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July 29, 2016

First time Fund managers: Mint

A Mint article quotes Venture Intelligence data from our Funds Database, covering first-time fund managers in the market:


Trends quoted in the article:

1. First-time fund managers are wooing LPs as anchor investors by offering them sweeter deals -  fee or carry discount.

2. LPs look un-favourably on team breakouts. When partner-level fund managers walk out of established firms, it reflects poorly on all parties.

3. Separately-managed accounts, mandates established by a single LP and one investment manager are on the rise.

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.


July 28, 2016

PE realty funds flock to residential projects: Business Standard

A Business Standard article quotes Venture Intelligence data on Real Estate investments in India.
According to Chennai-based PE investment data provider Venture Intelligence, PE funds invested $1,047 million in residential real estate across 24 deals in the first six months of the year, against $221 million invested in commercial properties across two transactions. Last year, PE funds invested $2,936 million in residential real estate across 61 deals, against eight transactions worth $979 million for commercial real estate. In the previous two years, PE investments in commercial properties were higher at $717 million (2014) and $991 million (2013) against investment in residential real estate at $671 million and $429 million, respectively.


"In the first wave of PE investments in real estate in India, global investors burnt their fingers with equity investments in residential projects here," says Arun Natarajan, founder and CEO at Venture Intelligence. "This saw domestic funds coming up with more cautious approach to invest in projects through structured debt," he adds.

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.


July 26, 2016

Is the Spike in Bridge Rounds Bad News?


July has already seen 6 start-ups reporting bridge rounds - marking a spike in the number of such deals in recent months. The list of companies includes MyTaxiIndia ($1 M from Nihon Kotsu), Quickli (AVG Group & 500 Startups), and AppsDaily ($2 M from Kalaari Capital, Qualcomm Ventures, etc).

What qualifies as a Bridge round?

A bridge round is typically one where the company raises a sum smaller amount of funding than during its previous round. The investors in the round are also typically existing investors who have chosen to extend the company "extra runway".

The following table - extracted from a post on Bridge Rounds by US VC Paul Martino - provides the highlights of such a round:




Most of the recent Bridge Rounds in India are taking place either between the Seed and Series A or between the Series A and Series B stages.

Is the Spike in Bridge Rounds a Cause for Worry?

Not Really. While it is quite clear that providers of follow-on funding have become choosier,  the fact that Bridge Rounds are now going through means that existing investors are willing to back start-ups with more capital.  

More Bridges to Cross?

Between July 2014 - June 2015, as many as 216 startups had raised Series A funding. Of these, only 20% have managed to raise follow-on funding. 


Between July 2014 -  June 2015, 120 startups had raised Seed Funding - of which only 25% startups have raised their Series A round.


More than 250 startups, which between them have raised over $600 million in Seed/Series A funding, are now "overdue" to raise new money (ie, it's now 12+ months since their last round). 

Would you like the complete list of start-ups that seem to be struggling with their Series A / B rounds? Contact Varatha at bizdev@VentureIntelligence.com or +91-44-42185180.

Any other feedback / suggestions? Chime in in the comments.

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.

Can Flipkart & Snapdeal do a Yatra?


Will SPACs emerge as an Alternative Exit Route?

After 10 years of raising over $100 million from Private Equity & Venture Capital Investors, Yatra.com is to now get listed on NASDAQ through a merger with Terrapin 3 - which basically does "nothing", other than being listed on NASDAQ that is.

What is Terrapin 3?

Terrapin 3 is a "SPAC" (Special Purpose Acquisition Company) or a "Blank Check" company, which according to the US SEC, "..has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies (within a set time frame)." A SPAC is one where investors' are betting on the jockey (i.e. the management) and not the horse (because there is no horse).*

Terrapin 3 is founded by Nathan Leight,(who has successfully created two previous blank-check companies) and sponsored by Terrapin Partners and Macquarie Group. Terrapin 3 raised over $212 Million via a IPO in July 2014. Terrapin 3 had twenty four months time (till August 2016), to acquire/merge a company or return the capital to its investors. Using the funds, Terrapin 3 can acquire/merge with a company with an Enterprise value of $200 Million to $1.25 Billion. 

With the deadline nearing, Terrapin 3 will now use its cash to merge Yatra with itself. 

So, is this a good exit route for VC investors in other Indian Internet & Mobile companies as well? Maybe, even for those who have pumped in 100s of millions into Desi Unicorns?

