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Showing posts from May, 2016

ELP Corporate Alert: Special Courts Under the Companies Act, 2013 Notified

To provide speedy disposal of offences punishable under the Companies Act, 2013, which are punishable with imprisonment of 2 years or more, the Ministry of Corporate Affairs has notified the provisions dealing with ‘Special Courts’ with effect from 18 May 2016. The intention behind setting up these courts is to let magistrate courts try minor violations, and that graver offences should be dealt by Special Courts.

SPECIAL COURTS DESIGNATED

Existing courts in the State of Maharashtra, Jammu and Kashmir, Goa, Gujarat, Madhya Pradesh, West Bengal, and Union territory of Andaman and Nicobar Islands, and Dadra and Nagar Haveli and Daman and Diu, have been designated as Special Courts for the purposes of trying offences under the Companies Act, 2013. As per the notification, these courts have been designated for the purposes of trial of offences punishable under the Companies Act, 2013 with imprisonment of 2 years or more.

OFFENCES TRIABLE BY SPECIAL COURTS

As per the provisions of the Compan…

Will Parenting Startups Grow Up Fast?

2016 has already seen 6 angel investments in parenting startups with participation from strategic investors and VCs.


Interested in viewing transactions, financials and valuations of funded companies? Try out 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. 

Why IDG Ventures Is Ramping Up Investments During Funding Squeeze: Entrepreneur India

Entrepreneur.com article interviewing Karthik Prabhakar, Director - IDG Ventures, quotes Venture Intelligence data on the funding scenario in India:
"there have been 90 VC investments in Q1 worth $270 M+ compared to 120 investments in the same quarter of previous year (Source: Venture Intelligence). Hence, there is no real drastic slowdown in the early stage investments as such. " We at Venture Intelligence have maintained that, barring 2015, Q1 2016 has been one of the best quarters for VC funding. Re-Catch the Coverage below:



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.

Early Stage Startup Funding - The Bad News and Good News

We had a quick peep into the Venture Intelligence Venture Capital Deals database to check on the Early Stage funding momentum in 2016. And noticed both Bad News and also Good News for Entrepreneurs seeking Early Stage capital. 



The bad news first:  2016 has witnessed a consistent decline in the number of Series A rounds (ie, first round VC investments of typically $2 million or more in size) with the median number of such deals falling to just 11 compared to 20 in 2015 (which was of course a record year) and 14 in 2014. 
We also looked into our Fund Raising database to check if it provided any clues on why Series A funding is declining so sharply, but found that some of the most active Series A investors in recent years have all raised new funds recently: Nexus Ventures ($450 M), IDG Ventures India ($150 M), Sequoia Capital India ($920 M) and Kalaari Capital ($290 M).  So, lack of investible capital ("dry powder" in VC industry jargon) is clearly not the reason. 
Now for th…

Why these startups are going green: The Economic Times

An Economic Times article by Shalini Pillai uses Venture Intelligence data to showcase investments (or the lack thereof) in Cleantech companies.


"Data analytics firm Venture Intelligence says only 40 companies in the space have been funded in the last three years, and most of them are big companies that started operations before 2007." Cleantech companies featured in the article include Green India Building Systems (GIBBS) which uses geothermal cooling for buildings and Threadsol, which helps reduce fabric waste in the textile industry.



Love cleantech companies? So do we. We've got a separate Deals Database focused on them. Take a look.

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.

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

An Economic Times article by Biswarup Gupta uses Venture Intelligence data on the growing acquisitions of startups due to the funding slowdown and what the ecosystem can expect in the coming financial year.
In the fiscal year ended March 31, the number of mergers and acquisitions involving technology startups more than doubled to 146 transactions from 69 in 2014-15, according to (deals) data tracker Venture Intelligence.Other Trends: 

1. On demand hyperlocal services, fin-tech ventures (e.g. wallet companies), and OTAs are touted as prime targets. (Want a list? mail us)

2. More consolidation this year -  Aashish Bhinde, Avendus Capital.

3. Flipkart & Snapdeal to continue their pace of acquisitions in FY2017.

4. Common investors tend to catalyze the situation (acquisition/merger) - Sameer Sood, Credit Suisse

5. Acquisitions will be more via stock in order to reduce cash outgo - Navroz Mahudawala, Candle Partners

Venture Intelligence is India's longest serving provider of data a…

Commercial Realty witnesses rising interest from PE Funds: The Economic Times

An Economic Times article by Sobia Khan & Kailash Babar uses Venture Intelligence data on to showcase rising PE interest in Commercial Real Estate Projects:
In 2015, private equity real estate firms deployed more than $5 billion in Indian real estate companies and projects — the highest since the financial crisis of 2008 — through 90 deals, according to research from Venture Intelligence . Large investors and established developers also created several joint venture platforms in the past year. Of the investment made, commercial projects accounted for 10%, (compared to 6% in 2014).
Other Trends:
1. Given most of the private equity funds in India receive funds from sovereign funds and pension fund - completed leased commercial assets are seen as the best bet for these investors.
2. Active setting up of tie-ups/platforms with builders
Tata Group's real estate and infrastructure development arm, Tata Realty & Infrastructure, partnered with Standard Chartered Private Equity to c…

