STIC Investments focuses on Indian infrastructure

STIC Investments has recently invested $10 million (12.1 billion won) in Sahyadri Hospitals in India after it invested $10 million in delivery startup Dunzo last October. The firm’s investing activities in the country focus on infrastructure.

STIC Investments joined forces with STIC Ventures in October 2019 to invest $10 million in Dunzo, which is the firm’s first Indian portfolio company. This time STIC Investments has solely invested in Sahyadri Hospitals.

Both Dunzo and Sahyadri Hospitals are infrastructure-related businesses with high-growth potential in a country where social infrastructure needs development.

Dunzo is an Indian startup which provides on-demand hyper-local delivery services using motorbikes. It delivers a wide range of products from groceries to medical supplies. The app-based company also operates a pick-up and drop-off service along with a bike taxi service. Such comprehensive delivery and transportation services make Dunzo different from other food delivery service providers.

Dunzo has also received funding from Google, which saw a high-growth potential for the startup amid a rise in household income and a growth in the Indian consumer market.

STIC Investments has chosen Sahyadri Hospitals as its second investment in India because of its high-growth potential. Sahyadri Hospitals is in Pune, the second-largest city in the Indian state of Maharashtra with a population of seven million.

Pune’s economy is growing at a rapid pace with a large number of multinational companies entering the city. South Korea’s LG Group, POSCO and Hyosung have their production plants in the city.

STIC Investments’ funding of Sahyadri Hospitals and Dunzo have been made through its STIC Pan-Asia 4th Industry Growth Fund (Pan-Asia Fund). The firm’s 317 billion-won Pan-Asia Fund focuses on growth companies in emerging Asian countries such as Vietnam and India. The fund mainly invests in overseas companies that have connections with South Korean companies or their overseas entities.

Pan-Asia Fund is STIC Investments’ first blind-pool fund exclusively for overseas investments. Before investing in Dunzo, the fund’s portfolio was filled with Chinese and Vietnamese companies.

STIC Investments is expected to more actively invest in the Indian market considering the firm has built reputation and networks through its two previous investments.

STIC Investments is raising funds to launch its 500 billion-won Pan-Asia Fund II, which is likely to be completed in the second half of the year. The firm plans to actively source new deals mainly in India and Vietnam, especially companies which are able to create synergies with domestic firms. (Reporting by Hye-ran Kim)