On 18 April 2018, TR Capital – a specialty secondary investments fund based in Hong Kong, put out an official statement about two of its secondary direct investments in India. It has bought a 10% stake in Lenskart Solutions and 10.5% stake in Arohan Financial Services which is a non-banking finance company (NBFC) based in Kolkata.
Off late, venture capital firms consider the sale of secondary shares as a major source of exit since IPOs (Initial Public Offerings) and large sales of stakes are yet to be made a standard feature in the market. In India, private equity is blooming which has naturally led to secondary market development as a result of large private equity investments over the last 15 years. The CEO and founding partner of TR Capital, Paul Robine has said that the fund can provide liquidity solutions in these companies and is focussed on expanding its investment portfolio.
Arohan, based in Kolkata, is a part of Aavishkaar-Intellecap Group. It raised Rs.155.5 crore for the purpose of expansion. Maj Invest, a Danish Asset Management Company (AMC) invested $15 million while Aavishkaar Venture Management Services, Tano Capital, and a few others invested $9 million combined.
About Lenskart Solutions
In order to get an additional stake in Lenskart Solutions, TR Capital III obtained shares from TPG Growth and Unilazer Alternative Ventures LLP, a private equity firm. Now, it will hold a 10% stake in Lenskart after the completion of the deal. Previously, it had acquired a 1.3% stake in Lenskart. The first time TR Capital invested in Lenskart was in 2013. Unilazer Ventures, PremjiInvest, TPG Growth, and IDG Ventures India are the other investors of Lenskart.
About TR Capital
TR Capital first started investing in India back in 2008. The investment portfolio of TR Capital includes Vivimed Labs (Uquifa), SSIPL, Sedemac, Urban Ladder, Lenskart, and Flipkart. Likewise, NewQuest Capital Partners which is a Hong Kong-based secondaries fund is also focussed on expanding its investment in India.