July 27, 2015

Where Indian Private Equity investors can tread without fear - well almost!


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

July 14, 2015

Khaitan & Co. Tops League Table for Legal Advisors to M&A Transactions in H1 2015

AZB & Partners, Shardul Amarchand Mangaldas complete the Top 3 slots

Khaitan & Co topped the Venture Intelligence League Tables for Legal Advisors to M&A transactions for the first six months of 2015 advising deals with a value tag of $2,237 million (across 14 qualifying transactions). Khaitan & Co. was followed by AZB & Partners which advised deals worth $1,970 million (across 16 deals); Shardul Amarchand Mangaldas ($1,353 million across 9 deals). Amarchand & Mangaldas, before its split, had advised M&A deals worth $1,084 million (across seven deals).

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.

The Khaitan & Co. advised M&A deals during the period included the $315 million buyout of Crompton Greaves Consumer Electricals by Advent International & Temasek and the $400 million acquisition of Freecharge by Snapdeal. Transactions advised by AZB included the $800 million acquisition of womens health business of Famy Care by Mylan Laboratories and the $400 million acquisition of Freecharge by Snapdeal. Transactions advised by Shardul Amarchand Mangaldas included the $404 million strategic investment by Alibaba in Paytm parent One97 Communications and $258 million acquisition of Kesh King by Emami. Amarchand & Mangaldas advised deals included the $200 million acquisition of TaxiforSure by Ola Cabs.

Cross-border firm Convington Burling was an advisor to two deals totaling $925 million: the buyout of InBev India International by Anheuser-Busch InBev from its JV partner RJ Corp and the $800 million acquisition of womens’ health business of Famy Care by Mylan Labratories

The period also saw a lot new entrants like Veritas Legal and Patanjali Associates enter the Venture Intelligence Legal Advisors for M&A league table.

The full league tables can be viewed here

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

July 13, 2015

AZB tops Legal Advisor League Table for Private Equity Transactions in H1 2015

Shardul Amarchand Mangaldas, Khaitan & Co. claim the No.2 & No.3 Slots



AZB & Partners has retained its status as the top Legal Advisor for Private Equity transactions during the first six months of the 2015. According to the Venture Intelligence League Tables, AZB advised PE deals worth $2,446 million (across 23 qualifying deals), followed by Shardul Amarchand Mangaldas ($1,219 million across 12 deals); Khaitan & Co ($827 million across 10 deals) and J Sagar Associates ($823 million across 9 deals).

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.

AZB advised deals during H1 2015 included the $383 million investment by Apax Partners in Shriram City Union Finance and the $150 million investment by TPG Capital into Manipal Health Enterprises. Transactions advised by Shardul Amarchand Mangaldas included the $50 million investment by OCP Asia into DQ International and $70 million investment by IDFC Alternatives into OTPC India; Transactions advised by Khaitan & Co included the $150 million investment by Temasek and Advent International into Crompton Greaves Consumer Electricals and $22 million investment by TPG Growth, TR Capital and IDG Ventures India into Lenskart.com. J Sagar Associates advised deals included the $114 million investment by Temasek into Medanta Medicity and the $10 million investment by SAIF, Fidelity Growth Partners, Helion Ventures into Test Preparation firm Toppr.

The period also new entrants like Veritas Legal, Verist Law, Altum Law, LegaLogic Consulting and Morgan Lewis enter the Venture Intelligence Legal Advisors for Private Equity league table.

The full league tables can be viewed here

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

July 08, 2015

What have Venture Capital Investors been up to in India for the past three months?


The full report is being emailed to subscribers of the Venture Intelligence VC Deals Database can access the full report now.  Not a subscriber yet? Contact Us.

July 01, 2015

Private Equity investments vault 80% to over $4-B in Q2’15

Mega deals across sectors drive average deal size up 79% QoQ; 6 Month Investment Value Up 53% YoY 

Private Equity firms invested about $4,046 million across 128 deals during the quarter ended June 2015, according to early data from Venture Intelligence . The investment amount was 80% higher than that invested in the same period last year ($2,242 million across 115 transactions) and 43% higher than the immediate previous quarter (which had witnessed $2,825 million being invested across 160 transactions). The latest figures take the total PE investments for 2015 to $6,871 M across 288 transactions (53% more than the $4,480 million across 252 transactions in the first six months of 2014). Note: All figures in this note are exclusive of PE investments in Real Estate.

