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Inflection Point Ventures (IPV), a sector-agnostic investment platform, plans to deploy ₹150-200 crore in 2024, according to its founder and CEO, Vinay Bansal.
The company aims to foster innovation and create wealth for investors, including retail investors, he says.
In 2022, the company gave investors 160 per cent internal rate of return (IRR) on the back of 12 exits. It plans about 20 exits this year, he says. Edited excerpts from the interview:
What is your investment strategy?
IPV was established with the primary objective of making private market investing available to the common man. With investments spanning 185 start-ups and a substantial base of about 12,000 investors, our invested base is $100 million with a return of 40-plus per cent IRR. The key focus at IPV is on identifying exceptional founders and running successful businesses. We focus on creating wealth while making innovation a way of life for the country.
How many investments are you targeting this year?
IPV focuses on making 50-60 investments each year — a pattern observed over the past three years. Our strategy involves evaluating approximately 8,000 start-ups annually, before ultimately choosing to invest in around 50 of them. IPV aims to invest in the ₹150-200 crore range.
Can you describe some of the companies in your current portfolio?
Our focus is on early growth-stage investments (from pre-seed to pre-series A) in start-ups. IPV is sector-agnostic and has invested ₹630 crore in category-defining companies, including BluSmart, Buyofuel, Falca, Raaho, Kazam, and Otipy, among others. It has backed unicorns and soonicorns like BharatPe, BluSmart, and Milkbasket.
Which are the sectors that hold significant growth potential in the Indian market?
IPV emphasises the significance of healthcare, electric vehicles, and physical well-being. Furthermore, IPV aims to enhance preventive healthcare by focusing on sports-related initiatives.
What is your exit strategy?
The exits are achieved through strategic acquisitions, whether from listed or unlisted players. Additionally, we consider raising fresh rounds from VC funds or late-stage rounds from private equity firms as potential exit options. With a Category II fund in place, IPV also has the option of exiting through an IPO. We have exited from 40 companies so far. Last year we created 14 exits, and this year we will look for about 20 exits with great returns for our investors.
What is the current state of the start-up funding ecosystem?
IPV believes that India is the go-to place for global investment. With the largest and fastest-growing economy, India will yield excellent returns over the next 30 years. Strong leadership, political stability, a thriving ecosystem, and a focus on start-ups make India a top choice for global investors.
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