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Chennai, 23August2022: Practus (earlier MyCFO) and Hurun India today released the first edition ofthe Practus Hurun IndiaPE Performers 2022, a report that ranks India’s best performing PE backed companies.
Private Equity in India is at the beginning of the “J Curve”, ready to accelerate. To sustain and accelerate PE investing in India, it is important that the investee companies demonstrate improvement in financial metrics. The report, Practus Hurun India PE Performers 2022is an attempt to highlight ‘companies that have demonstrated growth in financial performanceas well as ‘investors who have backed these high performers.’
To identify the top PE performers Hurun India has applied the following criteria:
- A “Practus Hurun India Top Performing Company” would have the following attributes.
- The investee Company should be based in India
- The company should have received an investment of atleast US$25mn during a single round
- A single investor has invested at least US$10 mn in the aforementioned round
- The company should have reported a growth in Revenue in FY21
- The company should have reported a growth in EBITDA in FY21
- The company should have reported a growth in Operating Cash Flow in FY21
Of the 125 companies in India that received single round funding of more than US$25 mn in the calendar year(CY) 2021, Hurun Research Institute shortlisted 21 companies that fit the performance and funding criteria mentioned from 1.1 -1.6 in the Practus Hurun India PE Performers 2022 list. Honasa Consumer (Mamaearth), founded by the SharkTank host Gazal Alagh, leads the ranking with an average growth of 491% over last year. Encube Ethicals, an integrated pharmaceutical company dedicated only to topical formulations is ranked second in this classification reporting a growth of 343%. Ecom Express, a technology enabled logistics solutions provider is ranked third with a growth of 283%. At the fourth place with 224% growth comes Desiderata Impact Ventures (Progcap), invested by Tiger Global Management, Sequoia, and Creation Investments Capital Management. Ranked fifth in the list is Acme Formulation,with 172% growth.
Top 10 Performing Investee Companies in Practus Hurun India PE Performers 2022
| Rank | Company | Weighted Average Performance Growth* | Key Investors | Key Person from the investment fund+ |
| 1 | Honasa Consumer (Mamaearth) | 491% | Sequoia Capital India | Ravishankar G V |
| Sofina Ventures | Yana Kachurina | |||
| 2 | Encube Ethicals | 343% | Quadria Capital | Amit Varma |
| 3 | Ecom Express | 283% | CDC Group | Srini Nagarajan |
| Partners Group | Manas Tandon | |||
| 4 | Desiderata Impact Ventures (Progcap) | 224% | Tiger Global Management | Alex Cook |
| Sequoia Capital India | Ravishankar G V | |||
| Creation Investments Capital Management | Tyler Day | |||
| 5 | Acme Formulation | 172% | PAG | Nikhil Srivastava |
| 6 | Bigfoot Retail Solutions
(KartRocket.com/ShipRocket) |
161% | Temasek Holdings | Ravi Lambah |
| Lightrock | Raghav Rungta | |||
| 7 | Clean Max Enviro Energy Solutions | 149% | Augment Infrastructure | Darius Lilaoonwala |
| DSDG Holding | – | |||
| 8 | Zetwerk Manufacturing Businesses (Zetwerk) | 81% | Greenoaks Capital | Neil Shah |
| Sequoia Capital India | Ravishankar G V | |||
| Lightspeed Venture Partners | Dev Khare | |||
| D1 Capital Partners | Jeremy Goldstein | |||
| Steadview Capital | Joy Bhakat | |||
| 9 | OFB Tech (OfBusiness) | 59% | SoftBank | Sumer Juneja |
| Falcon Edge Capital | Navroz Udwadia | |||
| Tiger Global Management | Alex Cook | |||
| Marshall Wace | Amit Rajpal | |||
| 10 | Five Star Business Finance | 53% | Sequoia Capital India | Ravishankar G V |
| TVS Capital | Gopal Srinivasan |
Source: Practus Hurun India PE Performers 2022
*Weighted Average performance growth takes into account the growth in Revenue, EBITDA and Operating Cash flow. + Key person can be a Lead Advisor, Managing Partner, Fund Manager or a Principal in the PE fund.
- The “Practus Hurun India PE Performers” list is compiled and ranked based on the no. of investments in the “Practus Hurun India Top Performing Company”
Having led investments in four companies in the list, including two unicorns, Sequoia Capital India, led byRavishankar GV, is the top investor in the Practus Hurun India PE Performers 2022. Norwest Venture Partners, led by Niren Shah and Tiger Global Management, led by Alex Cook take the second spot with investments in 3 companies each. The top three key persons in the Practus Hurun India PE Performers 2022 are indicated in the table below:
| Key Investor | Number of
Investments* |
Total investment
( US$ mn) |
Key Person+ | Company Name |
| Sequoia Capital India | 4 | 125 | Ravishankar G V | § Zetwerk
§ Five Star Business Finance § DesiderataImpact Ventures § Honasa Consumer |
| Norwest Venture Partners | 3 | 67 | Niren Shah | § Duroflex
§ Veritas Finance § SK Finance |
| Tiger Global Management | 3 | 150 | Alex Cook | § OFB Tech (OfBusiness)
§ Smartpaddle Technology § Desiderata Impact Ventures |
Source: Practus Hurun India PE Performers 2022.
*Investments in companies that meet the threshold criteria in Practus Hurun India PE Performers 2022
+Key person can be a Lead Advisor, Managing Partner, Fund Manager, or a Principal in the PE fund.
Speaking at the launch of the report, Deepak Narayanan, CEO & Founder, Practus,“Over the last decade, Private Equity and venture capital investments in Indian companies has seen a significant upsurge and scaled an all-time high of US$70 bn in 2021, an increase of 96% over the 2020 deal value excluding the Reliance retail and Jio deals. In addition, the number of deals almost doubled from 1,100 to 2,000, record listing of new age businesses (Zomato, Paytm, Nykaa) and significant increase in exit momentum (US$36 mn) with attractive valuation multiples.”
Deepak added further,“The Practus Hurun India’s Top PE Performers 2022 showcases companies who have delivered improved revenues, profitability and operating cashflows in FY21. The List celebrates PE fund managers who made the decisions in backing these high-performance companies and those who actively influenced and managed the improved performance. Practus has ROI delivery as the cornerstone of its client philosophy and tracks business performance improvement as a key metric of value delivered to its customers. This report is an extension of the philosophy that great performance leads to improved valuations and value creation for all stakeholders concerned, and duly recognises the contributions made by fund managers. We are delighted to partner with Hurun and this we hope is the beginning of a longer term partnership with Hurun India, where we continue to celebrate measurable business performance and valuation improvements by PE Funds.”
Anas Rahman Junaid, MD and Chief Researcher of Hurun India, said, “The next phase of India’s value creation has to be driven by the combination of capital and intellect. Private Equity funds along with their managers is one such catalyst that could accelerate value creation in the Indian economy. In this context, it is important to celebrate the stories of high performing companies who have demonstrated growth post receiving funding and those investors/ funds who have identified and are closely managing these investments. The report, Practus Hurun India PE Performers 2022 is a small, albeit a bold first step towards attempting to speak about these performance stories. Over the years, the story of these investee companies and their investments will narrate the evolution of the Private Equity landscape in India.”
The report also covers Practus Hurun India PE Performers – Top 5 based on Revenue, Practus Hurun India PE Performers 2022 – Top 5 based on EBITDA Growth and Practus Hurun India PE Performers 2022 – Top 5 based on Operating Cash Flow Growth.