TVS reaches $160m second close on India growth fund
TVS Capital Funds, a PE firm sponsored by the TVS Group and Shriram Group, has reached a second close of INR11 billion ($160 million) on its third India growth vehicle.
With the second close, TVS Shriram Growth Fund 3 has now passed its INR10 billion target. The fund has an additional greenshoe option of INR5 billion, of which TVS Capital chairman Gopal Srinivasan said about INR1 billion in hard commitments has been raised. LPs include the Small Industries Development Bank of India (SIDBI), which committed INR2 billion to the fund last year.
As with TVS' previous vehicle, investments will focus on consumption-driven themes across the financial services, food, and lifestyle sectors. Deals from the fund so far include a INR1 billion commitment to logistics solutions provider Leap India and a INR300 million investment in Suryoday Small Finance Bank.
TVS was founded in 2007 and has raised more than INR20 billion across its three TVS Shriram Growth vehicles. The firm initially focused on minority investments in established companies, but more recent funds have embraced late-stage venture deals as well.
Online beauty retailer Nykaa is an example of this shift. TVS committed $9 million to the company from its second fund in 2015 alongside several other investors, and exited its stake to Lighthouse Advisors last year in a deal reportedly worth INR1.1 billion. The firm claims to have already returned 100% of committed capital from Fund II and expects to deliver a 2x multiple once the vehicle is fully exited.
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