Skip to main content

Posts

Showing posts from April, 2017

"Private equity firms exit $18 bn in two years" - Business Standard

Business Standard has analyzed exit trends using Venture Intelligence data. Extracts:
Lack of exits and poor returns have been the biggest bane of private equity (PE) firms in India. While returns remain an issue, PE funds in India have returned around $18 billion to investors in the past two years — $8.12 billion in 2015 and $9.77 billion in 2016, according to research firm Venture Intelligence. 

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.

"Venture capital investment keeps dwindling in India" - Nikkei

Nikkei has a report on VC investments in India quoting Venture Intelligence data. Extract:
While venture businesses for Internet services continue to draw attention, venture capital investment in the first three months of this year totaled 68 in number and $314 million in value, according to Venture Intelligence, the research arm of TSJ Media. The number of investment roughly dropped in half from a year earlier and was the smallest in 11 quarters. ...Venture capital investment in business-to-consumer (B2C) companies is expected to keep decelerating, said Arun Natarajan, CEO of Venture Intelligence. But opportunities to raise funds are increasing for business-to-business (B2B) startups as investment in them is continuing, he said. 

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.

Public investors make big bucks on D-Street even after PE exits: Economic Times

Kiran Somvanshi of Economic Times has used Venture Intelligence PE-backed IPOs data to showcase how the share prices of PE-backed companies have done post their listing. Extract: The largest IPO exits in the last three years made 1-14 times returns for private equity firms. But after listing, retail, HNIs and institutional investors have gained 9-156% in these firms, thanks to a strong stock market, data from Venture Intelligence show.  
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.

Media Mention: PE Exits off to strong start in 2017 - Mint

Mint carried the following infographic on April 10, 2017 based on data from the Venture Intelligence PE-VC Exits 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.

VC investors breathe sigh of relief post Flipkart's latest billion dollar investment

That Flipkart was able to attract such a large investment and that too at a valuation that's double of what one of its existing investors had marked it down to just a few months ago, has come as a big relief to Early Stage investors. ET-NOW Startup Central has a discussion featuring Rehan Yar Khan of Orios Venture Partners, K.Ganesh of GrowthStory and Arun Natarajan of Venture Intelligence on the impact. 

As part of the show, Arun indicates the fact that investors in the latest round were strategic ones with deep pockets, bodes well for Flipkart. The repeated mark downs made some of Flipkart's previous investors - especially the mutual fund arms of Fidelity, Morgan Stanley and others - have been a source of distraction for Flipkart even as it battles Amazon.com in the marketplace.  (Such investors have to put a value on their investments - even in privately held companies - each quarter). 
According to Venture Intelligence data, while the $700 million round raised by Flipkart…

Does Zephyr Peacock's Fingerlix investment signal a focus shift away from B2B?

Until 2014, Zephyr Peacock India's (ZP India) major investments were mostly focused on B2B and industrial sectors - in companies like 20Cube Logistics, Trimax IT Infrastructure, Pennar Engineered Building Systems and E to E Transportation Infrastructure. Post 2015, the firm's portfolio seems to have taken on a more consumer bent - adding student loans focused MPower Financing, Swarna Pragati Housing Microfinance and now, ready-to-cook food service Fingerlix. We asked Zephyr Peacock India Managing Partner Mukul Gulati what is attracting the firm towards consumer businesses at this point and to Fingerlix (in which ZP India has just invested $3-M) in particular.

There is no planned shift to consumer sector. We like businesses with sustainable competitive advantages and a path to market leadership. Sometimes, these businesses sell to other businesses, while other times they target consumers. We continue to seek differentiated business models across the consumer and b2b space. All …

Media Mention: Interest in Commercial Real Estate investments spikes

Economic Times and Times of India quote Venture Intelligence PE in Real Estate data to showcase this trend. Extracts: This year has also started with a bang as real estate companies and projects attracted 19 investments totaling an announced value of $3.41 billion in the first quarter ended March. The value of investments in the March quarter was up 2.7 times from the year-ago period, which had seen investments worth $1.25 billion across 18 transactions, showed data from Venture Intelligence. The commercial segment, led by GIC’s $2.14 million investment in DLF’s rental arm, attracted an all-time high investment worth $2.6 billion across five transactions during the March quarter. Venture Intelligence data assumes the proposed transaction between DLF and GIC, which has been disclosed to the stock exchanges, goes through.   ...“While the mega deal between GIC and DLF's promoters does skew the numbers in a big way during the first quarter of 2017, the spike in investor interest in t…

