Kotak Investment Advisors, the alternate asset management arm of the Kotak Mahindra Group, successfully closed its maiden Pre-IPO Opportunities Fund after raising Rs 2,000 crore, the company said on Tuesday.
The fund will primarily focus on investments in late-stage disruptive new-age technology companies with robust unit economics, scalable business models, and exit visibility. Investors in the fund include several family offices such as Catamaran, the family office of Infosys co-founder NR Narayana Murthy, and Skywalker, the family office of the Rubamin group.
The fund has already made investments worth Rs 653 crore in five deals: API Holdings (the parent company of PharmEasy), Pine Labs, Mobile Premier League, PB Fintech (Policy Bazaar), and FSN Ecommerce (Nykaa). Policybazaar and Nykaa listed on the bourses in the second half of 2021 and are currently trading higher 1.7% and 82% against their offer price, respectively.
According to the company, the Kotak Pre-IPO Opportunities Fund has other deals worth Rs 405 crore in various stages of evaluation and execution.
The ongoing trend in the primary markets will drive more new-age technology-led companies to launch their initial public offerings in the coming months and the appetite among investors for such businesses at the right price will remain strong, experts said.
“The swift pace of digital adoption by individuals, SMEs or enterprises has opened up the opportunity for the tech eco-system to respond with unique and scalable business models with significant long-term growth potential. Kotak Pre-IPO Opportunities Fund enables our investors to participate in this growth story as these companies become part of public markets over time,” said Srini Sriniwasan, managing director, Kotak Investment Advisors.