Financial services firm Avendus Capital‘s subsidiary Alternate Asset Management has partnered with the Mumbai-based digital media investor-operator Zodius Capital to setup a new multi-stage technology fund called Zodius Capital II, which will focus on late-stage and pre-IPO technology companies.
The company mentions this fund will be focusing on India-centric digital businesses and and SMAC (Social, Mobile, Analytics and Cloud) based Business Services companies and plans to invest in around $400 million – $500 million in the next three to four years. This fund will be raised from investors in three tranches of $100-150 million each.
For digital business investments, Zodius Capital II is targeting Internet and mobile companies in areas like media, commerce and consumer services while for business services investments, it is looking at SMAC-driven IT or BPO opportunities. The fund is looking to make investments of around $25 million – $40 million across 15 companies, according to The Economic Times.
Zodius Capital mentions this is a follow-up to its previous fund Zodius Capital I which was launched in 2011 and focused only on early-stage investments and build-outs in the technology sector. Some of its portfolio companies include Only Much Louder (niche music and events business), Group FMG (a global marketing solutions company), ZyFin (Financial information & content company, earlier known as BluFin), BookAdda (online book store), Antuit (Big Data services company) and Enki Professional (which launched the music school True School of Music in Mumbai) among others.
On the other hand, Avendus Capital was an advisor for Quikr’s investment from Kinnevik last month, redBus’s acquisition by Naspers in October 2013, Komli Media’s investment from Peepul Capital in October 2013, Fractal Analytics’s investment from TA Associates in June 2013 and Apalya’s investment from Cisco and others in April 2013 among others.