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June 24, 2016

Should Indian e-tailers be overawed by Amazon’s huge cash flow? : Mint

A Mint article titled Should Indian e-tailers be overawed by Amazon’s huge cash flow? quotes Venture Intelligence data on funding in E-Commerce companies:
In 2015, Indian Internet and e-commerce companies received funding worth $5.8 billion from private investors, according to research firm Venture Intelligence. (Compared to $7.3 Billion of Amazon Inc's Free Cash Flow)


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

June 22, 2016

Online lingerie retailer PrettySecrets raises Rs40 crore from RB Investments: Mint

Mint quotes Venture Intelligence data on latest investment in PrettySecret and RB investments in India.
The Singapore-based venture capital firm (RB Investments) has made close to half a dozen investments so far. Some of its recent investments in India include food-tech start-up Swiggy, online retailer of branded Indian food products Delight Foods, online furniture start-up CapriCoast.com and laundry services start-up 5-a-sec.
In the last three years, around seven online lingerie retailers have managed to raise funds from venture capital investors, according to data from Venture Intelligence.
Last year in September, in the biggest investment in the space, online lingerie store Zivame, owned by Actoserba Active Wholesale Pvt. Ltd, raised Rs.250 crore in a series C funding round from Zodius Technology Fund and Khazanah Nasional Bhd, the investment holding arm of the government of Malaysia. Existing investors Unilazer Ventures, IDG Ventures India and Kalaari Capital also participated in the round.
Zivame started out as an aggregator of brands, including Enamor, Amante and Jockey, but later launched private labels in an attempt to boost margins.
In 2015, another online lingerie retailer Clovia, run by Purple Panda Fashion Pvt. Ltd, raised $5 million from venture capital fund IvyCap Ventures, data from Venture Intelligence shows.
Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

June 21, 2016

Podcast Interview with Mark Kahn of Omnivore Capital

US-based AgFunder has a podcast interview with Mark Kahn, Co-Founder of  pioneering India-focused agri-business focused VC firm Omnivore Capital. In the interview, Kahn contrasts the Indian agtech startup scene with that in the US and what he expects for the sector going forward.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

FDI in pharma to boost mergers, PE investments, say experts: Mint

A Mint article titled FDI in pharma to boost mergers, PE investments, say expertsquotes Venture Intelligence data on transactions in Private Equity and M&A in the Pharma space.







Click here to read more.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

BTI Payments looking to raise Rs250 crore from PE funds: Mint

A Mint article titled, BTI Payments looking to raise Rs250 crore from PE funds, quotes Venture Intelligence data on PE/VC Investments in ATM and Payment Technology Service businesses.
In the last five years, PE investors have invested around $194 million in ATM and payment technology services businesses, shows data from Venture Intelligence.
In the largest transaction in the space, AGS Transact Technologies raised $40 million from Actis in 2012. The previous year it had raised $32 million from TPG Growth. Other transactions in the space include Apis Partners’s $25 million investment in Electronic Payment and Services earlier this year and CX Partners’s $22 million investment in Transaction Solutions International in 2012.
In November 2013, ICICI Venture invested Rs.140 crore in BTI Payments. The investment took place together with a Rs.110 crore infusion by the Australian promoter in the company for branching out into setting up white label ATMs in India.
BTI’s competitors in the white label ATM space include companies such as TPG Growth- and Actis Llp-backed AGS Transact Technologies Ltd and Hitachi Payment Services Pvt. Ltd.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Kedaara Capital in advanced talks to buy Sutures India stake: Mint

In a Mint article titled Kedaara Capital in advanced talks to buy Sutures India stake, journalists Swaraj Singh Dhanjal and Reghu Balakrishnan quote Venture Intelligence data on the investments made by Kedaara Capital in India.
Kedaara Capital has so far invested in companies such as Parksons Packaging Ltd, Mahindra Logistics Ltd, Au Financiers India Ltd, Bill Forge and Manjushree Technopack, putting into action around $172 million, according to data from Venture Intelligence. Its latest investment was the buyout of Au Housing Finance, the mortgage arm of Au Financiers, along with Swiss private equity firm Partners Group, for around $140 million, the data shows. 
To view company valuations, transaction multiples, financials of investments by Kedaara Capital or portfolio details of other PE/VC funds investing in India, subscribe to the Venture Intelligence PE/VC Deals Database.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 


June 20, 2016

Japanese Investors make Beeline for Indian Startups


While Softbank hit the headlines in 2014 with its big ticket - leading multi hundred million dollar rounds - in growth stage companies like Snapdeal and Ola, 2015 saw the entry of lesser known Japan-based investors - like Beenos Partners and Rebright Partners - entering the early stage segment in India. Beenos Partners investments include ShopClues.com (Series B), Voonik (Series B), Droom (Series A) and CitrusPay (Series B).

