India's KKR-backed Avendus buys domestic peer Zodius

Zodius’ current team will continue to manage the firm’s three existing funds until they are fully exited, and Avendus will launch future vehicles under the Zodius brand name, as confirmed by Zodius founder Neeraj Bhargava. Avendus plans to launch Zodius’ next fund, targeting mid to late-stage growth opportunities in the consumer and digital sectors, in 2018, with a target of $250 million.

Currently, Zodius has three funds under management. Its first vehicle, Zodius Capital I, which was set up in 2011, focuses on early-stage investments. The other two were created in partnership with Avendus.

Zodius Capital II, launched in 2014 with a target of $500 million, focuses on late-stage and pre-IPO investments in technology companies. It was followed a year later by Zodius Technology Opportunities Fund, a side vehicle to the previous fund targeting niche e-commerce, education, financial technology, media and business services opportunities.

Zodius is an active investor in India’s technology space. Deals this year include a $56 million investment in research and consulting company MarketsandMarkets led by US-based FTV Capital and a $30 million Series C round for biopharmaceutical and genetic testing company MedGenome led by Sequoia Capital India and Sofina.

Avendus recently received $151 million from KKR and Gaja Capital, with a view to growing its credit, asset and wealth management businesses, as well as completing its acquisition of UK-based investment manager Ocean Dial Asset Management.

The firm has been owned by KKR since 2015, when the GP bought a 70% stake for an undisclosed sum. The acquisition was aimed at expanding Avendus into an integrated financial services platform from its previous focus on investment banking.

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• Topics
• South Asia
• Buyouts
• Venture
• India
• Avendus PE Investment Advisors
• Zodius Capital
• KKR
• M&A
• Venture