IPO Bound: The Strategic Edge Guiding Australian Investors to India’s Next Unicorns

The global investment landscape is witnessing a seismic shift towards India, a nation poised for unprecedented growth. At the forefront of connecting Australia’s substantial savings pool with this dynamic market is Akshay Chakrapani, General Partner at Creek Partners. In the second part of his Executive Interview, Chakrapani delves into Creek Partners’ meticulous investment approach, its ambitious vision for bilateral capital flow, and the powerhouse team guiding its mission.

Creek Partners’ strategy revolves around a “fund of funds” model, constructing a diversified portfolio of Indian venture capital firms. Their flagship India Growth Opportunities Fund, with an initial target of $3-5 million, serves as a feeder into carefully selected firms like Fireside Ventures.

This approach is segmented into two strategic buckets: “India for India,” focusing on domestic consumption-driven innovation, and “India for the world,” targeting solutions portable across geographies, such as deep technology. “We like sector specialists and thematic VC firms,” Chakrapani explained, noting their preference over agnostic funds due to the niche nature of venture capital.

One of Creek Partners’ most compelling strategies is securing co-investment rights, particularly in IPO-bound companies. This approach directly addresses a key challenge in venture capital: illiquidity. “In order to mitigate the risk of illiquidity, we first want to be able to choose the best-performing companies… handpicked by the best-performing venture capital firms,” Chakrapani asserted.

These companies benefit from strong traction, proven product-market fit, and a robust ecosystem of well-capitalised investors. The focus on IPO-bound firms is twofold: “the liquidity risk is mitigated and the capitalisation risk is also mitigated.” This allows for confident capital return or strategic holding post-listing.

Furthermore, Indian venture capital firms are demonstrating remarkable efficiency in returning capital. Chakrapani noted a significant trend:

By selecting VC firms with deliberate distribution strategies and investing in companies poised for public listing, Creek Partners aims to provide Australian investors with high-quality access and timely liquidity, moving beyond traditional M&A or secondary options.

Looking ahead to 2030, Creek Partners envisions a vibrant, two-way investment corridor. From Australia to India, their goal is to have invested in 10-12 VC firms, with a presence in pension funds and actively exercising co-investment rights. Crucially, the firm is dedicated to fostering collaboration from India back to Australia. This includes facilitating Indian capital seeking to acquire Australian companies or technology.

Chakrapani provided a compelling example of this two-way street: a conversation with an Indian dairy manufacturer. This manufacturer expressed keen interest in Australian dairy manufacturing technology, aiming to replicate Australia’s advanced milk purification processes, where milk can be consumed directly without boiling. “If you’re able to connect us to that technology… we’re happy to buy it or partner with Australian dairy manufacturers association,” the manufacturer conveyed.

Similar opportunities are emerging in areas like supply chain forecasting tools applicable to Australia’s mining sector. “If there’s a strong collaboration between India and Australia, I think that would also be a mark of success for us by 2030,” Chakrapani affirmed.

Creek Partners’ journey is bolstered by a diverse and experienced advisory board, including veterans from the superannuation sector and members of the Sydney Angels community. Chakrapani emphasised that their mission transcends mere financial returns; it’s about building a lasting connection between two nations.

As immigrants themselves, he and his co-founder, Chirag Suchde, deeply value the wisdom and guidance from their advisors, many of whom have navigated the Australian VC ecosystem since the 1980s. This mentorship ensures that Creek Partners, while innovative in its approach, remains grounded in experienced counsel, making confident decisions as it pioneers this vital investment bridge.