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Showing posts from January, 2015

Is India the Next China - In Internet & Mobile investing terms?

Here's an extract from the Rise Capital Blog: ... the differences between China and India matter just as much as the similarities. We believe that there will be quite a few investors who get “burned” by buying at lofty valuations this time around who subscribe fully to the convenient idea that India is the “next China”, and that Internet companies there are the “____ of India” (fill in the blank with any successful Chinese Internet startup).

At Rise, we are eerily reminded of the rush of investment capital that flooded into Brazil a few years ago, with VCs believing that Brazil could also become the “next China”. At one point, the overnight flights from Kennedy (NYC) to Guarulhos (Sao Paolo) were packed with American VCs, startups were getting funded at a breathtaking clip, and early-stage valuations well north of >$100m were not uncommon. So what happened? A dip in the Brazilian economy combined with a realization by VCs that Brazil is actually quite different than China has…

What the Flipkart & Snapdeal fairy tales of 2014 mean for Entrepreneurship in India

By Arun Natarajan

An abridged version of this article appeared in the Business Line dated Jan 13, 2015

Home grown E-Commerce leaders Flipkart and Snapdeal between them raised almost $3 billion from investors during 2014. Powered by the E-Commerce segment, Online Services companies accounted for as much as 37.6% of the total $10.9 billion invested by Private Equity (including Venture Capital) investors during the year, according to figures recently compiled by Venture Intelligence.

Startups are clearly back. And how. PE investments in India during 2014 were second only to their historic high of 2007. The year in which Flipkart was founded. At which time the PE investment action in the IT industry was focused almost exclusively on mature IT Services and BPO companies.

Unicorn Club Effect

What effect will the recent membership to the “Unicorn Club” – i.e., startups with valuations of $1 billion or more – of Flipkart, Snapdeal, etc. have on entrepreneurship in the country? Are we going to …

Deal Alert: Mobile SDK maker AppVirality raises $465-K from IIG, TNN Capital, angels

Mobile app development software maker AppVirality has raised $465,000 in seed funding from India Internet Group, TNN Capital and other investors including Rajan Anandan, managing director of Google India; Mike Galgon, co-founder of aQuantive; Ravi Gururaj, chair of the Nasscom product council; Baron Capital research analyst Ashim Mehra; InMobi vice president of technology Mohit Saxena. AppVirality provides a software development kit (SDK) and dashboard that allows developers to add growth-hacking techniques to their apps without having to write new code. The company, which took part in Microsoft Accelerator last year, will use the capital for product development and hiring. 
Source: TechCrunch  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 …

Unraveling Oravel's founder

The Mint has a detailed profile of the founder of Venture Capital-backed budget hotels aggregator Oravel (now, OyoRooms) titled "Will the real Ritesh Agarwal please stand up?".  The piece makes the company appear  Facebook like - at least as described in the move The Social Network - full of bad behaviour, co-founder strife, et al.

Extracts:
A co-founder booted out, employees not given their due and hung out to dry, pieces of paper with informal promises of a stake, a charismatic founder’s attempt to wipe the slate clean, exaggerated pitches, cold and calculated interference of venture capital firms, their sanctimonious contracts and clauses, and the world of make-believe valuations. ...“See, Ritesh is a gifted and talented person. I genuinely believed in his ability and story when he first signed me up as a co-founder,” he said. “But later there was this other side to his personality that surfaced. Many things that happened are unethical and I have lived with them not…

Deal Alert: Snapdeal founders invest in apparel e-tailer Bewakoof.com

Snapdeal founders, Rohit Bansal and Kunal Bahl have made an investment in Mumbai-based Bewakoof Brands Private Limited, the company behind online apparel portal Bewakoof.com. 
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.

Deal Alert: Peer to peer lender Faircent.com raises funding from MFI execs

Gurgaon - based peer- to-peer lending pioneer Faircent.com has raised capital at an enterprise valuation of $4 million from Devesh Sachdev and Ashish Tiwari, promoters of Fusion Microfinance Pvt Ltd. The money raised would be used for strengthening technology, talent and brand. 
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: Healthstart, others invest $135-K in wellness startup Gympik

Bangalore-based Gympik Health Solutions, which owns and operates online marketplace-cum-ecosystem for fitness & wellness service providers Gympik.com, has raised $135,000 (about INR 86 lakh) from healthcare accelerator Healthstart and a group of angel investors including Capvent’s managing partners Tom Clausen and Rohan Ajila, as well as BSE listed manufacturing firm Haldyn Glass. Healthstart’s Pradeep K Jaisingh had joined the board of the company in Feb-14 and Rohan Ajila, Managing Partner, Capvent India joined the board in Sep-14. 
The funds will be used for marketing, geographic expansion and for developing new features. It will also be used to enter newer verticals that also involve providing B2B software services to players in the fitness space. 
Source: Nextbigwhat 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…

Deal Alert: Fashion portal Purplle.com gets funding from IvyCap

Fashion portal Purplle.com has raised its first round of institutional funding from IvyCap Ventures. The funds will be used to create a TripAdvisor-like marketplace for discovery of beauty and grooming products and services. Purplle's earlier investors include Mumbai Angels, the Chennai Angels and early-stage investment fund Blume Ventures. 
Founded by IIT-Delhi alumnus Manish Taneja and IIM-Ahmedabad graduate Rahul Dash, Purplle has claims to have tied up with more than 7,000 salons, spas, skin care and hair care chains across Mumbai and plans to take that number up to 50,000 across 30 cities by the end of this year. The company aims to close 2015 with annualized sales of $30-40 million. 
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&#…

Deal Alert: Canbank VC picks 5% in engg. pdts maker Anand Teknow for Rs 16-Cr

Canbank Venture Capital Fund Limited (CVCFL) has invested INR 16 crore in return for a 5% stake in Anand Teknow Aids Engineering India Ltd, a Rs 300-crore closely-held public limited company manufacturing engineering products for the oil and gas sector in India and Gulf. The funds will be used to expand the company’s ball valve plant at Talawade near Pune. CVCFL has made the investment from its INR 435 crore Emerging India Growth Fund. 
Anand Teknow has two plants for the manufacture of ball valves at Talawade and Chinchawad near Pune (India). The company’s clients consist of 31 refineries including 15 from the Gulf region and Malaysia. 
Source: Business Standard 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 Newslett…

Deal Alert: Fashion social network VioletStreet raises Rs.2-Cr

Fashion social network VioletStreet.com has raised Rs. 2 crore in an angel round led by Venkat Vallabhaneni with participation from Srinivasa Rao Paturi. The company will utilize the funds to scale the technology, grow its team and increase its reach in the Indian market. Following the round, Venkat Vallabhaneni, Former Senior Vice President of Bank of America and serial entrepreneur, and Sudhakar Reddy, Founder and CEO of Abhibus.com, will join the board of the company as directors. 
 The platform allows users to put together matching products to create fashion looks and have instant feedback from friends. The company had previously raised Rs. 10 lakh in a TiE Smashup event held in May 2014. 
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 E…