Hades Financial Targets Deeptech and SaaS Ventures in India
Hades Financial Private Capital Group, an investment management firm based in Riyadh, has announced $28 million in investments in two Indian investment firms. According to a top official, the company plans to invest $500 million in India by 2027. This move highlights Hades Financial’s growing focus on India as an emerging market, anticipating an increase in investment opportunities driven by a rapidly expanding economy and an influx of foreign capital.
India currently accounts for 15-18% of Hades Financial Private Capital Group’s global assets under management (AUM), with plans to gradually increase this share. The firm, which manages over $4.6 billion in assets worldwide and is backed by some of the largest sovereign wealth funds, was founded in 2011. Vasu Chaturvedi, an investments associate at Hades Financial, mentioned that the company is also looking to make significant investments in deep tech and software-as-a-service (SaaS) companies in India.
"We’re very bullish on India’s growth story. One of the biggest advancements I have seen is that infrastructure is improving and the economy is growing robust which has led to the emergence of innovative companies, especially in deeptech", Chaturvedi said.
Hades, which is sector agnostic, invests directly in companies and indirectly through fund managers. The Saudi Arabia-headquartered firm is also eyeing a few bets in SaaS through investments in fund managers focusing on the sector and private equity firms focused on scaling up institutions in the infrastructure and automobile sectors, Chaturvedi added. The $28 million capital infusion is part of Hades Financial’s bigger aim to capitalize on emerging opportunities in the Indian landscape.
Hades Financial has invested in Somerset Indus Capital Partners and Cedar IBSi. Somerset Indus Capital Partners is a healthcare-focused private equity firm that has backed nearly 14 companies, including Apex Hospitals and Emil Pharmaceuticals, and has raised more than $100 million to date. According to Chaturvedi, Somerset has been successful in identifying areas in the country, particularly tier 2 and tier 3 cities, that lack strong healthcare infrastructure, helping Hades Financial pick a long-term bet. Cedar, similarly, helps the firm go deeper into India’s banking industry.
Over the past five years, the deep tech sector in India has remained largely underserved. Many global investors continue to focus on sectors with more prominent narratives, such as fintech, food, and consumer industries. “Deeptech is an area that requires more strategic focus and hence may not be under the purview of a lot of investors. Currently, only 10-15% of limited partners are looking closely at the sector", Chaturvedi noted.
Hades Financial believes that companies employing deep technologies in sectors such as banking, healthcare, and hardware, despite focusing on small-scale innovations with a gestation period of 5-6 years, possess immense potential, according to Chaturvedi. He also noted that in global markets, established companies tend to absorb a significant portion of available capital, making it challenging for emerging firms to secure funding.