Latest news with #KedaaraCapital
Mint
22-07-2025
- Business
- Mint
From Discipline to Purpose: Manish Kejriwal on Building Kedaara Capital
'From greed to giving'—that's how Manish Kejriwal describes his evolution with money. The Founder and Managing Partner of Kedaara Capital joined Mint's Neil Borate on the Let's Mint Money podcast to share candid reflections on disciplined investing, building one of India's leading private equity firms, and embracing simplicity in personal finance. Watch the full episode below, Early Experience with Debt Shaped His Approach Kejriwal spoke openly about a tough period early in his career when he faced personal financial liability after signing guarantees for his family's business interests. He described this episode as deeply formative. 'Because of that experience, I developed a very strong bias against personal debt,' he said. 'Even when we finally bought a house in 2013—almost 20 years after I started working—it was with no mortgage. That philosophy of avoiding personal guarantees and keeping things simple has stayed with me throughout.' Learning the Art of Investing at Temasek After starting at McKinsey, Kejriwal joined Temasek to help establish its India office—an experience he credits with teaching him how to invest. 'I learned the art of investing there,' he said. 'We had an incredible seven or eight years. I hired every person there from the janitor to the investment team.' He also cited Temasek's then-CEO Ho Ching as a major influence. 'I haven't seen anyone smarter or more strategic,' he said. 'She gave me the opportunity to set up their first office outside Singapore.' Founding Kedaara Capital After Temasek, Kejriwal co-founded Kedaara Capital. He said the idea of starting his own firm was compelling but came with significant risk. 'As a consultant you think bankers make a lot of money. As a banker you think PE guys make a lot of money. The ultimate nirvana is starting your own firm—but that involves a hell of a lot of risk,' he said. He also described the challenge of launching the firm. 'Raising the first fund is the toughest thing to do. It took us almost 2.5 years to raise about $540 million,' he said. Focus on Control and Discipline Kedaara Capital is known for its disciplined approach, favouring control-oriented, late-stage private equity investments over venture capital. 'Retail investors put alternatives in one bucket, but alternatives are very complex,' he explained. 'A good PE guy doesn't necessarily make a good VC.' He contrasted PE's steady, cash-flow-based strategy with VC's higher-risk, higher-failure-rate model. 'We do boring manufacturing, bricks-and-mortar businesses. We expect each return to give us between 3x to 5x over four to five years, with 25–35% IRR,' he said. 'VCs need to take much more risk and expect flameouts.' Simplicity in Personal Spending Kejriwal described how his relationship with money evolved over time. 'In the earlier part of my career, making money was very important,' he admitted. 'But about 15 years ago, something switched. I stopped caring about things like which car I showed up in.' He shared examples of his more minimalist approach today. 'We used to have a Maybach—it's sitting in the garage. Now I drive an MG. My son calls me the Uniqlo dad because all my clothes are Uniqlo.' Fees, Alignment, and Manager Selection Kejriwal also discussed his approach to public market investing, emphasizing cost-consciousness and alignment. He supported the advisory model of wealth management. 'It has to be, for me, pure advisory fees. Any model which involves a commission on stuff sold, is frankly, for me, a panacea for the industry.' 'I'm very sensitive to gross and net,' he said. 'If I'm paying a fee—whether it's management or performance—the alpha has to exceed that. Otherwise, it's not worth taking.' He said he prefers ETFs for their low cost until he finds a manager he trusts. 'I believe in the power of compounding. Till I find a good manager, I keep money in ETFs,' he said. Disclaimer: Lets Mint Money is a Mint editorial IP, in association with Waterfield Advisors. The series will see Neil Borate explore the personal finance perspectives of India's accomplished corporate professionals, entrepreneurs, and family business owners. Stay tuned for future episodes! To know more about Waterfield, visit
Mint
21-07-2025
- Business
- Mint
Student loan provider Avanse Financial looks to raise $250 million in private round after shelving IPO
