CE-Invests, the strategic investment arm of Sharjah-based Crescent Enterprises, plans to deploy Dh1 billion ($272 million) in high-growth markets across India, South-East Asia and the Gulf to capitalise on opportunities in the regions with rising digital adoption.
The UAE conglomerate will over the next three years allocate the capital, as well as making direct investments, into four core sectors – consumer, health care, manufacturing and financial services, it said in a statement on Monday.
“We are expanding our capital allocation in high-growth sectors of the GCC, India and South-East Asia where demographic momentum, regulatory reform and rising digital adoption are unlocking new possibilities across industries," said Badr Jafar, chief executive of Crescent Enterprises.
"Amid evolving global market conditions, we see significant opportunity in these regions for patient, impact-driven, strategic investments to grow fiscally prudent, socially relevant and globally competitive businesses.”
The adoption of new technologies such as cloud, Internet of Things, artificial intelligence and the introduction of 5G, alongside a rise in internet penetration and a government focus on digital infrastructure and favourable regulatory policies are all factors that are driving digitisation in India, according to a by ICRA last year.
The credit rating agency projects that, in total, 5,100 to 5,200 megawatts of data centre capacity requiring investments of 1.6 trillion rupees ($19.27 billion) is likely to be added in the next five years.
CE-Invests is the strategic investment platform of Crescent Enterprises and focuses on mid-market growth companies and private equity funds. It typically seeks significant minority stakes, investing Dh75 million to Dh200 million per transaction, while supporting portfolio companies with operational guidance, governance and access to Crescent Enterprises’ global network.
In September, CE-Invests announced its participation in the $50 million series C funding round for Flipspaces, a tech-first interior design and build company for commercial spaces operating across India and the US. The move was aimed at strengthening global competitiveness of capital-efficient, technology-driven commercial design venture.
The company's latest move builds on Crescent Enterprises’ earlier exposure to the region through CE-Ventures, its venture capital platform active in India and South-East Asia since 2017. Over the years, CE-Ventures has invested in sectors, including FinTech, EnergyTech, FoodTech and Enterprise SaaS (software-as-a-service) companies.
Increasing allocations through CE-Invests, its growth-equity vehicle, strengthens the company’s strategy of supporting mid-market “champions” in the Gulf-Asia investment corridor, it said.
“Large, youthful populations with rising incomes and investor‑friendly policies make our target markets ideal for scaling businesses and compounding returns," said Ghada Abdelkader, senior vice president at CE‑Invests.
Established in 2007, Crescent Enterprises, a subsidiary of Crescent Group, comprises a diversified group of 57 subsidiaries, affiliates and investments across 19 countries and employs more than 1,600 people.
Its corporate structure comprises four platforms – CE‑Operates, CE‑Invests, CE‑Ventures and CE‑Creates – spanning various business sectors, including ports, logistics, food and beverages, health care and business aviation.
CE-Operates is the operating business platform of Crescent Enterprises, leveraging infrastructure investments as a catalyst for growth, according to the company's website.
And CE-Creates is the parent company's internal business incubation platform, which develops early-stage concepts into socially responsible, economically viable, and scalable businesses.
