THE PE & M&A

QUARTERLY ISSUE 2 | JANUARY 2020

A comprehensive guide to and M&A deals: October to December 2019

OFF THE RECORD of the proposals under consideration is to make promoters face unlimited liability in case of criminal Despite strong economic headwinds, witnessed action. Government also intends to ensure that the continued interest of Investors in PE/VC and inbound entities related to promoters under action are not M&A deals in the last quarter of 2019. Although one eligible to participate in resolution process. observes that the deals are less compared to those in last year, the continuance of these deals is Government plans new law and regulatory encouraging, which also shows long term confidence of framework for Valuers investors. One observes from the public data that IT and ITES, BFSI, healthcare and life sciences attracted The government is planning to implement a new law more interest than other sectors. Given the present for registered valuers similar to the law applicable to challenges of subdued interest, inflationary trends, Chartered Accountants and Company Secretaries3. The liquidity squeeze resulting in lesser , one role of registered valuers has become extremely critical would expect Indian government to take focused for the Insolvency and Bankruptcy Code 2016. There is measures to address these issues and revive also a proposal to set up a general governing body for sentiments, resulting in increased PE/VC and M&A registered valuers similar to the Institute of Chartered activity. Accountants of India or the Institute of Company Secretaries of India. The Ministry of Corporate Affairs – Narendra Dingankar (Partner) (“MCA”) has set up an expert panel under the LEGAL CHANGES AFFECTING M&A & PE chairmanship of M S Sahoo to conduct a detailed study TRANSACTIONS IN INDIA on this issue. The MCA has notified Section 247 of the Companies Act, 2013 and introduced the Companies Government may raise FDI cap in (Registered Valuers and Valuation) Rules 2017. companies to 74% from the current 49% However, the registered valuers had been provided time till January 31, 2019 to register themselves under The Insurance Regulatory and Development Authority the Companies Act, 2013. of India (“IRDAI”) had earlier sought the views of various stakeholders on this matter1. On September 2, M&A DEALS 2019, the central government had also increased the limit of permissible foreign direct investment (“FDI”) in ShopClues acquired by Qoo10 for USD 100 million insurance intermediaries upto 100%. ShopClues is a Gurugram based

founded in 2011 by Sanjay Sethi, Sandeep Aggarwal Centre wants promoters to hold unlimited and Radhika Aggarwal. It was valued at USD 1 billion at bankruptcy liabilities in case of criminal action its peak and was later sold for USD 100 million to a

Singapore based e-commerce platform Qoo10 in an all- Multiple news reports suggest that the central stock deal. ShopClues is funded by GIC, Tiger Global government is considering isolating bankruptcy Management, Helium Ventures and Nexus Venture liabilities with promoters instead of companies2. One Partners as major investors4. Qoo10 services small and 1

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medium enterprises through its regionally located core markets such as Europe and expand into new online marketplaces in Singapore, Indonesia, Malaysia, geographies including select Asian markets. China and Hongkong and is presently looking to expand its presence to other Asian countries as well.

Bharti Infratel- merger to be completed by 24 February 2020

The merger of Bharati Infratel and Indus Towers will result in the creation of one of the world’s largest telecom tower company with over 1,63,000 towers. Bharti Infratel has extended the deadline for the completion of its merger with Indus Towers by 24 February 2020. and Group each hold 42% shares in Indus Tower and are expected to hold 37.2% and 29.4% shares respectively in the Lupin sells Kyowa Pharmaceuticals to Plutus merged entity. KKR and Canada Pension Plan (“Lupin”) has announced the sale of Investment Board were expected to own a combined 99.82% stake in its Japanese subsidiary Kyowa 6% stake, stemmings from their initial stake of over Co Ltd to Plutus Ltd (“Plutus”) 10% in Bharti Infratel. US-based asset management for INR 3,702 crores7. Plutus is owned by Unison Capital firm Partners is also likely to join Partners IV, LPS and Unison Capital Partners IV (F). L.P. Vodafone - Idea in selling its stake in Indus Towers for The said deal is projected to bring down the net an approximate amount of INR 2,000 crores. valuation of the company to INR 1,129 crores. Lupin PayU in talks to buy MobiKwik’s payment gateway acquired Kyowa Pharmaceutical in 2007 from the Sugiura family. PayU, a Netherlands based fintech company which is owned by Naspers Group is in talks with Gurugram Infogain acquires Revel Consulting based MobiKwik to acquire its payment gateway business5. MobiKwik, an Indian company founded in Infogain India Private Limited (“Infogain”) has acquired 2009, provides a mobile phone-based payment system digital consultancy firm Revel Consulting Inc. for an and and is presently funded by Sequoia undisclosed sum. Infogain is backed by ChrysCapital Capital, American Express, Tree Line Asia, MediaTek, which is an India focused private equity firm with USD GMO Payment Gateway, Cisco among 4 billion of . Infogain had others. MobiKwik has already raised around USD 120 earlier acquired Silicus Technologies to bolster its million from investors including , Sequoia expertise in ’s cloud system. ChrysCapital had Capital and Net1. earlier acquired majority stake in Infogain for USD 63 million in August 2015. Mahindra's subsidiary acquires 100% stake in Peugeot Motorcycles IL&FS completes sale of wind energy assets to ORIX for INR 4,900 crore Mahindra Two Wheelers Europe, a Mahindra subsidiary is set to seek full control of IL&FS Group has completed the sale of its wind energy Peugeot Motorcycles for an undisclosed amount6. The business to Orix Corporation8. Orix Corporation earlier Mahindra Group had acquired 51% equity stake in owned 49% stake in each of the seven wind power Peugeot Motorcycles in 2015. Mahindra Two Wheelers plants of IL&FS Group and has bought out the Europe and the Peugeot Motors team had announced remaining stake in the company. Orix Corporation is a the Performance 2020 plan in July 2018 with an aim to Japanese diversified financial services group grow the company’s operations and drive its growth in headquartered in Tokyo.

