Vyaparvik B2B is growing 90%, but its largest customer is 30% of revenue on a 12-month contract. Quantify the concentration risk and say what terms or diligence would let you invest.

Losing the largest customer would take revenue from Rs 70 crore to Rs 49 crore and growth from 90% to about 33%. At an illustrative 6 times revenue, about Rs 126 crore of the Rs 420 crore valuation rests on one contract that can end on 60 days' notice. Invest only after calling that customer, seeing how it uses the platform, and pricing or tranching the round so the fund is not paying for revenue it may not keep.

A tea stall outside one office building can have a great month every month until the office moves. Its sales say nothing about the stall; they say everything about the office. When one customer is 30% of revenue, the company's numbers partly describe that customer's decisions, and the investor has to underwrite the customer as well as the company. Vyaparvik's largest account is Rs 21 crore. Its top three are Rs 38.5 crore. A 12-month contract with 60 days' notice means the largest one could be gone inside a year without breaking any agreement.

Work back to last year first. Rs 70 crore after 90% growth means last year was Rs 36.8 crore; without the largest customer this year is Rs 49 crore, growth of about 33%. So the story changes from a company nearly doubling to one growing about a third, still healthy, but a different investment. If the market pays, for illustration, 6 times revenue for this kind of business, the company is worth Rs 420 crore with the account and Rs 294 crore without it: Rs 126 crore of value sits on one contract.

Call the customer, with the company's permission. The question is whether the largest account is a committed user that is still expanding, or a large pilot that could be brought in-house. Ask how many of its plants use the platform and how many could, who signs the renewal, and whether it pays the same take rate as smaller customers or a discount that makes the account barely profitable. Then look at the other 120 customers: if they are growing 90% too, the concentration is falling naturally. If the rest grew 90% next year while the largest stayed flat, its share would drop to about 18%. Concentration that is shrinking because the base is broadening is a timing risk, not a structural one.

Three options, from simplest to most structured. Price the round on the revenue you are confident of, the Rs 49 crore base plus a share of the large account, rather than on Rs 70 crore. Or split the investment into two tranches, the second released when the largest customer signs a multi-year renewal. Or make a renewed contract a condition of closing. Each converts an unknown into something the fund can see before it pays. The limitation: a customer that knows it is 30% of a supplier's revenue has bargaining power at every renewal, and no term sheet changes that; only a broader customer base does.