor an internal rate of return of 54.5%.
“Since our investment, Casa Grande has developed over 1.5 million sq. ft. of land and has achieved sales of Rs.94 crore. These achievements have created a profitable and timely exit for Fulcrum Venture India,” said founder partner Krishna Ramanathan.
Casa Grande has a built-up pipeline of about Rs.750 crore of projects, which will be executed in the next two-and-a-half years, he said.
Fulcrum has been focusing on early stage investing since its inception in 2000 in sectors such as pharmaceuticals, niche retail, consumer durables, education and information technology. Its portfolio firms include CMYK Health Boutique Pvt. Ltd, Curatio Healthcare Pvt. Ltd and SwaaS Systems.
“We are considering raising a third-party fund. We will gauge interest of limited partners (LPs, or investors in investment funds). We want to build a robust portfolio before we enter the market for raising capital,” said Ramanathan.
For more info about the Fulcrum Venture India fund please email: email@example.com.