This SpaceX investor will spend $20M each in 12-15 companies
What's the story
Playbook Partners, a growth capital firm, plans to invest $20 million each in 12-15 firms over the next two years.
The company's investment portfolio includes entities like Myntra, PolicyBazaar, InMobi, Nazara Technologies, Rapido, and Renee.
While primarily investing in India, Playbook Partners has also backed global companies like SpaceX and Stripe.
Strategy
Targeting high-potential ventures across sectors
Vikas Choudhury, Founder and Managing Partner of Playbook Partners, unveiled the firm's investment strategy.
He said, "With planned investments up to $20 million each in 12-15 companies, we are targeting high-potential ventures across SaaS, E-commerce, Healthtech, ClimateTech, B2B & B2C."
The firm is especially keen on businesses that have crossed ₹100 crore in turnover.
Choudhury highlighted that their capital and expertise can greatly accelerate these companies' growth trajectory.
Past success
Choudhury's track record and future expectations
Choudhury, a former Jio president, has a successful track record of investing in 75-80 companies, 10 of which have become unicorns.
He expects another 10 to follow suit, including Cure Foods, GoQuick, Capillary, UltraHuman, FarMart, Jupiter, and JAR.
His firm's investment approach prioritizes growth capital over traditional venture capital. This strategy focuses on businesses that have the possibility to become market leaders with cash-based outcomes within 3-5 years.
Investment philosophy
Playbook Partners's unique investment approach
Differentiating Playbook Partners from other VCs, Choudhury noted their unique investment strategy.
He said while traditional VCs tend to invest early in an idea/product with a typical 10-12 year minimum hold period, his firm prefers to come in when a company has already established its product, market, and customer base.
He described this strategy as "reinvesting for growth."
Investment criteria
Criteria for selecting startups to invest in
Choudhury also shared the criteria his firm follows while selecting start-ups to invest in.
He stressed the significance of total addressable market size, P&L quality, technological tailwinds, enablement of businesses, and leadership potential.
"The first thing that we look for is the ability to get to scale," he explained. "The second thing that we look for is the quality of the P&L—both on the revenue side as well as on the cost side."