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Total SA to buy 37.4% stake in Adani Gas for INR 5,700 business. Laureate’s business in India includes Pearl crores Academy for Fashion, Media and Design, University of French oil company Total SA has signed a definitive Petroleum and Energy Studies in Dehradun that offers agreement to acquire 37.4% in Adani Gas for about INR courses across disciplines including engineering, 5,700 crores9. This is by far the biggest foreign direct business and law. investment in the country’s gas distribution network. Total SA will purchase the shares in Adani Gas through and Vivtera acquires Arise Virtual a tender offer to public shareholders to acquire up to Solutions Inc. 25.2% shares and purchase the residual shares from the Adani promoter family. An affiliate of global private equity fund Warburg Pincus LLC and Vivtera Global Business Services LLP acquires BORN Group for $95 Million (“Vivtera”) has acquired Arise Virtual Solutions Inc (“Arise Virtual”)12. Arise Virtual is backed by private Tech Mahindra Limited (“TechM”) has acquired New equity firm Strait Lane Capital Partners. Vivtera is a York based BORN Group for USD 95 million10. BORN business process management firm. This is a debut Group provides consultancy, content creation, deal for Vivtera that was formed in 2018. Arise Virtual maintenance and hosting services. It is owned by is an on-demand customer management business private equity firms True North and Zodius Capital. process solutions provider. True North had acquired controlling stake in the company in 2011. TechM will buy BORN’s Indian unit Patanjali Ayurved completes acquisition of Ruchi Soya and the rest of the entities would be acquired by for INR 4,350 crores TechM’s Singapore arm Tech Mahindra Pte. Patanjali Ayurved Limited (“Patanjali”) has completed Manchester City acquires majority stake in acquisition of Ruchi Soya Industries Limited (“Ruchi City FC Soya”) for INR 4,350 crores13. The acquisition will help Patanjali acquire edible oil plants as also soya bean oil Manchester City's parent company City Football Group brands such as Mahakosh and Ruchi Gold. Patanjali has acquired 65% stake in Indian Super League settled INR 4,350 crore of dues Ruchi Soya had towards 11 franchise Mumbai City FC . The remaining shares are financial creditors by infusing INR 1,100 crore equity held by Ranbir Kapoor and Bimal Parekh. This deal and arranging another INR 3,250 crore via . would enable Mumbai City FC to boost its standing in Real Estate to sell commercial assets to the league and benefit from the expertise offered by Blackstone Manchester City. Indiabulls Real Estate Limited (“Indiabulls”) has agreed CreditAcess Grameen acquires Madura Micro Finance to sell commercial projects in Mumbai and Gurugram to global investment firm Blackstone Group Inc CreditAccess Grameen (“CreditAccess”) is set to (“Blackstone”) for an enterprise value of INR 810 acquire 100% stake in based Madura Micro crores. Indiabulls has been selling its completed as well Finance for INR 876 crores. Initially, CreditAccess as ongoing commercial assets to reduce its debt. would acquire 76% from existing shareholders and in second stage Madura Micro Finance will be merged ' JLR acquires all-terrain performance car with the company. manufacturer Bowles Global University System acquires India business of Laurete Education Tata Motors owned Jaguar Land Rover has acquired Bowler Manufacturing Limited (“Bowler”), a UK-based Amsterdam based Global University has acquired the manufacturer of all-terrain performance cars, parts India business of Laureate Education for INR 1,200 and rally raid vehicles. Founded in 1985, Bowler crores. Laurete Education is one of the world’s largest pioneered the production of dedicated off-road for-profit higher education company has sold its India 3

