Hoping high returns from tech startups, Relam to invest $250 Mn in Indian unit

Sultan-Ali-Rashed-Lootah
Sultan Ali Rashed Lootah, Chairman and Managing Director at Relam Investment Image credit

In February, the Indian Prime Minister Narendra Modi made his second visit to the UAE (United Arab Emirates) in less than three years and the agenda behind the visit was — sourcing investments.

The economic ties between the two countries have been gradually strengthening for the past 17 years. Between April 2000 and March 2017, the UAE has emerged as the 10th largest foreign direct investment (FDI) source market for India with cumulative FDI reaching $4.76 billion.

Pushing forward the investment plan in India, a Dubai-based investor Relam Investment LLC is set to join the investment bandwagon. The investment firm which launched India operations Tuesday plans to pump in $250 million in real estate and technology startups. This will be the first investment of the company in the country.

“We are going to be a pure play investment firm, picking up minority and substantial minority stakes in the firms we invest. We do not intend to get into the operational side of the businesses at any point of time,” said Sultan Ali Rashed Lootah, chairman and managing director at Relam Investment.

With the investment, it expects a return of around 7 per cent from real estate portfolio and sees a return of 20 per cent in technology-based startups. In the technology sector, the investment firm aims to focus on the blockchain, app-based and big data startups.

Besides investing on its own, Relam Investment is also in talks with multiple financial institutions and Indian companies to explore co-investment opportunities with strategic and financial partners in the country.

The recent investment is on the lines of the Emirates’ rising business interest in India.

Last October, UAE investors announced nearly $2.5 billion worth of investments in India. Of the total investment, $1 billion investment will be received by Abu Dhabi Investment Authority (ADIA); $1 billion by NRI-Emirati Investor’s Group; and a further $460 million investment by Lulu Group.

The development was reported by Mint.

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