Venture Capital firm Jashvik Capital invests $46 million in software company Marg ERP
Jashvik Capital, a sector-agnostic private equity firm founded by Naresh Patwari, has made a significant investment of over Rs 400 crore ($45.7 million) in Marg ERP Ltd. This investment aims to accelerate Marg ERP's product innovation, enhance customer focus, and drive expansion across both domestic and international markets.
The founders of Marg ERP have bought back a 49% stake in the company from API Holdings, signaling their confidence in driving growth independently with Jashvik's backing.
Product Innovation
Jashvik Capital plans to bolster Marg ERP’s development of advanced software solutions. Particularly, they aim to strengthen the capabilities of Marg ERP’s recently launched cloud-based accounting and ERP product, Marg Book, targeting deeper international penetration.
Customer Focus
The investment also focuses on strengthening Marg ERP’s capabilities, especially in serving industries like pharmaceuticals (via its ECOD platform), FMCG, and retail. Jashvik Capital wants to support Marg ERP’s efforts to provide AI-enabled ordering and payment solutions for retailers and distributors.
Expansion
With this investment, Marg ERP aims to grow its footprint in India and the 32 countries where it already has over 500,000 subscribers. Jashvik Capital will back both internal expansion and mergers/acquisitions or partnerships to scale Marg ERP further.
Organic and Inorganic Growth
Jashvik Capital will support Marg ERP’s plans to scale through a mix of organic and inorganic growth strategies. This includes backing internal expansion, as well as potential mergers, acquisitions, or partnerships.
Previous Investments
Prior to investing in Marg ERP, Jashvik Capital invested in Bengaluru-based medical products seller Futura Surgicare Pvt. Ltd in its maiden healthcare PE deal, investing around Rs 210 crore. Jashvik Capital is also the majority stakeholder in insecticide maker Midas Hygiene, which it acquired earlier this year.
Future Plans
Anup Singh Thakur, Chairman and Managing Director of Marg ERP, made a statement regarding the international market expansion. He expressed his excitement about the partnership with Jashvik Capital and their shared vision for Marg ERP's growth.
Naresh Patwari, founder and managing partner at Jashvik Capital, expressed admiration for Marg's ECOD platform and AI-enabled solutions for pharmaceutical companies, retailers, and distributors. He looks forward to supporting Marg ERP in its journey towards becoming a global leader in enterprise resource planning and inventory management software for small and medium enterprises.
Jashvik Capital is currently raising $350 million for its maiden fund, with the government-backed Self-Reliant Fund (SRI Fund) as its limited partner. The firm invests in healthcare, consumer, and technology sectors.
With this investment, Marg ERP is poised to deepen its footprint in international markets, particularly through Marg Book, and continue its growth trajectory in the healthcare, FMCG, and retail industries.
Jashvik Capital will leverage technology to boost Marg ERP's advancement of sophisticated software solutions, particularly enhancing the capabilities of Marg Book, their cloud-based accounting and ERP product, for deeper international penetration.
Jashvik Capital plans to support Marg ERP's expansion by backing a mix of organic and inorganic growth strategies, including potential mergers, acquisitions, or partnerships in the technology sector.
