Early private equity firm Playbook Partners said it will continue to prioritise valuation discipline even as it looks to close 5–7 investments in FY26, focusing on consumer-facing businesses and technology-led disruptors.
The firm, launched in 2024, operates in the post-venture capital, pre-control buyout space and targets companies with over $25 million in revenue, improving profitability and a clear three-to-five-year path to public markets.
“We remain cautious about valuation discipline, particularly in aggressively priced private rounds or fully priced secondaries without adequate liquidity discount,” Vikas Choudhury, founder and managing partner, told Fe. “Capital preservation is as important as capital deployment.”
Small portfolio, big bets
Playbook typically builds a concentrated portfolio of 12–14 companies over its core investment period, translating into about 5–6 deals annually during active deployment. It expects to remain within that range over the current and next financial year.
So far, the firm has backed companies such as Renee Cosmetics, Capillary Technologies and EverBrands. Its investment strategy centres on two themes: India’s consumption and distribution story, and technology-led disruption with global potential.
On the consumption side, Choudhury said rising incomes and shifting preferences among younger consumers are driving demand for new-age and premium brands. “We see strong opportunities in omnichannel brands and scaled consumer platforms combining brand, data and operating discipline,” he said.
The second focus area includes software, artificial intelligence, deeptech and cleantech businesses built using Indian talent but serving global enterprises. “This disruption could even be global,” he added.
Active participation without pursuing controlling ownership
The firm typically invests $10–20 million per company through a mix of primary and secondary transactions, and may combine fund capital with co-investments. It seeks meaningful minority stakes without pursuing control. “We like to be relevant, but not intrusive,” Choudhury said.
Investment decisions are guided by three filters: stage clarity, execution discipline and exit visibility. The firm evaluates unit economics, capital efficiency and management depth, while underwriting exits based on the potential to access public markets within three to five years.
Choudhury said improving depth in Indian public markets is supporting exit visibility for growth-stage investors. “Scaled technology companies are accessing capital through IPOs, creating a virtuous cycle,” he said. He added that more startups are likely to list this year, supported by rising domestic liquidity and increasing household allocation to equities.
He also pointed to secondaries as an emerging liquidity route but cautioned that pricing must reflect appropriate discounts to safeguard long-term returns.