(Click to View)

Both the number of Japanese investors - both Venture Capital and Strategic Investors - as well as startup companies in their portfolio has only grown in 2016. Active Japanese investors in India include Beenos Partners, Rebright VC, Digital Garage and GMO.



With some of them teaming up for bigger investments....



And what's more, newer funds from Japan have announced plans to enter India soon like Gree Ventures and Dream Incubator or made single/strategic investments like impact investor Arun Llc, DeNA, Zenrin and Nihon Kotsu.



With Silicon Valley investors turning increasingly nervous in 2016, the inflow of the new investors from Japan has helped Indian startups diversify their investor base. Which can only be for the good, right?

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

To track VC investment of all hues and flavours - American, Japanese or any other - into Indian companies, Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

June 17, 2016

Piramal’s Jayesh Desai and Morgan Stanley’s Aluri Srinivasa Rao quit: Mint

A Mint article, uses Venture Intelligence data to chronicle the investments of Piramal Structured Investments Group and Morgan Stanley Private Equity whose top executives have put in their papers:
Apart form its private equity arm, Morgan Stanley through its infrastructure investment platform has made several investments in India in companies such as Asian Genco, Continuum Wind Energy, Hathway Cable & Datacom and Indus Concessions amongst others, data from Venture Intelligence shows.
 Its infrastructure platform has made two exits so far in India, from IHHR Hospitality and Hathway Cable, Venture Intelligence data shows.
Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

PE Investors looking to invest in Operational Hotels: The Economic Times

An ET Article titled, Private Equity players looking to invest in Operational hotels quotes Venture Intelligence data on PE/VC Investments in the Hotel Industry:
In the last two years, funds have invested over $100 million in several hotel chains in India, data by Venture Intelligence showed. 
 Other factors influencing the trend are i) the relaxation through automatic FDI route into the segment and ii) many hotel chains in the country being burdened with huge debt.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

June 15, 2016

Investors boarding Rail Startups


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

June 14, 2016

Good Time for Fintech Startups: The Economic Times

An Economic Times article titled, "New fintech companies drawing interest from investors and customers alike" quotes Venture Intelligence data to track VC investments in Fintech space.




Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Worst over for Private Equity industry but old worries remain : The Economic Times

In an Economic Times article chronicling the worries of PE Industry in India,  "Private equity: Worst over for industry but old worries remain", journalists Sneha Shah & Rica Bhattacharyya use Venture Intelligence data to track Fund Raising in India:


Interested in tracking Fund Raising in India, LP investors in funds, etc - take a trial to the Venture Intelligence PE/VC Deals Database.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 


Further Consolidation in Renewable Energy Space?: Mint

In an article titled "Tata Power-Welspun deal brings focus back to M&As in renewables", Mint's Swaraj Singh Dhanjal uses Venture Intelligence data to forecast consolidation in the green energy space:

1. According to Venture Intelligence, the year 2015 saw 14 M&A deals in the renewable space worth $2.27 Billion. (2016 has seen only 3 M&A deals in the Renewable Space including the Tata Power - Welspun Deal)


2. Opportunities for M&A exist in renewable project companies that were built in the in earlier waves of renewable energy development. (Want a Peek into the List? Try out our Cleantech Deals Database)

3. Large Companies are actively pursuing M&A route to scale up due to the long time scale required for pre-development work, such as in wind, or the uncertainties of competitive bidding in solar (e.g. solar bids routinely attracting 60-70 bidders). M&A guarantees scaling-up in a manner that green-field development cannot.

4. Highly competitive bidding for projects has also lead to lower economic returns.

While  the above factors have been given as reason for further consolidation, Rahul Mody, Ambit Corporate Finance and Kameswara Rao, PWC opine that the consolidation in the sector could be a short lived one due to

1. Limited number of renewable assets in the market

2. With the Indian Government's ambitious target to generate 320 GW through renewable energy sources by 2030, the market is attracting a large number of new players - meaning the market is in fact becoming broader rather than consolidating

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

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June 10, 2016

PE/VC Investments in Education spike up in 2016


Education related companies have already attracted PE/VC investments worth $184 million (across 11 deals) in the first 4.5 months of 2016 – 2.75 times compared to the $67 million across the whole of 2015 (17 investments). The sector is well on its way to surpass the highest ever figures ($235 M reported in 2012).


Recent Deals


The month of May has already witnessed three investments in test preparation and tutoring companies:

EduPristine - Certification Courses - Raised $8 million from Kaizen PE & US-based DeVry Education Group

Tabtor - App based Math Tutoring firm - Raised $3.7 M Series A led by Syven Capital

Prepathon - Test Prep App - Blume Ventures

Sector Focus




In the non-regulated sectors, Test Preparation (like Byju's Classes) and Vocational Training & Certification firms (like Simplilearn & Edupristine) have been the most favored sectors by investors.