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competition cars in the UK and has achieved success in broaden its license content catalogue. The company various international rallies. also plans to expand to new markets in the US, Canada, Australia and New Zealand. PRIVATE EQUITY DEALS Ola in talks with Microsoft to raise INR 1400 Crore intends to raise USD 1.2 billion from investors Ride-hailing company Ola has entered into a partnership with Microsoft Corporation India Private YES Bank is in discussion with potential investors to Limited (“Microsoft”) for a project under which it aims raise USD 3 billion collectively either through North to connect its cars to Internet of Things (“IoT”). Under American which has made a binding offer this deal, Microsoft would invest INR 1,400 crores in to invest USD 1.2 billion or through a combination of Ola’s parent company – ANI Technologies Pvt Ltd and investors14. Sunil Munjal, chairman of Hero Corporate will acquire 4.5% stake in the company17. Ola’s electric Services and Hemendra Kothari, founder of DSP Group mobility unit – Ola Electric Mobility Pvt Ltd will play a have also held separate talks with YES Bank for pivotal role in this project. Meanwhile, the proposed purchase of 5-10% stake each through their respective investment of USD 300 million by Hyundai and Kia in family offices that could possibly bring in a total of INR Ola and its electrical mobility unit has received a go- 3,500 crores to the cash-strapped bank. US based PE ahead from the Competition Commission of India18. firm Carlyle Group has also shown interest to invest USD 400 million in YES Bank. In November billionaire offers INR 10,000 crores to buy Mumbai investor Rakesh Jhunjhunwala had also bought 13 Airport stake million shares of Yes Bank. Adani Group intends to increase its stake in Mumbai Udaan raises investment of USD 585 million from International Airport (“Mumbai Airport”) by investing Investors about INR 10,000 crores19. The group had signed a pact to buy out 13.5% stake in Mumbai Airport. However, Hiveloop Technology Private Limited that runs the B2B this move is strongly resisted by GVK Group. At commerce platform Udaan has raised USD 585 million present, Airports Authority of India holds 26% stake, led by Tencent, Altimeter, Footpath Ventures, GVK owns a 50.5 % and the rest is held by two South Hillhouse, GGV Capital, and Citi Ventures. Existing African firms Bidvest and ACSA Global Ltd that hold investors such as Lightspeed Venture Partners and DST 13.5 % and 10 % respectively. Adani Group intends to Global also participated in this round15. With this round purchase the stake from these two firms and has of funding, Udaan’s valuation is about USD 3 billion and moved the Bombay High Court to extend the time to the company has so far raised USD 870 million in complete the purchase of 13.5% stake from Bidvest in funding. Mumbai Airport by February 2020 as GVK has failed to comply with its deadline to complete the transaction. MX Player receives funding of USD 110 million PremjiInvest, Warburg Pincus to buy IAG’s stake in SBI Tencent Holding Limited (“Tencent”) is leading a USD General 100 million funding round in MX Player at a valuation of about USD 500 million16. Times Internet had Premjilnvest, the family office of Azim Premji, and acquired a majority stake in MX Player from Zenjoy Warburg Pincus are set to acquire 16.01% and 9.9% Limited in 2018. MX Player is a mobile application that stake in Insurance Australia Group (“IAG”) for USD 432 allows users to play videos in a wide range of formats. million. This is a part of IAG’s strategy to focus on its The app is add-supported and as such does not charge core market in Australia and New Zealand. Earlier, any subscription fee. The app introduced movie/show PremjiInvest had bought a 6% stake in Future streaming services in 2018. Newly infused funds will be Limited for USD 250 Million. Warburg is consolidating utilized to produce new TV shows by the company and

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its presence in the insurance sector. Earlier, Warburg Brookfield to invest USD 800 million in ReNew Power had bought a 26% stake in India First Life Insurance Co. CDPQ and Piramal Enterprises strengthen partnership Brookfield Asset Management Inc (“Brookfield”) is in talks to invest USD 800 million in ReNew Power Limited

CDPQ is planning to invest USD 250 million in Piramal (“ReNew Power”). This round of funding would also Enterprises Limited by subscribing to convertible provide a partial exit to Goldman Sachs. Founded in . This transaction will cement the existing 2011 by Sumant Sinha, ReNew Power is one of India’s partnership between the two companies that began in largest green energy company. Some of the current 2017. CDPQ is a leading Canadian fund manager that investors of the company include Abu Dhabi invests globally in major financial markets, private Investment Authority, Asian Development Bank, Global equity, infrastructure, real estate and private debt. Environment etc. Previously, Brookfield had acquired Piramal Enterprises is one of India’s largest diversified two wind farms from Axis Energy for USD 72 million. companies with presence in financial services, pharmaceuticals and health care. Blackstone invests in test preparation firm Aakash Private Equity firm Blackstone has invested in test raises USD 1 billion in its latest funding round preparation platform Aakash Educational Services Limited (“Aakash”). Aakash is one of India’s largest test Fintech major Paytm has raised USD 1 billion in its preparation companies and provides coaching for latest round of funding lead by asset management firm medical, engineering as well as other competitive T Rowe Price at a valuation of USD 16 billion20. The exams. Market reports indicate that Blackstone is set present investors in the company such as SoftBank and to acquire 36.5% stake in Aakash at a valuation of over Jack Ma owned Ant Financial also pumped in USD 200 USD 500 million for INR 1,350 crores. Blackstone has million and USD 400 million respectively. The company already received approval from Competition intends to utilize the newly obtained funds to expand Commission of India to acquire 51% stake in Aakash. its operations aggressively across India especially in The newly used funds would be used to boost Aakash’s tier-III cities and smaller towns. Previously, the digital content. company had raised USD 300 million from Berkshire

Hathaway in 2018. Advent set to buy controlling stake in Bharat Serums

Invesco Oppenheimer fund to buy 11% stake in Zee US based private equity firm, Advent International Entertainment Corporation, is all set to acquire a controlling stake in Bharat Serums and Vaccines Limited (“Bharat US based financial investor Invesco-Oppenheimer Serums”)22. Bharat Serums is a leading maker of Developing Markets Fund is set to acquire 11% stake in injectable biological and pharmaceutical products in debt ridden Zee Entertainment Enterprises Ltd for INR India. The company operates in assisted reproductive 4,224 crores21. The newly infused funds would be used treatment, critical care, women’s healthcare and to pay off outstanding . emergency medicine in India and emerging markets.

