Mumbai-based investment management firm Alpha Capital Advisors has committed to invest about INR 1,500 crores i.e $202 million over the next four years in the Indian Startup Ecosystem. Funds will be invested in consumer-facing businesses in the country. Alpha Capital Advisors targets high net worth individuals to raise money and is completely independently owned and managed. A structure called “The Alpha Pledge” will be used to let investors take direct exposure in investments made by the firm.
The Alpha Pledge aka TAP is designed as a hybrid structure after upfront commitments from wealthy individuals and high net worth family offices, according to the press release issued by Alpha Capital Advisors. Entrepreneurs working on consumer-facing businesses including food and beverages, fintech, entertainment and consumer durables shall receive benefits and growth capital from the funds.
Alpha Capital Advisors plans to invest in average ticket sizes of $13.5 million to $20.2 million which stands at INR 100 Crores to INR 150 Crores in Indian currency. The investment firm plans to spread the investment portfolio across 10 to 15 different funding deals.
Founded by Vishal Ootam and Vivek Anand in 2015, the investment firm has earlier invested around INR 100 crores in Mumbai-based supply chain financing startup CredAble in Series A round of funding. Alpha Capital Advisors strictly adheres to investing in entrepreneurs with a minimum of 10 years of operational experience in respective industries. The portfolio of the firm includes InCred Finance, Food Link and several others.
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20 per cent – 25 per cent per annum, which is likely to boost revenues of FMCG companies. Revenues of the FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in 2020.
The government has allowed 100 per cent Foreign Direct Investment (FDI) in food processing and single-brand retail and 51 per cent in multi-brand retail. This would bolster employment and supply chains, and also provide high visibility for FMCG brands in organised retail markets, bolstering consumer spending and encouraging more product launches.