Silicon Valley-based seed-stage investment organization Think Investments and prominent venture capital firm Elevation Capital, earlier recognized as SAIF Partners, which has backed startups such as Paytm, Swiggy, Urban Company, ShareChat, and so forth., have with each other launched a blank cheque organization Think Elevation Capital Growth Opportunities focusing on Indian technologies startups. The particular objective acquisition organization (SPAC) Think Elevation had filed for a $225 million Nasdaq initial public supplying (IPO) this previous Friday, according to the US Securities and Exchange Commission filing observed by TheSpuzz Online. The company’s board comprises Paytm’s Vijay Shekhar Sharma, Dream11 Co-founder Harsh Jain, SoftBank’s former Managing Partner Kabir Misra, and other folks. The SPAC is led by Founders of Elevation Capital and Think Investments Ravi Adusumalli and Shashin Shah respectively.
“We seek to provide a path to additional capital and access to the public capital markets through a listing on a U.S. national securities exchange for Indian technology companies,” the filing study. The improvement has come amid numerous Indian technologies firms reportedly searching to list outdoors India by way of the SPAC route such as Flipkart, Grofers, and so forth. Also, renewable power organization ReNew Power had final month announced its merger with the US-based SPAC RMG Acquisition Corporation II to list on the Nasdaq.
Emails to Elevation Capital and Think Investments for this story didn’t elicit quick replies.
“Eventually, some of the Indian category-creating companies will have to go public to become stable. For those looking to list in the US, the fastest path is SPAC where you simply raise money and that money merges with the SPAC, and then it becomes a listed company. Going forward, most companies will go public through SPACs in the US unless you are a very large company and if you feel SPACs are not fairly valuing you. In the US, there has been more than $80 billion of money raised through SPACs that is waiting to merge with companies to go public. It will create a lot of liquidity in the ecosystem,” Abhishek Goyal, Co-founder, Tracxn told TheSpuzz Online.
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Blank cheque providers or SPACs are fundamentally shell firms listed in the public market place devoid of any business enterprise operations and are led by seasoned investors. SPACs are set-up in order to merge or acquire other operational firms. Think Elevation is registered “for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, which we refer to as our initial business combination,” the filing study.
As of December 31, 2020, Think Investments and Elevation Capital have invested about $1.3 billion in private providers in India, on a combined basis, valued at about $7.4 billion and have generated an aggregate 5.7x numerous on invested capital. Moreover, Think Investments and Elevation Capital, with each other, had roughly $960 million in assets beneath management in public providers as of December 31, 2020.
In India presently, there is no regulatory framework for SPACs. “India should also build a vehicle like SPAC to support Indian registered companies or rule that if you merge with a US SPAC then there will be no tax event. The Indian market has been more conservative in its approach and has been tightly regulated but this is the innovation they should adopt,” added Goyal.