Corporate VC Perspective: Joydeep Bose

“Corporate VCs should invest not only in technology adjacencies for their Business Units, but also to capture innovation in disruptive areas.”
Here is an interview with Joydeep Bose - veteran corporate VC (Intel and Cisco) and currently Executive Vice President-Corporate Strategy & Business Development at Tejas Networks - brought to you in association with Global Corporate Venturing (GCV) magazine

Q: You have one of the best track records of CVC investing in Asia over the last 16 years. What do you attribute your success to?
A:
I strongly believe that success is always a function of timing and opportunity with a bit of luck. I attribute my success to mainly three things - sector knowledge, operational experience and deep understanding of the ecosystem. Guy-Kawasaki once said “Venture capital is something to do at the end of your career, not the beginning. It should be your last job, not your first.” I relate to this a lot. I started as an engineer,designing telecom products in late…

VC Investment Activity falls to 3 Year Low

At 68 investments (worth $314 million), Venture Capital investment activity in Jan-Mar ‘17 fell to a three year low, Venture Intelligence data shows. VC investment activity (i.e., number of investments) fell 47% compared to Q1 2016 and 43% compared to the immediate previous quarter. The previous low in terms number of VC investments was 63 investment in Q2 2014.  (Venture Capital is defined by Venture Intelligence as Seed Capital to “Series D”/Fourth round of investment of up to $20 million in companies that are less than 10 years old. The monthly analysis includes investments of over $20-M as well in tech startups that are less than 10 years old.)

Source: Venture Intelligence VC Deals Database
The VC investment amount in Q1’17 dipped 17% compared to Q1‘16 and 26% compared to the immediate previous quarter. The fall in investment value was cushioned by a few large Growth Stage investments. (As many as 15 VC type investments in Q1’17 were over $10 million - versus 10 in Q1’16). 
Early …

Media Mention: 2016-17 in review: A record year for M&A deals

Leveraging Venture Intelligence Private Equity and M&A deal data, Mint has a round up of the deal activity in Financial Year 2016-17.  This financial year has set a record for mergers and acquisitions (M&As) in India, with deals worth $61.26 billion—more than double the value of transactions last year. In 2015-16, M&A deals were worth $27.62 billion. The sharp increase was a result of both strong foreign buying interest and consolidation underway across sectors including telecom, cement and energy. From Rosneft PJSC’s acquisition of Essar Oil Ltd to the merger agreement between Vodafone India Ltd and Idea Cellular Ltd, 2016-17 has largely been a year of big ticket M&A deals. Inbound deals worth $21.2 billion and domestic deals worth $35.6 billion were reported in the financial year.

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 Valuat…

Private Equity investments up by 36% to $5.4 Billion in Q1’17

Private Equity firms invested about $5.44 Billion across 117 deals during the quarter ended March 2017, according to early data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. The investment amount was 36% higher than the amount registered in Q1’16 (which had witnessed $4 Billion across 198 transactions) and 23% higher than the immediate previous quarter ($4.4 Billion across 179 transactions). The volume (or number) of investments was however lower by 41% compared to the year ago period and 35% lower compared to the previous quarter. (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.)
Source: Venture Intelligence PE Deals Database
Interestingly, almost $3.6 Billion - or 2/3rds of the total value of the investments during the period – were announced/reported in just March. 
The latest quarter witnessed 11 PE investments worth $100 million or more compared to 12 such…

Media Mention: March sees rush to close deals as new tax rules kicks in from April 1

Economic Times' Sachin Dave has an interesting article - featuring Venture Intelligence data - descrbing how deal makers raced against the clock to seal Private Equity investments before March 31 (post which, new taxation rules come into effect under the amended India-Mauritius tax treaty). Extracts: Scores of lawyers and dealmakers across the country were busy closing acquisition transactions before April 1, 2017, when new tax rules kick in. Indeed, close to 150 such deals were signed in March. "In terms of private equity, almost $3.6 billion — or two-thirds of the total value of investments during the January-March quarter — came in during March alone," said Arun Natarajan, CEO of Venture Intelligence.   A revision in the tax treaty between India and Mauritius is one such change that has sparked a flurry of deals. As per the revised treaty, Mauritius-based entities buying shares of Indian companies before April 1 will not have to pay capital gains tax when they choose …