V Resorts Direct Investment

Dear Reader

Rising disposable incomes & a burgeoning middle class is leading to higher discretionary spend by Indian consumers and travel is an important part of it. This is being reflected in steady increase in air travel, higher occupancy across the hotel chains. We believe that as Indian economy reaches USD 10 trillion mark in 2030s (according to CEBR), momentum will accelerate. GST is providing further impetus as market is moving towards organized & branded players.

In this space, we have found an interesting co-investment opportunity in V Resorts.

The company is a leader in the experiential-leisure based offbeat-stays space in India. It provides management services for small resorts (under 30 rooms) and differentiated experiences to travellers by way of localized interactions across multiple themes such as Heritage Stays, Desert Camps, Wildlife Retreats, Hill Getaways, Beach Villas and Farm Stays.

The company is looking to raise INR 650 million (INR 325 million will be invested by
existing investors ‒ Seedfund, RB Invest and BedRock capital)

Key highlights of the business:

Present across 150 destinations (vs ~50 Club Mahindra, ~30 Sterling resorts) and managing ~1,800 rooms in largely offbeat locations (addressable market potential of INR 910 billion)

Low cost asset light model, enabling efficiencies with resort breakeven at ~25% occupancy and average payback period of 19 months

Adding 10-15 resorts every month ‒ expected to reach 500+ resorts by FY21. Favourable to resort owners having seen an increase in occupancy and customer ratings (average 4.3 TripAdvisor rating)

High customer loyalty with ~22% repeat customers

FY18E revenue of INR 264 million (98% increase in revenue over FY17) with 3% resort EBITDA margin

The business is headed by Aditi Balbir. Brief profile is given below:

Aditi has been the CEO since 2014
Prior to that she was the CFO of V Resorts and was a part of Bedrock Ventures, which incubated V Resorts
Worked in McKinsey and Baring Equity in the past
Member of Dell Women's Entrepreneur Network and Cherie Blair Foundation
MBA from ISB Hyderabad/ Fuqua School of Business, Duke University and LLB from University of Pune
Featured in credible journals such as Entrepreneur, Economic Times, YourStory
She enjoys traveling and writing

A detailed note on the opportunity is enclosed with this mail for your reference. In case you would like to know more, we would be happy to discuss this in detail.

Looking forward for your reply. For details of disclaimer please refer to the attachment.