Avendus Seeks $300 Million to Launch New Private Equity Fund as Top India Venture Advisor
India’s Leading Investment Bank for Venture Deals Targets Significant Fundraise
Avendus, India’s leading investment bank for venture deals, is looking to raise approximately $300 million for its private equity unit, according to three sources familiar with the matter. This move marks a significant step towards establishing Avendus as a major player in the Indian startup ecosystem.
Established Track Record
The Mumbai-based firm, backed by US private equity giant KKR, has established itself as the top financial advisor in India. In 2022, Avendus worked with popular growth-stage startups such as Zepto, Lenskart, Xpressbees, CaratLane, and Atomberg on their funding rounds. The company’s success can be attributed to its ability to capitalize on the growing demand for venture capital investments in India.
Second Private Equity Fund
Avendus’ second private equity fund was raised in 2021, amounting to around $185 million. Its maiden fund was $50 million in size. With a third private equity fund, Avendus plans to write larger checks more frequently, according to one of the sources.
Diversification and Expansion
Avendus has diversified its offerings over the past decade, venturing into wealth management, credit financing, and private equity. Last year, the firm expanded its financial advisory services to the Southeast Asian region. This strategic move reflects Avendus’ commitment to staying ahead of the competition in the rapidly evolving Indian startup ecosystem.
Top Financial Advisor in India
Avendus employs more than 150 bankers and was the top financial advisor in India last year, providing services in over 30 deals, including merger and acquisition transactions. According to Venture Intelligence, a private market insight platform, Avendus’ success can be attributed to its expertise in navigating complex deal structures.
Early Mover Advantage
Avendus first gained prominence as the Indian startup ecosystem began to take shape. The firm capitalized on the fact that many of its well-known rivals initially paid less attention to the Indian market. As a result, Avendus was able to establish itself as a trusted partner for startups and investors alike.
Global Giants Flock to India
The past decade has seen significant growth in the Indian startup ecosystem, attracting global giants such as SoftBank, Tiger Global, and General Atlantic. Sovereign wealth funds like Temasek, GIC, ADIA, Khazanah, PIB, and Mubadala have also poured tens of billions of dollars into startups small and large in India.
Avendus’ Unique Value Proposition
Avendus’ success can be attributed to its ability to provide tailored solutions for startups and investors. The firm’s expertise in navigating complex deal structures has earned it a reputation as the go-to partner for venture capital investments in India.
Conclusion
Avendus’ decision to raise $300 million for its private equity unit reflects the company’s commitment to staying ahead of the competition in the rapidly evolving Indian startup ecosystem. With a proven track record, diversified offerings, and expertise in navigating complex deal structures, Avendus is well-positioned to continue its success in the years to come.
About the Author
Manish Singh is a senior reporter at TechCrunch, covering India’s startup scene and venture capital investments. He also reports on global tech firms’ India play. Before joining TechCrunch in 2019, Singh wrote for about a dozen publications, including CNBC and VentureBeat. He graduated in Computer Science and Engineering in 2015.
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