India's Avendus, Zodius launch $500m tech fund

According to a statement, the fund - called Zodius Capital II - will have a particular focus on late stage and pre-IPO investment in digital and SMAC (social, mobile, analytics and cloud) companies.

The vehicle is the successor to Zodius Capital I, a stand alone fund launched in 2011 which focuses on early stage investments.

Fund II will have a shorter investment period of up to two years, with investors committing funds in three tranches of $100-150 million each. The investor lock-in period will be five years, with the option of extending for a further two years.

"Both Avendus and Zodius have unparalleled track records, expertise and network to generate deal flow, develop companies and work with them to a planned exit through either IPO or a strategic sale," said Neeraj Bhargaza, founder and senior managing director of Zodius.

"Collectively we are well placed to explore the tremendous opportunity in India centric digital and SMAC businesses."

Avendus claims to be a leading banker in the technology and internet space. Recent deals include Kinnevik's investment in Quickr, Naspers'acquisition of redBus and TA Associates' investment in Fractal.

Avendus has its own private equity unit, Avendus PE Investment Advisors, which last year launched its third PIPE fund, India Opportunities Fund III. The fund is targeting INR5 billion ($91 million) and will focus on investments in high quality mid-cap companies.

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• Topics
• South Asia
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• India
• Technology
• Avendus PE Investment Advisors
• Fundraising