Venture capital firm 8i Ventures has hogged the limelight in the investment world with an eventful exit from M2P Fintech, where it managed to garner a staggering 12x returns after a period of 4.5 years. The strategic exit happened alongside the fresh influx of $100 million in capital for M2P Fintech, inclusive of primary and secondary investments to fuel growth and expansion.
PC: Mint
Strategic Investment and Incredible Returns
It infused Rs 9.7 crore in M2P Fintech and converted this to Rs 115.9 crore. That’s an IRR of 131%. It means that it has now translated to 1.27 times the corpus of Fund I, on a pre-tax basis, while using just 10% of its capital. This will testify to the sound investment strategy and the value creation approach of the fund.
Fund I Performances Strong
Other details that categorize this fund include powerful performance metrics. 8i’s Fund I, set up in May 2019 and closed in July 2021 with a total of $15.5 million, has powerful performance metrics, which today stand at 2.5 times with an impressive 37% IRR. The MOIC of 3.3 times underlines the success of the fund in delivering considerable returns to the stakeholders.
Portfolio Success and Future Prospects
Diversified portfolio, promising enterprises like Blue Tokai, Slice, Easebuzz, and Bbetter. Most of these entities are on the verge of gearing up for their pending IPOs. Bbetter is the latest addition in the portfolio but has already turned profitable and is targeting $10 million as the run rate this year. The company is gunning to double its revenue streams, which is hugely exciting going forward.
Scaling and Resourcing Emerging Startups
Its second fund has recently come out in 2022, raising its first close at $25 million. The firm has also recently announced a seed funding program called ‘Origami’ worth $10 million, to support the emerging startups of India. In the last ten years, 8i Ventures and their co-investors have backed early-stage startups working towards innovation and entrepreneurship in the region, which is over 60 in number.
8i Ventures’s exit from M2P Fintech marks recent success in finding rewarding investments for investors. Having the track record of strong performance, multiple kinds of high-potential ventures in the portfolio, and a strong commitment to nurturing nascent startups, 8i Ventures remains a powerful force in the venture capital landscape, defining entrepreneurship and innovation futures for India and beyond.
