Mid-market private equity firm Stakeboat Capital has invested Rs 100 crore ($11.9 million) in Economy Process Solutions Pvt Ltd through its second fund.
Mumbai-based Economy Process Solutions will use the funds to expand into newer process equipment production and solutions aimed at the food and beverage industry, the company said in a statement Thursday. This is the company’s Series A round of funding, it said.
“We plan to use this capital to accelerate our growth, broaden our range of in-house manufactured products, expand our global footprint, and foray into new categories such as F&B solutions,” said Rajesh Ahuja, founder and chief executive officer of Economy Process Solutions.
The company has been providing vacuum and process equipment that are used in industrial and manufacturing setups since 2015. Its vacuum system products include vacuum pumps, boosters, blowers, accessories, and spares. Its process equipment catalogue includes evaporators, dryers, extractors, reactors, and heat exchangers. The company recently expanded its product offerings to the food and beverage industry for processing, bottling, and packaging of dairy, wine, beverages, cider, and beer.
Economy Process Solutions’ net sales in 2022-23 were Rs 75.3 crore, compared with Rs 89.3 crore in 2021-22, according to VCCEdge, the data and research platform of VCCircle. A big chunk of its revenue came from waste management, pharma, and chemicals industries.
“Indian capital equipment manufacturing provides a suitable combination of customised designs and sizes at highly competitive prices. We believe that global companies can greatly benefit from Indian ingenuity, especially when it comes to certain sizes and volumes,” said Srinivas Baratam, managing director, Stakeboat Capital.
Stakeboat Capital invests in sectors like healthcare, life sciences, value-added industrials and manufacturing, B2B technology, and B2B services. It marked the final close of its second fund in September last year after mopping up Rs 1,037 crore, a little more than its target of Rs 1,000 crore.
The PE firm made its first investment from the fund in SBCDC Software, putting in about Rs 60 crore. Since then, it has deployed the fund in post-hospital care provider Sukino, e-publishing company New Gen, manufacturing automation company Difacto, and cloud-based customer service provider Ozonetel.
Stakeboat’s debut fund, which closed in February 2019, had a corpus of $32 million.