The $70 million attracted by Byjus in March 2016 led by Belgium-based Sofina marks the largest investment for a startup education company and takes the total funding raised by the company to almost $100 million.

PE investors have even returned to the regulated sectors, CX Partners has invested as much as $60 M in Nspira, a group firm of the Hyderabad-based Narayana Group, while the Jain Group has attracted $35 million by selling a 74% stake the Real Estate assets of 12 of its K-12 schools (with an option to buy back the stake after 10 years) to Cerestra Edu Infra Fund.

Are you a PE/VC Investor, Investment Banker or Law Firm looking to track transactions in India. Click Here to take a trial to our awesome products like the Deal Digest Newsletter on which the above infographic was published first and the Private Equity & Venture Capital Deals Database from which the above trend was identified.



Aarin Capital, the family office of Manipal Group's Dr.RanjanPai and former Infosys CFO Mr. Mohandas Pai, has been both an active investor in the sector (4 investments in the last 15 months), but has also succeeded in getting strong follow-on funding for its early bets in the sector like Byjus and Tabtor. Among VC investors, firms like Kalaari Capital and seed funds like Blume Ventures have been specially focused on technology enabled companies in the sector.


Strategic Investors have also become quite active. Text book publishing company S.Chand, which had raised raised $26 M led by IFC in 2016,in 2016 has become an active strategic investor (backing 3 startups already). The EduPristine deal saw US-based DeVry Education Group, while Tabtor got participation by John Katzman, founder of The Princeton Review.

Most funded Education Companies




Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Are you a PE/VC Investor, Investment Banker or Law Firm looking to track transactions in India. Click Here to take a trial to our awesome products like the Deal Digest Newsletter on which the above infographic was published first and the Private Equity & Venture Capital Deals Database from which the above trend was identified.

June 09, 2016

Not the End of the Road for Hyperlocal delivery startups: Neeraj Jain, CEO - Zopper

In an Economic Times Retail article titled "Hyperlocal start-ups - The Road Ahead", Zopper CEO Neeraj Jain quotes Venture Intelligence data on funding in Hyperlocal delivery startups:
According to Venture Intelligence, 26 investments worth $171 million were made in these delivery startups.
(The data point was earlier carried by The Hindu article titled End of the road for Hyperlocal delivery startups?)

Neeraj believes that, despite the recent challenges facing the sector - Spoonjoy, Roadrunnr, Tiny Owl, Grofers and Zomato -  hyperlocal startups hold great potential. Apart from suggesting ways for these startups to make their way out, he suggest the current crisis could be an Opportunity in Disguise for the sector. Unlike regular e-commerce companies which have found themselves head to head with brick and mortar retail stores hyperlocal start-ups can work to bring in more local retailers on board to help them increase their service outreach and be part of the vibrant digital commerce ecosystem.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

June 06, 2016

VCs Skip Vacations in May; Month Witnesses 45 Investments

Data from Venture Intelligence's VC Database shows the month of May was the most brisk month for Venture Capital so far in 2016 - with investors making as many as 45 investments worth $300 million (including Growth Capital investments in IT & ITES companies of more than $20-M).

While the value of the tech deals was less than the peak in January (when companies like CarTrade and ShopClues had attracted $145 million and $100 million respectively), the month saw companies like Stayzilla, Crown-it and Mobikwik attract significant follow-on funding.

While Series A investments continued to be slow, specialized seed funds including Blume Ventures and YourNest Angel Fund as well as Kalaari Capital, which backed three companies as part of its seed investment program Kstart, were especially active.

Angel investments also slowed down during May to 33 deals when compared to the peak of 49 in February.

View Venture Intelligence founder Arun Natarajan discussing the trends during the month on ET-NOW's StartupCentral show.



Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

June 01, 2016

Mint revisits goings on at Helion Ventures

Mint columnist, Snigdha Sengupta, who had written a piece titled "The trouble with Helion Venture Partners" in December 2015 (when three of its junior partners - Rahul Chowdhri, Ritesh Banglani and Alok Goyal - had quit to set up their own shop) has revisited the VC firm with a new article titled "The undoing of Helion Venture Partners"  covering the context and reasons behind their departure and its fallout. Extracts:
“The fundamental premise they (the departing partners) were coming from was that they should be elevated to managing partners,” said (Sanjeev) Aggarwal, when Mint met with him and (Rahul) Chandra at the firm’s Gurgaon offices in the middle of April. The elevation would have entitled the younger partners to a larger share of the firm’s profits, commonly known as carried interest, and more influence in dealmaking. The founding partners didn’t think that the three were ready yet for the promotion.
...The old deal-sourcing networks when firms such as Helion started up were also losing relevance. They had been replaced, to a great measure, by the networks of successful entrepreneurs, who had become prolific angel investors in their own right. At Helion, a large part of the responsibility for steering the firm through this new world would fall on the second line of fund managers in the investment team—Chowdhri, Banglani and Goyal. The three, however, would only come into their own in late 2014, when Kanwaljit Singh, the firm’s fourth founding partner, decided to quit. 
Singh, whose career included a long stint in various operating roles at Hindustan Unilever Ltd, was pivotal in leading Helion into non-technology investments. By the middle of 2014, it had become evident that the non-technology portfolio wasn’t delivering as well as the technology portfolio. In all, about 20% of Helion’s $600 million corpus across its three funds had been invested in 13 non-technology companies.
Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

