Mr. Rakesh Malhotra, Managing Partner, Ncubate Capital Partners has wide experience in building brands and distribution in India, Asia and Africa with five successful businesses. He is an A B.E. (Electronics & Telecom) graduate from Jadavpur University in West Bengal and a highly successful serial entrepreneur. Mr. Malhotra started his career as an Executive in Siemens, followed by NELCO and Mitsui. In 1985, he founded his first venture, called "Oak Power Systems" which sought to exploit the power situation in India by designing and marketing India's first offline UPS system for PCs. He has since then been instrumental in founding several other ventures in areas such as Electric Vehicle and Electric Drive Train, Engineering Design Outsourcing, Telecom Energy Efficiency and Mobile Handsets Manufacturing.
Ncubate Capital Partners is an innovative venture funds and services enterprise that seeks to provide a combination of growth capital, skill-gap fulfillment and knowledge. In other words, Ncubate not only provides funds to the entrepreneurs but also gives them the much required expertise, human capital and processes to set up and make their business successful. Ncubate Capital Partners began under the SAR Group and was promoted by its founder Mr. Rakesh Malhotra. The company invests in growth businesses in the MSME space to create value proposition by leveraging its efficient operational and managerial capabilities backed by sectoral knowledge. It extends its services to provide services to set up full-fledged enterprises across all business operations in selected sectors. It also provides services to businesses to set up and run their distribution operations besides giving them advisory services to have a better understanding of the country and opportunities.
Replying to Yash Ved of IIFL, “Our investment size ranges from US$3mn to US$15mn over the life cycle of the investment.”
What was the rationale behind entering the Private Equity business?
I very successfully built and established Luminous brand, and when it reached great heights, I sold a major stake to a French company.
Being an entrepreneur at heart, I wanted to come up with something new. Hence, I forayed into PE business to begin my second entrepreneurial journey.
What is Ncubate Capital’s Investment Philosophy?
Ncubate’s main focus is to provide a combination of growth capital, skill-gap fulfillment and knowledge.
Ncubate India extends its services to provide:
Opportunities to start, establish and expand operations in India
Services to set up full-fledged enterprises across all business operations in selected sectors.
Services to businesses to set up and run their distribution operations.
It also offers advisory services to have a better understanding of the country and opportunities.
What is the ticket size of Ncubate Investment?
Our investment size ranges from US$3mn to US$15mn over the life cycle of the investment. We would like to acquire a significant minority to a minor majority stake with Board representation for all investments.
The size of our PE fund is US$150-200mn (Rs 750-1000 crores) and it would see around 10-15 deals within the fund life.
What is the initial investment?
We are planning to invest Rs 250 crores.
What is the USP of Ncubate?
At Ncubate Capital, the work is aligned with our highly experienced team of professionals. These specialists have an impressive track record in their specific domains with significant cross-border expertise. With an in-depth knowledge and a hands-on experience in their respective domains, our team members are readily available to all Ncubate Capital clients as mentors, coach and guide.
Which sectors are you specifically targeting?
Branded consumer goods (durables & non-durables) and services
Energy, renewable energy and clean technology.
Distribution, supply chain and logistics.
Software, engineering and design KPOs, including e-commerce platforms.
Auto components and electric mobility.
What is the outlook for PE/VC business?
It will see a new era of entrepreneur nurtured by PE / VC funds. Setting up PE funds is bound to happen with entrepreneurs with a large corpus because they want to put their money to work.
In today’s time taking loans from banks is becoming difficult. Inflation is going high. Interest rates are creeping up. Banks are looking for more liquidity and consequently it is becoming more difficult to get loans and credits quickly.
Ncubate has been set up to provide venture capital funding and skilled services for the entrepreneurs. Ncubate not only provides funds to the entrepreneurs but also gives them the much required expertise to set up and run their businesses. Ncubate not only provides capital, it provides hand-on domain expertise.