Axis Asset Management Company, an arm of private sector lender Axis Bank, has raised around Rs 400 crore through the first close of Axis Growth Avenues AIF – I, aiming to fund ideas with deep technology as their USP.
The asset management company is aiming to raise a total of Rs 1,000 crore through the close-ended fund, including a green-shoe option of Rs 500 crore. It is confident of completing the entire fundraising exercise in the current quarter based on the response and commitments from investors.
The fund will be investing primarily in mid-to-late-stage technology enabled companies with scalable business models and a favourable risk-return profile. The sector-agnostic fund will be investing in companies catering to latent demands with multi-year growth potential and differentiated business model.
Axis Growth Avenues AIF – I will be exploring both primary and secondary investment opportunities with the proposed portfolio size of 8-10 companies with deal size ranging from Rs 25 crore to Rs 100 crore each.
The AMC has a strong pipeline of investments and expects to start deploying funds from the AIF soon.
“The strong response that we are receiving for the Axis Growth Avenues AIF I, reflects the confidence that investors and partners have in us as well as the potential of this segment. It will be our endeavour to ensure that we deploy this money in companies that offer exciting long term growth opportunities and are aligned with our investment philosophy,” said Chandresh Nigam, MD & CEO Axis AMC.
The total term of the fund will be five years from its final closing and may be extended for two additional periods of one year each.
The AIF is looking to capitalize on innovation and growth in the economy and to invest in companies that are benefiting from these trends. The fund will be primarily focused on investing in sectors including financial services especially fintech, technology, e-commerce, and edtech.
While making the investments, the fund will ensure that the investee company has a clear plan to go public with an initial public offer (IPO) over 3-5 years’ horizon and preferably the founders are open to a strategic sale for an optimum value.
The fund will be keen on investing in companies that are likely to emerge as beneficiaries of the fast-evolving digital economy as either as a disruptor, enabler or adaptor. It will also ensure the presence of established investors who are shareholders in the company through previous rounds of funding.