May 30, 2016

ELP Corporate Alert: Special Courts Under the Companies Act, 2013 Notified


To provide speedy disposal of offences punishable under the Companies Act, 2013, which are punishable with imprisonment of 2 years or more, the Ministry of Corporate Affairs has notified the provisions dealing with ‘Special Courts’ with effect from 18 May 2016. The intention behind setting up these courts is to let magistrate courts try minor violations, and that graver offences should be dealt by Special Courts.

SPECIAL COURTS DESIGNATED

Existing courts in the State of Maharashtra, Jammu and Kashmir, Goa, Gujarat, Madhya Pradesh, West Bengal, and Union territory of Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu, have been designated as Special Courts for the purposes of trying offences under the Companies Act, 2013. As per the notification, these courts have been designated for the purposes of trial of offences punishable under the Companies Act, 2013 with imprisonment of 2 years or more.

OFFENCES TRIABLE BY SPECIAL COURTS

As per the provisions of the Companies Act, 2013, following offences are triable by Special Courts:

(i) Offences for which the Companies Act, 2013, provides for imprisonment of 2 years or more;
(ii) Cases forwarded by a Magistrate (where he thinks detention is unnecessary) for any offence committed under the Companies Act, 2013. This provision will come into play when a person is arrested and detained in custody, and it appears that the investigation cannot be completed within the period of 24 hours as required under the Code of Criminal Procedure, 1973 (CrPC) and there are grounds for believing that the accusation or information is well-founded, and detention is authorized by Magistrate for a period not exceeding 15 days (if ordered by Judicial Magistrate) or 7 days (if ordered by Executive Magistrate), as the case may be. In such cases, the Special Court has the same power as the Magistrate having jurisdiction to try such case;
(iii) take cognizance of an offence under the Companies Act, 2013, without the accused being committed to it for trial upon: (a) perusal of the police report of the facts constituting such offence, or (b) if a complaint has been filed in that behalf;
(iv) try at the same trial an offence for which an accused may be charged under CrPC in addition to an offence under the Companies Act, 2013;
(v) if the Special Court thinks fit, it may try in a summary way, any offence under the Companies Act, 2013, which is punishable with imprisonment for a term not exceeding 3 years, provided that in the case of any conviction in such trial, person cannot be sentenced for imprisonment for a term exceeding 1 year.

APPEAL/REVISIONS FROM SPECIAL COURTS TO HIGH COURTS

Notably, for the purposes of entertaining appeal and revision, the High Court have been granted jurisdiction, as if the Special Court within the local limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court.

Offences Under the Companies Act, 2013, for Which Minimum Punishment is 2 Years or More


(Click to View)

Disclaimer: The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned herein.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

May 28, 2016

Will Parenting Startups Grow Up Fast?

2016 has already seen 6 angel investments in parenting startups with participation from strategic investors and VCs.


Interested in viewing transactions, financials and valuations of funded companies? Try out the Venture Intelligence PE/VC Deals Database.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A & their Valuations in India. 

May 27, 2016

Why IDG Ventures Is Ramping Up Investments During Funding Squeeze: Entrepreneur India

Entrepreneur.com article interviewing Karthik Prabhakar, Director - IDG Ventures, quotes Venture Intelligence data on the funding scenario in India:
"there have been 90 VC investments in Q1 worth $270 M+ compared to 120 investments in the same quarter of previous year (Source: Venture Intelligence). Hence, there is no real drastic slowdown in the early stage investments as such. "
We at Venture Intelligence have maintained that, barring 2015, Q1 2016 has been one of the best quarters for VC funding. Re-Catch the Coverage below:



Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Early Stage Startup Funding - The Bad News and Good News


We had a quick peep into the Venture Intelligence Venture Capital Deals database to check on the Early Stage funding momentum in 2016. And noticed both Bad News and also Good News for Entrepreneurs seeking Early Stage capital. 




The bad news first:  2016 has witnessed a consistent decline in the number of Series A rounds (ie, first round VC investments of typically $2 million or more in size) with the median number of such deals falling to just 11 compared to 20 in 2015 (which was of course a record year) and 14 in 2014. 

