DrinkPrime: Owning a Deal from Sourcing to Close

Moin sourced the DrinkPrime deal through a reference and owned it from that first conversation through to close. DrinkPrime operated a water purifier rental model, and the mandate was to assess whether the business warranted a debt investment and at what terms.

He structured the research by mapping the rental asset model against comparable businesses. He benchmarked DrinkPrime against furniture rental companies like Furlenco and Rentomojo, then narrowed the competitive lens to direct peers like Livguard and Livpure, before anchoring the analysis in the broader AquaGuard and water purifier industry.

The financial analysis covered receivable predictability, inventory risk, and leverage tolerance. Because DrinkPrime operated on an annuity-style rental model, receivables were more predictable than in transactional peers, which supported a higher leverage allowance in the investment note.

Moin prepared the full investment note, including pricing, XIRR expectations, and covenant structure, and presented it to the investment committee. The deal was approved and the company remains in the portfolio.

The hardest part was documentation. DrinkPrime had historically raised NCDs rather than term loans from NBFCs, and the founders were reluctant to provide personal guarantees, which were a standard requirement. Moin held the line, making clear that the deal would not proceed without the PGs. He drew on industry practice and the fact that Northern Arc was offering competitive pricing to make the case. The founders eventually agreed, and the deal closed.