March 24, 2017, India: Paragon Partners Growth Fund – I (“Paragon Partners“) today announced the successful completion of two new investment transactions aggregating to INR 100 crore (approximately US$ 15 million). The transactions comprise a INR 75 crore investment in Cravatex Brands Limited (“CBL”), a pan-India retail and distribution platform for lifestyle, sports and wellness, and a INR 25 crore investment in InCred Finance (“InCred”), a technology-driven new age NBFC (Non-Banking Finance Company). With the completion of these two transactions, Paragon Partners has successfully deployed approximately INR 275 crores across four companies.
Cravatex Brands is a wholly owned subsidiary of publicly listed company Cravatex Limited, and has an exclusive long-term licensing agreement with FILA, the Italian sportswear and lifestyle brand, for footwear, apparel and accessories. Company also has the exclusive distribution rights, through its Proline Fitness division, for Johnson Healthtech (Taiwan), one of the leading global manufacturers of fitness equipment, to promote its brands such Matrix, Horizon and Vision (which compete with brands like Cybex, TechnoGym, LifeFitness and Precor).
InCred is a technology-driven new age NBFC (Non-Banking Finance Company) founded by Bhupinder Singh (formerly Asia Pacific Head of Investment Banking, Deutsche Bank) and backed by Anshu Jain (formerly co-CEO of Deutsche Bank). InCred focuses on four lending verticals: Affordable Housing, SME (Small and Medium-Sized Enterprises), Education and Consumer Finance. InCred will extensively use its robust technology platform and its partnership model for efficient customer acquisition and credit underwriting for the under banked and under-served segment. Incred has developed a low cost and convenient paperless process offering a superior borrowing experience. The company has already raised over INR 550 crore from a marquee set of investors from India and overseas.
Established in August 2015, Paragon Partners Growth Fund is an AIF-Category II private equity fund investing in mid-market private companies in India. Paragon Partners will focus largely on five key sectors comprising consumer discretionary, financial services, infrastructure services (capex light), industrials and healthcare services and will look to invest in companies where it can play an active role as a shareholder. The firm targets an investment size of US$ 10-15 million as minority growth capital.