Avendus, the leading investment bank for venture deals in India, has announced its plans to raise up to $350 million for its new private equity fund called Future Leaders Fund III. This fund will allow Avendus to write larger checks and maintain a significant stake in the startups it supports.
Avendus has already established itself as the go-to venture advisor for Indian startups, participating in more than 30 deals last year, including mergers and acquisitions. Its success has been attributed to the fact that many of its global rivals initially overlooked the Indian market. This gave Avendus the opportunity to establish itself and build relationships with the country’s emerging tech entrepreneurs.
These relationships have proven valuable for Avendus’ private equity unit, providing access to high-profile deals. For example, financial services startups Juspay and Zeta have allowed Avendus, alongside lead backer SoftBank, to be the only outside investors on their cap tables. This exclusivity is a result of Avendus’ strong networks and relationships within the industry.
Avendus’ private equity unit has also gained a reputation for delivering significant returns to its investors. Companies such as Delhivery, Lenskart, Licious, VerSe Innovation, Xpressbees, and the National Stock Exchange have all provided profitable exits for Avendus within a relatively short period of time. This focus on generating returns quickly sets Avendus apart from other investors in the Indian startup ecosystem.
While the trend of Indian tech startups going public has been on the rise in recent years, Avendus recognizes that relying solely on IPOs for returns is not enough. To offer an alternative avenue for generating returns, Avendus has established relationships that allow the company to sell its stakes to late-stage investors like sovereign wealth funds. This strategy provides flexibility and additional opportunities for investors to exit their positions.
In conclusion, Avendus’ plans to raise a new private equity fund demonstrate its commitment to supporting and nurturing Indian startups. With its extensive experience, strong networks, and focus on delivering returns, Avendus is well-positioned to continue playing a pivotal role in the growth of India’s startup ecosystem.