Unfortunately, the chances of that appear dim. The largest SPAC in recent times was CF Corporation, founded by former Blackstone executives, which raised $600 million. Even if the corpus were to be leveraged, Flipkart's $16 billion would be a bridge too far.



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.

Spark Capital advises CORONA on its USD 17.5 Mn Funding from Creador

Spark Capital is pleased to announce the successful closure of a USD 17.5 Mn investment in CORONA Remedies Pvt. Ltd. (“CORONA”), one of the fastest growing domestic pharmaceutical companies in India, by Creador, a private equity firm focused on long-term investments in growth-orientated businesses in Indonesia, India and Malaysia. Spark Capital acted as exclusive financial advisor to the transaction and has reinforced its position as a leader in syndicating equity for mid-market companies in the healthcare space. With the completion of this transaction, Spark has advised on 18 transactions aggregating USD 386 Mn across various sub-segments of the healthcare space.

As exclusive financial advisor to the transaction, Spark Capital :

  • Engaged with Corona significantly ahead of the transaction timeline to ideate, structure and time the transaction to optimize outcomes for the promoters and the Company
  • Identified, marketed and engaged with the most suitable set of investors
  • Drove negotiations between Corona and Creador across the term sheet and definitive documents
  • Assisted in successful closure of the transaction

About CORONA :

CORONA is an Indian pharmaceutical company engaged in manufacturing and marketing of branded prescription generics catering to various therapeutic segments across acute and chronic diseases. Established in 2004 and headquartered in Ahmedabad, the Company is promoted by a family of professionals with deep domain expertise. CORONA currently ranks amongst the top 60 pharmaceutical companies in India out of 12000+ Pharma companies in IPM.

Further information on CORONA is available at http://www.coronaremedies.com/

About Creador:

Creador, a private equity fund domiciled in Mauritius, invests equity growth capital of USD 15 – 50 Mn across a variety of sectors for minority equity positions.  The fund, sponsored by Mr. Brahmal Vasudevan - one of the three General Partners at Chrys Capital for 11 years, currently targets opportunities in India, Indonesia and Malaysia.

Further information on Creador is available at http://creador.com/

About Spark Capital:

Spark Capital is among India’s leading investment banks, providing a full suite of services encompassing Corporate Finance Advisory, Institutional Equities, Wealth Management and Structured Finance & Debt Syndication. Spark’s Corporate Finance Advisory division has successfully consummated a total transaction value of close to USD 1.8 Bn across 30 transactions in the last 36 months; Spark Capital’s Institutional Equities division covers over 200 stocks under research and enjoys empanelment with over 200 institutional clients across FIIs, DIIs and Family offices. Spark is headquartered in Chennai and has offices in Bangalore and Mumbai.

Further information is available at  www.sparkcapital.in

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.

July 25, 2016

Cyril Amarchand Mangaldas tops League Table for Legal Advisors to M&A Transactions in H1 2016

AZB & Partners, Trilegal complete the top 3 slots; Khaitan & Co. tops by deal volume




Cyril Amarchand Mangaldas (CAM) topped the Venture Intelligence League Tables for Legal Advisors to M&A transactions for the first six months of calendar 2016 advising deals with a value tag of $7,580 million (across 17 qualifying transactions).  CAM was followed by AZB & Partners which advised deals worth $3,899 million (across 19 qualifying deals) and Trilegal ($2,579 million across 12 qualifying 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.

CAM advised M&A deals during the period included the $2,380 million acquisition of Jaiprakash Associates’ cement plants by UltraTech Cement and the $978 million acquisition of Jindal Steel and Power’s thermal power plant by JSW Energy. Transactions advised by AZB included the $1370 million acquisition of Welspun Renewable Energy by Tata Power and the $1,179 million acquisition of Alliance Tire Group by Yokohama Tire Corporation. Transactions advised by Trilegal included the$464 million acquisition of Tata Communication Data Centres by Singapore Technologies Telemedia and the $48 million stake hike in Kenyan firm Style Industries by Godrej Consumer Products.

Khaitan & Co. topped the table in terms of deal volume. Deals advised by Khaitan & Co included the $62 million buyout of consumer durables equipment maker Amber Enterprises by Goldman Sachs and $100 million acquisition of cricket broadcaster Willow TV International by Times Internet. Khaitan & Co. was followed by AZB & Partners and Cyril Amarchand Mangaldas who took the second and third spot in terms of quantum of deals advised.

