Vnesheconombank and Indian SREI announce the launch of Viman Capital, a joint private equity fund for innovation and technology

On 24 May 2018, during the business programme of the St. Petersburg International Economic Forum, Vnesheconombank and Srei Infrastructure Finance Limited (SREI), a leading Indian infrastructure and financial holding company, announced the launch of Viman Capital, a joint Russian-Indian private equity fund for innovation and technology.

After the signing of the principal terms of financing by Vnesheconombank in late 2017, VEB-Innovations and SREI have finalised the legal structure of the fund and are ready to proceed to investment activities. These efforts have resulted in the signing of an agreement on the joint fund, Viman Capital PTE Ltd., between VEB-Innovations, a subsidiary of Vnesheconombank, and Srei Infrastructure Advisors Limited, SREI's subsidiary. The agreement has been signed in the presence of Hemant Kanoria, SREI's Chairman, and Daniil Algulyan, Senior Vice President at Vnesheconombank. The event was also attended by Atul Chaturvedi, Additional Secretary at the Department of Industrial Policy and Promotion, Republic of India.

In addition, during the event cooperation agreements were signed between Viman Capital and pilot project companies shortlisted after preliminary analysis, including: UBIC Technologies (internet traffic and data analysis), OOO BFG Group (business intelligence and business process management software), OOO Multikubik (innovative video replay devices), and Techno Sat Comm Private Limited (India, metro Wi-Fi solutions).

The choice of projects has been driven by the fund's mission – to promote technology relations between the two countries. An example is the public Wi-Fi project in the Delhi Metro, put in place by Indian Techno Sat Comm. The fund's team has invited to participate in the project Vnesheconombank's partner MaximaTelecom, a Russian technology company leading the global market in this segment and having a successful track record in building and monetising Wi-Fi infrastructure via a proprietary software platform. During the Forum, the Russian and Indian companies have signed a cooperation agreement as part of their partnership.

"We believe that the fund will be successful. First, because both parties are really willing to implement an ambitious project. And, second, because the fund will fully cater to the needs of Russian innovative and high-tech companies in accessing international markets. Helping such companies is one of Vnesheconombank's objectives. Our analysis has provided us with new insights on the Indian market: there are some truly exciting companies in the market, and we also see great opportunities for pushing integration initiatives together with Russian businesses," said Daniil Algulyan after the signing ceremony.

"We can confidently state that cooperation between Russia and India in IT and other innovative areas offers tremendous potential. We note strong appetite from Russian high-tech companies for potential entry to the Indian market, and considerable opportunities for synergy between them and Indian partners. On the other hand, we see a number of Indian projects that are ready to enter the Russian market. One of our business priorities includes promoting similar bilateral relations, and this is why we are so optimistic about the fund's outlooks. I hope the fund will become a success, which will encourage investors to pay more attention and allocate more resources to Russian-Indian innovative projects," said Oleg Teplov, CEO at VEB-Innovations.

"The new fund has brought us closer with Vnesheconombank. We have been able to establish robust business relations, launch the process from scratch within an unprecedented timeframe, and shortlist a number of pilot projects. We have seen that the Russian market is full of game-changing ideas, which would be strongly appreciated in India. In their turn, Indian businesses have lots of opportunities to thrive in the Russian market. This project is our first joint project with Vnesheconombank, and we are confident that many other initiatives will be successfully implemented going forward," said SREI's Chaiman, Hemant Kanoria.

The fund's policy will focus on investing in Russian and Indian high-tech companies that are ready to scale up and expand to international markets, mainly in BRICS, EAEU, and ASEAN countries. A particularly strong focus will be placed on taking advantage of Russian and Indian research capabilities while promoting bilateral relations and integration in IT innovations. The fund's operation will have a positive impact on trade development and transfer of leading-edge technologies, including to third countries.

Initial investments are planned to be made before the end of the current year. At earlier stages, the Fund's total capital will reach up to USD 100m. At subsequent closings, the capital of Viman Capital will be increased to USD 200m.

SREI is one of India's largest holistic infrastructure institutions, constantly and consistently delivering innovative solutions in the infrastructure space. The company has been involved in a number of significant national projects, both in urban, and rural infrastructure of India. SREI Group offers a full range of services: infrastructure project financing, consulting, equipment supply financing, private equity funds, capital markets, and insurance brokerage. SREI's head office is based in Calcutta, while its subsidiaries are present across the country.

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