Avendus to offer investment banking services from Singapore

Aiming to cash in on an expected technology sector dealmaking boom in the Southeast Asia, Avendus said it will start offering investment banking services from Singapore.

The operations from Singapore will focus on advising technology sector funding rounds of $40-50 million in Southeast Asia, Avendus managing director Karan Sharma said.

“The kind of massive growth we saw in India the last 8-9 years is what we expect in Southeast Asia now, which has also grown big. The demographics and infrastructure challenges are similar,” said Sharma, who co-heads Avendus’ Digital & Technology Investment Banking division in India.

He also said that Varun Gupta, Avendus India managing director, will lead the Southeast Asia operations and relocate to Singapore early next year.

US private equity company KKR-backed Avendus advises large startups such as SoftBank-backed food delivery firm Swiggy and eyewear retailer Lenskart on their fund raising.

Expanding to Southeast Asia will help the Indian financial services firm leverage its ties with investors such as Accel and Lightspeed which have expanded beyond India, a Reuters report said citing an industry source familiar with Avendus’ plans.

The company employs about 150 bankers in India.

As per the Venture Intelligence data, Avendus was the top advisor in India for private equity deals in 2022, advising on 37 deals worth $7 billion. The Indian financial services firm competes with larger rivals such as Morgan Stanley and Goldman Sachs. 

Southeast Asia is on the mind of investors who are seeking exposure to the emerging market as the region is witnessing strong economic growth and consolidation in some sectors.

Companies such as ride-hailers Grab and GoTo have already clocked multibillion dollar valuations.

According to Avendus Capital, India will create just four to five unicorns next year as digital companies continue to struggle to raise money from investors in a gloomy venture funding climate.

(With inputs from Reuters)