Avendus, Ex- WNS Chief Launches Well Timed $500 mn Ziodius Technology Fund to Back Late Stage, Pre-IPO Companies

Avendus Capital, a financial services company and former WNS Chief Neeraj Bhargava are floating a $500 mn technology fund to invest in late stage ventures that are readying for an Initial Public Offering, says a news report.

The fund called Zodius Technology Fund II will be financed by Avendus Alternate Asset Management and Zodius Capital, a fund launched by Bhargava in 2011 and other Limited partners. The seven year fund will focus on Social, Mobile, Analytics and Cloud and will invest $25-40 mn across 15 companies.

We believe there will be a range of industry leaders emerging that will be IPO worthy and create enormous market value. [Ranu Vora, the Co-founder & MD of Avendus Capital/via]

So far this year, we’ve heard of smaller offerings like that of Koovs at the junior exchange in London and HomeShop18’s $75 mn offer at the NYSE. After the general elections, we are likely to see some larger IPOs in the Indian IT & ITeS space.

IPO Slowdown in India

Several Indian companies like Bharatmatrimony and QuickHeal are waiting for the right time for a public offering.

As we’d written earlier, there are over 20 Venture Capital backed companies that are ready for an initial public offering. Only one (JustDial) managed a decent public offering last year. The IPO scene in India was pathetic in FY14. Fundraising through IPO hit a 10 year low at Rs 1,205 cr in FY14.