Avendus, India’s leading investment bank for venture capital deals, is looking to raise about $300 million for its private equity unit, according to three sources familiar with the matter.
The Mumbai-based company, backed by US private equity giant KKR, has established itself as the leading financial advisor in India, working with popular growth-stage startups including Zepto, LensKart, XpressBees, CaratLane and Atomberg, during their funding rounds last year.
With its third private equity fund, Avendus plans to issue larger checks more frequently, one of the sources said. The company raised its second fund, worth around $185 million, in 2021. Its first fund was $50 million in size.
The sources requested anonymity to discuss private matters. An Avendus spokesperson declined to comment.
Avendus rose to prominence as India’s startup ecosystem began to take shape, capitalizing on the fact that many of its well-known rivals, including Goldman Sachs, Morgan Stanley and JP Morgan, initially paid less attention to Indian market. This was partly due to the size of the deals early on: They were typically less than $30 million, which was not large enough to generate significant fees, making the commitment less attractive to many brands.
But as India’s startup ecosystem has flourished over the past decade, becoming the third largest in the world, it has attracted global giants such as SoftBank, Tiger Global and General Atlantic, as well as sovereign wealth funds like Temasek, GIC , ADIA, Khazanah. , PIB and Mubadala, which have collectively invested tens of billions of dollars in startups large and small in India.
Avendus employs more than 150 bankers and was the first financial advisor in India last year. She has provided services on more than 30 transactions, including merger and acquisition transactions, according to Venture Intelligence, a private market analysis platform.
Over the past decade, like financial advisors in other regions, Avendus has diversified its offerings by venturing into wealth management, credit financing and private equity. Last year, the company also expanded its financial advisory services to the Southeast Asia region.
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