The Hindu Business Line : NRI Dinesh Dhamija to set up $200-m fund for Indian market

UK-based entrepreneur of Indian origin Mr Dinesh Dhamija, who earlier this year sold his company ebookers for close to $500 million, is now training his sights on the Indian market.

Mr Dhamija's private equity firm India Gate Partners is in the process of raising $200 million for a fund, which would focus on investing in Indian companies.

"We are planning to make investments of $5 million to $30 million. This would be in the form of PIPE deals or even management buyouts. We have already made about nine investments in the past five years," Mr Dhamija said.

India Gate Partners has been focusing on sectors such as real estate, infrastructure, leisure and retail. "Knowledge process outsourcing in also of much interest for venture capitalists these days," he added.

Industry watchers point out that past investments by India Gate include the Ananda Health Spa in the Himalayas and a small power station.

When asked whether there was scope for more private equity firms to enter the Indian market, as estimates suggested that there were more than 150 private equity firms operating in India, Mr Dhamija said that there are a large number of deals and the market needed "at least another 50 firms."

High returns: The returns in India too have been sizeable. Mr Dhamija pointed out that his company had invested about $1-1.5 million in BPO unit Technovate. The investments were valued at about $25 million three years later.

Mr Dhamija had earlier this year sold his online travel company ebookers to a US-based travel group Cendant in an all-cash deal. ebookers was born out of the Internet boom of the late 1990s but its origins stretch back much further.

In the 1980s Mr Dhamija had opened a travel kiosk in London. He eventually took the concept online and in 1999 ebookers was formed, which is hailed as one of Europe's entrepreneurial success stories.

Mr Dhamija was awarded Entrepreneur of the Year in UK in 2003.