Due to strong response from investors and partners including family offices, high net worth individuals (HNIs) and NRIs, the asset management company has concluded fund raising including green-shoe option of Rs 500 crore within three months. NRI).
The fund aims to invest in unlisted mid- to late-stage innovative companies with strong long-term growth prospects.
“The strong response received by Axis Growth Avenues Fund is a reflection of the long-term opportunities in the rapidly growing Indian digital economy. The start-up ecosystem in India has expanded significantly, offering substantial wealth creation opportunities for investors in new age businesses,” said Chandresh Nigam MD & CEO, Axis AMC, “The speed with which we have concluded the fund-raising reflects the confidence that our investors and partners have in us as we pursue the wealth creation potential of this space with our unique investment philosophy.”
Axis Growth Avenues AIF will primarily invest in technology-enabled companies with scalable business models and favorable risk-return profiles. The fund house will target a portfolio size of 8-10 companies with deal sizes ranging from Rs 100 crore to Rs 150 crore. The total tenure of the fund is five years from the date of its final closure.
Positioned to take advantage of macro-economic opportunities, the fund focuses on sectors that promise multi-year growth potential.
“As the digital transformation continues in India, more and more innovative business models are being tried out and growing successfully. We are also witnessing an era of unlisted ecosystem with new fund launches, greater investor interest, growing secondary market and most importantly the opening of IPO options for new age tech businesses,” said Ashwin Patni, Head Products and Alternatives, Axis AMC.
According to Patni, with Axis Growth Avenues Fund, the asset management company is looking to invest in sectors with aspirational founders and a scalable asset-light model in management that promise to deliver significant boom over the next decade.
AMC has a strong pipeline of investments and is expected to start deploying funds from AIF soon. The fund will aim to deliver an internal rate of return (IRR) of around 12%.
AIF seeks to capitalize on innovation and growth in the economy and invest in companies that benefit from these trends. The fund will primarily focus on investments in sectors including financial services, in particular
, technology, e-commerce and edtech.
While investing, the fund will ensure that the investing company has a clear plan to go public with an initial public offering (IPO) over a 3-5 year horizon and preferably the founders are open to strategic sale for optimum value.
The fund will be keen to invest in companies that are likely to emerge as either a disruptor, an enabler or an enabler as beneficiaries of the rapidly growing digital economy. It will also ensure the presence of established investors who are shareholders in the company through the previous round of funding.