Khaitan & Co. also topped both Domestic and Outbound deals table with nine and three deals respectively. Cyril Amarchand Mangaldas led the Inbound table with eight qualifying deals.

The period also saw a many new entrants including TRA and Clove Legal to the Venture Intelligence Legal Advisors for M&A league table.

The full league tables can be viewed online at http://www.ventureintelligence.com/leagues.php


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.

StanChart tops Transaction Advisor League Tables for M&A deals in H1 2016



Standard Chartered Bank topped the Venture Intelligence League Tables for Transaction Advisor to M&A transactions for H1 2016 advising M&A deals worth $2,844 million (across 2 qualifying deals) followed by Barclays and JM Financial ($1,370 million across one deal each) and Axis Capital ($922 million across four deals).

Standard Chartered Bank advised M&A deals during the year were the $2,380 million acquisition of Jaiprakash Associates’ cement plants by UltraTech Cement and the $464 million acquisition of Tata Communication Data Centres by Singapore Technologies Telemedia. Barclays and JM Financial advised the $1,370 million acquisition of Welspun Renewable Energy by Tata Power. Axis Capital advised M&A deals in H1 2016 were the $706 million acquisition Reliance infra’s cement subsidiary by Birla Corporation and the $140 million buyout of NBFC firm AU Housing Finance by Kedaara Capital and Partners Group.

Inclusive of its roles in related advisory activities (Due Diligence, Fairness Opinion), JM Financial topped the League Tables for Transaction Advisor for M&A in H1 2016, advising two deals with a value tag of $3,750 million. JM Financial was followed by Ernst & Young (14 deals worth $3,454 million). M&A deals advised by E&Y during the period included the $85 million acquisition of Western UP Tollway by I Squared Capital.

KPMG topped the table in terms of deal volume advising 5 deals worth $352 million (including the $300 million investment by Tenaga Nasional Berhad in a portfolio assets operated by GMR Energy) . Inclusive of its role in due diligence and related advisory activities, KPMG advised 7 deals with a value tag of $2,174 million. KPMG was followed by Axis Capital and E&Y both sharing the second place, in terms quantum of deals advised.

New Entrants to the Venture Intelligence M&A table for Legal Advisors during H1 2016 include BDA Partners, The RainMaker Group and Acumen Financial Consultancy.

The full league tables can be viewed online at http://www.ventureintelligence.com/leagues.php

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.

Goldman Sachs tops League Table for Financial Advisors to Private Equity Transactions in H1 2016

Morgan Stanley, Kotak claim the no.2 and no.3 slots; E&Y tops table inclusive of due diligence, other services 




Goldman Sachs claimed the top position in the Venture Intelligence League Table for Transaction Advisor to Private Equity deals for first half of the calendar 2016 acting as financial advisor to two qualifying PE investments worth $365 million during the period. Goldman Sachs was followed by Morgan Stanley ($230 million across one deal) and Kotak ($227 million across three 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 PE transactions advised by Goldman Sachs included the $321 million investments by Fairbridge Capital in Bangalore International Airport and the $44 million investment in Healthcare Global by anchor investors IFC, Sabre Capital and others. Morgan Stanley advised the $230 million investment in clean energy producer Greenko Group by GIC and Abu Dhabi Investment Authority, while Kotak advised the $112 million stake sale by Warburg Pincus, IFC, ChrysCapital, Motilal Oswal and Kedaara Capital in NBFC firm AU Financiers to a clutch of public market investors and the $71 million investment by IFC and GIC in Bandhan Bank.

Inclusive of its roles in due diligence and related advisory activities, Ernst & Young topped the league table for transaction advisor for PE deals in H1 2016 advising deals with a value tag of $1,169 million (across a total of 17 deals). E&Y advised deals included the $85 million buyout of Western UP Tollway by I Squared Capital and the $30 million PE exit of Navis Capital from Classic Stripes in a deal which saw the promoters buying back the stake held by Navis Capital.

E&Y also topped the tables in terms of deal volume, followed by IndigoEdge ($14 million across five deals) which claimed the second spot, while Axis Capital ($183 million across four deals) and Spark Capital Advisors ($62 million across four deals) shared the third spot in terms of quantum of deals advised.

New entrants into the Venture Intelligence league table for transaction advisor to Private Equity during 2016 included The RainMaker Group, BDA Partners and Sparrow Advisory.