There were as many as 11 PE investments worth $100 million or more (with seven over $200-M) during Q2’15 compared to four such transactions in the same period last year and seven during the immediate previous quarter, the Venture Intelligence analysis showed. The largest investment reported during Q2’15 was Baring Asia’s $440 million buyout of Blackstone-backed ATM cash management services firm CMS Infosystems, followed by Olacabs’ $400 million (INR 2,520 Cr) fund raise from a group of existing and new investors (including GIC, DST Global, Falcon Edge Capital and Accel USA). An over 20% stake in listed consumer lender Shriram City Union Finance changed hands from one PE investor to another (TPG Capital to Apax Partners) for $383 million (INR 2,456 Cr). The Advent International led $315 million (INR 2,000 Cr) buyout of a 34.4% stake in Crompton Greaves Consumer Electricals from its promoter Avantha Group was the next largest transaction during Q2’15.

Other companies that attracted over $200 million rounds during Q2 2015 included Sun Pharma (where Temasek stepped in to acquire the stake of Japan’s Daiichi for INR 1,875 Cr), Snapdeal (INR 1,563 Cr from investors in mobile recharge and couponing firm Freecharge - that Snapdeal acquired - including Sequoia Capital India, Valiant Capital, Ru-Net Holdings, Tybourne Capital and others) and Mankind Pharma (where Capital International acquired ChrysCapital’s 11% stake for INR 1,300 Cr).

IT & ITES companies grabbed 44% of the investment by value (attracting $1,772 million across 84 deals) during Q2’15, followed by Healthcare & Lifesciences companies ($737 million across 10 transactions) and Energy companies ($309 million across seven transactions).


Late Stage companies (including mature companies like Mankind, thermal power firm OTPC India and TVS Logistics as well as Internet companies like Snapdeal and Quikr that have graduated to raising their seventh or later rounds) accounted for 24% of the investment pie in terms of value. Led by the Shriram City Union and Sun Pharma transactions, listed company investments (“PIPE” deals) accounted for 23% of the pie in value terms (while just 5% in volume terms). Led by the CMS and Crompton Greaves deals, Buyouts accounted for as much as 20% of the pie in terms of value (though constituting just 2% of the deal volume) in Q2’15, the Venture Intelligence data showed.

The Venture Capital segment (defined as investments of up to $20 million in companies that have been active for less than 10 years) accounted for 89 transactions or 70% of volume pie (11% by value) during Q2’15. The larger VC type investments in Q2’15 went into follow-on rounds in companies like local shopping app firm Zopper (reported $20 million round led by Tiger Global), handicrafts e-tailer Craftsvilla ($18 million led by Sequoia Capital India) and online food ordering Swiggy ($16.5 million round led by Norwest). Trendsetting investor Tiger Global made four new Early Stage bets in Q2’15: expense tracking app MoneyView, home services app LocalOye, online tutoring firm Vedantu and tea retail chain Chaayos.

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

June 15, 2015

PE/VC Deals Unavailable in Public Domain

As part of the Venture Intelligence Newsletters. we rigorously cover transactions disclosed by companies, PE/VC investors and advisory firms. However, we don't stop there. As part of the Venture Intelligence PE/VC Deals Database subscribers can find transactions that are as yet unavailable in public domain. Some sample transactions of this variety:

Sequoia invests in mobile wallet firm

Kalaari invests in E-Commerce Analytics firm 

Matrix, Blume back Hiring Data Analytics software firm

If you already subscribe to the Venture Intelligence PE/VC Deals Database, just login and click on the respective deal links above. If you don't subscribe yet, please Contact Us for a demo.

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

June 08, 2015

IIT-ians and the Disruptive Power of Errand Apps

From elephants and snake charmers to software coders/coolies to app-toting delivery boys/dabba-walahs, the image of what's "happening" in India keeps morphing. And IIT-ians get added to the mix somewhere.

"India is becoming the land of the errand app." declared a recent Bloomberg News article that got featured in various international publications. Extracts:
“People today want to do as much as possible with their phones,” said TinyOwl co-founder (Harsh Vardhan) Mandad, who graduated from Mumbai’s Indian Institute of Technology in 2012. “It is a friction just to go out – there’s the heavy traffic, pollution and waiting involved for a cab.”
The startups are carving out niches by serving certain neighborhoods or parts of cities, realizing the “hyper-local” strategy long envisioned in more developed countries including the U.S. Larger e-commerce companies such as Flipkart and Snapdeal dominate online sales of more traditional goods, including books, apparel and electronic goods.
Sure enough, there has been a rush of Venture Capital into the local services segment - especially the mobile enabled variety - over the last 12 months. According to the Venture Intelligence Private Equity / Venture Capital Deals database, about $200 million has gotten deployed (across 25 transactions) in the segment. Including various flavors of food ordering services - led by TinyOwl - that have raised almost $50 million (across 12 transactions). 