We also looked into our Fund Raising database to check if it provided any clues on why Series A funding is declining so sharply, but found that some of the most active Series A investors in recent years have all raised new funds recently: Nexus Ventures ($450 M), IDG Ventures India ($150 M), Sequoia Capital India ($920 M) and Kalaari Capital ($290 M).  So, lack of investible capital ("dry powder" in VC industry jargon) is clearly not the reason. 

Now for the Good News!


Specialist seed funds - like YourNest Angel Fund, Blume Ventures, India Quotient, etc. - have been maintaining the brisk pace they set in 2015 (of between 11-13 investments per month). YourNest for instance has announced as many as 5 investments this year – in contrast to 3 early stage investments by Sequoia Capital and 2 by Nexus Ventures. So much so that, the number of seed investments are outpacing Series A investments in 2016 – something that has never happened in the past!  

 Mar 2015: 7 Seed deals and 20 Series A deals

 Mar 2016: 10 Seed deals and just 9 Series A deals. 

 We were therefore wondering if the reasons could be that  
  • VC Investors are awaiting entrepreneurs to reset their valuation expectations lower, and/or 
  • They are busy sorting out challenges at existing portfolio companies (especially in e-commerce, hyperlocal, foodtech and real estate segments)

ET Now invited us to join a conversation on the topic with Sunil Goyal, Founder of YourNest Angel Fund, on its StartUp Central show. Catch the segment below:




Related Reading:




Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

May 25, 2016

Why these startups are going green: The Economic Times

An Economic Times article by Shalini Pillai uses Venture Intelligence data to showcase investments (or the lack thereof) in Cleantech companies.


"Data analytics firm Venture Intelligence says only 40 companies in the space have been funded in the last three years, and most of them are big companies that started operations before 2007."
Cleantech companies featured in the article include Green India Building Systems (GIBBS) which uses geothermal cooling for buildings and Threadsol, which helps reduce fabric waste in the textile industry.



Love cleantech companies? So do we. We've got a separate Deals Database focused on them. Take a look.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

5 Trends to expect in Startup Buyouts in FY17: The Economic Times

An Economic Times article by Biswarup Gupta uses Venture Intelligence data on the growing acquisitions of startups due to the funding slowdown and what the ecosystem can expect in the coming financial year.
In the fiscal year ended March 31, the number of mergers and acquisitions involving technology startups more than doubled to 146 transactions from 69 in 2014-15, according to (deals) data tracker Venture Intelligence. 
Other Trends: 

1. On demand hyperlocal services, fin-tech ventures (e.g. wallet companies), and OTAs are touted as prime targets. (Want a list? mail us)

2. More consolidation this year -  Aashish Bhinde, Avendus Capital.

3. Flipkart & Snapdeal to continue their pace of acquisitions in FY2017.

4. Common investors tend to catalyze the situation (acquisition/merger) - Sameer Sood, Credit Suisse

5. Acquisitions will be more via stock in order to reduce cash outgo - Navroz Mahudawala, Candle Partners

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

May 23, 2016

Commercial Realty witnesses rising interest from PE Funds: The Economic Times

An Economic Times article by Sobia Khan & Kailash Babar uses Venture Intelligence data on to showcase rising PE interest in Commercial Real Estate Projects:
In 2015, private equity real estate firms deployed more than $5 billion in Indian real estate companies and projects — the highest since the financial crisis of 2008 — through 90 deals, according to research from Venture Intelligence . Large investors and established developers also created several joint venture platforms in the past year. Of the investment made, commercial projects accounted for 10%, (compared to 6% in 2014).

Other Trends:

1. Given most of the private equity funds in India receive funds from sovereign funds and pension fund - completed leased commercial assets are seen as the best bet for these investors.

2. Active setting up of tie-ups/platforms with builders

Tata Group's real estate and infrastructure development arm, Tata Realty & Infrastructure, partnered with Standard Chartered Private Equity to create a Rs 3,000 crore investment platform. 

Goldman Sachs and Bengaluru-based property developer Nitesh Estates formed a $250 million fund to invest in income producing commercial real estate assets in India 

APG and Xander launched a $300 million India office venture.

Blackstone formed a special purpose vehicle with Embassy Property Developers.

Qatar Investment Authorities agreed to back real estate firm RMZ to buy commercial assets. 


3. Funds planning to set up REITs to build commercial asset portfolio

Interested in viewing Private Equity investments in Real Estate? Take a trial to the Venture Intelligence PE-RE Deals Database.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. 

Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

May 20, 2016

Start-up valuation down, but Not Out: The Hindu BusinessLine

A Hindu Businessline article by Meera Siva uses Venture Intelligence data to track valuation trends:
Down rounds and exits are not new for Indian start-ups. Venture Intelligence data show that many companies had raised funding at reduced share price in the 2013-15 period as well. For example, Fashion and You, backed by VC firms such as Norwest Venture Partners, Intel Capital and Sequoia Capital India, saw a deep discount to its November 2011 valuation, during its June 2014 funding round. 
The acquisition of Commonfloor by Quikr is said to be at a discount to the $160-million valuation that Google Capital funded it at. Likewise, Baby Oye’s acquisition by the Mahindra group is another exit that is said to have led to losses and write-offs for investors such as Accel Partners and Tiger Global.
The article further states that one can expect the following trends going forward:

1. Fire sales for weak businesses may continue

2. Sliding valuations may only pinch B2C e-commerce start-ups, as they saw the steepest rise. B2B plays were never a part of this wave per se. Their valuations may continue to be suppressed but they are unlikely to bear any brunt of down rounds - Karthik Reddy, Blume Ventures.

3. Among B2C businesses, those that have multi-channel distribution may not suffer as much as Internet-only players and  that investors typically have protections and may not be impacted - Sarath Naru, Managing Partner, Ventureast

4. Big players have collected a war chest and may defer equity capital raise. With growth happening, founders will (also) look at debt options such as loan against receivables when they need funds - Shailesh Ghorpade, Managing Partner and CIO, Exfinity Venture

The question of write downs and valuation expectations was also discussed in Apex '16 - The Indian Private Equity & Venture Capital Summit by panelists like K Ganesh of Growth Story; Ben Mathias of Vertex Ventures; Shailesh Ghorpade of  Exfinity Ventures etc. Catch the ET Coverage of the same below:

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May 19, 2016

Pharma, Healthcare sectors deliver 5-17 times returns to PE investors: Business Standard

A Business Standard article by Ranju Sarkar uses Venture Intelligence exit data, to analyse exits in Healthcare & Pharmaceuticals sector.



Recent Healthcare IPOs have also delivered good returns for PE/VC investors, Catch our analysis of these companies through the links below:

Thyrocare Technologies IPO

Healthcare Global IPO

Dr. Lal Pathlabs IPO

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May 15, 2016

Indian Angel Network tops list of start-up funders: The Hindu BusinessLine


A BusinessLine article by TE Raja Simhan uses Venture Intelligence data to track most active angel investors in the last 5 yrs (since Jan-2011) and other trends.

Most Active Angel Investors

1. Indian Angel Network (61)
2. Mumbai Angels (52)
3. Rajan Anandan (51)
4. Anupam Mittal (38)
5. Mohandas Pai (34 Including investments by Aarin Capital)

Key Trends:

1. Since 2006-07, due to the efforts of early angel networks such as IAN and Mumbai Angels, the culture of seed funding has taken strong and steady roots among high net worth individuals (HNIs) in India including first-generation entrepreneurs who, upon exiting their businesses, have been allocating a significant share of their capital for investments in start-ups - e.g. Ronnie Screwvala of UTV and Rakesh Malhotra of Luminous Power Technologies.

2. The growth of angel investments in India has not been affected by the decline in public markets in 2008 and by the mood swings of Silicon Valley VCs.

You can catch our analysis in other trends in investments activity below:

How Mohandas Pai & Ratan Tata are shaking up the Angel Investments Landscape  - A study of the changing landscape of angel investing in the last 2 years.

Tiger Global Vs Ratan Tata: Who Will Indian VCs Follow? - In 2016, while we witness the slowdown of Venture Capital funding in India, family offices alone have bucked the trend and have gone on to increase their investment activity.

Interested in viewing Angel Investments in India?

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Take a trial to the Venture Intelligence Venture Capital Deals Database which also includes angel investments by IAN, Mumbai Angels etc and incubated companies in CIIE A (IIM A), NSRCEL (IIM Bangalore) etc.

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May 14, 2016

Amendment to India-Mauritius Double Taxation Avoidance Agreement: Questions, Questions

The Government of India has on May 10, 2016 issued a press release announcing the Protocol for amendment of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains between India and Mauritius (Tax Treaty).


Key Features of the Protocol on Capital Gains


1. India now has the taxation rights on capital gains arising from the alienation of shares acquired on or after April 1, 2017 in a company resident in India with effect from financial year 2017-18.

2. Protection to investment has been granted in relation to the shares acquired before April 1, 2017.

3. The rate of taxation on the capital gains arising between the transition period of April 1, 2017 to March 31, 2019 shall be 50% of the domestic tax rate. (More Details here)

OPEN ISSUES

1. Are convertible instruments taxable on conversion after Apr 1, 2017?

2. The amendment appears to leave untouched the taxation of indirect transfers. (e.g. Vodafone Hutch).

3. More Details available here

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May 11, 2016

Markdowns reflect wider valuation problem in startup sector: BusinessWorld

A BusinessWorld article by Paramita Chatterjee uses Venture Intelligence data on Startup acquisitions and markdown in valuations of Flipkart and Zomato as "early signs of shakeout or consolidation in the industry".