The full league tables can be viewed online at 


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.

AZB leads Legal Advisor League Table to Private Equity Transactions in H1 2016

Cyril Amarchand Mangaldas, Shardul Amarchand Mangaldas claim 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 calendar 2016. According to the Venture Intelligence League Tables, AZB advised PE deals worth $3,158 million (across 23 qualifying deals), followed by Cyril Amarchand Mangaldas ($2,393 million across 17 deals); Shardul Amarchand Mangaldas ($2,118 million across 19 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 & Partners advised deals during H1 2016 included the $200 million investment by Ontario Teachers Pension Plan and others in e-commerce firm Snapdeal.com and the $145 million investment by Warburg Pincus, Temasek and March Capital in automobile classified company CarTrade.com. Transactions advised by Cyril Amarchand Mangaldas included the $321 million investment in Bangalore International Airport by Fairbridge Capital and the $171 million investment in payments firm BillDesk by General Atlantic and Temasek. Shardul Amarchand Mangaldas advised deals included the $1,100 million buyout of IT Services & BPO firm MphasiS by Blackstone and the $20 million investment in B2B e-marketplace firm IndiaMART.com by Accion International, Amadeus Capital Partners, Westbridge and Intel Capital.

Among Social Venture investments, Samvad Partners topped the charts with four deals (including the $5 million investment by Aavishkaar in curated social commerce platform Jaypore and $2.5 million investment by Insitor Fund and Acumen Fund in vocational training provider Edubridge Learning). Overall, Samvad Partners advised 17 Private Equity deals worth $722 million during the period. 

Among Early stage investments, Novojuris topped the charts with 14 deals (including the $3.1 million investment by Edelweiss Private Equity in business analytics firm BRIDGEi2i and the $0.3 million investments by Rebright Partners in fashion startup Elanic).

AZB & Partners also topped the table in terms of deal volume. AZB was followed by Shardul Amarchand Mangaldas, while BMR Legal ($210 million across 18 deals) and Khaitan & Co.  shared the third spot in terms of quantum of deals advised.

Other legal advisors who had advised significant PE deals during the year included Platinum Partners ($1,100 million across 2 deals), Khaitan & Co ($601 million across 18 deals), Shearman & Sterling ($550 million across two deals), Trilegal ($542 million across 15 deals) and Veritas Legal ($373 million across six deals).

The period also saw new entrants like TRA, Talwar Thakore & Associates and Yuti Law enter the Venture Intelligence Legal Advisors for Private Equity league table.

The full league tables can be viewed online at http://www.ventureintelligence.com/leagues.php

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.

July 20, 2016

Challenges for VC Exits: Mint

A Mint article titled Yatra, CaratLane deals put spotlight back on VC exits quotes Venture Intelligence data to highlight trends in this segment:

There have been 19 exits till date this year, data from Venture Intelligence shows, and, expectedly, the conversation has shifted to whether venture capitalists (VCs) invested in India are seeing their first real exit season.
Challenges to Exits for VC-backed companies (accordingly to the article):
  1. The proportion of M&A activity to VC investments in US/Israel is 4:1 or 5:1 compared to India's 1:1 leading to poor liquidity in the system - Nitin Bhatia, Signal Hill

  2. Most Internet companies in India are yet to show profits (many don’t even have a path to profitability), which rules out a public markets listing as an exit route for investors - Satish Andra, Endiya Partners. In 2015 alone, the US saw 28 tech IPOs. (Recent Indian tech IPOs in 2015-16 are Quick Heal Technologies, Infibeam and Ortel Communications.)

  3. India is still a very young market compared to other developed venture markets in the West. The exit horizons will tend to be long - Farooq Oomerbhoy, FAO Ventures
However also experts opined that a lot of fresh capital with strategic intent is sitting on the fence as investors view India as being where China was 10 years ago. Companies like Alibaba, Tencent and Baidu are yet to make large acquisitions here.

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.


July 14, 2016

Buyouts are Back!


