EAAA, the alternatives arm of Edelweiss, today announced that its private equity strategy has scaled to approx. INR 2,500 crore in fee-paying assets under management (FPAUM) across its Discovery Funds, marking a significant milestone.
The Discovery Strategy, comprising Edelweiss Discovery Fund I and Discovery Fund II, focuses on investing in mid-stage businesses that have demonstrated product-market fit and are entering their next phase of institutional growth.
Launched in 2022, Edelweiss Discovery Fund I built a portfolio of companies including Shadowfax, Kusumgar, RentoMojo, GIVA, Renee Cosmetics and ProcMartThe Fund is currently tracking at 1.8x TVPI (Total Value to Paid-in) within four years of its first close.
The portfolio has also begun generating liquidity events, with Shadowfax and Kusumgar successfully listing in 2026Both investments have delivered significant value appreciation since investmentThe Fund has already made its first distribution based on part-exits from these investments.
RentoMojo marks the third investment from Fund I to deliver a partial exit through capital marketsThe current listed price indicates a 6.3x multiple on the investment.
Amit Agarwal, Chief Executive Officer, EAAA India Alternatives, said, “Capability before capital has been the cornerstone of our platformOver the past four years, we have deliberately focused on building institutional capabilities — the right team, a rigorous investment discipline and a scalable platform — enabling us to create enduring value in the businesses we back and deliver long-term outcomes for our investorsThe true measure of private equity lies not in the capital invested, but in the businesses built and the value created.”
Ashish Agarwal, Managing Director, Private Equity, EAAA India Alternatives, said, “We launched the Discovery Strategy to address a growing need for institutional growth capital among businesses that have already demonstrated strong unit economics and operational scaleThe progress of Fund I and the response to Fund II reinforces the attractiveness of this opportunity set and our ability to identify and support the next generation of market-leading businesses.”
Discovery Fund II, which has raised INR 1,300 crore so far from marquee investors, has already commenced deploymentThe Fund marked its first investment by leading a INR 230 crore funding round in Arboreal Bio Innovations, an ingredients technology company focused on specialty food and nutraceutical ingredientsDiscovery Fund II is targeting investments of approximately INR 200 crore per company.
With an FPAUM of approx. INR 2,500 crore across two funds within four years, the Discovery Strategy has established itself as a differentiated growth-equity platform within EAAA, focused on partnering with high-quality businesses through their next phase of growth and value creation.
EAAA Alternatives is a diversified alternatives platform and comprises eight strategies including infrastructure, special situations, performing credit and commercial real estateThe portfolio across these strategies include 1.73 GW solar, 4,586 lane km of road, 3.1 mn sq.ftoffice space and 1,835 circuit kms of transmission linesThe platform has also financed* 190 Investments with aggregate financing of approx. INR 424bn across multiple sectors.