This round of funding would also provide complete exit Embassy Property sells 30% to Orix Corporation to existing investors such as OrbiMed Advisors LLC and

Kotak PE. Embassy Property Management Services (“Embassy

Services”) has sold 30% stake to Oxix Corporation PharmEasy secures USD 220 million in a funding (“Orix”), a Japanese financial services firm for INR round lead by Temasek 2,300 crores. This deal marks the foray of Orix into property management services in India. Embassy Online pharmacy start-up PharmEasy has raised USD Services manages 50 million square feet of space 220 million in its fresh round of funding lead by across various sectors in India. Temasek Holdings Pte Ltd, the of Singapore (“Temasek”)23. Founded by Dhaval Shah 5

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and Dharmil Sheth in 2015, the company has attained Tencent Holding Limited has picked up 10% stake in a valuation of USD 700 million in this round. The online insurance aggregator PolicyBazaar by acquiring company would use the newly infused funds to the stake held by for USD improve customer experience to ensure timely delivery 150 million at a valuation of USD 1.5 billion26. of medicines in a safest way possible. Previously, the PolicyBazaar is owned and operated by ETech Aces company had raised USD 50 million in its Series C Marketing and Consulting Private Limited. Founded in funding round. PharmEasy connects patients to local 2008 by Yashish Dahiya and Alok Bansal, the company diagnostic centres and pharmacies through an had previously raised USD 200 million in a funding integrated online platform making health care round led by SoftBank Vision Fund in 2018. accessible and affordable to all. in talks to raise USD 100 million Masdar Clean Energy has acquired 20% stake in Hero Future Energies Online marketplace Snapdeal is in talks to raise close to USD 100 million from investors27. The company had Abu Dhabi Future Energy Company (“Masdar”) has recently received funding from Anand Piramal of acquired 20% in Hero Future Energies Private and Nexus Venture respectively. Limited for USD 150 million at a valuation of USD 750 Snapdeal has raised USD 200 million in 2016. million24. Masdar is owned by Mubadala Investment Company, UAE government’s sovereign wealth fund. PSA India acquires 50% stake in Ameya Logistics for The newly infused funds would be used to expand the USD 93 million operations of the company across India and in Africa. Previously, International Finance Corporation had PSA India Intermodal Pte Ltd has acquired a 50% stake invested USD 125 million in the company. in Ameya Logistics Pvt. Ltd for USD 93 million from French shipping group CMA CCGM S A. PSA Freshworks has raised USD 150 million in Series H International Pte Ltd is the world’s biggest container funding round port operator by volume and is owned by Temasek.

Freshworks Technologies Private Limited CDPQ invests USD 75 million in Azure Power (“Freshworks”), a Chennai-based software products and services company has raised USD 150 million in its Canadian Caisse de dépôt et placement Series H funding round from existing investors such as du Québec (“CDPQ”) has invested an additional USD 75 Google, Sequoia and Accel at a valuation of USD 3.5 million in Azure Power Global Ltd to increase its holding billion25. The company had previously raised funds to in the company28. CDPQ is the largest shareholder of the tune of USD 249 million. Azure. International Finance Corporation (IFC), , German development finance Bounce raises $150 million in its Series D funding round institution DEG also own small stakes in the company.

Bike rental start-up Bounce raises USD 150 million in its Brookfield to buy-out Reliance Jio’s tower arm Series D funding round led by existing investors such as B Captial and Accel Partners at a valuation of USD 500 Canada based Brookfield Infrastructure Partners L.P. million. Formerly known as Metro Bikes, Bounce allows (“Brookfield”) and its affiliates will invest around USD customers to rent a bike for short durations at 3.66 billion in telecom tower assets of Reliance competitive prices. The company has raised USD 92 Industries29. Under the deal, Reliance Industrial million in its last financing round. The newly infused Investments & Holdings would issue units in the trust funds would be used to expand its operations in India. to Brookfield affiliate BIF IV Jarvis India and some co- investors. Post deal closure, Brookfield would become Tencent acquires 10% stake in PolicyBazaar the sponsors of the Tower Infrastructure Trust, holding

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100 % of India's largest telecom tower company with subsidiary of Sequoia India and Hillhouse Capital at a 170,000 towers. valuation of USD 700 million33. CarDekho sells both new and used cars on its platform. Founded by Amit Piramal Realty, Omkar to invest INR 3,000 Crore in Jain and Anurag Jain in 2008. Previously, the company housing project in Mumbai’s Mahim had raised USD 110 million in its Series C funding round. Piramal Realty Private Limited (“Piramal Realty”) has Mahindra Finance secures USD 200 million debt entered into a joint development agreement with financing from International Finance Corporation Omkar Realtors & Developers Private Limited (“Omkar”) to develop a residential project in Mumbai’s Mahindra Financial Services Private Limited Mahim area with a total investment of around INR (“Mahindra Finance”) secures USD 200 million debt 3,000 crore30. Earlier, the two companies had formed a financing from World Bank Group’s International partnership to develop a luxury housing project in Finance Corporation. The newly infused funds would Mahalakshmi. Omkar has also formed a joint venture be used to create a dedicated financing pool for micro, with Godrej Properties to develop a property in small and medium enterprises (“MSME”) in low- Mumbai’s Bandra area. income states. Further, USD 100 million of this fund is specifically earmarked for MSMEs owned by women. IDBI Bank to sell stake in Arcil International Finance Corporation has also committed USD 225 million to this MSME pool. IDBI Bank is in talks with Avenue Capital Group LLC (“Avenue Capital”) to sell its entire stake of 19% in Curefit to raise USD 100 million from Temasek Asset Reconstruction Co of India (“Arcil”)31. Arcil is one Temasek is set to invest around USD 100 million in of the oldest stressed asset aggregator company in health and fitness start-up Curefit Healthcare Private India. Avenue Capital will become the single largest Limited (“Curefit”) at a valuation of USD 800 million. investor in Arcil holding a 27% stake if the sale is Curefit has been active in the healthcare and fitness approved by the Reserve . space and provides gym, healthy food options in invests USD 70 million in Akum Drugs addition to other services. The newly infused funds