A Mint article titled Buyout activity set to cross 2015 highs; slow start to PE exits quotes Venture Intelligence data on high Buyout activity in 2016.
Buyouts showed strong momentum in the first six months of 2016, with the total number of deals and deal value at 14 and $2.44 billion, respectively, data from private equity (PE) and venture capital database Venture Intelligence show. Buyout deal value more than doubled from $1.14 billion in the same period last year. The key sectors that contributed to the increase are information technology (IT) services, financial services and healthcare.
The top buyout deals of the first half of 2016 included Blackstone Group LP’s $1.1 billion acquisition of a majority stake in listed IT firm Mphasis Ltd, Kedaara Capital and Swiss private equity (PE) firm Partners Group’s purchase of mortgage lender AU Financiers for around $140 million and Abraaj Group’s $221 million deal to buy Care Hospitals

Reasons for Increasing Buyout activity (according to the article):

  1. Larger availability of professional management teams to run businesses
  2. Promoters are becoming "rational" about decisions regarding ceding control of businesses.
  3. Banks and lenders pushing distressed firms to sell some of the assets or entire businesses
The data point was also highlighted in our Private Equity Report for 2015.  Buyout activity was on the upswing grabbing as much as 18% of the pie (in value terms) compared to just 6% in 2014.
In our Q2 2016, Buyouts have been the sole category which saw rise in investments.

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.

July 12, 2016

Spark Capital advises Suryoday on INR 2,174 Mn Round of Primary Capital Raise and Secondary Stake Sale


Spark Capital is pleased to announce successful closure of INR 2,174 Mn round in Suryoday Micro Finance Ltd (“Suryoday” or the “Company”), through a combination of primary capital raise and secondary sale of shares by existing investors (“Selling Shareholders”). Spark Capital acted as exclusive financial advisor to the Company and the Selling Shareholders for the transaction. This deal reaffirms Spark’s leadership position in the BFSI space having consummated 26 transactions aggregating ~USD 1 Bn value across various sub-segments of the BFSI space. This transaction also marks Spark's 7th successful closure in microfinance and allied sectors, aggregating ~USD 200 Mn.

About the Transaction:
Suryoday has obtained an in-principle approval from the Reserve Bank of India to convert itself into a Small Finance Bank (“SFB”). Taking into consideration the regulatory requirements pertaining to shareholding for conversion into an SFB, the Company has raised fresh equity capital from domestic investors and facilitated an exit for some of its existing investors.
The transaction saw participation from domestic investors such as the IDFC Bank, ASK Pravi, HDFC Standard Life Insurance, Arpwood Investment Advisors LLP, Kiran Vyapar Ltd. (LN Bangur Group), Polaris Banyan Holding Pvt. Ltd., and Dr. Aravind Srinivasan, and overseas investors such as responsAbility, Gaja Capital, Evolvence India Fund, and Americorp Group. As part of the secondary stake sale, Aavishkaar Goodwell completely exited the Company while Lok Capital Group partially offloaded their stake. Post the current transaction, Suryoday’s shareholding consists of 51% domestic shareholders and 49% foreign investors.
As exclusive financial advisor to the transaction, Spark Capital was involved in:
·   Identifying potential investors and positioning/ marketing the opportunity to a cross-section of investors
·   Transaction negotiations on behalf of Suryoday, the Selling Shareholders and the incoming investors
·   Finalization of the definitive agreements and the closure of the transaction
About Suryoday:

Suryoday, headquartered in Navi Mumbai, is a microfinance company registered with RBI as an NBFC-MFI. One of the largest MFIs in Western India, Suryoday had a Gross Loan Portfolio of INR 10,520 Mn as of 30th June 2016 across 180 branches and 8 states. The Company received an in-principle SFB license from RBI in October 2015 and plans to start banking operations during this fiscal year, post obtaining the banking license and completing the necessary registrations and certifications.
As an SFB, Suryoday will gradually expand its product offering in both lending and deposit segments – allowing it to better meet the needs of the financially underserved and further the cause of financial inclusion.

About Spark Capital:

Spark Capital (“Spark”) is among India’s leading investment banks, providing a full suite of services encompassing Corporate Finance Advisory, Institutional Equities, Wealth Management and Structured Finance and Debt Syndication. Spark’s Corporate Finance Advisory division has successfully consummated a total transaction value of close to USD 1.8 Bn across 30 transactions in the last 36 months; Spark Capital’s Institutional Equities division covers over ~200 stocks under research and enjoys empanelment with 200 institutional clients across FIIs, DIIs and Family offices. Spark is headquartered in Chennai and has offices in Bangalore and Mumbai. 

