Avetron Venture closes Rs 2000 Cr fund for startups eyeing IPO in near future
The GIFT city-based fund will target startups, across sectors, that is looking to go public in the next five years and global scalability.
Avetron Ventures, founded by Priyanka Madnani, former founder and CEO of Terex Ventures, and Aakaashdeep, has closed its Rs 2000 crore fund, which will invest in startups aiming to go public within the next five years.
The fund, which is structured as a multi-asset category III AIF in Gift City, has a consortium of limited partners (LPs) across the UAE, the USA, and Japan. These include family offices, institutional investors, and ultra-high-net-worth individuals (HNIs).
Avetron will start deploying the capital from the new fund from November this year, with a minimum ticket size of $3 million per company. It will focus on growth-stage startups across sectors. Avetron said it has adopted this strategy so as to ensure the fund’s LPs benefit from growth and also from tangible liquidity events as India’s IPO markets see a long line of startups looking to go public.
The fund’s corpus has been structured as a multi-asset vehicle, which means it can include a mix of asset classes such as equity, cash or money market instruments, or other alternative assets.
“Closing this corpus is just the beginning. We have curated deals ready, we have the feeder capital in Dubai, and we have the LP backing to execute at scale. Our goal is simple: deliver nothing less than 24% IRR and back companies that are IPO-ready in the next 7 years. This is how we build an institution that can rival global giants,” Aakaashhdeep said.
The new fund looks to invest in over 20 companies in the next five years, banking on the surge in IPO-bound startups in India today. The Association of Investment Bankers of India (AIBI) expects over 1,000 IPOs in the next two fiscal years, with capital formation expected to exceed Rs 3 lakh crore.
“Our ambition is to scale this to Rs 10,000 Cr AUM and build a BlackRock-style investment powerhouse from India,” said Aakaashhdeep and Priyanka Madnani.
Edited by Affirunisa Kankudti