Mumbai: Avanse Financial Services Ltd, a non-banking financial company (NBFC) backed by Kedaara Capital and Warburg Pincus, is looking to raise $200-250 million in a private round in which some of its existing investors will sell part of their stakes, three people with knowledge of the development said. The new round will be largely secondary, and will include a small primary component as the company is well capitalised following a capital infusion by Kedaara Capital ( ₹200 crore), Mubadala Investment Company ( ₹900 crore through its affiliate Alpha Investment Company LLC), Avendus PE Investment Advisors Pvt Ltd ( ₹100 crore via its Avendus Future Leaders Fund II), and internal accruals in FY24. IPO shelved The company, which filed draft papers for an initial public offering (IPO) with Sebi last July, is likely to postpone its IPO in favour of the private fundraise, these people said. Other investors in the company include International Finance Corporation (IFC) and Warburg Pincus. On 31 July 2024, Avanse had filed draft documents for a ₹3,500-crore IPO, which included a fresh issuance of shares worth ₹1,000 crore and an offer for sale in which existing investors would sell shares worth ₹2,500 crore. It received Sebi's approval on 24 October. 'The company's window to go public closes in October (2025). Given the market conditions, it is unlikely to refile its documents," said one of the people cited above, who did not wish to be named as the discussions are private. IFC and Kedaara did not respond to Mint's queries while Warburg and Avanse declined to comment. After Indian companies raised a record ₹1.69 trillion through IPOs in 2024, the euphoria around public offerings appears to be softening in 2025 amid volatile market conditions. The mainboard segment, once flooded with enthusiastic bidders, is now seeing lukewarm interest, subdued subscription levels, and sharply lower listing gains. A Mint analysis revealed that only 19.2% of mainboard IPOs this year have been oversubscribed by 80 times or more, while 38.5% were oversubscribed by 1-10 times. Median listing gains for mainboard IPOs have dropped to just 8%, while SME IPOs have seen a sharper decline to 4.6%—a far cry from 2024's 17.3% and 39.3%, respectively. Second-largest provider Avanse provides education financing, including international and domestic student loans and infrastructure loans for educational institutions. It disburses loans through a hybrid network of branches, education counsellors and digital channels. Two NBFCs dominate the overseas education loan market. HDFC Credila Financial Services had a 62% share of the market as of 31 December 2023, while Avanse had a 24% share. Other key NBFCs in the space are Auxilo Finserve, InCred Finance, Prodigy Finance and MPower. Avanse was also the second NBFC offering education loans that planned to go public after Credila, which is backed by ChrysCapital and EQT. Credila filed its updated draft papers last month for a ₹5,000-crore IPO. 'Credila's IPO would have served as a good measure of where the market stands on an education-focused NBFC," said the second person cited above. 'Avanse is likely to appoint a banker to manage its private round and initial talks have begun," the third person added. According to Avanse's draft IPO papers, its AUM increased 65.86% to ₹13,303 crore in FY24 from ₹8,646 crore in FY23. Total income grew to ₹1,729 crore in FY24, with net profit rising to ₹342 crore. For comparison, the company posted ₹990 crore in operating revenue on a profit of ₹157 crore in FY23. A bulk of its AUM came from overseas education loans, with growth in the segment driven by markets such as the US (48.30% of the overseas book), the UK (23.78%), and Canada (12.58%). Avanse has given loans to students enrolled in 1,585 universities and colleges across 49 countries. It predominantly finances science, technology, engineering and mathematics (STEM) courses, which comprised 72.13% of its overseas education loan portfolio as of 31 December 2024. MBA and other courses accounted for the remaining 27.87%. Niche but growing market Overseas education financing is a niche market in India, largely funded by specialised NBFCs. It has been growing thanks to an increasing number of students choosing pursue higher education abroad. Avanse has been one of the biggest beneficiaries of this shift, gaining market share and maintaining its leadership position, Care Edge Ratings said in a report. The credit rating agency noted that the company has an established presence and improving profitability, and is poised to raise funds at competitive rates and improve its operational efficiency. In FY25 the company posted an operating income of ₹2,350.8 crore and a profit of ₹504 crore. However, Care added that the business could face headwinds from product and geographical concentration, moderate portfolio seasoning, and asset quality that's susceptible to risks inherent in the unsecured loans segment. While the company receives a bulk of its revenue from the top four destination countries, it has gradually been diversifying into loans for educational institutions and students in India to reduce seasonality. It has also started offering loans Indian students for studying digitally, particularly for upskilling and test preparation, the report said. In India, the education market – domenstic and overseas – was estimated at ₹18.5-19 trillion in FY24, according to a Crisil report published last year. Crisil expects India's overseas education market to outpace the domestic market. It estimates overall market to grow at a compound annual rate of 12-13% from FY24 to FY29, achieving ₹24 trillion in size.
