Multi-Act Aims To Elevate Investment Play With A $100 Mn Global Fintech Fund
India has quickly risen to become the third-largest startup ecosystem worldwide, boasting over 68,000 tech startups and 114 unicorns. This vibrant landscape has attracted a significant influx of $146 billion in investments thanks to a robust investor community exceeding 9,700 members. Amidst this fertile ground, Multi-Act, a Mumbai-based private equity firm, has carved out its niche by investing in avant-garde fintech startups that are reshaping the financial landscape with technologies like artificial intelligence and predictive analytics. With its initial Fund I amassing INR 100 Cr, Multi-Act is now gearing up to launch a monumental $100 Mn global fintech fund, aiming to extend its reach and impact in the fintech domain.
Multi-Act’s history of investments illuminates a keen focus on next-gen financial technology. Their India-centric fund spotlights wealthtech, insurtech, fintech infrastructure, and capital market tech, maintaining a stage-agnostic approach that has nurtured a diverse portfolio. To date, Fund I has strategically deployed 75% of its corpus across seven investments in exemplary fintech ventures, showcasing a blend of innovation and financial acumen. With its recent successful partial exit from Orbis Financial, yielding substantial returns, Multi-Act is poised to complete its Fund I investments by the end of 2024.
In a revealing discussion, Multi-Act’s Board Director Ashutosh Bishnoi and AIF Fund CIO and General Manager Sekar Iyer shared insights into the firm’s journey, investment strategy, and vision for the upcoming global fintech fund. Tracing its origins to 1997, Multi-Act commenced as a family office, evolving over the years to offer a spectrum of investment research and advisory services to a global clientele. Recognizing the dynamic shifts in the investment landscape, Multi-Act ventured into the startup sphere in 2017, with a clear focus on fintech, drawn to its transformative potential and alignment with the firm’s financial services expertise.
The core of Multi-Act’s fintech investment thesis lies in identifying B2B and B2B2C ventures that streamline financial services and capital markets, leveraging disruptive technologies to carve out new efficiencies. The firm seeks out market leaders or potential market leaders, focusing on investment tech, wealthtech, and innovative lending platforms. This discerning approach to investment, prioritizing revenue-generating businesses over profitable ones, guides Multi-Act in cultivating a rich portfolio that promises robust returns and operational scalability for its investees.
Looking ahead, Multi-Act sets its sights on launching its $100 Mn Fund II, targeting an initial close at $50 Mn while exploring broader horizons, including potential investments outside India. Yet, the firm remains steadfast in its commitment to bolstering fintech innovations that hold the promise of global reach, albeit from an Indian base. In this ambitious pursuit, Multi-Act not only aims to deliver financial returns but also to foster a synergistic ecosystem where its portfolio companies and broader business objectives align to herald a new era of fintech innovation.
In wrapping up, the Multi-Act team acknowledges the broader risks and challenges within the fintech landscape, particularly in navigating regulatory environments. However, their strategic focus on infrastructural solutions positions them to capitalize on the sector’s growth while minimizing direct risk. As Multi-Act gears up for its upcoming fund and investment cycle, its refined strategy and commitment to innovation stand to make a significant impact on the fintech sector, promising exciting opportunities for startups and investors alike.
