Avendus, Leading India Venture Advisor, Pursues $300 Million for New Private Equity Fund

Avendus, India’s premier investment bank for venture deals, is reportedly seeking to raise approximately $300 million for its private equity division, as per three sources familiar with the matter.

Headquartered in Mumbai and backed by U.S. private equity titan KKR, Avendus has cemented its position as the foremost financial advisor in India. It has collaborated with prominent growth-stage startups like Zepto, Lenskart, Xpressbees, CaratLane, and Atomberg on their funding rounds last year.

With its third private equity fund, Avendus aims to write larger checks more frequently, according to one of the sources. The firm raised its second fund, valued at around $185 million, in 2021, following its inaugural fund of $50 million.

The sources, preferring anonymity, shared these details due to the confidential nature of the matter. When approached for comment, an Avendus spokesperson declined.

Avendus rose to prominence during the nascent stages of India’s startup ecosystem, leveraging the relative lack of attention from established rivals like Goldman Sachs, Morgan Stanley, and JP Morgan. Initially, deal sizes were modest, often below $30 million, which deterred larger players seeking substantial fees.

However, as India’s startup landscape burgeoned into the third-largest globally over the past decade, it attracted investments from global juggernauts such as SoftBank, Tiger Global, and General Atlantic, alongside sovereign wealth funds like Temasek, GIC, ADIA, Khazanah, PIB, and Mubadala. Collectively, these entities have injected tens of billions of dollars into startups across India, contributing to its growth.

Employing over 150 bankers, Avendus clinched the top spot as India’s leading financial advisor last year, overseeing more than 30 deals, including merger and acquisition transactions, as reported by Venture Intelligence, a private market insight platform.

Over the past decade, mirroring trends in other regions, Avendus diversified its offerings, expanding into wealth management, credit financing, and private equity. Last year, the firm extended its financial advisory services into the Southeast Asian region.