Zephyr Peacock Aims 7-9 Investments In Coming 2 years

Over the next 18 to 24 months, Zephyr Peacock, the private equity (PE) division of Zephyr Management with headquarters in New York, expects to make 7-9 investments in India. According to Pankaj Raina, MD, investments, the third fund, which has a $100 million capital, would make a total of roughly 14–15 investments.

The PE firm has already invested in six Indian startups from its third fund, which began allocating capital in 2020: Shiksha Finance, Loanzen, Aqgromalin, Poshn, ZippMat, and Ripplr. Raina, who said the PE firm is sector-specific — would focus on the financial services, food and agricultural and infrastructure ancillaries space for its upcoming investments.

"We are heavily tilted toward climate finance, via electric vehicles (EVs), and we'll keep concentrating on supply chain digitization. We'll look at farming practises that address climate change within the context of food and agriculture. We are drawn to markets with high growth rates and sizable underserved areas where there aren't many established competitors, giving small firms a chance to take the lead in their respective industries, according to Raina.

The initial investments in each startup will be capped at $3 million, he stressed. The third fund takes part in follow-on rounds of portfolio businesses as well, but it is only allowed to invest a total of $10 million in any one company.

"There's no use in sinking more money; our investments will be between $1 million and $3 million, and we'll add to them as they increase. Our third fund will come to a close with the seven to nine investments, he continued. Zephyr Peacock will prepare the ground for its fourth fund, which will be roughly $120 million, after that is finished, which should take about the next 12 to 15 months.