Xponentia Opportunities Fund II Oversubscribed At Rs 1000 Cr
Mumbai-based private equity firm Xponentia Capital Partners LLP (Xponentia) said that the size of its second Fund Xponentia Opportunities Fund II has crossed INR 1000 crore. The fund was oversubscribed and exceeded its initial target of INR 750 crore.
Xponentia Opportunities Fund II will continue to pursue the same strategy of if investing in companies that have strong growth potential, proven business models, and differentiated value propositions across sectors such as consumer, healthcare, financial services, and business services.
The predecessor, Xponentia Opportunities Fund I (“Fund I”), a 2019 vintage fund is fully invested in eight companies.
The equity firm has received support from Fund I investors as well as secured commitments from new investors in the Indian market, comprising mainly of high-net-worth individuals (HNIs), family offices and insurance companies and the Fund of Funds program managed by Small Industries Development Bank of India (SIDBI).
"We have raised the Fund almost exclusively from the domestic market" said Devinjit Singh, Managing Partner, Xponentia. “One of the reasons I had left Carlyle in 2018 to launch Xponentia was my conviction that Indian institutions and Family Offices are underinvested in alternative assets, and they would logically increase their exposure to this asset class. Investor appetite for the asset class has increased faster than I imagined, and we have raised the fund almost exclusively from the domestic market” added Devinjit Singh.
“Traditionally, the Achilles Heel of the Indian private equity industry has been distributions, and our fund investors have appreciated our relentless focus on this aspect with a DPI (distributions to-paid-in capital) of nearly 100 per cent for Fund I,” said Devinjit Singh.
"We are grateful for the trust and confidence that investors have placed in us" said P.R. Srinivasan, Managing Partner, Xponentia. “The success of the fund raise reflects the Investors’ belief in the Xponentia Team, i.e. our ability to identify and work with first generation entrepreneurs who want to build sustainable high-quality businesses. Our diverse skillset allows us to be engaged investors in assisting entrepreneurs to manage risk and execute their vision” added P R Srinivasan.
Xponentia announced the first close of Fund II in July last year and has already invested/committed INR 270 crore across four companies, viz Altigreen (commercial electric vehicle maker), Zype (new age fintech platform), The Souled Store (the “coolest” casual wear brand) and Auxilo (education financing).
Other portfolio firms include mortgage fintech startup Easy Home Finance, baby products company-R for Rabbit, medical diagnostics company-Medsource, India’s largest casual dining restaurants chain-Barbeque Nation and India’s only independent pilot training Company-FSTC.
Last year, Xponentia reported one full exit from Spoton Logistics (acquired by Delhivery before its IPO) and a partial exit from Barbeque Nation when the restaurant chain made its public market debut in 2011. Xponentia expects to report one more exit later this financial year from a Fund I portfolio company.
