Investment & Equity Model
| Investment Range | Equity Stake |
|---|---|
| ₹20 L – ₹49 L | 10–18% |
| ₹50 L – ₹1 Cr | 20–30% |
Equity % finalised post diligence and current valuation.
Projected Annual Returns
| Year | Revenue Projection | Net Profit | ROI % (Approx.) |
|---|---|---|---|
| Year 1 | ₹1.5 Cr | ₹45 L | 20–25% |
| Year 2 | ₹3.2 Cr | ₹1.1 Cr | 40–50% |
| Year 3 | ₹5.5 Cr | ₹2.1 Cr | 60–80% |
3–5×
Valuation Growth
Y1
Dividends Start
2–4×
Exit Multiple (3 yrs)
Return Mechanisms
- ✓Annual dividends from Year 1 linked to net profits.
- ✓Equity appreciation as company valuation rises 3–5× over 3 years.
- ✓Exit via founder buyback or secondary sale after Year 3 at 2–4× value.
Fund Utilization
- ✓40% – Marketing & Sales Expansion (Schools & Colleges)
- ✓30% – Product Development (AI Language Lab, Kiosk Upgrades, AI Teacher)
- ✓20% – Operations & Hiring (Sales, Trainers, Support)
- ✓10% – Working Capital & Contingency
Hybrid Monthly Return + Equity
- ✓Interest: 12% per annum (simple), paid monthly at 1% of principal.
- ✓Buffer Period: First 3 months no payments; interest starts from Month 4.
- ✓Equity: 10% equity with annual dividends equal to 10% of net profit (when declared).
| Investment | Monthly Interest (from M4) | Year 1 Interest*+2-20 %of Profit | Year 2 / Year 3 Interest+2-20 %of Profit |
|---|---|---|---|
| ₹20 Lakhs | ₹20,000 | ₹1.8 Lakhs+2-20 %of Profit | ₹2.4 Lakhs / ₹2.4 Lakhs+2-20 %of Profit |
| ₹50 Lakhs | ₹50,000 | ₹4.5 Lakhs+2-20 %of Profit | ₹6.0 Lakhs / ₹6.0 Lakhs+2-20 %of Profit |
| ₹1 Crore | ₹1,00,000 | ₹9.0 Lakhs+2-20 %of Profit | ₹12.0 Lakhs / ₹12.0 Lakhs+2-20 %of Profit |
*Year 1 interest = 9 months of payouts at 1%/month after the 3‑month buffer. Dividends are based on audited profits and board policy.
Clean Exit Options
- ✓Founder Buyback – Buy back investor shares at a pre-agreed multiple (e.g., 2–4×) at or before end of Year 3.
- ✓Secondary Sale – Investor sells shares to another investor/VC/strategic buyer.
- ✓Hold & Earn – Keep equity and receive dividends beyond Year 3.
Exact terms are finalised in the investment agreement for clarity and transparency.
Contact
Disclaimer: Projections and examples are illustrative and not guarantees. Returns depend on performance and the executed agreement.