The Discovery Strategy comprises Edelweiss Discovery Fund I and Discovery Fund II and 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 comprising Shadowfax, Kusumgar, RentoMojo, GIVA, Renee Cosmetics and ProcMart. The Fund is currently tracking at 1.8x TVPI (Total Value to Paid-in) within four years of its first close.
The portfolio has also started generating liquidity events, with Shadowfax and Kusumgar successfully listing in 2026. Both investments have delivered significant value appreciation since investment. The 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 markets. The 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 platform. Over 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 investors. 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, 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 scale. The 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 deployment. The 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 ingredients. Discovery Fund II is targeting investments of approximately INR 200 crore per company.
With an FPAUM of approximately 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 comprising eight strategies, including infrastructure, special situations, performing credit and commercial real estate. The portfolio across these strategies includes 1.73 GW solar, 4,586 lane km of road, 3.1 mn sq.ft. office space and 1,835 circuit kms of transmission lines. The platform has also financed* 190 Investments with aggregate financing of approximately INR 424bn across multiple sectors.
The latest milestone underscores the expansion of EAAA’s Discovery Strategy across its two funds, with Fund I generating liquidity events and Fund II moving into deployment after raising INR 1,300 crore.
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