Cross-regional Investment Opportunities are Most Lucrative in APAC Region
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Prestellar Ventures, a Singapore-based private equity (PE) fund seeking to partner with big-vision entrepreneurs in search of capital and mentorship, is making a big splash in India.
In its intent to invest in companies which can benefit from the distribution network of its General Partners, the fund focuses on tech-enabled companies in the hospitality, consumer, financial services, rural product and services, and education sectors.
The PE firm’s list of General Partners includes billionaire group CG Corp Global, Nepal-based NE Group, India’s microfinance institution Satin Creditcare and PE peer Frontline Strategy Limited.
In an interview with Entrepreneur India, Prestellar Ventures’ Managing Partner Rabindra Shreshtha spoke about the firm’s plans after its 2017's $100-million fund raise to encourage entrepreneurs and start-ups across India, Sri Lanka, Bangladesh and Nepal.
Prestellar Ventures, which focuses on pre-Series A companies, likes companies that have a ready team, ready product, some revenue under the belt and one that is looking for growth. The firm provides assistance such as investment, strategy guidance and mentorship; its main differentiator from other accelerators is that its main focus is on business development, in short means increasing the top line or user base by opening doors available through various networks, boards of directors and in-house companies,
Prestellar Ventures’ first fund based out of Singapore and India focuses on investments in companies that look at India as the go-to-market in terms of consumers and growth strategy.
For Asia Pacific, the firm is looking to provide country-specific micro funds like Prestellar Ventures’ Sri Lanka plans is that they are in talks with fund management and commercial bank for Sri Lanka–focused fund.
The goal is to help companies based in Sri Lanka to expand to Asia–Pacific region. “We are also they are looking to build brands out of Sri Lanka. Similarly for Nepal, the firm’s partners including CG group would like to invest in companies that can be regional players for export and be tourist-oriented,” Shreshtha told Entrepreneur India.
He also outlines that the firm is getting inbound interest from other partners willing to tie up from Myanmar and Vietnam and that strengthens their focus on funds that help companies across the region tap into cross-regional opportunities .
Micro-lending the Future?
Shreshtha thinks micro-funding has been done across the world but what Prestellar Ventures is trying to do is to tie all the funds together to synergies that exist between the countries in South Asia and South East Asia; it's basically how to expand the business.
“As venture capitalists, Prestellar Ventures would like to invest in companies that have a high ceiling,” he explained.
Shreshtha finds India’s fintech sector and commercial banks brimming with opportunities.
“We want to explore the consumer and financial inclusion side of India in Fintech and we would like to go to the bottom of the pyramid.”
He bets on technology in financial services across Asia Pacific, calling fintech slated for explosive growth in APAC.
“Fintech financial services commercial banks in Asia are doing really well how they take the next step when technology is coming in financing,” Shreshtha said.