Iron Pillar’s Ambitious Plans to Expand Asset Management

Iron Pillar, a technology-focused investment firm, is gearing up to substantially increase its assets under management (AUM) by the end of 2022. Currently standing at $500 million, the company aims to double its AUM to reach $1 billion by December 2022. This growth trajectory comes as Iron Pillar’s portfolio companies demonstrate resilience and growth amidst the challenges posed by the ongoing pandemic.

Strategic Investments and Expansion

Amidst its ambitious growth plans, Iron Pillar is actively pursuing strategic investments, with a target of closing seven to eight deals by the end of 2021. The firm has already secured four fresh investments, including ventures like Skill-Lync, Uniphore, and Ushur. Skill-Lync, an edtech startup offering upskilling courses for engineers, reflects Iron Pillar’s focus on nurturing talent and innovation within the technology sector.

Investment Strategy and Vision

Iron Pillar’s investment strategy revolves around injecting capital into Series B and Series C rounds, typically ranging from $5 million to $15 million. The firm prioritizes companies with robust revenue streams, boasting an average revenue run rate (ARR) of $4 million to $10 million. Anand Prasanna, Managing Partner at Iron Pillar, emphasizes the firm’s commitment to supporting breakout companies throughout their growth journey, with the potential to invest substantial amounts ranging from $50 million to $100 million as these ventures scale up.

Unwavering Conviction Amidst Challenges

Despite the prevailing uncertainties fueled by the pandemic, Iron Pillar remains steadfast in its investment thesis, particularly in cloud software companies leveraging India’s talent pool for global expansion. Anand Prasanna underscores the resilience of Iron Pillar’s portfolio, which has recorded an impressive 2.4 times average growth over the past year, accompanied by robust unit economics. This resilient performance further bolsters Iron Pillar’s confidence in the sector’s long-term potential.

Diverse Portfolio and Growth Prospects

Iron Pillar boasts a diverse portfolio comprising 12 startups across various sectors, including device management, cloud governance, e-commerce, and online education. Notable portfolio companies include FreshtoHome, BlueStone, CoreStack, and Testbook. While Iron Pillar is yet to have a unicorn startup in its portfolio, recent industry reports suggest promising prospects for ventures like Uniphore, positioning them as potential unicorns in the near future.

Expansion and Fundraising Endeavors

Established in 2016, Iron Pillar closed its first fund at $90 million in October 2018, followed by a subsequent top-up of $45 million in May 2020. The firm embarked on its Fund II journey in the April-June quarter of 2021, attracting significant investments from leading industry players like the Allana Group, an Indian exporter of processed foods and agro commodities. While the total targeted corpus of Fund II remains undisclosed due to international regulations, Iron Pillar remains optimistic about its growth trajectory and future investment endeavors.