The project capital financing wing of the German Media Company, Bertelsmann SE & Co. KGaA, in India the Bertelsmann India Investments has proposed an investment plan worth $500 million to support the tech unicorns in the coming years.
The MD of BII, Pankaj Makkar said that the company is currently focusing on growth and until now the company did not have any devoted foundation in India rather it was only involved in making investments in India. The company is now looking forward to making remarkable contracts as part of its early-stage project.
This announcement from the company comes at a time when a few other project capital financing firms like Accel India, Elevation Capital, etc. have boosted their endeavors in the country and assembled more enormous combines of money to use it in India.
The managing director further stated that the company would be signing bigger cheques incurring the heightened primary assessments. The company is benefitted by having more enormous combines which give it the strength to support portfolio companies for a long duration.
Beforehand, BII had financed unicorns like Pepperfry, Shiprocket, etc. And made more or less 2 to 3 contracts per year but after this announcement the company is expected to make more or less 6 to 8 contracts each year which will comprise Series A and mid-stage financing.
As of now, the Bertelsmann India Investments has put a total of around $285 million in unicorns.
As part of its mid-stage financing project, the BII will invest around $5 million to $20 million in the early stage but this amount is expected to rise to $40 million in the later stages of investment.
The chief executive of Bertelsmann Investments said that BII would prove to be advantageous for the expansion project of Bertelsmann. The expansion project of the conglomerate is being put through based upon the bigger financing ability of the company. He further added that this venture will assist the conglomerate in carrying on with the rise in its growth impulse remarkably.
BII will enact a significant role in the venture capital program of the conglomerate in the coming years as the market of India is witnessing powerful growth at present that is in turn bringing advantage to the venture capital industry, the CEO further said.
The company will carry on financing in the modern and tech-driven sectors of the market which include fintech, aggrotech, etc.
The Investment branch of the German media firm has invested around $1.06 billion until now.