would be used to expand its operations across India. based Akam Drugs & Pharmaceuticals Limited The existing investors of Curefit inter alia include (“Akum Drugs”) has secured funding of USD 70 million Endiya Partners, Accel India, Trifecta Capital, Epiq from Quadria Capital Investment Management Private Capital, Unilever Ventures, Kris Gopalakrishnan, Limited (“Quadria Capital”)32. Akum drugs is a contract InnoVen Capital, Accel USA, Chiratae Ventures and research and manufacturing services provider. Kalaari Capital. Founded in 2004 by Sanjeev Jain and Sandeep Jain, Akum drugs is one of the largest contract drug Blackstone Group forms joint venture with producers in the country. Quadria Capital is a health Hiranandani Group for logistics business care focused private equity firm which has over USD 1.8 billion assets under its management. Quadria Blackstone has formed a joint venture with Capital is sponsored by Abrar Mir and Amit Varma. Hiranandani group to develop warehousing and logistics parks across the country34. The deal has been CarDekho raises USD 70 million in its Series D funding inked between Blackstone and Greenbase Industrial round Parks Private Limited, a Hiranandani group firm. The joint venture entity plans to invest INR 2,500 crores Online automotive portal CarDekho, owned and into various logistics projects across India. operated by Girnar Software Private Limited (“CarDekho”) has raised USD 70 million in a Series D Lenskart raises USD 275 million from Softbank Vision round led by China based Ping An Global Voyager Fund Fund along with Sunley House Capital Management, a

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Online eyewear retailer Lenskart Solutions Private closed European Fund V, a fund focused on Limited (“Lenskart”) has raised USD 275 million from companies in western Europe at EUR 5.8 billion. Softbank Vision Fund at a valuation of USD 1.5 billion35. The newly infused funds would be used to improve the launches USD 500 million fund focused on company’s technological capabilities and to strengthen Asia’s food sector supply chain infrastructure. Previously, the company had received investment to the tune of INR 392 crores Bahrain based alternative asset manager Investcorp from two entities belonging to Kedaara Capital. has partnered with China Resources and Fung Strategic Holdings Ltd to launch a USD 500 million private equity FUND MATTERS fund focused on food brands in Asia especially China, Singapore, and greater Southeast Asia40. The fund aims Jungle Ventures raises USD 240 million for its third to tap into China’s emerging middle class and their fund growing taste for foreign goods. The fund already has USD 28.2 billion worth of assets under its management. Jungle Ventures, a Singapore based fund founded by Amit Anand and Anurag Srivastava in Kenanga Investors launches second global unicorn 2012 has raised USD 240 million for its third fund that fund offering would invest in innovative technology and digital- driven consumer businesses across Southeast Asia36. Malaysia based Kenanga Investors, the asset This fund is backed by Cisco Investments, German management subsidiary of Malaysia’s Kenanga development finance institution DEG, Singapore Investment Bank, has launched its second global government-backed investment firm Temasek, unicorn fund offering - Kenanga Global Unicorn 2 41 Bangkok Bank’s VC fund Bualuang Ventures, and World (KGU2) . This fund would give investors an Bank’s private market investment arm IFC, among opportunity to back unicorns and earn mid-term others. Jungle Ventures has already invested in Indian capital appreciation. This fund comes barely five start-ups such as Moglix, Tookitaki, ZipDial, Mobikon, months after it launched Kenanga Global Unicorn 1 Livspace, Engineer.AI and Vayana. (KGU1) which surpassed its targeted fund size of USD 20 million by over 1.5 times. KGU2 will primarily invest Beenext to raise USD 100 million for its new fund in securities of globally recognised technology companies. KGU2 will be managed by Ericsenz Capital, Singapore-based venture capital firm Beenext founded a Singapore based private equity firm which invests in by Teruhide Sato is seeking to raise USD 100 million for middle-market companies in the technology, a new fund- “Beenext Emerging Asia LP” that was healthcare, consumer and energy sector. launched in October 2019 and has gathered USD 8 million so far37. This fund would provide early stage to raise USD 425 million from Meritz funding to technology start-ups and focus on for realty financing companies operating in the healthcare and agriculture sector. The fund has already invested in various start- The Edelweiss group is planning to raise USD 1 billion ups in India such as BharatPe, NoBroker, Shubh Loans, in dedicated real estate funds to be utilized in financing Mfine, Trell, ZestIOT and Mobile Premier League. housing projects stuck due to liquidity or solvency 42 constraints . The company has already identified 10 KKR targets USD 15 billion for its new Asia-focused housing projects that would be financed by the fund. buyout fund The company has already raised USD 425 million from Meritz Financial Group. Seoul based Meritz Financial KKR is planning to create an Asia-focused buyout fund Group has expertise in real estate investment and of USD 15 billion38. This fund would focus on consumer, manages around USD 46.5 billion worth of assets. technology, and manufacturing firms across Australia, China, Japan, and India respectively39. KKR has recently Windrose Capital to invest USD 30 million in early stage start-ups 8

