Scavenger Capital
Welcome to Scavenger Cap
About Us
Like a Scavenger that feeds on dying or decaying organisms, Scavenger Cap acquires securities in dead or defunct or dud companies allowing investors to exit from these investments.
These entities may have shut operations, involved in ongoing tax or legal disputes or has no employees to run them, or consuming management bandwidth or any other reasons whatsoever.
Scavenger Cap is run by a group of experienced professionals, Chartered Accountants, Lawyers, and specialists from the field of finance and structuring advisory backed by Capital (Fund based and/or Fee-based model).
We have successfully helped numerous Family offices, Funds, Founders, Corporate Groups, etc. navigate the process of divesting their investments, ensuring a smooth and efficient exit.
Our Offerings
Exit from any investment, whether dead or defunct or dud or for any structuring purposes
Fund-based and/or Fee based model available
Buying shares/securities/CCPS, etc at negotiated value, enabling investors to realize capital losses
Quick transaction turnaround time with Definitive Agreements signed within 4 weeks* of initial contact
Exit of complicated or disputed investments, including these having statutory liabilities, court cases, etc
Frequently Asked Questions
Who are we?
Scavenger Cap is run by a group of investors, backed by capital, supported by lawyers, chartered accountants and specialists from the field of finance and transaction advisory.
What does Scavenger Cap do?
Scavenger Cap will buy these stocks/securities from the owners at nominal value and in the Financial Year of their choice, to enable the owners to recognize their Capital Losses. For clarity, we are not into secondary shares.
At what value will Scavenger Cap buy?
Can founders also use Scavenger Cap to exit their ventures?
Yes, founders can sell and exit while leaving the legal closure of the Company to us
How long does this transaction take?
Depending on all the documentation and formalities, this transaction generally takes a week to a month’s time. If there are statutory litigations with no operating team, then it may take longer.
How does Scavenger Cap works?
- We receive an inquiry on the website.
- We respond to the inquiry with details required from you.
- On receipt of these details, we will arrange a call with you.
- Post this, we will send you an offer.
- Once the offer is accepted and signed, we will proceed to send you our SPA.
How many transactions have you done?
We did our first transaction in 2004 (of a tech company which had disputes between the founders and legal cases filed against each other) and our last one in 2023 (an incubator which invested a number of startups, some exited and some failed). We have no targets and no desperation to do deals unless it’s makes commercial sense for us to do it.
What will you do with these shares?
Scavenger Cap has different strategies depending on the type of stocks/securities bought. Usually, we hold the Securities in long term and sometimes enable liquidation.
How legal is this transaction?
This is a proper purchase and sale of securities. We have been buying securities since 2004, we know how to handle these transactions so that there are no complications.
Why should we sell the securities to Scavenger Cap?
What will the Scavenger Cap buy?
Any Indian company stock, note, warrant, SAFE or any other securities. We havent tried in case of an overseas investment, but we can start.
Is Scavenger Cap a regulated entity?
No, it is not regulated by any regulatory body. The securities will be bought in the name of an Individual or Corporate Entity depending on the structure. Scavenger Cap is just a brand name of this activity we do.
Will Scavenger Cap buy 100% of any Company?
Yes. In this case, we will also replace the directors (with indemnities built in).
What happens if there are liabilities or litigations or regulatory issues or any disputes pending in the company?
We can take care of it till infinity (for a cost of course).
Is Scavenger Cap a good option for AIFs to get exit from portfolio companies while it’s winding up?
Yes, considering the funding winter and current illiquidity of investments in the startup space, Scavenger Cap can be a go to option for the AIFs to get exit from its portfolio companies which are leading to delay in its closure process.
Is this a any tax or legal advice?
Not at all, this is not any advice. Please refer to your tax or legal advisor for any of the issues on tax or legal matters.
Whom should I contact in case I still have questions or want to submit a proposal?
Let us know your question
Feel free to contact us we are always here to serve you!
