Business Valuation for Investor Entry & Strategic Growth

Valuation That Builds Trust :

How we Helped a Tech Startup Secure Investor Funding with Confidence

Quick Highlights

Independent Valuation for Investor Funding

Independent Valuation for Investor Funding.

Hybrid Valuation Model

Hybrid valuation model combining DCF and market multiple approach.

Certified Valuation Report Approval

Certified valuation report accepted by investor’s due diligence team without revision.

Successful Fundraise & Transparent Negotiation

Enabled successful fundraise of ₹11+ crores and transparent negotiation.

Client Overview & Requirement

Our client, a fast-growing technology company providing cloud-based solutions to logistics and e-commerce sectors across India, had reached the next stage in its growth journey.

After three years of expansion, a venture capital firm proposed to acquire a 30% stake in the company.
To proceed, the company required a professional and defensible business valuation that could balance promoter expectations, investor scrutiny, and regulatory compliance under the Companies Act, FEMA, and Income Tax Rules.

The management appointed PGAS & Associates as an independent valuation advisor to deliver a credible and compliant valuation report to support negotiations and due diligence.

Conduct the statutory and tax audit
Identify control gaps and compliance risks
Build a foundation for stronger governance and financial transparency

Challenges Identified

During the preliminary review, PGAS identified several complexities common in fast-scaling tech startups. The client needed a defensible and transparent valuation — one that satisfied both investors and statutory requirements.

Revenue Mix Volatility

Rapidly changing revenue mix between subscription-based and project-based income.

Absence of Structured Financial Forecasts

Lack of structured financial forecasts and sensitivity planning.

Insufficient Documentation for Intangible Assets

Inadequate documentation for intangible assets such as software IP and brand goodwill.

Compressed Due-Diligence Timeline

Tight investor due-diligence timeline with limited data readiness.

Regulatory Compliance Requirements

Requirement for compliance under Rule 11UA and Registered Valuer regulations.

PGAS & Associates’ Approach

PGAS adopted a data-driven and compliance-oriented valuation process, emphasizing clarity, auditability, and credibility.

01

Preliminary Review & Normalization

Conducted management discussions to understand business model and future strategy.
Normalized historical financials to exclude one-time items and reflect sustainable performance.
Segmented revenues for better visibility on recurring and project income streams.

02

Valuation Methodology (Concise Overview)

Adopted a hybrid approach using both income and market-based methods:
- Income Approach (DCF Method): Projected future free cash flows under realistic growth and margin assumptions.
- Market Multiple Approach: Benchmarked valuation multiples from similar SaaS and technology firms in India.
Ensured full compliance with ICAI Valuation Standards (2018) and Registered Valuer Rules (2017).

03

Forecasting & Sensitivity Analysis

Developed a robust five-year projection model aligned with industry growth patterns.
Conducted sensitivity testing on key variables (growth rate, churn, cost) to establish valuation range reliability.
Identified key value drivers — recurring income, customer retention, and scalable tech assets.

04

Reporting & Advisory Support

Delivered a comprehensive valuation report with supporting documentation and rationale.
Assisted management during investor presentations and negotiations, ensuring all assumptions were transparent and defensible.
Ensured alignment with FEMA pricing guidelines for equity issuance to non-residents.

Outcome & Impact

The certified valuation by PGAS & Associates was accepted without modification during investor due diligence — a rare outcome that reflected its technical precision and transparency.

The transaction successfully concluded with ₹11.4 crores raised in Series A funding, enabling expansion into new verticals and enhancing investor confidence.

Parameter	Before PGAS Engagement	After PGAS Implementation
Valuation Estimate	₹24–₹30 Cr (Unverified)	₹38.5 Cr (Certified FMV)
Investor Negotiation	Delayed / Stalled	Successfully Concluded
Financial Model	None	Comprehensive 5-Year Projection
Compliance Status	Incomplete	Fully Compliant under Act & FEMA

Client Feedback

PGAS & Associates gave us not just a valuation report but confidence. Their structured approach, detailed assumptions, and regulatory clarity helped us negotiate effectively with investors. The credibility of their report made the entire process smooth and transparent.

— Founder & CEO, Technology Startup (Name Withheld)

The Value of Strategic Business Valuation

A well-executed valuation isn’t just about assigning a number — it’s about enabling strategic growth and investor trust. Through its methodical, regulation-compliant, and industry-aligned approach, PGAS & Associates delivered.

PGAS & Associates — Delivering Valuations That Inspire Confidence, Enable Investment, and Drive Growth.

Robust Enterprise Valuation

A fair and defensible enterprise valuation

Preparedness for Investors

Investor-ready financial modeling and documentation

Compliance Assurance

Regulatory assurance under Companies Act and FEMA

Strengthened Fundraising Credibility

Enhanced credibility during fundraising and negotiations