Avendus Capital: Powering India’s Investment Banking Growth with Visionary Founders

Avendus Capital, a homegrown investment banking firm, has taken a significant stride by acquiring Spark Capital’s institutional equities business in Chennai. This strategic move, while undisclosed in terms of the deal’s value, aligns with Avendus’ goal to enter the institutional equities business and enhance its presence in the capital markets. The transaction, backed by global private equity giant KKR, not only expands Avendus’ service offerings but also positions the firm as a merchant banker, poised to advise new-age digital and technology companies embarking on initial public offerings (IPOs).

Gaurav Deepak, the Co-Founder and CEO at Avendus Capital, highlighted the strength and reputation of Spark Capital’s institutional equities business, emphasizing the talent and management team led by Ganeshram Jayaraman. With a commitment to delivering the best to their clients, Avendus is prepared to bolster their service offerings to investment banking and wealth clients, backed by the exceptional institutional equities team from Spark Capital. This partnership is not merely a business transaction; it symbolizes the synergy between two financial powerhouses aiming to revolutionize India’s investment banking landscape.

The Institutional Equities franchise of Spark Capital has consistently earned recognition for its excellence. In the 2021 Asiamoney Brokers Poll, it secured the prestigious title of India’s second-best domestic brokerage house. This formidable position is a testament to the remarkable achievements of Spark Capital’s Institutional Equities team over the past 15 years. The team, led by Ganeshram Jayaraman, remains steadfast in its dedication to the business and will continue to run it as before, ensuring a seamless transition that benefits clients and stakeholders alike.

One of the critical drivers behind Avendus’ impressive track record is its commitment to advising startups and new economy tech-enabled firms. In the period from January to September 2021, Avendus was the leader in India for deal value in private equity and venture capital transactions, boasting a total of 33 deals valued at $8,250 million. This exceptional performance solidified Avendus’ position at the forefront of India’s financial sector. The firm also made significant strides in merger and acquisition advisory, ranking third with $5,659 million in transaction value across seven deals during the same period. These figures underscore Avendus’ prowess in guiding high-value transactions and mergers in the Indian market.

The timing of this acquisition is noteworthy, as India’s capital markets have witnessed a surge in digital and new economy companies going public. In 2021, companies such as Nykaa, Zomato, Paytm, and MapMyIndia, among others, marked their presence on the stock exchanges. According to the EY-IVCA report, 2021 saw record-breaking PE/VC-backed IPOs, with 44 offerings raising a total of $5.1 billion. This flourishing IPO landscape accentuates the need for expert guidance and merchant banking services, making Avendus’ acquisition of Spark Capital’s institutional equities business highly strategic.

Avendus Capital, founded in 1999 by three visionary investment bankers—Ranu Vohra, Gaurav Deepak, and Kaushal Aggarwal—has evolved into a financial institution with a global presence. The firm operates across 11 cities and four countries, offering a diverse range of financial services, including asset management, credit solutions, investment banking, and wealth management. Its transformation into a full-fledged investment bank in 2005 was a defining moment in Avendus’ journey, driven by a commitment to delivering excellence across six verticals. Over time, Avendus strategically diversified and strengthened its offerings, with the consumer technology practice emerging as a major growth catalyst, delivering substantial value to the firm. Key leaders in the digital and technology investment practice, such as Aashish Bhinde, Karan Sharma, and Pankaj Naik, have contributed to Avendus’ success by advising on high-profile deals involving prominent companies like Swiggy and Dream Sports.

As venture capital and private equity funds deploy record amounts of capital in India’s flourishing startup ecosystem, Avendus Capital is poised to maintain its leadership role in guiding high-value transactions. The firm’s commitment to delivering expert financial services is evident in its acquisition of Spark Capital’s institutional equities business. Avendus’ pioneering approach, fueled by visionary founders and a commitment to excellence, positions it at the forefront of India’s investment banking landscape, ready to catalyze the growth of the nation’s digital and technology enterprises.