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Exit Strategy

Investors Control​

Investors can exercise flexibility through various exit mechanisms, choosing optimal timing based on their investment goals and market conditions.

✅ Growth Rate Accumulation & Conversion

For CCPS: Valuation Cap with Discount

  • Protected by better of: ₹100 Cr valuation cap OR 30% discount on next round
  • Automatic conversion upon Qualified Financing (₹5 Cr+ raise, ₹100 Cr+ pre-money)
  • Anti-dilution protection ensures optimal conversion terms

For CCPS: Growth Rate

  • Accumulates 50% annual growth (simple interest) until qualified financing
  • Automatic conversion upon Qualified Financing (₹5 Cr+ raise, ₹100 Cr+ pre-money)
  • Conversion at: Principal + Accumulated Growth Amount

✅ Time-Based Conversion Options (July 2027)

  • If no Qualified Financing occurs before July 31, 2027, the conversion will be done based on the professional valuation.

✅ CCPS Assignment Rights

  • Transfer CCPS to qualified investors (with company consent)
  • 90-day approval process
  • Subject to Right of First Refusal (ROFR) provisions

✅ Post-Conversion Secondary Sales

  • Sell equity shares to existing shareholders
  • Sell to new qualified investors (subject to ROFR)
  • Tag-along rights on founder share sales
  • Drag-along rights for majority-approved exits

Management Control​

The management will carefully assess and execute these options at optimal timing, always acting in the best interests of investors.

✅ Initial Public Offering (IPO)

  • Public listing when company achieves scale (example ₹100+ Cr revenue)
  • CCPS converts to equity shares automatically prior to IPO
  • Maximum liquidity for all investors

✅ Management Buyback

  • Company repurchases CCPS/equity at fair market value
  • Funded through cash flow or debt financing
  • Subject to board approval and valuation process

✅ Strategic Acquisition

  • Sale to agricultural/technology companies
  • Premium valuation over financial buyers

Out of Control​

Management will initiate these measures when situations are beyond control, ensuring proactive steps to address challenges effectively.

✅ Distress Merger & Acquisition

  • Merger with competitor to preserve value
  • Partial investment recovery in distress scenarios

✅ Liquidation

  • Asset sale and proceeds distribution
  • CCPS holders have liquidation preference over common equity
  • Priority ranking: CCPS holders → Common equity holders