Angel investing platform Inflection Point Ventures (IPV) said it made 12 partial exits in 2022 which helped it generate an internal rate of return (IRR) of 160 percent for its investors, even at a time when several startups have seen their valuations correct from highs they enjoyed during the pandemic years.
The exits in 2022, compares with 13 partial exits that IPV made in 2021 with an IRR of 190 percent, as deals activity in the larger ecosystem slowed on a year-on-year (YoY) basis.
Some of its notable exits include BluSmart, the electric ride-hailing platform, which gave IPV an IRR of 94 percent and a multiple of money (MoM) of 2.03. Simply put, MoM is the total cash inflow divided by the total cash outflow. A negative number indicates that the fund invested more money than it earned back.
Buyofuel, Kazam, Otipy, Stage, Pear, Cercle X, EnsuredIT, LoanKuber, Raaho and Streak are some of the other exits that IPV made during the year.
In total, the IRR was anywhere between 56 percent for Pear, a SaaS platform, and 378 percent for Streak, a fintech platform. While the MoM was in the 1.53 to 3.61 range.
To be sure, since IPV invests in startups at a very early stage, its investment size typically varies between Rs 1 crore and Rs 15 crore, and because of the low base IPV’s percentage returns may look high.
“The ongoing funding winter didn’t deter us from our investment and exit strategy. Last year, we exceeded our investment target and have put Rs 190 crore against Rs 155 crore target in Indian startups,” Vinay Bansal, founder and CEO, IPV, said.
IPV invested in about 55 startup deals last year and plans to invest in more than 60 start-ups in 2023.
Launched in 2018 by Bansal, Ankur Mittal and Mitesh Shah, IPV has invested Rs 550 crore across over 170 startups. At an overall level, the angel platform has made nine full exits and 21 partial exits so far.
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