Financial services company Avendus Capital has acquired Mumbai-based private equity firm Zodius Capital Advisors. The financial details of the transaction have not been disclosed.
Zodius Capital is a tech-focussed investment firm that backs India-centric India-centric early stage startups engaged in big data and analytics, digital media, commerce and education, among other sectors.
Commenting on the acquisition, Ranu Vohra, co-founder, MD and CEO of Avendus Capital said, “The digital opportunity continues to grow on the back of positive moves by the government like demonetisation and GST (goods and services tax). Avendus expects 20% of the Indian GDP to come from digital opportunities over the next 10 years. We expect significant value creation opportunities for investors in this sector and the new funds will address capital and strategic growth needs of companies in the consumer and digital sectors.”
Post the acquisition, Zodius co-founder and CEO Neeraj Bhargava will become the Chairperson of the investment committee, while Managing Director Shilpa Kulkarni will head the fundraising department. As pointed out by Vohra, the firm’s existing funds will continue to be managed by the Zodius team, until it decides to exit the investments.
Apart from taking over the three funds currently being managed by Zodius, Avendus Capital is also planning to raise a $250 Mn fund for mid- to late-stage startups in consumer and digital sectors by early next year. The new fund will be launched under the Zodius brand name.
Speaking about the latest development, Bhargava added, “Avendus already being a partner in the previous funds with a strong franchise in the tech/digital and consumer space is a natural home for the Zodius brand and to build the Zodius platform further into a leader in the very attractive market for growth capital funds in the Indian tech sector.”