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May 15, 2017

Attractive Economics of

VC investor Matrix Partners recoups investment amount just via an year's dividend!

Last month, when Canadian Private Equity investor Clairvest acquired a majority stake in online rummy focused gaming service, Economic Times reported how the deal fetched Matrix Partners India an over 20 times return on its seven year old investment. 

Financials of Head Infotech Pvt Ltd, the Hyderabad-based company that operates, available in Venture Intelligence's Private Company Financials (CFS) database, show the company made a Net Profit of over INR 62 Cr on a top line of about INR 169 Cr in FY16. The company has been maintaining this level of profitability - ie, 35% margins - for over five years now, even as it has grown rapidly (5 year CAGR of 80%)!

In fact, as recorded in the Venture Intelligence PE-VC Exit Deals Database, Matrix Partners realized its investment amount - of INR 7 crore made in 2010 - just via the dividend it received for FY'16!

Arun Natarajan of Venture Intelligence highlights these numbers as part of the ET-NOW Startup Central show:

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.