Mumbai-based private equity fund, Xponentia Capital Partners, is establishing its second fund with a target of $100 million (approximately Rs 750 crore). This homegrown fund, known for its investment portfolios, including Barbeque Nation and Altigreen, launched the new fund a week ago. The anticipated first close of Xponentia Opportunities Fund-2 is expected. The fund’s investor base will include Indian family offices, domestic financial institutions, corporate entities, as well as international investors.

The inaugural fund, Xponentia Opportunities Fund-1, which amounted to Rs 500 crore, was fully subscribed by domestic investors. Xponentia Capital gained prominence when it participated in a Rs 300 crore investment in Altigreen, a commercial electric vehicle manufacturer. This venture was undertaken alongside Reliance New Energy and Sixth Sense Ventures. Founded by Ajay Relan of CX Partners, PR Srinivasan, former head of Citigroup India PE Fund, and Devinjit Singh, former Carlyle India head, Xponentia Capital aims to address the under-allocation of Indian investors, both institutional and family offices, in alternative assets.

While venture capital, late-stage investments, and IPOs have seen robust capital inflow, Xponentia recognizes a shortage of funds for mid-market corporate ventures in India, despite the presence of exceptional entrepreneurs and substantial market potential. Xponentia Opportunities Fund-1 has invested in diverse sectors, including casual dining chain Barbeque Nation, road freight express logistics firm Spoton Logistics, Flight Simulation Technique Centre, R for Rabbit (baby products), Medsource (medical diagnostics), and Easy Home Finance (mortgage tech startup). The fund is also awaiting RBI approval for its fintech platform, a Rs 150 crore investment, marking the full deployment of Fund-1.

Significant exits have been achieved, with a 3X return in three years from Spoton Logistics and a 4.6X return in 14 months from the pre-IPO investment in Barbeque Nation. Xponentia’s focus lies in the mid-market space, where it seeks to enhance corporate governance and management practices for value creation.

Amid a trend of renewed fundraising in the Indian PE/VC sector, Xponentia’s initiative aligns with the substantial surge in global PE/VC fundraising, amounting to a record $732.6 billion—a remarkable 19% increase. Furthermore, PE deal value reached an all-time high in CY21, marking a positive trajectory in the investment landscape.