Honasa Consumer, the parent company of consumer brand Mamaearth, topped the list of top-performing entities backed by private equity funds in FY21. Practus Hurun India PE Performers List looks beyond convincing valuations to value such entities based on cash flow, profitability and revenue.

According to the list, Sequoia Capital India and Sofina Ventures-backed Honasa had a weighted average growth rate of 491%, followed by Encube Ethicals (up 343%) and Ecom Express (up 283%). However, the report does not provide details on the cash burn of such businesses or the direct correlation between valuation and performance.

It recruits top investment professionals based on the bets they guide. Sequoia Capital’s Ravishankar G V leads the list with $125 million in total investments in companies including Zetwerk, Five Star Business and Honasa, followed by Norwest Venture Partners’ Niren Shah.

Anas Rahman, the chief researcher at Hurun, said: “A combination of capital and intelligence must drive the next phase of value creation in India. Private equity funds and their managers can accelerate value creation in the Indian economy. One of the catalysts.” said Anas Rahman Junaid of India. “A combination of capital and intelligence must drive India’s next phase of value creation.

Deepak Narayanan, CEO and founder of Practus, said it’s important to assess what happens to a company beyond funding rounds and valuations, noting that private equity investments are up 96% in 2021 to $70 billion.