Avendus announced on Thursday that its Future Leaders Fund III (FLF III) has successfully achieved its initial close, obtaining commitments of Rs 850 crore. The fund has a target to raise Rs 1,500 crore, with an additional green shoe option set at Rs 1,500 crore. The intention is to invest in approximately 12 to 14 startups, with an average investment size ranging from Rs 150 crore to Rs 300 crore.
In May of the previous year, Avendus aimed to amass a corpus of Rs 3,000 crore for FLF III, with an average investment size also stated as Rs 200-300 crore. However, the latest announcement reflects a revised target of Rs 1,500 crore.
The FLF III fund intends to focus its investments on key sectors, including:
– Financial services
– Healthcare
– Technology
– Consumer goods
– Manufacturing
Currently, the fund is finalising its inaugural investment in the healthcare sector.
Notably, Avendus’ portfolio companies from FLF I and FLF II feature prominent names such as the omnichannel eyewear brand Lenskart, the Indian snacks company Bikaji, and the mobile payments platform Juspay. Furthermore, it has been reported that the SoftBank-backed startup Juspay is in discussions to secure new funding, potentially making it the first unicorn of 2025, as highlighted by StartupSuperb in an exclusive report.
Additionally, Avendus indicated that FLF I has returned over 100% of investor capital within four years, while FLF II has recently completed its deployment. This announcement coincides with a surge of venture capital firms launching new funds aimed at investing in the next wave of startups, as the Indian IPO market continues to thrive. Recently, companies such as Urban Clap, manufacturing firm Zetwork, and fintech platform Groww have shown interest in going public in the near future.
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