Specially Managed Account India Tech Investments - Metavalue Advisors India

Specially Managed Account India Tech Investments Metavalue Advisors India

Access Technology sector investments in India for Top Tier risk adjusted returns

Metavalue Advisors India

Why Technology Investment in India?

India’s IT & ITeS industry grew to US$ 181 billion in 2018-19. Exports from the industry increased to US$ 137 billion in FY19 while domestic revenues (including hardware) advanced to US$ 44 billion. Spending on Information Technology in India is expected to grow over 9 per cent to reach US$ 87.1 billion in 2018.* Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$ 350 billion industry revenue by 2025.

Export revenue of the industry is expected to grow 7-9 per cent year-on-year to US$ 135-137 billion in FY19. The industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue.

IP led technology segments such as Enterprise tech across Industries, Fintech, Healthtech, Deep tech are at the cusp of the next wave of growth. B2B business models have always done well especially when accessing global markets via exports of software solutions. This broad category of Technology investments represents superior risk adjusted returns.

https://www.ibef.org/industry/information-technology-india.aspx

Metavalue Advisors India

Managed Account – Advantages over Blind pool POWER to set DEAL filters – e.g. Type of Tech, Stage of company, Size of investment FLEXIBILITY to choose Deals opportunistically beyond mandate LOWER costs of operating structure LOWER risk of bad deals CONTROL over allocations depending on deal and desired terms

Metavalue Advisors India

SPECIALLY Managed Account – The Metavalue advantage Risk Management • Investment Committee : Comprising of both the Investor / Investor Nominee and Metavalue Advisors India • Deal level – Cherry picked deals (deal flow access across marquee VCs, Incubators, Angel networks, Personal network); Multi level diligence, Veto power • Governance level – Metavalue Advisors personally involves with every portfolio company to keep a track of governance. Board seat wherever desirable • Exit level – Multiple sources of exit to minimize risk of options (across investing ecosystem); Continuous harvesting process to minimize timing risk; Multiple methods – strategic, IPO, Other funds Cost management points • Structure level – SMA structure minimizes Advisory overheads; Spend smart – where there is Returns value to be extracted • Operating level – Collaboration and Co-investing with Investment ecosystem minimizes costs across the cycle of deal flows, investing and exits; no need for expensive resources; minimal supporting infrastructure • Flexibility of structure – Option to move under VC or PE fund structure when objectives align with blind pool investing style.

Metavalue Advisors India

SPECIALLY Managed Account – The Metavalue advantage Returns Management • Active involvement by Chairman, Metavalue Advisors in need-based mentoring and coaching of leadership teams of portfolio companies to improve performance on a continuous basis • Hedge USD exposure that can affect Returns through investment diversification • Ongoing strategic plan reviews of portfolio companies to maximize valuations – ensure inorganic growth paths, strategic alliances, new markets, new products, new talent

Metavalue Advisors India

Metavalue Advisors pedigree -

Respected Thought leader in IT industry – turnarounds, rapid growth and transformations Blend of Wall Street Investment and Tech Strategic operating experience 20+ years of leadership experience in IT industry across globe – zero to USD 500 million Business track record from 1991 setting up and growing tech companies across Asia, Pacific, USA, Europe, GCC. Ex-Global CEO of PSI Data Systems , listed IT Business of Aditya Birla Group Currently Investor Mentor to Boards of various Tech companies Advisory Board of STPI Innovation India and Argand PE Fund USA Policy contributor - Innovation ecosystems, Finance and Innovation, Global trade

- Deal network across 7+ VCs, Angel network groups, STPI and other Incubators, IGA Metavalue market access portfolio, personal network –> 1000+ companies in deal flow at any time - Strong network and alignment with various Technology / VC funds investing in India and globally.

- Total AUM of funds in NETWORK over USD 1.25 billion with track record of 10-20 years - Delivered IRR of 20+% - Strong deal sourcing and deal see through with these funds due to relationship with GP team - Easier exits due to strong relationships with Industry, Financial markets and funds.

Metavalue Advisors India

Fund Terms Fund Term 5-7 years Commitment Period 2-3 years Fund Mandate Growth capital in Technology company (as per mandate defined in Advisory agreement) Target IRR 20% in INR Hurdle Rate 10% in INR Management Fees 2.00% pa on committed amount during investment period, 2% on AUA thereafter Carried Interest 20% with catch up Investment Mandate Series B onwards, Growth capital Target investment size USD 3-5 million each investment No. of investments 5-7 companies

Metavalue Advisors India

Structure Deal Flows Network Fund 1 Fund 2

Metavalue Advisors India

Mgt. Fees + carry

Family Office India SPV

Fund 7 Network

Investment Committee

Co- investment / Direct Investments

Boards/e tc Tech co 1

Metavalue Advisors India

Tech co 2

Tech co n