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its rival KKR is looking to raise USD 1.5 billion in 2020 -based Windrose Capital founded by Rohit Goyal for its Asia focussed buy-out fund that would include in 2014 has kept apart USD 30 million out of its ‘Next investments in India as well. Presently, Warburg holds Billion Fund’ to specifically invest in early stage start- stakes in IndiaFirst, Virgo Retail Ventures and Avanse ups. The fund would primarily invest in about fifty Financial Services. seed-stage start-ups. As of now, the “Next Billion Fund” has already invested in healthcare and logistics Fireside Ventures to set up a USD 100 million Fireside company Biddano, business intelligence start-up Fund II Paper.vc, AI platform Precily and fintech company Nivesh. Consumer retail focused Fireside Ventures has secured USD 60 million for its second fund out of the target of Ghost Kitchens launched with USD 3 million corpus USD 100 million44. The company invests in early-stage start-ups and helps these start-ups establish Restauranteur Karan Tanna has launched – Ghost themselves in the competitive retail market. Fireside Kitchens Private Limited, India’s first investment and Venture’s first fund of USD 48 million was backed by incubation company for start-ups in the kitchen Unilever Ventures, Ltd, ITC Ltd, PremjiInvest, segment. The company would invest in the food Westbridge Capital, Mariwala Family Office, Sanjiv delivery market in India, incubate and invest in Goenka Family Office, and Sunil Munjal’s Hero companies that focus only on home delivery. The Enterprise Investment Office. Till date the company Company has kept apart a sum of USD 3 million for the has invested in 18 companies. first tranche and will invest in 15 brands in this segment. The company will also have a designated India Quotient to raise two funds one of USD 60 portion of its funds catering to home chefs who intend million and other of USD 40 million to develop their brands for home delivery and scale it up. India Quotient has secured funding of USD 60 million for its third fund. The company is also raising a USD 40 IAN sets up INR 375 crore maiden venture capital fund million fund to invest in best performing portfolio companies. The company had earlier invested in (“IAN”) has set up its maiden ShareChat and LendingKart. The existing investors in venture capital fund at INR 375 crore. The IAF Fund is the company include B R Shetty, Binny Bansal, RB backed by institutional investors such as Small Investments. The company is a seed stage investor and Industries Development Bank of India’s , generally provides seed funding to promising start-ups. IIFL Holdings, Yes Bank, Max India, Gray Matters Capital and Hyundai. The fund will invest in start-ups and co-founders launch 120 crore start-up fund provide strategic mentorship and market access to entrepreneurs. IAF has already invested in SmartVizs, a Mindtree co-founders Krishnakumar Natarajan, NS virtual reality platform for the building industry, Parthasarathy and Rostow Ravanan are set to launch a Propelld- education financing firm, PregBuddy - start-up to invest in start-ups working pregnancy health assistant, Freshworld - fruits and in the areas of Internet of Things, analytics and digital. vegetables delivery startup and Coolberg - beer The fund is awaiting regulatory approvals and would be company. structured as an alternative investment fund.

Warburg Pincus to raise USD 1.5 billion for its India P&G to set up Environmental Sustainability Fund focussed fund Procter & Gamble to set up Environmental Warburg Pincus is looking to raise USD 1.5 billion for its Sustainability Fund to collaborate with partners first fund targeting India focussing on sectors such as providing environmentally sustainable business financial, manufacturing and consumer43. Meanwhile, solutions. The company has already invested INR 200

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crores through its innovation sourcing fund that was government is also looking out to other venture set up in 201845. capitalists, angel investors to contribute to the fund.

Startup Buddy launches micro venture capital fund Accel raises USD 550 million for sixth fund focused on Fluid Ventures India

Start-up advisory services provider Startup Buddy US-based venture capital firm Accel has raised USD 550 Services Private Limited (“Startup Buddy”) has million for its sixth India fund as it seeks to ramp up launched Fluid Ventures, a micro venture capital its investments in India50. Previously the company had fund46. This fund would target start-ups looking to raise raised USD 450 million for its fifth India fund in 2016. seed capital to initial round of funding. The company Accel has previously invested in companies such as plans to raise INR 80 crores for this maiden fund. In Swiggy, Freshworks, Cure.fit and BlackBuck. Accel addition to infusing capital, the company would also generally invests in 5 broad categories such as provide advisory services to these start-ups and consumer internet, software, business-to-business, handhold them to ensure its growth. healthcare and financial technology.

Anthill, Rana Daggubati to launch Urban-i CPPIB to launch private debt platform in India