As per data available with research firm Venture Intelligence, as many as 139 acquisitions took place in the startup space in 2015, more than double the number of startup acquisitions that were sealed in 2014. In 2013, as many as 42 startups were acquired by the biggies in the sector and the number is only expected to grow!
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May 09, 2016

Surge Pricing: Innovation Vs. Regulation


The Delhi Government has recently banned taxi app companies like Ola and Uber from adopting "surge pricing" - ie, increasing their standard fares multi-fold in places and times when demand rises (so as to "match demand and supply" and "bring more cars on the road" as they put it). The Karnataka Government has followed suit.

In a Mint Article titled "An economic defence of surge pricing", economist Ananya Kotia argues why surge pricing should be allowed. Extracts (emphasis mine):
In the short run, a ban on surge pricing acts as a disincentive for drivers to come on the roads, especially when it is relatively costlier for them, such as at night or early in the morning. Similar logic may discourage drivers to weather heavy traffic and a high time cost that is required to reach a busy locality. For example, why would a taxi driver plough through the mess of Delhi’s Hauz Khas Village, if he can earn the same by ferrying passengers from Khan Market?

 
...The ban may also have undesirable, long-term effects. Consider the large difference between 1x prices of Ola and Uber taxis and fares of standard static-pricing radio taxis in Delhi. Taxi aggregators can sustain such low base rates, partly because they can charge higher in times of high demand. If the ban on surge pricing is permanent, revenue considerations may force the base, 1x rates to rise. Though surge pricing implies costlier taxis in times of peak demand, the counterfactual, in the long run, may result in more expensive taxis for everyone and at all times. 
In an Economic Times article titled "See you later, aggregator", Nandan Nilekani and Viral Shah (Founding Partner at Julia Computing) provide a "more balanced" view including pointing out how India - which does not allow any car owner to become  an Uber driver - is hardly the "perfect market" that economist:
Both the Government and taxi companies app companies are equally to blame. There are neither sector specific regulators (SEBI, TRAI, RBI) nor domain experts in state departments for sectors like urban transport.  While taxi app companies have been "unable to explain the economic rationale of surge pricing to the users and to the regulators" as even (some) customers supported the ban on surge pricing. There was a need for "transparency in the surge pricing algorithms, and perhaps a cap on surge, would go a long way to convincing everyone that they’re not gouging".
...Surge pricing is workable in a true sharing economy, where anyone with a taxi app can use his personal car and become a driver. In India only licensed yellow-plated vehicles can be used as taxis, and these are driven by professional drivers. At best, surge pricing can bring taxis from neighbouring locations when demand shoots up.
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Image source: New Yorker

Michael And Susan Dell Foundation allocates $50 Mn to fund Indian startups: Inc42

In a boost to social entrepreneurship in India the Michael And Susan Dell Foundation (MSDF) has further allocated $50 million for India startups according to an Inc42 article, which features Venture Intelligence data from our Social VC/Impact Investing Report:
"According to experts, impact investing in India has remained largely stagnant in terms of deal activity, over the last two years. As per the data by Venture Intelligence, 2015 and 2014 saw transactions worth $104 Mn spread over 57 deals and $106 Mn across 49 transactions, respectively. While the year 2016 has seen 14 transactions so far, amounting to $42 Mn."
Are you an investor interested in viewing impact investments in India. Reach out to us to take a look at India's longest serving Private Equity & Venture Capital Deal Database.

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Titan acquires Tiger Global-backed Caratlane: The New Indian Express

An article by the New Indian Express, uses Venture Intelligence data to track investments by Tiger Global in Carat Lane:
In all, Tiger Global had invested $50 million in the four rounds. In the latest round, in January, 2015, Caratlane raised $30 million or Rs 185 crore at a valuation of Rs 710 crore for a 26 per cent stake, according to data from Venture Intelligence. Titan may pay a premium for the stake or could be at the same valuation at which Tiger Global invested in Caratlane, sources said.
Here is a snapshot of the the First round investment by Tiger Global in Carat Lane from the Venture Intelligence Deals Database:


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May 06, 2016

Is Microfinance back?: The Economic Times

In an Economic Times article, journalists Shailesh Menon & Indulal PM use Venture Intelligence Exit data for returns in PE/VC investments in Microfinance companies:
Microfinance has drawn private equity funds with the sector generating an average return of 5.8 times to invested capital during 2010 to 2015, according to data from Venture Intelligence
The following reasons have been stated by the article for the resurgence of interest in Microfinance sector:

  1. Recent successful exits in Equitas Holdings & Ujjivan MFI
  2. Growing loan book (The industry loan book has increased by 130% to Rs 47,200 crore in 2014-15)
  3. Rationalising of lending rates and higher profitability in the post-Andhra crisis.
  4. RBI decision to award small finance banks (SFB) licences to some of the MFIs

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May 05, 2016

Three reasons for cheer in the venture capital market: LiveMint

"Valuation markdowns, down rounds, business model pivots, shutdowns and investment write-offs have become the staple this summer for India’s venture capital market. However, there’s still plenty to cheer about."
In a LiveMint article, journalist Snigdha Sengupta quotes Venture Intelligence Data on Investor returns in Equitas Holdings:
The most recent and notable example is the public market debut of Equitas Holdings. The Chennai-based MFI (microfinance institution) mopped up Rs.2,176 crore from retail and institutional investors, drawing demand for more than 17 times the number of shares on sale. Importantly, it served up exits for as many as 10 venture capital investors, reported Business Standard (image below). Among them, impact fund Aavishkaar Goodwell made more than 13 times its money on a $1.5 million investment made in March 2008, said the report citing data compiled by Venture Intelligence.

