Pantomath’s IIOT Floats Second Cat II Alternative Investment Fund With INR 2,000 Cr Corpus

Investment firm Pantomath Capital Management has launched its second Category II Alternative Investment Fund (AIF), Bharat Value Fund (BVF). 

The fund, which was set up under the leadership of Pantomath’s cofounder and executive director Madhu Lunawat back in April, is launched with a target corpus of INR 2,000 Cr ($240 Mn), with INR 1000 Cr ($120 Mn) as the base amount, along with an additional green shoe option of INR 1,000 Cr. 

The firm has also marked the first close of the fund with commitments to the north of INR 1,000 Cr. The term for the fund is five years from the aforementioned first close, plus an additional two years.

Lunawat, who will act as the chief investment officer for the firm, said that the firm will invest in growth stage consumer goods and  trade Indian companies that promote the “Made in India” ethos.

Under the investment vehicle, Pantomath will invest in companies with an intent to make an exit via an initial public offering within three years. The preferred ticket size for the investments will be INR 75 Cr

“Bharat Value Fund is designed to capitalise on the massive demographic opportunities in the mid-market segment that the Indian economy presents. We are confident that BVF will deliver robust returns and become a cornerstone of our investors’ portfolios, helping them achieve long-term growth and financial success,” she said. 

Founded by Mahavir Lunawat and Madhu Lunawat in 2013, Mumbai-based Pantomath deals in wealth management, fintech and stock broking, among others. The group claims to be one of the fastest-growing merchant bankers backed by fund management and distribution verticals.

Besides announcing the first close of its second AIF vehicle, the firm also claimed that it has deployed 100% of the committed money for its first Cat II AIF India Inflection Opportunity Fund. In a statement, it said that it has made a total of 12 investments from its kitty of INR 500 Cr, with eight investments coming in the past eight months. These investments include Nurture Well Foods, Vardhman Group, MKC Agro Fresh among others.

Pantomath marked the final close of the fund back in November at INR 500 Cr, taking the total corpus under its supervision to INR 2,500 Cr. Most recently, it led the coworking space startup Incuspaze’s maiden funding round, which saw the startup raise $8 Mn. 

The inauguration of the fund comes at a time when investors believe that the Indian startup ecosystem is set to witness a revival in funding trends. According to an Inc42 survey — “India’s Top Startup Investor Ranking H1 2024 Survey” — about 93% of over 50 startup investors see 2024 as a turnaround year for Indian startups in terms of funding. Only a mere 7% feel that funding corrections will continue to fret Indian startup founders.