VCCircle

It looks like Avendus Advisors is close to sealing the investment deal with Mayfield Fund. The Economic Times does a follow up that the US-based venture capital fund is close to picking up around 20 per cent stake in Mumbai-based investment banking boutique Avendus. The deal size is reportedly $15 million, valuing the eight year old firm at $75 million. Avendus expects to close 2006-07 with $12 million in revenues.

The paper quotes Ranu Vohra, Managing Director of the firm, as saying that the terms sheets would be signed in a week's time. According to an earlier report, Vikram Pandit's Old Lane Fund was also expected to join Mayfield in the investment. It's not clear of Old Lane is still investing.

Mayfield has partnered with Avendus for launching a $200 million India growth fund, a story first reported by VC Circle a few months ago. The fund is expected to close by July-August this year. Avendus will become Mayfield's second direct investment in India. In January this year, the US fund had invested an undisclosed amount (but rumoured to be $12 million) in Tejas Networks.

As for Avendus, the firm is founded by three investment bankers - Ranu Vohra, Gaurav Deepak and Kaushal Aggarwal, who between themselves and the employees hold about 70 per cent stake in the firm. Americorp, an institutional investor from Spain, holds 20 per cent and Anil Godhwani, an entrepreneur-investor from California, owns the remaining 10 per cent. The promoters had bought back a small stake held by Infinity Venture, an Indian venture capital fund which was wound up sometime ago.

Related:

Mayfield To Team Up With Avendus For India Growth Fund

Old Lane And Mayfield May Pick Up 20% In Avendus Advisors

Avendus Advisors Forms JV With Germany's goetzpartners