CCPS Comparison: Growth Rate vs Valuation Cap
This document compares the two CCPS variants available in Pre-Seed Round 2 to help investors choose the best option for their investment goals.
QUICK SUMMARY
| Variant | Best For | Risk Profile | Return Characteristics |
|---|---|---|---|
| Growth Rate | Conservative investors | Low risk | Guaranteed 1.7x-2x return |
| Valuation Cap | Aggressive investors | Higher risk | Unlimited upside potential |
GROWTH RATE RETURNS BY TRANCHE
For ₹1 Lakh Investment over 2 Years
| Tranche | Growth Rate | Year 1 Value | Year 2 Value | Return |
|---|---|---|---|---|
| Tranche 1 (First ₹50L) | 50% | ₹1,50,000 | ₹2,00,000 | 2.00x |
| Tranche 2 (Next ₹50L) | 40% | ₹1,40,000 | ₹1,80,000 | 1.80x |
| Tranche 3 (Final ₹1Cr) | 35% | ₹1,35,000 | ₹1,70,000 | 1.70x |
Key Feature: Returns are guaranteed regardless of company valuation at conversion.
VALUATION CAP RETURNS BY TRANCHE
For ₹1 Lakh Investment at ₹100 Cr Valuation Cap with 30% Discount
| Tranche | Multiplier | At ₹100 Cr | At ₹200 Cr | At ₹300 Cr | At ₹500 Cr |
|---|---|---|---|---|---|
| Tranche 1 | 1.50x | 2.08x | 2.94x | 4.41x | 7.35x |
| Tranche 2 | 1.33x | 1.85x | 2.61x | 3.91x | 6.52x |
| Tranche 3 | 1.25x | 1.74x | 2.45x | 3.68x | 6.13x |
Key Feature: Returns scale with company valuation growth. Higher valuations = higher returns.
HEAD-TO-HEAD COMPARISON
Tranche 1: Growth Rate (50%) vs Valuation Cap (1.5x Multiplier)
| Future Valuation | Growth Rate Return | Valuation Cap Return | Better Option |
|---|---|---|---|
| ₹25 Cr | 2.00x | 1.92x | Growth Rate |
| ₹50 Cr | 2.00x | 2.03x | Valuation Cap |
| ₹100 Cr | 2.00x | 2.08x | Valuation Cap |
| ₹200 Cr | 2.00x | 2.94x | Valuation Cap |
| ₹300 Cr | 2.00x | 4.41x | Valuation Cap |
| ₹500 Cr | 2.00x | 7.35x | Valuation Cap |
Breakeven: ~₹45 Cr - Above this, Valuation Cap is better for Tranche 1.
Tranche 2: Growth Rate (40%) vs Valuation Cap (1.33x Multiplier)
| Future Valuation | Growth Rate Return | Valuation Cap Return | Better Option |
|---|---|---|---|
| ₹25 Cr | 1.80x | 1.70x | Growth Rate |
| ₹50 Cr | 1.80x | 1.80x | Tie |
| ₹100 Cr | 1.80x | 1.85x | Valuation Cap |
| ₹200 Cr | 1.80x | 2.61x | Valuation Cap |
| ₹300 Cr | 1.80x | 3.91x | Valuation Cap |
| ₹500 Cr | 1.80x | 6.52x | Valuation Cap |
Breakeven: ~₹50 Cr - Above this, Valuation Cap is better for Tranche 2.
Tranche 3: Growth Rate (35%) vs Valuation Cap (1.25x Multiplier)
| Future Valuation | Growth Rate Return | Valuation Cap Return | Better Option |
|---|---|---|---|
| ₹25 Cr | 1.70x | 1.60x | Growth Rate |
| ₹50 Cr | 1.70x | 1.69x | Growth Rate |
| ₹100 Cr | 1.70x | 1.74x | Valuation Cap |
| ₹200 Cr | 1.70x | 2.45x | Valuation Cap |
| ₹300 Cr | 1.70x | 3.68x | Valuation Cap |
| ₹500 Cr | 1.70x | 6.13x | Valuation Cap |
Breakeven: ~₹90 Cr - Above this, Valuation Cap is better for Tranche 3.