Venture Intelligence continues to provide timely reports on PE/VC Investor returns, Valuation and Financial growth of PE-backed companies going IPO. Catch the recent IPO reports below







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IPO Pipeline overflowing with Milk?




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Fashion Startups now in Vogue


In an Economic Times article, Anumeha Chaturvedi uses Venture Intelligence data to display ramping up of investor interest in Fashion startups.
Six investments have been made in the space so far this year, according to data shared by Venture Intelligence with ET, up from four in 2015 and one in 2014. The value of investments made in fashion companies stood at $38 million in 2015, up from $21 million in 2014.
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May 04, 2016

Which way is the exit?: The Hindu BusinessLine

In a Hindu BusinessLine article, journalist Meera Siva uses Venture Intelligence data on a study of returns from Private Equity and Venture Capital investments.
Data from Venture Intelligence on exits in specific sectors show that key sectors such as manufacturing, which accounted for over 10 per cent of exits by value in the last 10 years, slowed in 2015. Deal value slipped 28 per cent y-o-y in 2015, compared with the average growth rate of 10 per cent in the last decade. There were 229 exits in 2015, with manufacturing and BFSI topping the list with 34 exits each. 
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How 26/11 caused a 2 year set back to Seedfund

At the recent Venture Intelligence APEX PE-VC Summit, Bharati Jacob, Managing Partner, Seedfund shared how the closure of Seedfund's second fund got set back by more than two years because the foreign investors who were about to invest in the fund, got spooked by the Mumbai terrorist attacks of 2008. One American LP (Limited Partner or investor in PE/VC funds) pulled out saying "India and Pakistan are eyeball to eyeball and could go to war any minute and I cannot invest in India any more."


Their pulling out caused a herd mentality among the other investors, causing almost all the LPs to pull out. Despite India's economy picking up, she recounts "we did not have LPs who understood local conditions... overseas LPs were looking at it through their own tinted lens". "Things have not changed too much now - from being hyphenated with Pakistan, we are now hyphenated with China," she added

This episode underlines the need for a deeper pool of domestic investors - who understand the situation on the ground better, Jacob said. Unfortunately, it is still difficult to close a fund that is larger than $25 million based on just domestic money.



Other Comments from the panelists:

Deepak Natraj, Managing Director, Aarin Capital

Fund raising is about 3 Ts: Theme, Team and Timing

Pitch Book for Raising from Domestic Investors: Create FOMO



"The majority of wealth created in the IT Sector ($100 B+) was 'captured' by FIIs, there were hardly any Indian investors. Now, here are Indian Startups in a healthy environment with phenomenal talent. How can you miss out on this? How can you not be a part of this?"

Sandeep Parekh, Founder, Finsec Law Advisors:

We've got everything right in India for having a thriving PE/VC fund industry in India - especially the entrepreneurial and fund management talent - except for tax. The Category 3 AIF fund for example is "dead on arrival" since such funds (that will invest at at least 50% of its corpus into listed companies) attract 32% tax - when the investor can invest directly in the public market stocks and pay zero on long term capital gains (after a one year holding period).


Abhishek Goenka, Partner, PwC:

The problem with Finance Ministry officials is that they view providing "pass through" status for funds as some kind of incentive / concession they are awarding to the industry (i.e., as something that results in a loss to the exchequer). While foreign investors are enjoying benefits through treaties, unless regulation makes domestic investing attractive from a tax perspective, it's not really going to work.


Sateesh Andra, Managing Director, Endiya Partners

"During good times, everybody wants to be an angel; in fact, there's no angel left in heaven."

"The Europe or US LPs have certain exposure to different asset classes including venture (capital), the most riskiest asset class. In Indian context, majority of the LPs do not have exposure to even the other asset classes."


In the current conditions "at best only 5 or 10 funds can raise $20-25 million dollars each from pool of (domestic) capital."

The Electronics Development Fund actually reached out to Endiya Partners to invest rather than the other way round because of expertise in EDF as well as the theme of investing (Semiconductors) by Endiya Partners.

The panel discussion was recorded at APEX'16 - Private Equity & Venture Capital Summit. Catch the discussion below



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