이 기사는 2019년 10월 25일 08:00 thebell 에 표출된 기사입니다.

South Korea's private equity (PE) firm STIC Investments entered into Indian market for the first time, through investing in Indian startup Dunzo. The market is paying attention to how the PE firm will comprise its investment portfolio after the latest investment.

According to investment banking industry sources on October 21, STIC Investments and its spun-off venture capital (VC) arm STIC Ventures have invested 10 million dollar (11.8 billion won) in hyper-local delivery startup Dunzo. STIC Investments put eight million dollar (9.4 billion won). Despite small amount, it is meaningful that this marks the PE firm's first investment in the Indian company. The four-year old startup provides on-demand hyper-local delivery services using motorbikes. It delivers a wide range of products, including everything from groceries to medical supplies.

STIC Investments chose Dunzo as its first Indian portfolio company because the PE firm saw high growth potential for Dunzo. As the first mover, Dunzo has much room to improve its profitability, if the startup can expand its business further, with support from financial investors. Considering this is the first investment in the Indian market, the PE firm partnered with a local investment advisor. The local partner reportedly introduced the Dunzo deal to the PE firm.

Do Yong-hwan, the founder and chairman of STIC Investments has emphasized the importance of overseas investment for a long time. STIC Investments has built a plan to expand its presence in ASEAN market by staying nimble. The PE firm has carefully hunted for investment opportunities in the Indian market over the past two years. India is one of the most promising countries to invest in with its large population and high growth potential. South Korea's major conglomerates including Samsung Electronics, Hyundai Motor, and Doosan Group also have big interests in the Indian market.

STIC Investments' 317 billion won worth Pan-Asia fourth Industrial Growth Capital Fund added an Indian company to its portfolio with this investment. The PE firm has invested 179.4 billion won in eight companies via this fund. The fund spent 57 percent of the capital committed in the first six months of its creation.

The Pan-Asia fourth Industrial Growth Capital Fund focuses on overseas and domestic businesses with high potential. STIC Investments invested in Vietnam's Viet Uc Seafood Corporation and Chinese food service company Joyvio Group with SK Group via this fund. The fund has invested only in foreign companies, except for two domestic companies.

The fund is likely to spend money that has been raised but not yet spent (dry powder) rapidly through additional investment by the end of this year.

The PE firm will also likely to search for investment opportunities at home and abroad via Special Situation Fund II (SSF II), which was closed on 1.2 trillion won. The PE firm is currently raising more money to increase commitments to 1.5 trillion won.

(By reporter Kim Hye-ran)