In a strategic move, alternative asset management firm Rockstud Capital and micro VC fund Artha Venture Fund have successfully executed a partial exit from Everest Fleet, a prominent fleet management service provider for Uber India. This development comes in the wake of Uber’s noteworthy $20 million investment in Everest Fleet earlier this year, marking the ridesharing giant’s initial foray into inorganic investments in the Indian market.
Everest Fleet’s Transformation Journey: From CNG to Electric Vehicles
Everest Fleet had disclosed that the infusion of funds was intended to facilitate its transition from a predominantly CNG-powered fleet to one encompassing both CNG and electric vehicles (EVs) over the next five years. The ambitious goal is to have a fleet of 10,000 EVs by the year 2026. Notably, Rockstud Capital initially invested in Everest Fleet back in 2019 when the company boasted a fleet of just 150 cars primarily operating in Mumbai. In a remarkable growth trajectory, Everest Fleet has expanded to comprise over 13,000 cars spanning seven cities. Furthermore, the company has commenced the deployment of EVs, a strategic move that has enabled Rockstud Capital to return the entire capital to its limited partners (LPs).
“This makes Rockstud Capital one of the very select few VC funds in the country to be able to return the entire capital back to its investors within the fifth year of operations. The fund has generated an impressive 18.8X return on its investment through this partial exit,” emphasized Abhishek Agarwal, Founder and Managing Partner of Rockstud Capital.
Rockstud Capital’s Diverse Portfolio and Future Investment Strategy
In 2018, Rockstud Capital introduced its inaugural hybrid fund, encompassing investments in both listed and unlisted equities across a spectrum of sectors, including mobility, consumer brands, healthcare, fintech, and agritech. With a diversified portfolio featuring 10 companies, including BigHaat, Lilac Insights, Knorish, NOTO, and MoneyClub, Rockstud Capital has firmly established itself in the investment landscape. The second fund strategy is set to continue focusing on pre-Series A stage investments, guided by a Yuva Bharat theme centered on sustainability, financial inclusion, health and safety, consumption, and digitalization.
Artha Venture Fund Achieves Impressive Returns
Meanwhile, Artha Venture Fund’s partial exit from Everest Fleet has already realized an impressive internal rate of return (IRR) of 105%, achieving a remarkable 19X return on investment. Notably, several LPs who initially invested in Everest Fleet alongside Artha Venture Fund have also opted to exit in this round. This development marks the 31st successful exit for Artha Group, which maintains a diverse portfolio encompassing over 100 startups. The group’s investments span across multiple geographies, including India, the United States, Israel, Africa, and the United Kingdom, with assets under management exceeding Rs 1,000 crore. Artha Group is now gearing up for the launch of its next early-stage micro VC fund, Artha Venture Fund II.
“The venture confronted seemingly insurmountable challenges during the pandemic, facing a substantial setback. Yet the resilience and innovative mindset of the founding team shone through,” commented Anirudh A Damani, Managing Partner at Artha Venture Fund. “Their pivot to an asset-financing model unlocked considerable capital and enabled them to transition to an asset-light model in a traditionally capital-intensive sector,” he added, highlighting the company’s remarkable journey and adaptability in navigating challenging times.
