TVS Capital Funds Reinvents Investment Strategy for the Future

TVS Capital Funds Ltd., a pioneering private equity firm based in India and set up in 2007 by Gopal Srinivasan, is embracing a strategic transformation. Having deployed INR 3,000 Crore from three growth-focused PE funds, the firm is now preparing for its fourth fund after obtaining SEBI’s approval in January 2024. TCF has already raised INR 2,500 Crore out of the INR 3,000 Crore corpus, with an emphasis on the lucrative sectors of financial services and technology. The firm has evolved its investment thesis through its funds, initially being sector-agnostic, but later concentrating on the sectors it understands well, like financial services and tech-for-finance startups. The new strategy includes a multi-stage investment model emphasizing both early and late-stage startups. The firm has implemented a proprietary evaluation process known as the 1080 process, which includes extensive stakeholder interviews and comprehensive due diligence. With a focus on efficiency and innovation, TCF is integrating advanced technologies to streamline operations and enhance investment processes while maintaining its disciplined approach in the rapidly changing Indian startup ecosystem. The transformation is supported by a robust leadership and advisory team, and it aims to create multi-decadal businesses and drive high returns against market fluctuations.