Further information is available at www.sparkcapital.in

July 11, 2016

Trends to Watch out in Healthcare: Outlook Business

(Click to View)

Outlook Business quotes Venture Intelligence data in an article titled Change Of Heart covering the recent good exits by PE/VC funds in the Healthcare segment and trends going forward.
"there have been 24 PE exits worth $720 million in 2015, the highest since 2011, according to Venture Intelligence. Many of the exits have been via IPOs."
"PE exits through IPOs have yielded returns as high as 4.53x — when Ridgeback Capital sold its stake in Granules India in 2015. Thyrocare Technologies, whose IPO in May this year yielded a return of 3.5x for CX Partners, seems like it was a matter of good timing."
The IPO of Narayana Hrudayalaya, a multi-specialty hospital chain, also generated significant interest and was eventually oversubscribed around 8x. 
"The private sale of Intas Pharmaceuticals by ChrysCapital to Temasek Holdings got returns of 17.6x, much higher than the public exit of Baring India from Indoco Remedies at 5.2x, according to Venture Intelligence."

Trends in the Sector:
  1. The continuing positive IPO market can see more Healthcare IPOs being lined up - e.g. VLCC (backed by Everstone), New Delhi Centre for Sight (backed my Matrix Partners) and Aster DM Healthcare (backed by Olympus Capital and India Value Fund).
  2. Regulatory risks, apart from creating another barrier to entry, will also impact valuations of players who haven’t had years of experience in the space. This provides opportunities for identifying companies that have good systems and processes in place.
  3. Investor attention to chase sub sectors like diagnostics, which have high RoI potential, and not hospitals which have high gestation period and depressed RoC and RoE.
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.



Nexus Ventures' Naren Gupta bemoans "short-termism" among current Indian startup founders

Naren Gupta, the highly respected Silicon Valley based founding partner of Indo-US cross-border VC firm Nexus Ventures, has published an article in Forbes India highlighting some areas in which the current crop of Indian startup founders could do better. Extract:

Over the last few years, I have failed to see this focus or commitment in many of the new-age company founders or management teams in India. They seem overly focussed on their image in the media, maximising valuations in the next funding rounds, and other short-term bragging rights. Where is the focus on exceptional products and customer satisfaction?  
My belief is that today’s even moderately successful Indian entrepreneurs are so distracted that they cannot maniacally focus on building great companies. The baubles that distract them range from angel funding to building fancy bungalows. During my recent visit to Bengaluru, I cringed when I was told that many executives of rapidly growing companies were spending time with architects and builders, while their companies were losing millions of dollars every month and are in survival battles against strong competitors. 
Some people say that the tendency to take short cuts is in our blood; the so-called ‘jugaad’ mentality. I disagree. It has nothing to do with Indian family values, culture or markets. Narayana Murthy and Sunil Mittal built large, durable companies in a less hospitable environment in the not-too-distant past. Indians around the world are doing exceptionally well as founders and leaders of market-leading innovators.  

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.

July 08, 2016

PIPE deals fall sharply in first half of 2016: Mint

During May-June 2016, PE funds invested $154 million in public equities, the lowest amount since April-June 2014


The Mint quotes: 
According to data available from Venture Intelligence, a research service focused on private company financials, during May-June 2016, PE funds invested $154 million in public equities, the lowest amount since April-June 2014 when PEs invested $205 million.
Since January this year, PEs have invested $414 million through PIPE deals, as compared to $1.12 billion during the corresponding period last year, a significant drop of 63%. In fact, except for 2014, when investors were in wait-and-watch mode ahead of the elections, the numbers are lowest in the last five years. 
Reasons for the fall, according to the article include:
  1.  The run up in valuations in preferred sectors e.g. Healthcare
  2.  The large base in the previous year of more than $1 Billion invested in Listed companies by PE firms

Related: Private Equity Update for Q2 2016



Exits via Public Market sales have also fallen in 2016 despite the run up in market in the last 3 months.

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.

July 06, 2016

VC Investments at all time high - minus 2015 that is - shows Venture Intelligence study

Venture Capital firms made 197 investments worth $623 million in Indian companies during the six months ending June 2016. The investment activity in H1’16, while 18% lower compared to the same period in 2015 (which witnessed 240 investments worth $958 million) is actually the highest ever (if we were to ignore the "dream year" of 2015), Venture Intelligence show. 


Arun Natarajan, Founder, Venture Intelligence and Ashish Fafadia, CFO, Blume Ventures discuss these numbers in the ET Now Startup Central show.


