Canbank Venture Capital

Canbank Venture Capital Ltd. is the private equity and venture capital arm of Canara Bank Limited specializing in growth and expansion financing in start-up, early venture, and later stage companies. The firm makes investment in equity/equity related instruments/debt instruments in unlisted mid and late stage companies. The firm generally invests a minimum of $0.2 million to a maximum of $2.3 million in small to medium sized companies with high growth potential, specifically information technology, telecommunications, Internet start-up or early venture, and manufacturing companies developing new industrial and technological processes. The firm also invests in specialty chemicals, containers and packaging, construction and engineering, infrastructure, automobiles, hospitality, healthcare, education services, biotechnology and pharmaceuticals sectors. The firm focuses its investments in the Southern and Western regions of India. It takes minority equity stakes up to 49%, requires a seat on the Board, and seeks an active role in the investee's strategic decisions. The firm prefers to invest in between $0.1 million and $10.76 million in its portfolio companies. The firm requires that its potential investments the financing required not exceeding $2.3 million. It does not follow a particular exit strategy, however the firm’s divestment mode is decided on the anticipated cash flows of the company, and the investee is given the opportunity to buy the shares at a decided rate after the initial investment. It expects a target return of 30% in a period of five to seven years. Canbank Venture Capital Ltd. was formed in 1995 and is based in Bangalore, India.