Investors in the fund include several family offices, including Infosys
Kotak Investment Advisors on Monday announced fundraising of Rs 1,386 crore or $185 million to take bets on companies just before their Initial Public Offerings (IPOs). The pre-IPO opportunities fund will invest in India-focused late-stage new-age businesses with a strong moat of technology, robust unit economics, scalable business models, and exit visibility.
Investors in the fund include several family offices, including Infosys Co-Founder N R Narayana Murthy's Catamaran, said an official statement adding that this is the first close for the 'Kotak Pre-IPO Opportunities Fund'.
Kotak Investment Advisors had initially set out to raise Rs 1,000 crore, which was oversubscribed within three months of the launch, leading to exercise of the greenshoe option of Rs 386 crore.
It has already made investment commitments in two deals worth $44 million, with one of the deals being API Holdings, the parent company of PharmEasy. The fund was the only external investor in the deal in the company, which is set to take over lab chain Thyrocare.
"The investment mandate enables us to participate in businesses that are disrupting the way traditional industries operate," KIA Managing Director Srini Sriniwasan said.
"The Pre-IPO Opportunities Fund has been raised at an opportune time. The Indian technology ecosystem is at an inflection point and with widespread digital adoption, companies are scaling up faster and accelerating towards profitability," he said.
The fund was set up as an alternative investment fund under the Sebi regulations, the statement said.