Anthill Ventures Capital Advisors LLP (“Anthill Canada’s largest pension fund manager Canada Ventures”) and actor Rana Daggubati have launched Pension Plan Investment Board (“CPPIB”) is planning to Urban-I, an accelerator programme for consumer launch a private debt platform in India along with an brand start-ups47. The six-month programme would Indian partner51. CPPIB will make investment in have about 5 to 9 start-ups working in the area of stressed assets. Till date, CPPIB has invested USD 8 personal care, fashion and accessories, food and billion in India across sectors such as renewable, consumer technology and e-commerce. The start-ups infrastructure, real estate and technology. It is also a may receive upfront investments to the tune of USD limited partner in funds promoted by PE firms 100,000 and up to USD 1 million upon programme TrueNorth and Multiples Private Equity. completion. Rajasthan Venture Capital Fund raises INR 121 crores Stride Ventures mark first close of debut Rajasthan Venture Capital Fund (“RCVF”) as raised INR fund 121 crore to provide to innovative

ventures in Rajasthan. RCVF is backed by Rajasthan Stride Ventures have raised INR 100 crores for this State Industrial Development and Investment maiden venture debt fund48. The company expects to Corporation (“RIICO”), UK’s Department for raise about INR 500 crore for this fund from current International Development, SIDBI, and New India investors and other high net worth individuals. The Insurance etc. RVCF has so far invested in companies fund plans to invest in 35 to 40 start-ups over the next such as Synergistic Financials Networks Private Limited, 3 years with a tenure of 1 to 1.5 years. International Oncology Services, Chatha Foods,

Softtech Engineers Limited. The fund has also recently Punjab Government to set up 100 crore fund to exited from cyber security company Aujas Networks. support MSME

Multiples raises USD 560 million for Fund III from NIIF, The Punjab government has announced its plan to set CPPIB, IFC, others up an INR 100 crore fund to support micro, small and medium enterprises (“MSME”) sector National Investment and Infrastructure Fund (“NIIF”) is 49 entrepreneurship . This fund would be set up in considering an investment of USD 100 million in the partnership with IKG Punjab Technical University. The third fund of private equity firm Multiples Alternate Asset Management Private Limited (“Multiples PE”)

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ISSUE 2 | OCTOBER TO DECEMBER 2019

called Multiples PE Fund III52. This fund will invest in Piramal Group, IIFL Wealth Management to create mid-market companies across sectors such as INR 2000 crore fund for realty projects consumer goods, financial services, healthcare, IT services, logistics, and agriculture-related product and Piramal Group and IIFL Wealth Management have set services opportunities. Founded by Renuka Ramnath, up INR 2,000 crore fund to finance real estate projects 54 Multiples PE has so far invested in companies such as across major cities in India . This fund would be set up Delhivery, RBL Bank and PVR Cinemas. Multiples PE as an Category I Alternative Investment Fund. Piramal Fund III is backed by Canadian pension fund manager Group is engaged in real estate development and IIFL CPPIB for USD 200 million. International Finance Wealth is one of the leading wealth managers in India. Corporation would invest USD 70 million in Multiples PE Fund III. Asian Development Bank would also invest UTI AMC to raise second private debt fund USD 35 million in the fund. UTI Asset Management Company Limited (“UTI AMC”) 3one4 Capital marks final close of 2 funds is planning to raise a second private debt fund to augment its alternative investment funds business. The 3one4 Capital has announced the closure of their two second fund is called UTI Structured Debt funds, namely 3one4 Capital Continuum (“Continuum Opportunities Fund II and aims to cater to the I”) and 3one4 Capital Rising I (“Rising I”)53. Continuum requirements that are not adequately serviced by I has already received commitments of INR 400 crores banks and non-bank lenders. UTI AMC has committed from various investors such as Catmaran Infina, a around INR 180 crores for this fund. private investment company owned by Kotak family, Adam Street Partners raises USD 740 million Sojitz – a diversified Japanese corporation among others. The second fund, Risiing I has received US-based investment manager Adams Street Partners confirmed commitments of INR 45 crore. This fund LLC (“Adam Street Partners”) has mobilised USD 740 would invest at the seed stage in technological start- million for the Adams Street 2019 Partnership Fund ups. Founded in 2015 by Pranav Pai and Siddharath Pai, Program55. This fund provides investors exposure to 3one4 Capital predominantly invests in machine investment strategies. Previously, the company had intelligence services for automation, fin-tech, ed-tech, closed the Adams Street’s global secondary fund at media and content development. The company has so USD 1.05 billion. far invested in Darwinbox, Yourstory, Licious,

Bugworks and Faircent.

References:

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ISSUE 2 | OCTOBER TO DECEMBER 2019

