October 19, 2014

Doug Leone of Sequoia on Indian VC

Economic Times has an interesting interview with Sequoia Capital's Silicon Valley-based partner Douglas (Doug) Leone on the firm's investments in India and elsewhere. Extracts (emphasis mine):

On why Sequoia is sitting out the Indian e-commerce gold rush (for the most part):
It is clear that online retail is a large topline market; it is yet to be proven if it is going to be a profitable bottom-line market. We have chosen not to participate because we understood that it is going to play out this way. I heard Bezos was here writing a $2 billion cheque. We like companies that can get big and powerful on $50 million or less and not two, three, four or five billion. Times may change, we may like to participate. We are investors in Alibaba, but we don't want to go at a time when we know that after us billions of dollars (more) have to be raised.
On being a VC:
We like founders that are very determined, people whom conventional wisdom will (term) as: "They're tough to work with, they're difficult." Those are terrific traits. (Apple founder) Steve Jobs was not an easy guy to get along with. We like people with a desire to win, to change the world. These are very clear thinkers, because if you do not articulate things clearly, you probably are not a clear thinker. So we listen very carefully. Investment is a listening business. It's not about making money, it's about changing the world.
The latest bubble in Silicon Valley:
Nervously exuberant. I think Silicon Valley is little bit confused now. Three months ago, it was "go" at all costs, now a few people have come up and are saying why are these companies spending this much? These are unstable times. Should a company grow if they are losing money? Even public market analysts are confused about that. I think the 2015 version of 1999 is not going to be companies without a business model, it is going to be companies where investors valued it worth X and they are going to be worth a subset of that X. And the burn rates have to drastically come down if they have to survive.

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October 16, 2014

Deal Alert: Lingerie e-tailer Cloe attracts German investors

Noida-based lingerie e-tailer Cloe has raised an investment from a group of investors in Germany "with deep roots in consumer retail and Internet". 

From the Venture Intelligence PE Deal database: In May 2013, Cloe had attracted INR 4.72 cr from Mountain Apollo. (Subscribers to the database can login to view the deal structuring and other transaction details.)

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Biba acquires 26% stake in fellow apparels firm Anju Modi

Retail brand Biba Apparels has acquired 26.66% stake in Anjuman Brand Designs which is engaged in the business of designing, manufacture and sale of garments under the brand name "ANJU MODI" and has 10 exclusive stores in India and is also engaged in e-commerce. Biba also acquired certain convertible debentures in Anjuman Brand Designs Pvt Ltd. Khaitan & Co advised Anju Modi.

From the Venture Intelligence PE Deal database: In September 2013, Warburg Pincus and Faering Capital had invested $54 million in Biba Apparels.

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Fmr Infy CFO V. Balakrishnan invests in IT Services firm Avekshaa

Former Infosys board member V Balakrishnan has invested Rs 25 lakh in Bangalore-based IT solutions provider Avekshaa Technologies. Balakrishnan has joined Avekshaa's board as an independent director and is mentoring the three-year-old company. Avekshaa's proprietary platform Performance, Availability, Security and Scalability (PASS) helps enterprises mitigate IT related business risks and make their IT systems faster and efficient. 

Last month, Balakrishnan and his predecessor at Infy, TV Mohandas Pai together invested Rs 50 lakh in Bangalore-based compliance ERP provider Clonect Solutions that offers enterprise governance, risk management and compliance management solutions. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

October 14, 2014

Deal Alert: Seedfund invests $2-M in resort room aggregator V Resorts

V Resorts, a Noida-based company aggregating boutique hotel chains, has raised close to $2 million (about Rs. 12 crore) in pre-series A funding from Seedfund. V Resorts, founded by Aditi Balbir in 2012, aggregates existing properties and takes over the management and operations of those properties on a revenue share basis on a 10-15 year lease. The company will use the new capital to expand its capacity of rooms to 300 from the current 80 over the next 5-6 months. V Resorts currently operates six properties located in Uttarakhand (Sattal, Ramgarh, Corbett, Pauri and Rajaji National Park), Himachal Pradesh and Rajasthan. By March 2015, it hopes to hit at least 10 properties. 

