Venture Capital firm Peak XV Partners stands to make returns of over 65X by betting Rs 354 crore on just two fintech companies, Groww and Pine Labs, that went public this week, as per Moneycontrol’s analysis.
How much did Peak XV invest in Groww?
Peak XV Partners invested a total of Rs 233 crore (about $26 million as per the USD/INR exchange rate on 14 November) in Groww over several years starting in 2019. As of the close of trading on November 14, its stake is now worth a whopping Rs 15,720 crore (around $1.8 billion) at the closing share price.
How much is Peak's stake in Groww worth?
These unrealised gains are after the VC firm has already sold shares in Groww worth Rs 1,583 crore (around $180 million) and made solid gains.
How much will Peak make in total by betting on Groww?
A-back-of-the envelope calculation shows Peak XV has already turned an investment of Rs 233 crore (about $26 million as per the USD/INR exchange rate) into a 7X outcome of Rs 1,583 crore (around $180 million) in a span of about six years and it still stands to make another Rs 15,720 crore (around $1.8 billion), as per the share’s closing price on November 14.
In totality, Peak XV will make a total of Rs 17,303 crore (around $2 billion) on an investment of just Rs 233 crore (about $26 million as per the USD/INR exchange rate).
Pine Labs delivers
Similarly, the Bengaluru-based VC fund invested a total of Rs 121 crore (about $14 million as per the USD/INR exchange rate) in fintech major Pine Labs over a period of 16 years or so starting 2009.
Today its holding in the company is worth Rs 4,851 crore (around $550 million) as per the price per share at the close of the day’s trading session on November 14.
How much did Peak XV invest in Pine Labs?
These unrealised gains are over and above the money the VC fund has already profited by selling some shares as part of the offer-for-sale (OFS) component during the IPO. Peak XV Partners has sold Pine Labs shares worth Rs 508.35 crore (around $577 million) and made handsome returns.
This suggests Peak XV has already turned an investment of Rs 121 crore (about $14 million as per the USD/INR exchange rate now) into over a 4X outcome of Rs 508.35 crore (around $577 million).
Peak XV still stands to make another Rs 4,851 crore (around $550 million), as per the share’s closing price on November 14, by betting on Pine Labs.
How much will Peak make in total by betting on Pine Labs?
In totality, Peak XV will make a total of Rs 5,359 crore (around $600 million) on an investment of just Rs 121 crore (about $14 million as per the USD/INR exchange rate) through Pine Labs.
While both Groww and Pine Labs have delivered handsome returns for Peak XV Partners, Groww stands out as it took just around six years to deliver returns of over 70X. Pine Labs’ 45X returns took around 16 years to materialise.
With these, Peak XV will be one of the most successful VC firms in terms of exits as it stands to gain over $2.6 billion with several of its portfolio companies such as Meesho and Wakefit slated to go public over the coming years.
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