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Sixth Sense Ventures scores multifold returns!March 14, 2019
Whoa! What an eventful and fulfilling month this has been. Extremely pleased to share that Sixth Sense has possibly become the only fund in India to be in a position to return almost the entire capital back to investors within a period of less than 3 years! Interestingly, the 4 exits done were amongst the smallest investments done from the fund in terms of amount deployed! To give you a broad sense, Sixth Sense has clocked 5X returns on invested capital in less than 3 years.
Sixth Sense Ventures has scored a rare hat-trick:
·First consumer-centric domestic venture fund in India
·First alternate asset fund in India with a 0% management fee option
·Possibly – the first fund in India to return Capital back within 3 years
Our thesis and philosophy of “Investing in the Consumer of Tomorrow… Today” seems to have resonated well. While the returns as of date, are extremely satisfying, we feel completely vindicated with the fact that 2 of our portfolio companies found its way to some of the largest unicorns in India – Reliance Jio (Grab) and OYO Rooms (Weddingz.in).
Below are the details of the exits from SSIO-I:
1. Hindustan Foods Limited – Sixth Sense had invested in HFL in December 2016 at Rs40 per share and with the business doing Rs.37Cr. in revenue. We are delighted to announce that our investment has grown 9X in just over 2 years and we have significantly exited our stake to WestBridge Capital. This has to be one of the most phenomenal exits from public market investment in recent times. Would like to place on record the fantastic work being done by Sameer Kothari, CEO of HFL, as he’s working to build India’s largest consumer contracting company.
2. Grab – Sixth Sense sold its stake to Reliance Jio at a ~2X in a strategic acquisition. Interestingly, Grab’s founder, Pratish, in our investor conference a few months back, had eluded to the fact that a vertical specialist like Grab will eventually be a great strategic asset for some of the largest E-com players like Amazon, Walmart, Paytm or Reliance. Prophetic, I must say!.
3. Weddingz.in – The company found a new home in OYO, which took over the company assets via a BTA. The acquisition is now completely consumed, delivering a ~1.7X returns for Sixth Sense.
4. JHS Svendgaard – Sixth Sense had exited out of JHS over a year back delivering a 7X return on capital employed within 2 years.
This takes us to a total of 4 exits from SSIO-I, with a clear line of sight for the remaining six – Ethos Watches, Veeba Foods, LEAP India, Soothe Healthcare, Smaaash Entertainment and Crossroads. While business environment will always be challenging, we do believe that your investee companies/promoters are gettin! stronger by the day.