SIMPLIFIED COMPARISON (WITHOUT MULTIPLIER)
Base comparison for ₹1 Lakh Investment - No tranche multiplier applied
| Future Valuation | Growth Rate (50%) | Valuation Cap (Base) | Better Option |
|---|---|---|---|
| ₹25 Cr | 2.00x | 1.28x | Growth Rate |
| ₹50 Cr | 2.00x | 1.35x | Growth Rate |
| ₹100 Cr | 2.00x | 1.39x | Growth Rate |
| ₹200 Cr | 2.00x | 1.96x | Growth Rate |
| ₹250 Cr | 2.00x | 2.45x | Valuation Cap |
| ₹300 Cr | 2.00x | 2.94x | Valuation Cap |
| ₹500 Cr | 2.00x | 4.90x | Valuation Cap |
Breakeven (without multiplier): ~₹220 Cr
DECISION FRAMEWORK
Choose Growth Rate if:
- You want guaranteed returns regardless of company performance
- You believe company valuation will stay below breakeven point
- You prefer predictable, lower-risk investment outcomes
- You're investing in later tranches (Tranche 2 or 3)
- Your investment horizon is shorter (1-2 years)
Choose Valuation Cap with Discount if:
- You believe company valuation will exceed breakeven point significantly
- You want unlimited upside potential
- You're comfortable with higher risk for higher reward
- You're investing in Tranche 1 (1.5x multiplier provides early advantage)
- You're bullish on the company's growth trajectory
SCENARIO ANALYSIS
Conservative Scenario (₹100 Cr Valuation)
| Variant | Tranche 1 | Tranche 2 | Tranche 3 |
|---|---|---|---|
| Growth Rate | 2.00x | 1.80x | 1.70x |
| Valuation Cap | 2.08x | 1.85x | 1.74x |
| Winner | Val Cap | Val Cap | Val Cap |
Moderate Scenario (₹200 Cr Valuation)
| Variant | Tranche 1 | Tranche 2 | Tranche 3 |
|---|---|---|---|
| Growth Rate | 2.00x | 1.80x | 1.70x |
| Valuation Cap | 2.94x | 2.61x | 2.45x |
| Winner | Val Cap | Val Cap | Val Cap |
Aggressive Scenario (₹500 Cr Valuation)
| Variant | Tranche 1 | Tranche 2 | Tranche 3 |
|---|---|---|---|
| Growth Rate | 2.00x | 1.80x | 1.70x |
| Valuation Cap | 7.35x | 6.52x | 6.13x |
| Winner | Val Cap | Val Cap | Val Cap |
Downside Scenario (₹25 Cr Valuation)
| Variant | Tranche 1 | Tranche 2 | Tranche 3 |
|---|---|---|---|
| Growth Rate | 2.00x | 1.80x | 1.70x |
| Valuation Cap | 1.92x | 1.70x | 1.60x |
| Winner | Growth | Growth | Growth |
KEY TAKEAWAYS
- Growth Rate provides downside protection with guaranteed returns
- Valuation Cap provides upside potential but depends on company performance
- Early investors (Tranche 1) benefit more from Valuation Cap due to higher multiplier
- Later investors (Tranche 2, 3) may prefer Growth Rate for guaranteed returns
- Breakeven points vary by tranche - lower for Tranche 1, higher for Tranche 3
Company Details
- Legal Name: OX Agry Private Limited
- CIN: U01100TN2022PTC149276
- Address: 105, South Anna Nagar, Dindigul Road, Palani - 624601, Tamil Nadu, India
Contact Information
- Email: investments@oxagry.com
- Website: www.oxagry.com
Document Version: 2.0.0 Issue Date: December 2025 Last Updated: December 2025
© 2025 OX Agry Private Limited. All rights reserved.