Kanwal Rekhi’s new fund: Focus on non-capital intensive cos

Kanwal Rekhi is building up his new fund and says he’s looking at non-capital-intensive companies in sectors like healthcare, education, financial services, and those that have a strong technology component in their service offering.

After successfully alighting from Redbus, venture capitalist (VC) Kanwal Rekhi is now getting ready for the next leg of his journey.

Boarding Redbus proved to be a profitable ride for serial entrepreneur and VC investor Kanwal Rekhi. For, when he exited in June last year, after the startup was acquired by South African media conglomerate NASPERs for a reported USD 100-120 million, Rekhi walked out with more than 10 times his initial investment. However, that is not all, 2013 also saw Rekhi close his more ambitious second fund.

Kanwal rekhi, MD, Inventus Capital said, “2013 ended on a high note for us. We were able to close our fund in December. It was oversubscribed. We had to raise USD 100 million but we raised USD 106 million.”

Rekhi is building up his new fund and says he’s looking at non-capital-intensive companies in sectors like healthcare, education, financial services, and those that have a strong technology component in their service offering.

The silicon valley-based investor has already invested in six such companies including Policy Bazaar, Unboxed, and an online travel agency Edreams and has reserved 25% of the new fund for these six investments.

“We expect to do 20-25 investments between USD 1.5-2 million as initial investment. We want to own 20-30% of the company for that kind of investment. We want to stay away from capital intensive investments that need over USD 15 million overall.

Rekhi, who wants to invest half of the fund in India and the other half in the US, is keen to finish building the portfolio for the new fund by Dec 2016.

Kanwal Rekhis new fund Focus on non-capital intensive cos Watch Video

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