Singularity AMC, a leading growth equity platform for private and PIPEs, has announced that its second PE fund, Singularity Growth Opportunities Fund II (SGOF II), is oversubscribed at Rs 1800 crore.

The fund was launched in August 2023 with a total corpus of Rs 1,500 crore and a Rs 500 crore green shoe option. Within a month of its launch, SGOF II announced its first close with Rs 500 crore, demonstrating strong investor sentiment towards the founders and the targeted sectors, which include Energy Transition, Next-Gen Industrials, Consumer, Healthcare, and Financial Services.

SGOF II has already backed eight companies:

• Lohum- a battery recycling startup
• HEG-a diversified energy transition platform
• Sterling and Wilson Data Centre: a leading data center EPC provider.
• Sabine- an integrated IVF healthcare company.
• Classic Legends- the maker of JAWA motorcycles.
• Qucev – Manufacturer of Cost-Effective & Sustainable EV vehicles
• Deal 7- a luxury watch retailer.

SGOF II targets investments of Rs 75 crore—Rs 175 crore across 12-15 companies over the next two years

“With India on its path to becoming a five trillion-dollar economy by 2028-29, we believe that the next growth drivers for the economy will be sectors like energy, manufacturing, financial services, and consumer. We at Singularity are bullish in these sectors.  We are happy to announce that SGOF II is oversubscribed at 1800 crore, and we have already invested into eight high-growth companies from the fund and will be deploying the rest over the next 2-3 years,” said Yash Kela, founder & CIO at Singularity AMC.

SGOF II is structured differently to enable faster DPI (Distributions to Paid Capital ratio). The fund will invest over 40%  in late-stage companies, over 40% in classic, profitable growth stage companies, and over 20% in the high conviction op-vc stage.

“We are enthused by the kind of response SGOF II has received from investors, with almost all fund one investors coming in fund2. SGOF II’s current portfolio is valued at Rs 492 crore, reflecting a Multiple on Invested Capital (MOIC) of 1.2x,”  Sandeep Bapat, Senior Partner & Co-CIO, Growth Equity Fund, Singularity AMC, added.

Since its inception, Singularity has launched three funds: two PE funds and a listed PIPE fund.

Its first fund, Singularity Growth Opportunities Fund I of Rs 560 crore, was launched in 2021 and marked its final close in March 2023. The fund invested in 16 companies.  It made a gross investment of Rs 613 crore across these companies

Five companies in the portfolio have already been listed, and four more are in advanced conversation about getting listed in the next 12-15 months.

The target outcome is to achieve 3x MOIC, and the fund is on target to achieve ~1x Distributions to Paid-in capital (DPI) by FY26, which is ~ 3 years from the fund close. The fund is tracking a 30% IRR.

Mentored by market veteran Madhusudan Kela and led by Yash Kela along with Caratlane founder Mithun Sancheti, Singularity AMC was founded in 2016 with an aim to back high-growth Indian companies, based on the Government’s initiative to make India a self-reliant economy.

So far, it has invested in high-growth companies such as Lohum, Silver Electrical, Aimtrex, Bombay Shirt Company, Jana Small Finance Bank, and Oro.