In 2016 we invested in Capacit’e, one of India’s leading EPC players focused on residential high-rise buildings.
Investment Theses:
- Lack of well capitalized, execution focused contractors
- Why Capacit’e stood out:
- Disciplined management focussed on one segment
- Good quality clientele
- Robust order book with high revenue visibility
- Comfortable leverage and working capital levels
- High integrity of Founders and history with Paragon Founders
- Transparent accounting norms mirrored to cashflows
Paragon Value Addition:
Leveraged our proprietary network to secure over 20% of the order book with leading private Grade-A developers, turning them into repeat customers.
Actively involved in strengthening the organization, building a high-performing leadership team, and scaling the Board.
Guided the company in refining the strategy and building a growth roadmap
- Optimized the capital structure, enabling the company for accelerated growth without early equity dilution.
Business Outcomes: Capacite’s was able to grow at a CAGR of 26% during FY16–FY24. The company had a blockbuster IPO in FY18 with 186x over-subscription