British International Investment

Stellaris Venture Partners II

IndiaSouth AsiaCommunications & IT servicesConsumer - HealthConsumer - other servicesFinancial servicesGeneralist

Stellaris Advisors LLP is venture capital firm that invests in early stage Indian technology companies that can help solve large problems for consumers and SMEs in India. This is their second fund.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

Stellaris II will invest in highly scalable start-ups of which a subset are expected to deliver material reach to low-income Indian suppliers, employees, and consumers. Fund I's track record indicates a positive impact performance on access to economic opportunities and critical goods and services. Our capital will help the fund reach its target size thereby increasing the scale of impact.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact
  • Provide income-generating opportunities (SDG 8.5)
  • Enhance economic participation and well-being by providing access to financial services (SDG 8.10)
  • Improve access to quality and affordable healthcare (SDG 3.8)

How?

Primary Secondary

The fund will make investments in platforms solving for market fragmentation and reconciling supply and demand. Its investments in Fintech businesses will focus on last-mile payment, insurance, and credit providers. And its investments in health-tech businesses will seek to serve underserved areas or drive costs down.

Direct jobs creation via scale-up of up to 25 start-ups; ~30% of the portfolio in fintech (8 companies); and ~30% of the portfolio in healthtech (8 companies)

Who?

Stakeholder Geography Characteristics
Suppliers and employees

Pan-India – including rural areas

Variable including significant share of low-income workers (blue collar, drivers)

Consumers and small-scale entrepreneurs

Pan-India – focus on rural areas

Primarily underserved populations representing untapped market segments

Consumers

Pan-India – primarily urban areas

Variable - high to lower-income populations based on track record

How much?

Scale Depth/Duration

10k jobs created over fund life 1m customers reached over fund life 100k patients reached

  • Higher for low-income workers previously in informal economy material for underserved borrowers.
  • Material in tier 2/3 cities where access to healthcare is poor and expensive.

Contribution/additionality

Contribution/additionality
  • Financial additionality: Participation in the fund will afford the opportunity for us to co-invest in some of the fund s highest impact companies, thereby scaling overall impact.
  • Value additionality: Strengthen environmental, social, governance and business integrity processes to reduce execution risk and negative impact. Engagement on BII s customer protection principles for financial institutions.
  • Mobilisation: We have facilitated introductions to other commercial investors which resulted in commitments of $21 million to Fund II

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.

2.0-2.5

Risk

Alignment Risk
  • The fund's strategy permits it to invest in a broader range of sectors than BII's priority sectors. Our own Venture Capital Scale-up programme can help encourage allocation of additional capital to the most impactful, and viable, businesses.
Unexpected Impact Risk
  • Related to fintech businesses’ approach to customer protection. Can be mitigated through alignment with our customer protection principles for financial institutions.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

The fund manager has an established approach to environmental and social management and we will continue to support and monitor its approach as the portfolio grows.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D4959
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    South Asia
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Communications & IT services, Consumer - Health, Consumer - other services, Financial services, Generalist

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    September 2021
    Amount :
    $15m
    Currency of investment :
    USD
    Fund Manager:
    Stellaris Advisors LLP
    Domicile

    The company or investment fund’s place of incorporation.

    :
    India

Investments made by this fund into companies:

For further information about these companies, visit https://www.stellarisvp.com/

Investment name Country Region Sector Start date Status
Arthvit 1809 Tech Private Limited (Rupicard) India South Asia Communications & IT services December 2022 Active
Beep Innovations Private Limited India South Asia Communications & IT services September 2021 Active
Blubble Private Limited (Turno) India South Asia Communications & IT services February 2022 Active
CARPL.AI India South Asia Consumer - Health November 2023 Active
Cirkla India India South Asia Communications & IT services August 2023 Active
Generative AI Innovations India South Asia Generalist April 2022 Active
Gokiwi India South Asia Financial services December 2022 Active
Locofast Online Services Private Limited (Locofast) India South Asia Communications & IT services September 2021 Active
Market Pulse Technologies India South Asia Financial services October 2023 Active
NeoBrix Saas Solutions Private Limited India South Asia Communications & IT services August 2022 Active
New Leaf Retail Technologies Private Limited (Nestasia) India South Asia Communications & IT services December 2021 Active
RevenueHero, Inc. India South Asia Communications & IT services July 2022 Active
Rigi India South Asia Communications & IT services August 2021 Active
Sea Turtle Pvt Ltd (Zouk) India South Asia Consumer - other services July 2021 Active
Shortloop Technologies Private Ltd. India South Asia Communications & IT services July 2023 Active
Slashbit Inc (Factors.AI) India South Asia Communications & IT services May 2022 Active
Sunrise Investments India South Asia Communications & IT services August 2021 Active
Vonken Brandtech, Inc. (91Sqft) India South Asia Communications & IT services September 2022 Active
Wunderbaked Tech – Hypto India South Asia Communications & IT services June 2021 Exited

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