Start-up valuation down, but Not Out: The Hindu BusinessLine

A Hindu Businessline article by Meera Siva uses Venture Intelligence data to track valuation trends:
Down rounds and exits are not new for Indian start-ups. Venture Intelligence data show that many companies had raised funding at reduced share price in the 2013-15 period as well. For example, Fashion and You, backed by VC firms such as Norwest Venture Partners, Intel Capital and Sequoia Capital India, saw a deep discount to its November 2011 valuation, during its June 2014 funding round.  The acquisition of Commonfloor by Quikr is said to be at a discount to the $160-million valuation that Google Capital funded it at. Likewise, Baby Oye’s acquisition by the Mahindra group is another exit that is said to have led to losses and write-offs for investors such as Accel Partners and Tiger Global.The article further states that one can expect the following trends going forward:

1. Fire sales for weak businesses may continue

2. Sliding valuations may only pinch B2C e-commerce start-ups, as t…

Pharma, Healthcare sectors deliver 5-17 times returns to PE investors: Business Standard

A Business Standard article by Ranju Sarkar uses Venture Intelligence exit data, to analyse exits in Healthcare & Pharmaceuticals sector.



Recent Healthcare IPOs have also delivered good returns for PE/VC investors, Catch our analysis of these companies through the links below:

Thyrocare Technologies IPO

Healthcare Global IPO

Dr. Lal Pathlabs IPO

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.

Indian Angel Network tops list of start-up funders: The Hindu BusinessLine

A BusinessLine article by TE Raja Simhan uses Venture Intelligence data to track most active angel investors in the last 5 yrs (since Jan-2011) and other trends.

Most Active Angel Investors

1. Indian Angel Network (61)
2. Mumbai Angels (52)
3. Rajan Anandan (51)
4. Anupam Mittal (38)
5. Mohandas Pai (34 Including investments by Aarin Capital)

Key Trends:

1. Since 2006-07, due to the efforts of early angel networks such as IAN and Mumbai Angels, the culture of seed funding has taken strong and steady roots among high net worth individuals (HNIs) in India including first-generation entrepreneurs who, upon exiting their businesses, have been allocating a significant share of their capital for investments in start-ups - e.g. Ronnie Screwvala of UTV and Rakesh Malhotra of Luminous Power Technologies.

2. The growth of angel investments in India has not been affected by the decline in public markets in 2008 and by the mood swings of Silicon Valley VCs.

You can catch our analysis in other trend…

Amendment to India-Mauritius Double Taxation Avoidance Agreement: Questions, Questions

The Government of India has on May 10, 2016 issued a press release announcing the Protocol for amendment of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains between India and Mauritius (Tax Treaty).


Key Features of the Protocol on Capital Gains


1. India now has the taxation rights on capital gains arising from the alienation of shares acquired on or after April 1, 2017 in a company resident in India with effect from financial year 2017-18.

2. Protection to investment has been granted in relation to the shares acquired before April 1, 2017.
3. The rate of taxation on the capital gains arising between the transition period of April 1, 2017 to March 31, 2019 shall be 50% of the domestic tax rate. (More Details here)
OPEN ISSUES
1. Are convertible instruments taxable on conversion after Apr 1, 2017?
2. The amendment appears to leave untouched the taxation of indirect transfers. (e.g. Vodafone Hutch).

Markdowns reflect wider valuation problem in startup sector: BusinessWorld

A BusinessWorld article by Paramita Chatterjee uses Venture Intelligence data on Startup acquisitions and markdown in valuations of Flipkart and Zomato as "early signs of shakeout or consolidation in the industry".

As per data available with research firm Venture Intelligence, as many as 139 acquisitions took place in the startup space in 2015, more than double the number of startup acquisitions that were sealed in 2014. In 2013, as many as 42 startups were acquired by the biggies in the sector and the number is only expected to grow!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 Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

Surge Pricing: Innovation Vs. Regulation

The Delhi Government has recently banned taxi app companies like Ola and Uber from adopting "surge pricing" - ie, increasing their standard fares multi-fold in places and times when demand rises (so as to "match demand and supply" and "bring more cars on the road" as they put it). The Karnataka Government has followed suit.

In a Mint Article titled "An economic defence of surge pricing", economist Ananya Kotia argues why surge pricing should be allowed. Extracts (emphasis mine):
In the short run, a ban on surge pricing acts as a disincentive for drivers to come on the roads, especially when it is relatively costlier for them, such as at night or early in the morning. Similar logic may discourage drivers to weather heavy traffic and a high time cost that is required to reach a busy locality. For example, why would a taxi driver plough through the mess of Delhi’s Hauz Khas Village, if he can earn the same by ferrying passengers from Khan Market?

