IIFL AMC opens Rs. 1,500-crore fund
IIFL: The asset management member of financial services group IIFL is looking to invest in pre-IPO. And late-stage rounds of internet economy companies through its newly launched Rs. 1,500 crore fund, a senior company executive said.
On the other side, the Category II AIF – IIFL Special Opportunities Fund. And Series 8 will look to partner tech start-up leaders in monopolistic or duopolistic play. But headed for IPOs or those in the late stage of growth said Chetan Naik, Executive vice president, Fund Manager, IIFL Asset Management Company(IIFL AMC), in an interview with ET.
While the fund has a greenshoe option of around Rs. 500 crore, taking its total size to Rs. 2,000 crore. Naik said we have already received a commitment worth Rs. 400 crore within two weeks of launch and have a target of final close by June this year. While IIFL AMC will raise the capital from family offices and ultra-high net worth individuals.
However, it will look to invest around $10-$20 million in about 10-15 companies through the fund. This is the first found in India targeting only IPO-bound private tech enterprises. Meanwhile, there are around 39 unicorns and many more unicorns in the ecosystem that we will look to partner with, Naik said.
Besides, India’s internet economy is expected to grow over nine times from the current $75 billion to around $639 billion by 2030. The internet economy is expected to contribute around 9% of the GDP from the current meagre 2.3%. As per a January 2021 research report by Citibank.
While yet through its various funds, IIFL has invested around $1.8 billion (Rs. 12,248 crores) in the Indian market. Earlier in the month, Edelweiss Wealth Management launched private equity (PE) fund to tap the sector-agnostic pre-IPO and late-stage investment opportunities with a targeted corpus of Rs. 5,000 crore.