Cab & Courier Country

The hyper local / errand apps phenomenon has got the attention of media executive-turned-Private Equity investor Haresh Chawla. In his essay for Founding Fuel titled "Making money off the lazy economy," Chawla asks readers to "Imagine a day when all you will see on the roads are smartly-uniformed courier boys and smart-cabs. A country of cabs and courier boys!". More from Chawla's analysis:
This serve-the-lazy-Indian economy will impact our entire society--from the people who work at minimum wages, to professionals who sell their skills; from the smallest kirana store to the large corporates. It will unleash an irreversible shift in consumer behaviour and how we transact with service providers and merchants. It has the power to create new vectors of growth for our economy, as we overcome the limitations of infrastructure and under-utilized capacity with the friction-reducing power of technology.
The on-demand economy has already changed the lives of smart-cab drivers, as some of them take home more than Rs 80-90,000 a month. New marketplaces are forming which will change the size and shape of several sectors, and will direct a transfer of wealth from the well-heeled lazy ones to the hardworking willing-to-serve workers. It will give birth to millions of jobs in the process and cause a structural shift in our labour market. We shall herald the rise of the smart-worker--all they will need is a smartphone and a willingness to do a good job. 
New Wave of Disruption

Interestingly, the mushrooming of mobile enabled local services start-ups seems to be disrupting their poster child peer from the Internet-era: "local search" firm Just Dial. NextBigWhat has a chart showing how various startups are "unbundling Justdial" and crediting them to the 34% fall in Just Dial's stock value (over six months).


Indeed, less than two years after a very successful public listing, Justdial has announced a buyback of its stock. And Tiger Global, which had invested over INR 100 crores in Justdial prior to its IPO, has completely sold off its stake (with an over 13 times return) and is now among the most aggressive investors in the mobile-enabled disruptors.

Speed Bumps Ahead?

Chawla warns that it might not be all smooth sailing for the lazy economy start-ups.
No one is charging the real cost of these services. So, one should check whether there is enough room in those business models in India. A plumber in India costs Rs 200 a job versus $200 in the US and may not have the same service ethic as his counterpart in the US (who is probably professionally qualified as well). The margin you may earn on his services may not be enough to sustain the cost of the team of IITians!
Will the disruption caused by the venture capital-backed startups fizzle out when the funding tap shuts (as it did in 2000-01)?

How will that impact the Uber earnings of today's smart cabbies?

And (of course) where will IIT-ians, who are currently hungry to launch "serve-the-lazy" apps, turn to then?

Questions typical of interesting 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 Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

June 04, 2015

Have You Noticed: The Boom in CRO Deals

Trends from the Transactions Universe

There have been at least eight M&A transactions involving pure play Contract Research Organization firms between January 2014 and May 2015 - versus just five deals in the entire three year period prior to 2014.

Of these transactions, four have been domestic deals and three Inbound. The only Outbound transaction was GVK Biosciences' acquisition of US-based Aragen Bioscience which specializes in high-value biologics services. The Sequoia Capital India-backed GVK Bio was also a buyer domestically - acquiring Chennai-based Vanta Bioscience which offers toxicology evaluation services for the pharmaceutical, biotech, food supplements and feed additives industries. (GVK also excercised its call option to buy out Dai-Ichi Karkaria's entire stake in their joint venture Inogent which offers a mix of services  - Process R&D and Custom Chemical Synthesis & Manufacturing - and Products - APIs and Intermediates.)

While GVK has been a buyer, recent months have witnessed two large, NCR-headquartered business groups - Max India and Fortis Hospitals - sell off their CRO arms. While Max Neeman Medical International was acquired by Canada-based JSS Medical Research Inc., Fortis Clinical Research Ltd was sold to Chennai-based Quest Life Sciences.

Among Inbound deals from the US, Parexel International Corp acquired the assets of Chandigarh-based Quantum Solutions India (QSI), while Par Pharmaceuticals acquired Chennai-based Ethics Biolabs. An intra-Hyderabad deal witnesssed Indovation Technologies buying out Sristek Clinical Research Solutions, while venture-backed Karmic Lifesciences was sold to Ahmedabad-based Cliantha Research.

Is the sector set to witness even more consolidation? Keep track of transactions in CRO and other sectors via the Venture Intelligence Deal Digest Newsletters and M&A Deals Database.

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