8https://economictimes.indiatimes.com/industry/energy/power/ilfs-completes-sale-of-wind-energy-assets- toorix/articleshow/71631430.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign= cppst 9https://www.business-standard.com/article/companies/total-sa-to-buy-37-4-stake-in-adani-gas-for-nearly-rs-5- 700-crore-119101400196_1.html 10https://economictimes.indiatimes.com/tech/ites/tech-mahindra-buys-us-based-media-group- born/articleshow/71924771.cms 11https://timesofindia.indiatimes.com/sports/football/top-stories/manchester-city-owners-to-acquire-mumbai-isl- team-source/articleshow/72273822.cms 12https://www.vccircle.com/warburg-pincus-backed-vivtera-acquires-business-process-platform-in-debut-deal/ 13https://www.businessinsider.in/business/news/patanjali-ayurved-completes-acquisition-of-bankrupt-ruchi-soya- for-rs-4350-cr/articleshow/72873511.cms 14https://www.livemint.com/industry/banking/yes-bank-to-raise-1-2-bn-by-dec-give-board-representation-to-new- investors-11572775205199.html 15https://yourstory.com/2019/10/funding-udaan-tencent-altimeter-citi-ventures-ggv-capital-startup 16https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/tencent-leads-110-million-round-in-mx- player/articleshow/71812874.cms 17https://www.thehindubusinessline.com/companies/ola-in-talks-with-microsoft-for-200-million- funding/article29820282.ece 18https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/hyundai-kias-300-million-funding-in-ola-and- its-electric-arm-gets-cci-nod/articleshow/71829585.cms 19https://www.timesnownews.com/business-economy/companies/article/adani-group-offers-rs-10000-crore-to- buy-mumbai-airport-stake-set-to-invest-rs-18000-cr-in-airport-business/506218 20https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/paytm-gets-1-billion-topup-in-latest- financing-round/articleshow/72216174.cms 21https://www.livemint.com/companies/news/invesco-oppenheimer-fund-to-buy-11-in-zeel-for-rs-4-224-crore- 1564577772129.html 22https://www.livemint.com/news/india/advent-international-acquires-controlling-stake-in-bharat-serums-and- vaccines-11574078871223.html 23https://www.bloombergquint.com/technology/temasek-leads-220-million-round-in--largest-fundraise-by-an- e-pharmacy-startup 24https://www.business-standard.com/article/companies/masdar-eyes-expansion-invests-150-million-in-hero- future-energies-119111100958_1.html 25 https://techcrunch.com/2019/11/13/freshworks-raises-150m-series-h-on-3-5b-valuation/ 26https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/tencent-buys-10-of-policybazaar-enters- india-insurance-market/articleshow/71979972.cms?from=mdr 27https://timesofindia.indiatimes.com/business/india-business/snapdeal-in-talks-for-100m-at-valuation-of-800m-1- 2bn/articleshow/72014388.cms 28 https://www.vccircle.com/cdpq-to-invest-75-mn-more-in-azure-power 29https://www.businesstoday.in/current/corporate/brookfield-led-team-inks-37billion-deal-to-buy-out-reliance-jios- tower-arm/story/366140.html 30https://www.business-standard.com/article/pti-stories/piramal-realty-forms-jv-with-omkar-realtors-for-project-in- mumbai-to-invest-rs-3-000-cr-119121200806_1.html 31https://economictimes.indiatimes.com/markets/stocks/news/idbi-bank-in-talks-with-avenue-capital-to-sell-stake- in-asset-aggregator-arcil/articleshow/72499964.cms 32https://www.livemint.com/industry/manufacturing/quadria-capital-invests-70-million-in-new-delhi-based-akums- drugs-11575824503509.html 33https://www.livemint.com/companies/start-ups/cardekho-raises-70-million-from-china-s-pingan-others- 11575542897976.html 34https://economictimes.indiatimes.com/industry/auto/auto-news/blackstone-lines-up-logistics-push-in-talks-with- hiranandanis-for-deal/articleshow/71774081.cms?from=mdr 35https://www.livemint.com/companies/start-ups/lenskart-to-raise-more-than-275-million-from-softbank-vision- fund-11576836810095.html 36https://www.livemint.com/companies/news/jungle-ventures-raises-240-mn-for-third-fund-11572368879748.html 12

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37 https://www.dealstreetasia.com/stories/beenext-asia-fund-162025/ 38https://in.reuters.com/article/uk-kkr-asia-fundraising-exclusive/exclusive-kkrs-new-asia-focused-fund-targets- record-15-billion-in-2020-sources-idINKBN1XH1RD 39https://www.business-standard.com/article/companies/kkr-targets-record-15-billion-for-new-asia-focused- buyout-fund-in-2020-119110701750_1.html 40 https://www.dealstreetasia.com/stories/investcorp-asia-food-fund-161388/ 41 https://www.dealstreetasia.com/stories/kenanga-unit-global-unicorn-2-161271/ 42https://economictimes.indiatimes.com/markets/stocks/news/edelweiss-set-to-close-last-mile-realty-financing- fund-with-s-koreas-meritz/articleshow/72000751.cms?from=mdr 43https://www.livemint.com/companies/news/warburg-pincus-to-raise-up-to-1-5-billion-for-first-india-focused- fund-11574927308025.html 44 https://yourstory.com/2019/11/ghost-kitchens-india-cloud-kitchen-incubator 45 https://indiacsr.in/procter-gamble-announces-rs-200-cr-environmental-sustainability-fund/ 46https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/micro-venture-fund-fluid-eyes-rs-80- crore/articleshow/72152466.cms?from=mdr 47https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/anthill-ventures-rana-daggubati-launch- urban-i-programme-to-scale-consumer-brand-startups/articleshow/72437599.cms 48 https://www.vccircle.com/stride-ventures-set-to-mark-first-close-of-debut-venture-debt-fund/ 49https://inc42.com/buzz/punjab-govt-to-set-up-inr-100-cr-startup-fund-to-boost-msmes-entrepreneurship/ 50https://www.livemint.com/companies/news/accel-partners-raises-550-million-for-its-sixth-india-fund- 11575299542323.html 51https://www.livemint.com/companies/start-ups/canadian-pension-funds-eye-private-debt-space-in-india- 11575825087674.html 52https://economictimes.indiatimes.com/markets/stocks/news/multiples-raises-560-million-for-third-india-focused- fund/articleshow/72324586.cms?from=mdr 53 https://www.vccircle.com/tech-venture-firm-3one4-capital-marks-final-close-of-two-funds 54https://www.business-standard.com/article/pti-stories/piramal-grp-iifl-wealth-management-create-rs-2- 000-cr- fund-for-realty-projects-119121100622_1.html 55 https://www.vccircle.com/adams-street-partners-raises-740-mn-for-new-global-fund/

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