Avendus Raises $350 Million for Late-Stage Startups with New Future Leaders Fund III

Avendus, a prominent Indian financial services firm, has launched its third Future Leaders Fund (FLF) with a target corpus of $350 million (INR 3,000 Cr). This fund aims to invest in high-growth, late-stage startups across various sectors.

Fund Details:

• Target Corpus: $350 million (INR 3,000 Cr) with a green shoe option of up to $175 million (INR 1,500 Cr).

• Investment Strategy: 10-12 investments with an average ticket size of $25-35 million (INR 200-300 Cr) in market leaders and category-defining companies.

• Target Sectors: Financial services, consumption, digital & technology, healthcare, and manufacturing.
• Investment Types: Primary and secondary transactions.

Focus on Quality and Liquidity:

• FLF III seeks companies with strong competitive advantages, proven execution capabilities, and clear paths to liquidity (e.g., IPOs).

• Avendus emphasizes investor-centricity with regular distributions, shorter holding periods, and robust governance.

Experienced Team and Track Record:

• Managed by Ritesh Chandra and his team, leveraging Avendus' extensive network and deal-making expertise.

• FLF platform has assets worth INR 1,850 Cr under management from previous funds.

• Successful exits from Lenskart and NSE with significant returns, and potential upcoming IPOs from portfolio companies.

Indian Venture Capital Landscape:

• Increased Dry Powder: Homegrown VC and PE firms like Avendus are raising substantial capital for investments.

• Active Fundraising: Investors are raising billions from limited partners to fuel the Indian startup ecosystem.

Overall, Avendus' FLF III signifies continued investor confidence in the Indian startup market. By focusing on high-quality late-stage companies, this fund positions itself to capitalize on the growth potential of leading Indian businesses.