Avendus Capital, a leading India-based financial services firm, through its Alternate Asset Management subsidiary and Zodius Capital, an investor-operator of India-centric technology companies, have decided to associate and invest $400-500 million in emerging leaders in high growth Digital and SMAC (Social, Mobile, Analytics and Cloud) based Business Services.
The targeted Digital Business investments would cover both Internet and Mobile, and areas such as Media, Commerce and Consumer Services. Business Services investments would be focused primarily on SMAC driven IT/BPO opportunities to be able to build new disrupters, or restructure and redirect existing companies en route for new high growth market segments.
The fund Zodius Capital II is a follow-up to the previous fund Zodius Capital I, which focused on accelerated early-stage investments and build-outs in the technology sector. Zodius Capital II will invest primarily in late-stage and pre-IPO companies, filling a critical gap in the technology investment landscape with a differentiated investment strategy which takes account of, viz:
- Sharp focus on the technology sector
- Shorter investment period of 1+1 years as investors will see pre-identified and cultivated deals and commit funds in three tranches to portfolios of $100-150 million each, making it unique amongst the typical blind pool (post fund raise) strategy followed by most growth funds
- Shorter investment cycle and investor lock-in of 5+2 years as compared with typical growth fund lock-ins of 10+2 years, enabled by the fund’s sharp focus on investing in ‘exitable’ assets and a well-defined ‘built-to-list’ program to support the portfolio companies