The company had earlier raised a seed round from Bedrock Ventures, which had also incubated the venture. Bedrock has not participated in the current round but remains invested in the company. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: SRK in a structured deal with fashion e-tailer Yepme

Bollywood actor Shah Rukh Khan (SRK) has signed on as the brand ambassador for fashion e-tailer Yepme in a deal that is structured in a such a way that lets the actor pick up a stake in Yepme going forward. Yepme is in the midst of closing a $30-million financing round with a consortium of four investors, including its two existing investors Helion Venture Partners and Capricorn Venture Partners. 

The e-tailer, which only sells private brands, plans to spend Rs 15-20 crore over the next three months on its multi-media advertising campaign featuring SRK. The company has in all raised $21 million across three previous rounds, the last one being in December 2013. Yepme is expected to end the year with Rs 200-crore sales.


Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

October 13, 2014

Deal Alert: Online handyman service Timesaverz attracts angel funding

Mumbai-based Timesaverz, a platform to obtain people for home services, has raised seed funding from a clutch of angel investors led by former Yahoo executive Neville Taraporewalla and GSF Accelerator founder Rajesh Sawhney. The other investors include Ashish Jalani, founder at eTailing India, Dinesh Agarwal, founder of Indiamart, and Nish Bhutani, COO of Saffronart. Timesaverz offers handyman and cleaning services and appliances repair. Each service agent is background checked, skill-set verified and soft-skills trained. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: OnlinePrasad taps Hyd, Chennai Angels

Hyderabad Angels and Chennai Angels - via 20 of their members including former Microsoft India Development Center MD Srini Koppulu, ex-CEO and cofounder of Sify.com R Ramaraj, Suresh Productions CEO Suresh Babu and founder of Computer Age Management Services V Shankar - have invested in Bangalore-based Onlineprasad.com. Niraj Mital from Hyderabad Angels would be joining OnlinePrasad's board representing the larger investor group.

OnlinePrasad started by 26-year old Goonjan Mall has been seed funded by the storied entrepreneur duo K Ganesh and Meena Ganesh and The Morpheus. The company is a niche e-tailer that is networked to 50 temples in India, and uses the mobile and web platforms to deliver religious offerings such as prasad and other products to users’ doorstep. 

Source: Times of India

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

October 09, 2014

Deal Alert: Ventureast Tenet to invest $1-M in online health portal MediAngels

MediAngels.com, an online platform which allows patients to consult the specialised doctors from across the globe, has raised $1 million (INR 6 crore) from Ventureast Tenet Fund and Government of India's Technology Development Board. The company, founded by two doctors, is looking to raise a total $2 million in the current round of funding. MediAngels provides services like online and video consultation, online medical record keeping and even ordering pharmaceuticals. The company charges Rs 250 per query and Rs 1,500 for video consultation. The new funding will be used to expand services portfolio and also provide voice based consultation. Funding will also be used to enhance operations & sales team, especially to increase tie ups with insurers and corporate clients.

MediAngels had earlier raised a seed round of Rs 2.4 crore from HDFC Venture. 

Source: Economic Times

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Web content protection firm ShieldSquare raises Rs. 2-Cr

Bangalore-based ShieldSquare has raised INR 2 crore from 15 investors including Girish Mathrubootham of Freshdesk; Murugavel Janakiraman of BharatMatrimony; Sanjay Anandaram of Seedfund; red-Bus founders Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri, and existing investor Chandu Nair, member of Chennai Angels. 

Established by Pavan Thatha, Rakesh Thatha, Vasanth Kumar G, Jyoti Kakatkar and Srikanth Konijeti in March 2014, Shield Square is a cloud-based security solution that helps online portals protect their content from unauthorised third parties. Customers include social networking sites, e-commerce portals, content websites and classified or listing sites. ShieldSquare graduated out of Microsoft Ventures Accelerator in November 2013. ShieldSquare will look to raise approximately $2 million in Series A funding in the second half of 2015. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.