Auxano Capital plans second fund; aims to raise about $100M

Auxano Capital, an early-stage venture capital (VC) firm, will expand the scope of its investment activity with a larger fund with thematic bets on the broader shifts in the Indian economy.

The Gurugram-based VC launched its second fund with a potential size of around $100 million to invest in early-stage companies and those potentially looking at an initial public offering (IPO).

Founded in 2016 by Brijesh Damodaran Nair and Ashish Padiyar, the VC already has a $25 million fund, from which it has invested in early-stage startups.

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In the next 18 months, there will be a sizable number of IPOs from the Indian startup ecosystem, and the VC would like to participate in this opportunity, Co-founder Nair said in a conversation with YourStory.

Auxano Capital will continue its focus on being a sector-agnostic fund. With the second fund, it would also look at larger opportunities in the Indian economy, including in deeptech, climate tech, manufacturing, and infrastructure, to name a few themes.

Nair believes several changes are occurring in the Indian economy, including higher consumption, infrastructure development, shifts in online community, and a growing number of businesses in Tier II and III cities, providing numerous opportunities for startups to innovate in these areas.

The present environment of a funding slowdown has brought to the forefront certain changes, where governance and sustainable growth have emerged as the key priorities for startups and VCs.

Nair said, “Good opportunities will be subscribed fast, and deals get closed soon.”

Auxano Capital's portfolio startups include the likes of MProfit, Polymatech, Loankuber, Private Circle, Mugafi, etc. It has also had certain exits, including a full exit from MilkBasket and a partial exit from Wiom. The VC has invested in 28 startups till now.

Nair said Auxano Capital continues to remain bullish on its future investment prospects even as it seeks certain exit opportunities from its portfolio of startups.

(The article was updated with more portfolio startups.)