Singularity Growth Capital Fund

About Company –

Singularity is a private investment firm founded by Sam Darwish, the Founder, Executive Vice Chairman, and CEO of IHS Towers, one of Africa’s most well-known and successful entrepreneurs. We want to invest in and assist innovative entrepreneurs and teams who are shaping the future via disruptive technology, media, and telecoms enterprises. Our emphasis is on these companies’ early and growing stages, when we can add significant strategic value to them by using our network and knowledge to help them scale. We are always eager to speak with businesses who share our enthusiasm for making a difference. Please reach out to one of our experts to see if we are the best fit for you and your team.

To be the premier provider of technology-driven firms with growth finance and distinctive capital market access.

• India has the lowest percentage of IT companies in its entire market capitalization.
  • US ~40%
  • China ~22%
  • India <1%
• However, India has a thriving startup environment, garnering $67 billion in private investments since 2012.
  • In 2019, VCs invested $12 billion in four areas: consumer technology, software/SaaS, fintech, and B2B commerce, compared to $15 billion in the Indian stock market by FIIs across sectors.
• The average time it takes to become a unicorn has shrunk from 22 years (for firms founded before 2000) to 4 years (companies incorporated in 2016-21)
• The time difference between succeeding rounds is rapidly closing.
• Stock markets have recently reacted positively to technology-driven enterprises.
• A number of venture-backed IT companies are planning to go public in FY 24 due to attractive valuations.
• SEBI has also made a crucial step to make the listing procedure for start-ups easier.
• Singularity is concentrating its efforts on developing a robust transaction pipeline of tech-driven businesses with promising capital market prospects.

Singularity University will invest in 10-15 future leaders in Consumer and Business Technology, with big addressable markets and hence optimum capital market outcomes.

Focus on Series B to Series D 

• For Series B and Series C, there is a large and increasing difference in domestic capital.
• Over 50 funds investing in Series A have strong transaction flow in Series B and C.
• Stages B-D provides the highest risk-adjusted returns since they are important inflexion points.
• Because we invested in or worked with the founding teams of over 30 renowned India GPs, we have deep links to them.

Synergy-driven market approach

• Instead of taking a competitive strategy, form partnerships with renowned PE and VC companies.
• Due to unique solutions, we have two entrance points into selected firms.
• Examining firms in the expansion stage with a good chance of succeeding in the capital markets
• B2C and B2B, Products and Services, Software and Platforms will all be included in the portfolio.

Uniquely positioned team

• • Madhu Kela, a co-sponsor, is a legend in Indian asset management.
  • Yash Kela, a co-sponsor, has a track record of 6 years in venture capital.
  • Managing Partner has had a 90 percent departure rate in the past, with Rs 3,000 crores returned.
  • The only new team with excellent technology and growth capital expertise.

Bridge Equity: Between Series B and C, or Series C and D, there is equity. Bridge equity is required by three out of every four businesses. Fresh rounds are time-consuming, hence internal rounds are favored. Better entrance valuation compared to a full round, and a smoother deal procedure owing to less competition.

Co-Investment: Support one or more lead investors; the company’s preferred fund is frequently short of $3-10 million, so they may co-lead the round. Because the firm does not require many backups, the round closes rapidly.

Partial Secondaries buyout: Obtaining a 3-10% investment from current investors Angel investors, seed investors, and other early-stage investors will be excluded. Part of the company was sold to a venture capital firm. Founders have little money to repay their loans. Compared to the principal component, the entry valuation is significantly higher.

• Insuretech platforms
• Education loans and services platforms
• Digital customer communications
• Differentiated beauty and personal care
• Women’s consumption on the internet
• Enterprise software and services
• Mobility related products and services
• Health-tech platforms 
• Gaming and gamification platforms
• Financial services infrastructure

Qualitative

• Ability to become and stay in the top three players in the section; cannot be disrupted by larger players undercutting them.
• Product of high quality; strong consumer interaction; digital maturity of more than three years
• Stability / previous experience / core team equity stake
• The primary investor’s quality; the founder’s relationship with significant investors; Alignment of investors and founders for a five-year exit
• A core group of people who aren’t fond of squandering money

Quantitative

• • Good GM ( at least >40%); Good CM1 ( at least >20%)
  • Consumer: 1st year CM1 / CAC > 1x; Business: Strong B2B bus dev team and/or partners
  • Enough TAM for at least 3 players to grow at 40-50% CAGR for 5+ years, yet taken together <50% of the market
  • Strong recent growth rate; Visibility of 35%+ projected 5-year growth rate
  • A core group of people who aren’t fond of squandering money
  • Multiple; Possibility of raising a second round from a top-15 VC or international investor