Sector Selection
Fintech
Fintech combines two words Finance and Technology. Any business that uses technology to deliver financial services falls under this category. We focus on companies revolutionizing the financial services business using technology. This paradigm shift could be a combination of drastically lower cost, personalized services, and increasing accessibility using technology as an enabler. We invest in companies providing digital wallets, mobile payments, blockchain technology, peer-to-peer lending, and payment networks.
Fintech evangelists go to the extent of thinking about living in a world where traditional banks would not play any role and all financial services are provided by one or multiple fintech firms. As banks still play a major role in almost every nation, we are still at the beginning of this trend which could continue for decades. Global Fintech market is expected to grow at a CAGR of 23% through 2026.
E-Commerce
E-Commerce is expected to grow at a CAGR of 23% through 2027. Covid has pulled forward some of this growth and so we may see a variation in this growth over the next few years. E-Commerce companies have drastically reduced the last mile delivery costs and continue to do so at a frantic pace. As logistics costs decline, companies can offer personalized shopping experience which could match or be better than in-store shopping. Delivery times have reduced from weeks to few days and in some cases a few hours.
As the logistics costs and time declines the TAM for E-Commerce keeps growing as more goods can be shopped on-line.
Finally, as more companies move online they require an entire ecosystem of web, data-analytics, marketing, and logistics tools which has created an entire industry of enterprise solutions for this industry. We invest in companies involved in E-Commerce as well as enterprise services in this ecosystem.
Cloud Computing
The global cloud computing market is expected to grow at a CAGR of 17.5% through 2025. The outsourcing trend in IT started with moving IT professionals offshore/offsite. With higher internet bandwidth and low latency, the outsourcing trend continued with offsite IT resources and services such as data storage, data analytics and computing power.
Moreover, it’s extremely cost-effective since these resources could be maintained in a central location and used on demand by companies. Data is the new oil and companies need to protect this data. Just like putting money in a bank vault is safer and cost-effective since the security is managed by banks, storing company data in a central offsite cloud is safer and cost-effective. We invest in companies that are expected to be market leaders in this space.
Genomics
The global genomics market size was valued at USD 22.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 19% from 2021 to 2025. The sector comprises companies in bioinformatics, DNA sequencing, gene therapy, molecular diagnostics, and agricultural biology.
These innovations are expected to revolutionize the way we think about treating and diagnosing diseases. Genomics is the study of all the genes in a human body to find cures to deadly cancers and also understand who is more predisposed to have certain types of diseases later in life based on their genetic makeup. Such precise testing helps doctors personalize treatments. Personalized to the level that a person’s genes could be edited to eliminate certain cancer. Moreover, the costs are declining at a fast pace. It took ten years and $3 Billion to map the first human genome while now it costs $1000 to map a person’s DNA in a few hours.
As this cost continues to decline, over the next 2-3 years, it’s expected to fall below $100 opening up this therapy option to billions of people around the world. Finally, we are at the beginning of this long-term trend which could generate growth for many decades.
Robotics & AI
The Robotics market is expected to grow at a CAGR of 12% through 2026. Robotics is a branch of technology which deals with programmable physical machines that are capable of executing a series of tasks autonomously or semi-autonomously. Robotics can be divided in segments based on their use such as surgical robots, industrial robots, and consumer robots.
Industrial automation robots help in increasing productivity as well improves quality. Surgical robots provide similar benefits while also making surgeries minimally invasive, less painful, and with lower probability of infections. We invest across the entire spectrum of robotic companies.
Online Gaming
The global online gaming market is expected grow at a CAGR of 12% through 2026. Online sports betting, online casino’s, e-sports and game applications are all fueling the growth of this industry. Six US states have legalized online sports betting and many more are in the process.
We think this could be the beginning of a long term trend with online sports betting going mainstream in a few years across the US. The rise of virtual reality games, increasing casual mobile games and access to digital payments provide a further boost to the industry. We invest in the entire gamut of online gaming and services industry.
Ad-Tech
The Global Ad Tech market is expected to grow at a CAGR of 8% through 2026. Social media has forced ad agencies to interact with consumers in a more personalized manner rather than the old broadcasting ways that they have been used to for decades.
Moreover, targeted marketing also improve ROI for advertisers. In the brick and mortar world, MG road, Main street or malls used to be the places with high consumer footfalls and hence attracted higher real estate prices; the new age retail real estate is on smartphones. Ad Tech companies help advertisers reach this new age real estate in the most efficient manner, provide data analytics for targeted marketing, and measure outcome of marketing campaigns to assess ROI on marketing dollars. We invest across the Ad Tech space.
Social Media
The social media market is expected to grow at a CAGR OF 25% through 2025. E-mail, message boards and online chat were the first few digital social media networks, followed by social media applications for dating, professional networks, gaming, education, news, infotainment and now every community/family has their own network.
Increasingly, lines are blurring between social media and E-Commerce platforms as company’s merge the two experiences. New applications and use cases of social media networks keep expanding the segment’s TAM. We invest in the entire social media ecosystem around the globe.
Digital Disruption
Universal theme which can reshape industries that benefit from digitization, connectivity, and sophisticated data processing – YouTube, NFLX, GOOGL, SPOT
Sharing Economy
Sharing economy enables the utilization of idle assets such as vehicles, real estate etc with a network of consumers. It allows asset owners to sweat their assets, while generating fees, which otherwise would have been non-productive.
These applications convert a physical asset into a service. Geospatial technology, digital payments and increasing smartphone penetration has accelerated the growth of these services. We invest in a broad range of sharing economy service providers.