Michael And Susan Dell Foundation allocates $50 Mn to fund Indian startups: Inc42

In a boost to social entrepreneurship in India the Michael And Susan Dell Foundation (MSDF) has further allocated $50 million for India startups according to an Inc42 article, which features Venture Intelligence data from our Social VC/Impact Investing Report:
"According to experts, impact investing in India has remained largely stagnant in terms of deal activity, over the last two years. As per the data by Venture Intelligence, 2015 and 2014 saw transactions worth $104 Mn spread over 57 deals and $106 Mn across 49 transactions, respectively. While the year 2016 has seen 14 transactions so far, amounting to $42 Mn." Are you an investor interested in viewing impact investments in India. Reach out to us to take a look at India's longest serving Private Equity & Venture Capital Deal 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) & the…

Titan acquires Tiger Global-backed Caratlane: The New Indian Express

An article by the New Indian Express, uses Venture Intelligence data to track investments by Tiger Global in Carat Lane:
In all, Tiger Global had invested $50 million in the four rounds. In the latest round, in January, 2015, Caratlane raised $30 million or Rs 185 crore at a valuation of Rs 710 crore for a 26 per cent stake, according to data from Venture Intelligence. Titan may pay a premium for the stake or could be at the same valuation at which Tiger Global invested in Caratlane, sources said. Here is a snapshot of the the First round investment by Tiger Global in Carat Lane from the Venture Intelligence Deals Database:


If you are a subscriber, Click here to login, and click on the below links to view the other rounds of investment in the company, its financials, valuations, transaction multiple etc:
Tiger Global - Mar 2012 Investment
Tiger Global - Aug 2013 Investment
Tiger Global - Jan 2015 Investment
Carat Lane Latest Financial Numbers
If you are not our subscriber, what are you w…

Is Microfinance back?: The Economic Times

In an Economic Times article, journalists Shailesh Menon & Indulal PM use Venture Intelligence Exit data for returns in PE/VC investments in Microfinance companies:
Microfinance has drawn private equity funds with the sector generating an average return of 5.8 times to invested capital during 2010 to 2015, according to data from Venture Intelligence.  The following reasons have been stated by the article for the resurgence of interest in Microfinance sector:

Recent successful exits in Equitas Holdings & Ujjivan MFIGrowing loan book (The industry loan book has increased by 130% to Rs 47,200 crore in 2014-15)Rationalising of lending rates and higher profitability in the post-Andhra crisis.RBI decision to award small finance banks (SFB) licences to some of the MFIs
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 …

Three reasons for cheer in the venture capital market: LiveMint

"Valuation markdowns, down rounds, business model pivots, shutdowns and investment write-offs have become the staple this summer for India’s venture capital market. However, there’s still plenty to cheer about." In a LiveMint article, journalist Snigdha Sengupta quotes Venture Intelligence Data on Investor returns in Equitas Holdings:
The most recent and notable example is the public market debut of Equitas Holdings. The Chennai-based MFI (microfinance institution) mopped up Rs.2,176 crore from retail and institutional investors, drawing demand for more than 17 times the number of shares on sale. Importantly, it served up exits for as many as 10 venture capital investors, reported Business Standard (image below). Among them, impact fund Aavishkaar Goodwell made more than 13 times its money on a $1.5 million investment made in March 2008, said the report citing data compiled by Venture Intelligence.
Venture Intelligence continues to provide timely reports on PE/VC Investor re…

IPO Pipeline overflowing with Milk?

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Fashion Startups now in Vogue

In an Economic Times article, Anumeha Chaturvedi uses Venture Intelligence data to display ramping up of investor interest in Fashion startups.
Six investments have been made in the space so far this year, according to data shared by Venture Intelligence with ET, up from four in 2015 and one in 2014. The value of investments made in fashion companies stood at $38 million in 2015, up from $21 million in 2014.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.

Which way is the exit?: The Hindu BusinessLine

In a Hindu BusinessLine article, journalist Meera Siva uses Venture Intelligence data on a study of returns from Private Equity and Venture Capital investments.
Data from Venture Intelligence on exits in specific sectors show that key sectors such as manufacturing, which accounted for over 10 per cent of exits by value in the last 10 years, slowed in 2015. Deal value slipped 28 per cent y-o-y in 2015, compared with the average growth rate of 10 per cent in the last decade. There were 229 exits in 2015, with manufacturing and BFSI topping the list with 34 exits each. 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.

How 26/11 caused a 2 year set back to Seedfund

At the recent Venture Intelligence APEX PE-VC Summit, Bharati Jacob, Managing Partner, Seedfund shared how the closure of Seedfund's second fund got set back by more than two years because the foreign investors who were about to invest in the fund, got spooked by the Mumbai terrorist attacks of 2008. One American LP (Limited Partner or investor in PE/VC funds) pulled out saying "India and Pakistan are eyeball to eyeball and could go to war any minute and I cannot invest in India any more."


Their pulling out caused a herd mentality among the other investors, causing almost all the LPs to pull out. Despite India's economy picking up, she recounts "we did not have LPs who understood local conditions... overseas LPs were looking at it through their own tinted lens". "Things have not changed too much now - from being hyphenated with Pakistan, we are now hyphenated with China," she added
This episode underlines the need for a deeper pool of domestic in…