Indian tech unicorns get access to exclusive SPAC

SPAC or a Blank cheque company, the fastest and most popular way to go public in the US has found its way to India too, with a new company established by two top investors taking Indian unicorns public in the US.

Ravi Adusumalli, founder of Elevation Capital (formerly SAIF Partners), and Shashin Shah, portfolio manager at Think Investments have partnered to create a Special Purpose Acquisition Company (SPAC) which will go public and then turn to private companies to invest in.

Adusumalli is one of India’s most popular yet secretive venture capitalists and an early backer of fintech firm Paytm.

As per a filing with the US Securities and Exchange Commission, Think Elevation Capital Growth Opportunities is planning to raise $225 million in the IPO.

The SPAC’s board comprises high profile people from the startup and investing ecosystem including former SoftBank investor Kabir Misra, who now runs RPS Ventures, Harsh Jain, cofounder of fantasy sports unicorn Dream11, Neeraj Arora, the former global business head of WhatsApp Paytm founder Vijay Shekhar Sharma, and Vivek Mathur, operating partner at Elevation Capital.

“Our business strategy is to identify and acquire a company with ties to the Indian technology ecosystem, a strategy that complements the experience of our sponsor, management team, and directors and can benefit from their experience and expertise,” the filing stated.

SPACs have been the craze in the US for the past year as it enables companies to go public with less paperwork and fewer norms.