Speaking to CNBC-TV18, Ramnath said the investment is a structured deal, meaning there is no fixed percentage stake determined in the company yet. Multiples has led the funding round and has fully participated to the extent permitted by its current funds.
“What’s extraordinary about Brahma AI, of course, is its technology. We are very, very confident that, they are head and shoulders above their competition,” Ramnath said.
Ramnath said Brahma AI fits Multiples’ long-standing investment thesis of backing emerging technologies and business models that can create new economic opportunities. The company has applications across entertainment, sports and healthcare, including repurposing historical content for future monetisation, AI-based dubbing, digital twinning and de-aging.
“This is a company that is really at the leading edge of deploying technology for both the entertainment and sports space, in addition to healthcare, and many new use cases will get developed over a period of time,” she said.
Multiples has fully participated in current round
Asked whether Multiples would participate further if Brahma AI raises another funding round, Ramnath said the firm has already invested to the extent its current funds would permit.
She said there is significant demand for the round and the decision on who else joins Brahma AI’s cap table will be taken by the company’s management.
Multiples still has dry powder
Ramnath said Multiples, including its continuation vehicle (CV) fund, is close to $4 billion in size and still has capital available for new investments.
She said the private equity firm is focused on building a balanced portfolio across sectors and stages of companies rather than concentrating investments in a particular set of businesses.
“I’m very careful about risk, and I like to build a very balanced portfolio, balanced across not just sectors, but also stages of companies,” Ramnath said.
While Multiples has historically invested in financial services and consumer businesses, Ramnath said technology-led companies have been part of its investment approach since its inception. She cited Delhivery, Licious and Acko as examples of businesses that have used technology and business-model innovation to build scaled, sustainable companies.
Industrials are also an important part of Multiples’ ongoing investment strategy, she said.
Ramnath added that the firm is well positioned to participate in what she described as a major wave of ownership transitions in India, where family-owned businesses hand over control to financial sponsors while retaining a minority stake.
No current focus on listed companies
Ramnath said Multiples is not currently looking at acquisitions in the listed space.
She said the Brahma AI transaction itself was unusual because the company was carved out from listed Prime Focus, with Multiples helping create an independent business around the AI operations.
“I like to believe that Multiples is a fund which not just deploys money or makes investments, but we also solve problems,” she said.
On the size of potential transactions, Ramnath said Multiples is typically selective when evaluating opportunities above $200-250 million.
Multiples confident about VIP Industries
On portfolio company VIP Industries, Ramnath said the turnaround could take longer because of macroeconomic headwinds and higher input costs, but the firm remains confident about its potential.
She said VIP has four established brands and is also launching another premium brand. The company has opportunities to expand its presence across India’s tier-one, tier-four and tier-five cities and towns, she said.
Ramnath pointed to potential gains from the shift from the unorganised to organised market, expansion of the product range and premiumisation.
She said a new management team has been put in place at VIP Industries and is working as a team to deliver value for shareholders.