Economic Times
18-07-2025
- Business
- Economic Times
Spandana Sphoorty to launch Rs 400 crore rights issue at steep discount
Spandana Sphoorty Financial has fixed the price of its proposed rights issue at Rs 230 per share, nearly 25% lower than the market price. ADVERTISEMENT The stock closed Friday at 305.95 apiece. The microfinance company will launch the Rs 400-crore rights issue on August 1. Shareholders will get 10 rights equity shares for every 41 shares held. The face value of the shares is Rs 10. Its equity share will expand by 89 million to 71 million, if the rights issue is subscribed issue will remain open until August 11. The board will have the right to extend the issue closing date up to 30 days, the company said in a regulatory is part of the microfinance company's plan to raise up to Rs 750 crore in equity in FY26. ADVERTISEMENT Spandana is facing severe stress in asset quality, as do other microfinance lenders. It suffered a Rs 1,035-crore annual net loss in FY25 while its gross bad loan ratio jumped to 5.63% of the total chief executive Ashish Damani had earlier said that principal promoter Kedaara Capital is expected to participate in the rights issue. ADVERTISEMENT Kedaara holds 48% in the company. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
18-07-2025
- Business
- Time of India
Spandana Sphoorty to launch Rs 400 crore rights issue at steep discount
Spandana Sphoorty Financial has fixed the price of its proposed rights issue at Rs 230 per share, nearly 25% lower than the market price. The stock closed Friday at 305.95 apiece. Explore courses from Top Institutes in Select a Course Category The microfinance company will launch the Rs 400-crore rights issue on August 1. Shareholders will get 10 rights equity shares for every 41 shares held. The face value of the shares is Rs 10. Its equity share will expand by 89 million to 71 million, if the rights issue is subscribed fully. The issue will remain open until August 11. The board will have the right to extend the issue closing date up to 30 days, the company said in a regulatory filing. Live Events This is part of the microfinance company's plan to raise up to Rs 750 crore in equity in FY26. Spandana is facing severe stress in asset quality, as do other microfinance lenders. It suffered a Rs 1,035-crore annual net loss in FY25 while its gross bad loan ratio jumped to 5.63% of the total portfolio. Interim chief executive Ashish Damani had earlier said that principal promoter Kedaara Capital is expected to participate in the rights issue. Kedaara holds 48% in the company.
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Business Standard
08-07-2025
- Business
- Business Standard
CCI clears Kedaara Capital's stake acquisition in logistics firm Porter
The Competition Commission of India (CCI) on Tuesday cleared a proposal by private equity firm Kedaara Capital to acquire a stake in SmartShift Logistics Solutions, the parent company of on-demand logistics-turned-unicorn Porter. Mumbai-based Kedaara Capital is acquiring a stake through its two affiliates Kedaara Sapphire Holding and Kedaara Capital Fund IV AIF in Porter. "CCI approves the acquisition of a certain stake in SmartShift Logistics Solutions Pvt Ltd jointly by Kedaara Sapphire Holding and Kedaara Capital Fund IV AIF," the competition watchdog said in a post on X. Porter is primarily engaged in business activities, including the provision of logistics services, packing and moving services. In May this year, Porter announced that it raised USD 200 million in a Series F funding round co-led by Kedaara Capital and Wellington Management at a valuation of USD 1.2 billion. Meanwhile, Porter's early investors venture capital firm Peak XV Partners (formerly Sequoia Capital India & SEA) and Kae Capital sold their stakes in the company. Following the fundraising round, Porter became the third unicorn after Netradyne and Juspay in 2025. Porter competes with the likes of Shadowfax, Pidge, and cityXfer, among others. The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
