Mid-market PE fund Xponentia raises Rs 1000-crore for its second fund

MUMBAI: Xponentia Capital Partners, the mid-market focused private equity fund, has raised about Rs1000 crore for its second fund – Xponentia Opportunities Fund – II. The homegrown fund, which counts Barbeque Nation and Altigreen among its portfolios, launched the fund in early 2022.

Xponentia Opportunities Fund-II, with a target of $100 million (Rs750 crore), is expected first close by April 2022, ET reported last year.

The Fund II has its investors including Indian family offices, domestic financial institutions, corporates, insurance companies and the Fund of Funds program managed by Small Industries Development Bank of India (SIDBI).

Investments made from Fund II include commercial electric vehicle maker Altigreen, Respo Financial Capital, Education-focussed NBFC Auxilo Finserve and D2C retailer The Souled Store.

The first fund – Rs500-crore Xponentia Opportunities Fund-1 was fully raised from domestic investors and made about 8 investments.

Xponentia Capital was floated by Ajay Relan of CX Partners, former head of Citigroup India PE team PR Srinivasan and ex.Carlyle India head Devinjit Singh.

“My conviction is that Indian institutions and Family Offices are underinvested in alternative assets, and they would logically increase their exposure to this asset class,” said Devinjit Singh, Founder & Managing Partner, Xponentia Capital Partners.”Our diverse skill set allows us to be engaged investors in assisting entrepreneurs to manage risk and execute their vision,” said P.R. Srinivasan, Managing Partner, Xponentia.

Investments include Barbeque Nation, Spoton Logistics, Flight Simulation Technique Centre, R for Rabbit, Medsource and mortgage tech startup Easy Home Finance.

Fund 1 has made 2 exits, where investment in Spoton Logistics has given a 3X return in 3 years and the pre-IPO investment made in Barbeque Nation has returned 4.6X in 14 months. Xponentia had marked its first exit in 2021 after Spoton was acquired by SoftBank backed Delhivery for $235 million.

Year 2022 witnessed fundraising by India-dedicated funds to the tune of $10.6 billion (70 funds) against $5.9 billion (42 funds) raised till date in 2023, according to Venture Intelligence data.

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