In the video, Ashish Fafadia of Blume points out how, with more seed and angel capital becoming available, Series A funding will continue to be a "choke point" for 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.


July 01, 2016

PE-RE Investments in India down 24% in Q2 2016

PE-RE Investments in India during Apr-Jun 2016: 16 deals, $579 Million

Private Equity-Real Estate firms made 16 investments (amounting to $579 million) during the quarter ended June 2016, according to data from Venture Intelligence. The volume of investments was down about 23.8% from the 21 investments (worth $868 million) in the same period in the previous year. However compared to the immediate previous quarter which had witnessed 12 investments (amounting to $902 million), the volume of Investments was up 33%. For the six months ending June 2016, there were 196 deals worth $635 million compared to 239 deals worth $959 million in the same period in 2015. 

The predominant focus of investors continued to be on the residential segment in the main metros which accounted for 15 of the total 16 investments. Projects in South and West India accounted for six deals each, followed by North with four deals. East and Central region did not receive any investments.



The largest PE-RE investment reported during Q2’16 was the $187 million (Rs 1,250 crore) fund raise by M3M India from Indiabulls housing finance. This deal was followed by Piramal Fund’s $63 million (Rs 425 crore) investment in Lodha Group’s Central Mumbai residential project. The next largest deal was the $45 million (INR 300 crore) investment by KKR in two residential projects of Puranik Builders - Abitante and Aldea Espanola in Pune's Bawadhan and Baner areas. 

(Click to View)

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 30, 2016

Private Equity investments cool off by 16% to $3.6 Billion in Q2’16

Sovereign Wealth & Buyout Funds Step Up Activity even as Mega Deals dry up for Internet & Mobile Cos

Private Equity firms invested about $3,602 million across 129 deals during the quarter ended June 2016, according to early data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. The investment amount was 16% lower than that invested in the same period last year ($4,278 million across 169 transactions) and 7% lower than the immediate previous quarter ($3,890 million across 169 transactions). The latest figures take the PE investments in the first six months of 2016 to $7,492 million across 298 transactions - comparable to the first six months of 2015 which had witnessed $7,340 million across 370 deals. (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.)


Only six PE investments worth $100 million or more were reported during Q2’16 compared to 11 such transactions in the same period last year and 12 during the immediate previous quarter, the Venture Intelligence analysis showed. The largest PE investment announced during Q2’16 was Blackstone’s $1.1 billion buyout of the majority stake held by US-based Hewlett Packard Enterprise in IT Services & BPO firm MphasiS, which triggered an open offer to public shareholders of the target company. 

Sovereign Wealth Funds like Singapore’s GIC, Abu Dhabi's ADIA and Malaysia’s Khazanah participated in mega investments for companies like the renewable power focused Greenko Group (that raised $230 million from ADIA and GIC) and analytics BPO firm Fractal Analytics ($100 million from Khazanah). Canada-based Fairfax Group committed a $300 million to chemicals manufacturer Sanmar Group (close on the heels of its $321 million bet in Bangalore International Airport announced in March).

“Mega deals in the Internet & Mobile companies were noticeable by their absence in the latest quarter – even compared to the immediate previous quarter when companies like BigBasket, CarTrade and ShopClues had attracted investments of over $100 million each,” noted Arun Natarajan, Founder of Venture Intelligence. “Despite the cooling off in Internet & Mobile sectors as well as more recent international developments like Brexit, etc, the increasing commitments being made by truly long term investors like Sovereign Wealth Funds, Pension Funds and Buyout funds portends well for the second half of the year,” he added.



Led by the MphasiS and Fractal Analytics deals, IT & ITES companies accounted for 43% of the PE investment pie in Q2’16 attracting $1,564 million across 86 transactions. However, despite the blockbuster MphasiS transaction, the value of IT & ITES investments in Q2’16 was down 17% from the $1,889 million across 101 deals in the same period in 2015 (which had witnessed massive investments in Internet & Mobile companies led by Ola, Snapdeal and Quikr).


About Venture Intelligence

Venture Intelligence, a division of TSJ Media Pvt. Ltd., is the leading source of information on private company financials, transactions and their valuations in India. For more information, please visit http://www.ventureintelligence.com

VC investments decline by 16% to 94 deals in Q2’16

Venture Capital firms made 94 investments worth $324 million in Indian companies during the three months ending June 2016. The investment activity in Q2’16 is 16% lower compared to the same period in 2015 (which witnessed 112 investments worth $491 million), according to analysis by Venture Intelligence. The activity level was also 9% lower compared to the immediate previous quarter (which witnessed 103 deals worth $299 million).



