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Auxano Capital Gears Up for Growth with Second Fund, Eyes IPO-Bound Startups

Auxano Capital
Preeti Bali / 9:56 am / June 25, 2024

Auxano Capital, a prominent early-stage venture capital (VC) firm, is embarking on a new chapter of growth with the launch of its second fund. This larger fund signifies an expansion in the firm’s investment strategy, allowing them to capitalize on the evolving landscape of the Indian economy.

Targeting Early-Stage and Pre-IPO Companies

Settled in Gurugram, Auxano Capital’s new asset brags a likely size around $100 million. This expanded capability will empower them to put resources into a more extensive scope of organizations, with an emphasis on both beginning phase new companies and those approaching a first sale of stock (Initial public offering). The firm, laid out in 2016 by Brijesh Damodaran Nair and Ashish Padiyar, as of now deals with a fruitful $25 million asset devoted to beginning phase adventures.

Seizing the IPO Opportunity

Fellow benefactor Nair distinguished a huge flood in Initial public offering action inside the Indian startup biological system throughout the following year and a half. With this prescience, Auxano Capital expects to take part in this forthcoming wave by putting resources into promising organizations on the cusp of opening up to the world.

Maintaining a Sector-Agnostic Approach

While expanding its investment scope, Auxano Capital remains committed to its sector-agnostic approach. However, the new fund empowers them to explore larger opportunities across diverse sectors crucial to India’s economic growth. These include deep technology, climate technology, manufacturing, and infrastructure, to name a few.

Nair Identifies India’s Economic Opportunities

Nair perceives significant transformations driving the Indian economy, including rising consumer demand, infrastructural advancements, evolving online communities, and a burgeoning entrepreneurial spirit in Tier II and III cities. He believes these trends create fertile ground for innovative startups to address various emerging needs.

Focus on Sustainable Growth in a Changing Landscape

The recent slowdown in funding has demonstrably influenced investment priorities. Both startups and VCs are now placing greater emphasis on strong corporate governance and sustainable business models. Nair emphasized that “good opportunities are likely to be swiftly subscribed to, leading to rapid deal closures.”

A Proven Track Record of Investment

Auxano Capital boasts a successful portfolio of startups, including MProfit, Polymatech, LoanKuber, Private Circle, and Mugafi. They have also achieved notable exits, including a full exit from MilkBasket and a partial exit from Wiom. To date, the VC firm has invested in a total of 28 startups.

Bullish Outlook for the Future

Despite seeking strategic exits from some portfolio companies, Auxano Capital remains optimistic about its future investment prospects. The firm is well-positioned to capitalize on the burgeoning Indian startup ecosystem and contribute to its continued success.

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