Axis Asset Management Company, an arm of private sector lender Axis Bank, has raised around Rs 400 crore through first close of Axis Growth Avenues AIF-I, aiming to fund ideas with deep technology as their USP. The asset management company is aiming to raise a total of Rs 1,000 crore through the close-ended fund, including a greenshoe option of Rs 500 crore. It is confident of completing the entire fundraising in this quarter, based on response and commitments from investors.

The fund has achieved the first close with investments from family offices, high networth individuals (HNIs) and non-resident Indians (NRIs). The fund will be investing primarily in mid-to-late stage technology-enabled companies with scaleable business models and a favourable risk-return profile. The sector-agnostic fund will be investing in companies catering to latent demands with multiyear growth potential and differentiated business model.

Axis Growth Avenues AIF-I will be exploring both primary and secondary investment opportunities with the proposed portfolio size of eight to 10 companies, with deal size ranging from Rs 25 crore to Rs 100 crore each.

The AMC has a strong pipeline of investments and expects to start deploying funds from the AIF soon. “The strong response that we are receiving for the Axis Growth Avenues AIF-I, reflects the confidence investors and partners have in us, as well as the potential of this segment. It will be our endeavour to ensure we deploy this money in companies that offer exciting long term growth opportunities and are aligned with our investment philosophy,” said Chandresh Nigam, chief executive, Axis AMC.

Total fund term will be five years from its final closing and may be extended for two additional periods of one year each. The AIF is looking to capitalise on innovation and growth in the economy and to invest in companies that are benefiting from these trends. It will be primarily focused on investing in fintech, technology, ecommerce and edtech.