VC investments during Q2’16 were led by fashion e-tailer Voonik which raised a $20 million second round led by existing investor Sequoia Capital India, followed by the $16 million third round investment in playschool company KLAY Schools (led by Peepul Capital with participation from existing investor Kaizen PE). Other start-ups that attracted significant capital during Q2’16 included healthcare products e-talier 1MG (that raised a $15 million second round from Sequoia Capital India, Maverick Capital and Omidyar Network) and online tax filing company Cleartax (that attracted $12 million from SAIF Partners, following a $2 million round from Sequoia Capital India and US-based Founders Fund).  (Note: As VC type investments cap out at $20 million per round under Venture Intelligence definitions, follow on investments raised by companies like NestAway, Helpshift, etc. are not included in this analysis.)



Information Technology and IT-Enabled Services (IT & ITES) companies, at 73 deals worth $223 million, attracted 78% of the VC investments (69% in value terms). Healthcare & Life Sciences companies followed a distant second attracting 6 investments worth $25 million. IT & ITES investments during the latest quarter were however down from the 81 deals recorded in Q2 2015 and 77 deals in Q1 2016.

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About Venture Intelligence

Venture Intelligence, a division of TSJ Media Pvt. Ltd., is the leading source of information on private company financials, transactions and their valuations in India. For more information, please visit http://www.ventureintelligence.com

June 28, 2016

Everstone Capital eyes partial exit via S. Chand initial public offer: Mint

Mint quotes Venture Intelligence data in an article covering S Chand (which has also become an active strategic investor in Education startups):
In the last five years, private equity investors have invested almost a billion dollars in the education sector, according to data from Venture Intelligence, a private company financial database.

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. 

June 27, 2016

Healthcare Sector: Coming Trends - Business World

A Business World article titled Healthcare Sector At Inflection Point discusses trends in Healthcare Industry as Private Equity interests in the sector continue to gain in recent times:
Over the last few years, many PE funds have set-up dedicated healthcare-focused funds viz. Asian Healthcare fund, Quadria Capital, Sabre Partners, etc. For the 12-month period that ended in May 2016, the Indian Healthcare sector attracted investment of over $780 million from PE investors — 4.2 per cent of the total PE investment of $18.7 billion, according to deal database Venture Intelligence.

Trends to be seen:


1. Consolidation of Healthcare Companies

Availability of large capital, on the back of recent IPO success, increased PE investment in the sector and increasing global strategic investors in India will consolidate the share of organised players. e.g. IHH Healthcare, Malaysia acquired the majority stake in Global hospitals for over $200 million. Other players like Netcare (leading healthcare service provider in South Africa) and Sime Darby Group of Malaysia, have been scouting acquisition opportunities to make foot prints in India. PE-backed Healthcare companies have had successful IPOs in the last 8 months.

2. Interest in single specialty theme

By virtue of being a low asset and easily replicable format, single speciality medical centres have enticed the interest of PE investors in themes like dedicated eye care chains, mother and child care hospitals, diabetes clinics, dental chains, etc. It is expected that the investment in these formats will increase in the coming years like the concept of single speciality and short stay medical centres emerged in the 1970s in the US.

3. Expansion into Tier II and Tier III markets

Large corporate players are now increasingly looking to acquire/tie-up with medium or small hospital chains operating under standalone setups in these regions as disposable incomes rise. A similar trend is expected to be witnessed in the Diagnostic space as well, where large pan-India players like Dr. Lal PathLabs, Metropolis, SRL and Thyrocare are actively scouting for acquisitions to enter/further expand to newer regions.

4. Home Healthcare

The idea of home healthcare is largely driven by the increasing population of elders, the high prevalence of chronic diseases and a growing focus on primary and preventive care services. India’s home healthcare industry is currently at a very nascent stage and is largely unorganized. As per independent research by PricewaterhouseCoopers (PwC), the Indian Home Healthcare market is estimated to be of $2 billion currently and is growing at an annual rate of 20 per cent. (Compared to $130 billion by 2017 in North America)

Related Reading:

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

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 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. 

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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. 

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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.

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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. 

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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).

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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. 

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