Another instance is that of Home Shop 18, which actually happens to be the brain child of SAIF and, therefore, calling it an investee company won’t be right. It’s a JV between SAIF and Network 18, and an example of an idea that the Fund was sure about. The reason: SAIF had already successfully invested in Acorn, China’s largest home shopping firm, which recently got listed on NASDAQ. If one looked at the enablers for home shopping – like TV penetration, telecom penetration and spending power – it seemed the right and opportune time to tap the Indian market. India has approximately 105 million TV households, and mobile penetration of 281 million.
“SAIF partnered with Network 18, one of India’s most reputed media houses, to launch a home shopping channel with our learning and knowledge that we had in China. We knew how to source, what kind of product to sell, how to package it, and so on and so forth. We gained traction by partnering with TV-18, and we targeted TV, which had all the ingredients of success. This company is doing phenomenally well and the rate at which it is growing, it will emerge as one of the largest retail company in India in couple of years across categories, even accounting for offline players,” boasts Vibhor.
However, like all PE/VCs, Vibhor is hesitant and apprehensive to disclose SAIF’s average returns from India investments. “We are the best kept secret in India, both in terms of our returns as well as the size of our non-sponsored fund,” he says. But sources contend that the portfolio that Vibhor has been associated with has appreciated 2.5-5 times in a span of less than two years.
Entering high-growth markets like China & India is a dream for every company. The GDPs of both China & India have risen 120% in the past five years (according to IMF data). With dedicated local offices in China, India and South Korea, SAIF currently manages over $2 billion of portfolio. And as far as India is concerned, SAIF is all poised to be the next big thing, or rather, the biggest PE/VC player. Beware Blackstone and Temasek!
“SAIF partnered with Network 18, one of India’s most reputed media houses, to launch a home shopping channel with our learning and knowledge that we had in China. We knew how to source, what kind of product to sell, how to package it, and so on and so forth. We gained traction by partnering with TV-18, and we targeted TV, which had all the ingredients of success. This company is doing phenomenally well and the rate at which it is growing, it will emerge as one of the largest retail company in India in couple of years across categories, even accounting for offline players,” boasts Vibhor.
However, like all PE/VCs, Vibhor is hesitant and apprehensive to disclose SAIF’s average returns from India investments. “We are the best kept secret in India, both in terms of our returns as well as the size of our non-sponsored fund,” he says. But sources contend that the portfolio that Vibhor has been associated with has appreciated 2.5-5 times in a span of less than two years.
Entering high-growth markets like China & India is a dream for every company. The GDPs of both China & India have risen 120% in the past five years (according to IMF data). With dedicated local offices in China, India and South Korea, SAIF currently manages over $2 billion of portfolio. And as far as India is concerned, SAIF is all poised to be the next big thing, or rather, the biggest PE/VC player. Beware Blackstone and Temasek!
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Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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