Sicom Capital books 25% return on investments

Catering to a niche market of start-ups requiring early stage capital funding, Pune-based Sicom Capital Management has received returns of over 25 per cent in its initial investments and is now looking at the domestic market to raise funds.

"Sicom, in its first round of funding, invested Rs 24 crore in companies that had a requirement in the range of Rs 2.5 crore to Rs 4.5 crore. In our first round of funding, we have had returns of over 25 per cent. On the radar is Bank of Maharashatra as it is headquartered in Pune," said Umesh Kudalkar, CEO, Sicom Capital Management.

The company mainly caters to the fund requirements of engineering, healthcare and IT companies, said Kudalkar.

It had created a niche for itself in this space as it was the only company besides the State Bank and its subsidiaries, which are limited by their geographical boundaries, and Small Scale Industries Development Board of India (Sidbi), a government organisation having a pan India presence.

Some of the companies that it funded included PARI Robotics, Neilsoft, Indus Teqsite, a Chennai based defense electronics company, Omni Actives, Iopsis Software, DSS and Persistent Systems which it has now exited.

Looking at raising funds for its second round of funding from banks, Kudalkar said, "In the next six months we are looking at raising Rs 75-150 crore from private investors and banks."

With the increased capital requirement, the company is also considering increasing the fund outlay for startups.

"We are now looking at funding companies with a requirement of up to Rs 8-10 crore," he said.