India's OAKS Asset Management set to close second consumer fund at $128m

Mall in India. Photo: Mint

India-focused private equity firm OAKS Asset Management on Thursday announced that it is close to raising about $128 million (Rs 1,000 crore) towards the final close of its second consumer fund, surpassing the initial target of Rs 750 crore.

OAKS India Consumer Fund, which was launched in early 2021, is targeting to hit the final close by the end of next month, the firm said in a statement.

The fund had initially announced that it would be raising Rs 500 crore, with a green-shoe option of Rs 250 crore, to invest in the range of Rs 25 crore to Rs 100 crore each in about 10-12 businesses.

The vehicle, which is registered with the Securities and Exchange Board of India, the country’s market regulator, as a Category-II Alternative Investment Fund, had already received investments worth around Rs 400-450 crore by March 2021.

“We have always had deep conviction in the Indian consumer story and believe that as a market, India continues to offer multiple yet simple penetration and growth opportunities. For us to be in the position that we are in is not only a vindication of our investment philosophy but also the resilience of India’s consumer story,” said OAKS Asset Management founder & CEO Vishal Ootam.

In its made maiden investment, the second fund led a Rs 55-crore Series-A funding round for millet snacks company Troo Good in November last year.

The firm’s first fund had raised Rs 700 crore in 2017, and had invested in electric two-wheeler brand Hero Electric; luxury banqueting and catering business Foodlink; non-banking financial company InCred; Vini Cosmetics, the makers of Fogg Deodarant; women’s ethnic wear brand Shree; and Hardcastle Restaurants, the master franchisee for McDonald’s in south and west India.

“In sharp contrast to the otherwise sombre commentary that one might hear about the investment climate around, we have witnessed some of the most exciting times in our journey over the past 12-18 months. True to our philosophy, we at OAKS Asset Management have always invested in traditional consumer brand stories driven by seasoned entrepreneurs or business families that focus on profitable growth,” said OAKS Asset Management founder & MD Vivek Anand PS.

“We do not invest in businesses that are dependent on serial fund raises nor do we invest in businesses that operate in the ‘Winner takes All’ categories. As a result, we are confident that we will continue to deliver on our promise and conviction like we have done over the past decade,” Anand added.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter

This is your last free story for the month. Register to continue reading our content