In Short:
Avendus Future Leaders Fund will invest the remaining 17% of its ₹1,500-crore second series fund by December. The fund, launched in 2021, focuses on healthcare and manufacturing sectors for good investment returns. It has not invested in these sectors yet. The fund also targets digital technologies, consumption, and financial services, with a strong focus on financial services. Avendus plans to gradually establish a presence in GIFT City.
Avendus Future Leaders Fund Eyeing Investment in Healthcare and Manufacturing Sectors
The Avendus Future Leaders Fund is on track to fully invest the remaining portion of its ₹1,500-crore second series fund (FLF-II) by December, according to Ritesh Chandra, Managing Partner.
Current Progress
As of now, 83 percent of the $200 million FLF-II has been deployed across ten investments. Chandra mentioned in an interview with businessline that the remaining 17 per cent corpus will be deployed by December.
Focus on Healthcare and Manufacturing
FLF-II, launched in 2021, is now looking to make investments in sectors such as healthcare and manufacturing. Chandra expressed optimism about the potential for good returns in these sectors, highlighting that the fund has not yet invested in either of them.
Chandra revealed, “I am open to healthcare. I am very bullish on manufacturing sector. We are very keen on specialty hospitals, multi-hospital chains, and health tech businesses in healthcare. In manufacturing, we are particularly interested in companies that specialize in high-end design for aerospace.”
Future Plans
With the shift of manufacturing operations from China, Chandra sees a lot of untapped potential for manufacturing in India.
Portfolio Overview
The portfolio companies of FLF-II currently include SBI General Insurance, Licious, Zeta, Lenskart, Xpressbees, NSE, Indegene, Veritas Finance, and FirstCry.
Focus Area
The Avendus Future Leaders Fund is focused on investing in market leaders/emerging leaders with the aim of creating mid to long-term value. The fund invests minority stakes in late-stage companies and focuses on core sectors such as digital technologies, consumption, and financial services. Chandra emphasized the Fund’s significant presence in the financial services sector.
Previous Series
The first series of the Fund (FLF-I) launched in 2019 and raised ₹375 crore. It has made investments in companies like Bikaji Foods, Ujjivan Small Finance Bank, Lenskart Solutions, NSE, Delhivery, VerSe Innovation, SBI General Insurance, Licious, Juspay, and Xpressbees.
Future Expansion
Addressing plans for expansion, Chandra mentioned that Avendus currently does not have a presence in GIFT City but acknowledged its strategic importance. He indicated that exploring opportunities in GIFT City is on their radar for the future.
