Announcement

EAAA, the alternatives arm of Edelweiss, disclosed that its Discovery private‑equity strategy has scaled to approximately INR 2,500 crore in fee‑paying assets under management (FPAUM) across Edelweiss Discovery Fund I and Discovery Fund II.

Strategy Focus

The Discovery Strategy targets mid‑stage businesses that have achieved product‑market fit and are poised for the next phase of institutional growth.

Discovery Fund I Details

  • Launched in 2022, Fund I’s portfolio includes Shadowfax, Kusumgar, RentoMojo, GIVA, Renee Cosmetics, and ProcMart.
  • The fund is tracking a 1.8× TVPI (Total Value to Paid‑in) within four years of its first close.
  • Liquidity events have begun: Shadowfax and Kusumgar successfully listed in 2026, delivering significant value appreciation.
  • The fund made its first distribution based on part‑exits from these investments.
  • RentoMojo represents the third Fund I investment to achieve a partial exit via capital markets, with the current listed price reflecting a 6.3× multiple on the original investment.

Management Commentary

  • Amit Agarwal, Chief Executive Officer, EAAA India Alternatives, stated that “Capability before capital has been the cornerstone of our platform… The 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, added that the Discovery Strategy was launched to meet the growing need for institutional growth capital among businesses with strong unit economics, and that the progress of Fund I and the response to Fund II reinforce the opportunity set’s attractiveness.

Discovery Fund II Progress

  • Fund II has raised INR 1,300 crore from marquee investors to date.
  • Its first investment was leading a INR 230 crore funding round in Arboreal Bio Innovations, an ingredients‑technology company focused on specialty food and nutraceutical ingredients.
  • The fund targets investments of approximately INR 200 crore per company.

Overall EAAA Alternatives Platform

  • The platform comprises eight strategies, including infrastructure, special situations, performing credit, and commercial real estate.
  • Asset holdings across these strategies total 1.73 GW of solar capacity, 4,586 lane‑kilometres of road, 3.1 million sq ft of office space, and 1,835 kilometres of transmission lines.
  • To date, EAAA has financed 190 investments with aggregate financing of roughly INR 424 bn across multiple sectors.

Significance

With an FPAUM of about INR 2,500 crore achieved within four years, the Discovery Strategy has positioned itself as a differentiated growth‑equity platform within EAAA, emphasizing partnership with high‑quality businesses for their next growth phase and value creation.