Skip to main content

VCs make 100 investments worth $363-M in first half of 2012

Volume of investments keeps pace with 2011; Deal Value comes down

Venture Capital firms invested $363 million across 100 deals in India during the six months ending June 2012, according to a study by Venture Intelligence (http://www.ventureintelligence.in), a research service focused on Private Equity, Venture Capital and M&A transaction activity in India. While the volume of investments has kept pace, the value of the investments has come down as compared to the same period last year (which had witnessed 103 deals worth $520 million).

In the latest quarter ending June 2012, VC firms invested $186 million over 55 deals - which was significantly lower compared to the same quarter in 2011 (which had witnessed $281 million being invested across 59 deals) but higher when compared to the immediate previous quarter ($177 million across 45 deals), the Venture Intelligence analysis showed. Top growth investments during the quarter included the $20 million investment led by Everstone (with participation from existing investor Helion Ventures) into salon chain firm YLG Salon & Spa and the $16.2 million invested by Peepul Capital into medical devices firm Cura Healthcare. Among Early Stage deals, Russian VC firm ru-Net Holdings invested $9 million in Sequoia Capital-backed online apparel brand Freecultr and $8 million in online shoe retailer BeStylish. Fidelity Growth Partners India led a $6.3 million round for MineralTree, an US-based secure payments provider for SMEs.

Information Technology and IT-Enabled Services (IT & ITES) companies, at 33 deals worth about $86.4 million, attracted 60% of the investments in volume terms (versus 53% in Q2’11) and 47% in value terms (the same as in the year ago period). Online Services, which attracted 21 investments worth about $61 million during Q2’12, accounted for 64% of the IT & ITES pie by volume and 70% by value. Apart from FreeCultr and BeStylish, other Online Services firms that raised funding during Q2’12 included online taxi aggregator Olacabs ($4-M from Tiger Global); ethnic wear e-tailer Cbazaar.com ($3.5 million from Ojas Ventures and Inventus Capital) and US-based social media benchmarking firm Unmetric ($3 million from Nexus Ventures). Early Stage investments accounted for 78% of the investments (in volume terms) during Q2’12, the Venture Intelligence analysis showed.

About Venture Intelligence

Venture Intelligence is the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports.

Popular posts from this blog

VC Interview: Shailendra Singh of Sequoia Capital India

In a recent interview to Venture Intelligence, Shailendra Singh discussed some of the firm’s newer investments in the early stage segment including in the online payments space, the progress at a few existing portfolio companies and the active role the firm is playing in helping its portfolio companies scale and succeed in India and globally. Prior to joining the firm in 2006, Singh was a strategy consultant at Bain & Company in New York and before that, an entrepreneur in the digital media industry.

Venture Intelligence: How does Sequoia go about identifying potential early stage investments in India? Is there anything different you are doing today than, say, a couple of years back?

Shailendra Singh: There is a lot more focus on technology investing and early stage investing. In general, as you might remember a few years ago, we were doing primarily growth investing but in the past 18-odd months, we have had a very strong focus on early stage and that’s continuing. In terms of how…

KPMG Tops League Table for Financial Advisor to Private Equity Transactions in H1 2018

The transaction advisory unit of KPMG claimed the top position in the Venture Intelligence League Table for Transaction Advisor to Private Equity deals in the first half of 2018, advising deals worth $1.7 Billion. KPMG acted as the financial advisor to NHAI in the $1.5 Billion investment by Macquarie to operate 9 highway projects under the toll-operate-transfer (TOT) model. Ernst &  Young (which advised the $730 million asset sale by Indiabulls Real Estate to Blackstone) and Kotak (which advised the Vishal Megamart - Partners Group deal) accounted for the second and third spots respectively.
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.
Arpwood Capital (which advised the $760 million investment by Temasek in the $2.1 Billion Schneider Electric buyout of L&;T Electrical and Automation business) …

"Leveraged stock purchase led Arvind Rao to go astray": Forbes India

Forbes India has an article on the series of events leading to the recent controversial exit of Arvind Rao, Co-founder & CEO of listed Mobile VAS firm OnMobile.

On November 23, 2010, Arvind Rao, the 53-year-old co-founder and CEO of OnMobile, bought approximately 6 lakh shares of his company from the open market, representing a little over 1 percent of the company’s total shares....At Rs 277 a share, he had to pony up nearly Rs 16.5 crore to acquire them....So he went ahead and borrowed money to buy the shares, thinking nothing of the interest it entailed or the fact that he’d need to put up nearly half his existing shareholding as collateral...OnMobile’s shares continued to fall from those levels, while Rao’s interest payments ballooned.

...Motivated by OnMobile’s growth all these years, he had never paid much attention to his salary, most of which went towards the monthly rental on his sea-facing apartment in Mumbai and his BMW 7-Series, both paid directly by the company. He reque…