OAKS Asset Management Secures $115 Mn To Invest In Homegrown Consumer Startups, Mid-Sized Companies

Mumbai-based private equity fund OAKS Asset Management has raised $115 Mn (INR 1000 Cr) toward the first closure of its second fund, OAKS Consumer Fund. 

In the first closure, the fund has been oversubscribed by INR 300 Cr from its original estimate of INR 700 Cr.

The fund will have a final closure by the end of July this year. It was originally set up in 2021 to invest in homegrown consumer startups and mid-sized companies. 

Speaking on the fundraising, Vivek Anand PS, founder and MD of OAKS, said, “We at OAKS Asset Management have always invested in traditional consumer brand stories driven by seasoned entrepreneurs or business families that focus on profitable growth. We do not invest in businesses that are dependent on serial fund raises nor do we invest in businesses that operate in the ‘Winner takes All’ categories.” 

Founded by Vishal Ootam, Vivek Anand PS and Kenneth Serrao, OAKS Asset Management is a SEBI-registered investment fund that mainly invests in consumer brands in India. Through its first fund, which had a corpus of INR 700 Cr, OAKS backed five Indian companies – EV manufacturer Hero Electric, fintech company CredAble, luxury catering company Foodlink, Women’s apparel company Shree and NBFC firm InCred.

Out of these investments, two companies will be listed for IPO in the next 18-24 months. Meanwhile, Hero Electric and CredAble are going to raise a funding round to scale up, according to the statement. 

The latest development comes at a time when India’s startup sector has turned gloomy due to impending recession, high inflation rate, funding winter, disruption in the global supply chain, and geopolitical tensions. 

Consequently, many startups have downsized and pivoted their businesses, trimmed costs and laid off a chunk of their employees. According to an Inc42 report, a total of 10,029 employees have been sacked by 27 Indian startups so far. Out of these startups, many are unicorns including Vedantu, BYJU’S, Ola, Meesho, MPL, Unacademy and Cars24. 

While the startup environment has become dull, many investors and VCs are making use of this opportunity and launching their funds to back early-stage startups. Recently, portfolio management company Piper Serica launched its AIF Angel Fund, having a corpus of INR 100 Cr, to back 30-40 early-stage startups. 

Earlier, KKR’s advisor Sanjay Nayar set up a $125 Mn fund to invest in 10 early-stage startups whilst VC firm All In Capital rolled out a $10 Mn fund to back homegrown startups.