Avendus, Top India Venture Advisor, Seeks $300 Million for New Private Equity Fund

Avendus, India’s leading investment bank for venture deals, is planning to raise around $300 million for its private equity unit. This move comes as the firm continues to solidify its position as a top financial advisor in India, having worked with prominent growth-stage startups such as Zepto, Lenskart, Xpressbees, CaratLane, and Atomberg on their funding rounds last year.

Background

Avendus has established itself as a major player in the Indian startup ecosystem. The Mumbai-based firm has been backed by US private equity giant KKR since its inception. With its third private equity fund, Avendus plans to write larger checks more frequently, according to one of the sources familiar with the matter.

Rise to Prominence

Avendus first gained prominence in India’s startup ecosystem when it was still in its early stages. The firm capitalized on the fact that many of its well-known rivals – including Goldman Sachs, Morgan Stanley, and JP Morgan – initially paid less attention to the Indian market. This was partly due to deal sizes in the early days, which were typically under $30 million and not substantial enough to generate significant fees.

Global Giants Enter the Scene

However, as India’s startup ecosystem flourished over the past decade, becoming one of the world’s largest, it attracted global giants such as SoftBank, Tiger Global, General Atlantic, Temasek, GIC, ADIA, Khazanah, PIB, and Mubadala. These firms collectively poured tens of billions of dollars into startups in India.

Avendus Expands Offerings

In the past decade, similar to financial advisors in other regions, Avendus has diversified its offerings, venturing into wealth management, credit financing, and private equity. Last year, the firm expanded its financial advisory services to the Southeast Asian region.

Current Status

Avendus employs more than 150 bankers and was the top financial advisor in India last year. According to Venture Intelligence, a private market insight platform, Avendus provided services in over 30 deals, including merger and acquisition transactions.

Key Statistics

$300 million: Amount Avendus plans to raise for its private equity unit
150+: Number of bankers employed by Avendus
30+: Number of deals Avendus provided services in last year
$185 million: Size of Avendus’ second fund, raised in 2021
$50 million: Size of Avendus’ maiden fund

Conclusion

Avendus continues to solidify its position as a top financial advisor in India. With the planned raise for its private equity unit and its diversified offerings, the firm is well-positioned to continue writing larger checks more frequently.

Sources

Three sources familiar with the matter
Avendus spokesperson

About Avendus

Avendus is a leading investment bank for venture deals in India. The Mumbai-based firm has been backed by US private equity giant KKR since its inception.