Chain of Command Australia’S Brandon Gets Super Fund Support How Franchising Can Make Or Break a Western Dining Brand in China Page 7 Page 13
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Asia’s Private Equity News Source avcj.com April 28 2015 Volume 28 Number 15 EDITOR’S VIEWPOINT Too early to pick winners in SE Asia mobile payment Page 3 NEWS Advent, Blackstone, CHAMP, Fosun, Lexington, Mayfield, NPS, Sequoia, TPG Page 4 FOCUS Can private equity unlock the wealth of India’s LPs? Page 10 DEAL OF THE WEEK CompareAsiaGroup strives for scale Page 12 KKR, Anchor back South Korea’s Ticket Monster Page 13 FUNDS Chain of command Australia’s Brandon gets super fund support How franchising can make or break a Western dining brand in China Page 7 Page 13 DEAL OF THE WEEK PORTFOLIO Powerful platforms A culture in caffeine Singapore’s TradeGecko secures Series A Page 12 IMM aims high with Korea’s Hollys Coffee Page 14 14th Annual Private Equity & Venture Forum China 2015 28-29 May • China World Summit Wing,Beijing GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY avcjchina.com What to expect at AVCJ China Forum 2015: 50+ distinguished speakers who 300+ attendees who are policy have unique insights in global and makers, fund managers, investment domestic investments professionals, corporate executives from across the region 15+ thought-provoking sessions covering regional and domestic most 6 roundtable sessions with top expertise debated topics and intimate networking opportunities Keynote Senior Economist Plenary Address 主旨演讲 资深经济学家 独家专题演讲 Mark Machin Alfred Schipke Andrew Chung 马勤 席睿德 钟子威 Head of International and Snr. Resident Representative for China, Managing Partner President of Asia, CPPIB ASIA INC. INTERNATIONAL MONETARY FUND KHOSLA VENTURES 国际部总裁兼亚太区董事长, 驻华首席代表, 管理合伙人 加拿大养老基金亚洲投资公司 国际货币基金组织 科斯拉创投公司 REGISTER NOW to join the most premium private equity event in China Email: [email protected] or Call us at +852 3411 4936 For sponsorship enquiries, please email: [email protected] or call: +852 3411 4919 Asia Series Sponsor Co-Sponsors Legal Sponsors VC Legal Sponsor Join our WeChat for avcjchina.com latest AVCJ Feeds 14th Annual Private Equity & Venture Forum EDITOR’S VIEWPOINT China 2015 [email protected] 28-29 May • China World Summit Wing,Beijing Managing Editor Tim Burroughs (852) 3411 4909 Staff Writers Andrew Woodman (852) 3411 4852 Winnie Liu (852) 3411 4907 Who pays? Holden Mann (852) 3411 4964 Creative Director Dicky Tang Designers WHEN PHILIPPINE LONG DISTANCE providers’ infrastructure to provide billing services Catherine Chau, Edith Leung, Mansfield Hor, Tony Chow Telephone (PLDT) bought a 10% stake in to third-party merchants; Ayannah started e-commerce incubator Rocket Internet for $444 out doing cross-border remittances for the Senior Research Manager million last year, the agreement had a notable Philippines diaspora but recalibrated its network Helen Lee addendum: the companies would develop a for the domestic market, targeting mobile phone Research Associates GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY avcjchina.com Herbert Yum, Jason Chong, payments and remittance infrastructure for charge cards and then micro-insurance and Kaho Mak Rocket’s portfolio of emerging markets start-ups. payments. Senior Marketing Manager At the start of 2015 it was announced Second, a payments business is only as strong Sally Yip What to expect at AVCJ China Forum 2015: that they would form a joint venture mobile as the partnerships it establishes with financial Circulation Administrator payments platform. It promises to be a services and retail counterparties. A start-up Prudence Lau combination of the assets PLDT already has pitching for business with an online retailer will Subscription Sales Executive 50+ distinguished speakers who 300+ attendees who are policy in place through Smart eMoney, the largest be asked whether it has a critical mass of financial Jade Chan have unique insights in global and makers, fund managers, investment “branchless banking” network in the Philippines, institutions on board. Needless to say, financial Manager, Delegate Sales domestic investments professionals, corporate executives and Rocket’s expertise in Europe-based payments institutions will ask the same questions about Pauline Chen platforms Paymill Holding and Payleven Holding. online retailers. Director, Business Development from across the region As architect of online retailer Zalora and Coda, for example, got traction in Indonesia Darryl Mag e-commerce marketplace Lazada – both of when it convinced a telecom operator that its 15+ thought-provoking sessions Manager, Business Development which have established sizeable footprints in business model made sense. Ayannah relies on Anil Nathani, Samuel Lau covering regional and domestic most roundtable sessions with top expertise 6 Southeast Asia – Rocket’s move into payments relationships with the clutch of non-banking Sales Coordinator debated topics and intimate networking opportunities apparatus that supports these businesses financial companies that dominate lending Debbie Koo was not unexpected. Alibaba Group also has at the lower end of the customer spectrum in Conference Managers ambitions to expand its e-commerce platforms the Philippines. 2C2P’s momentum in Thailand Jonathon Cohen, Sarah Doyle, Keynote Senior Economist Plenary Address into the region and Alipay, its dedicated was due to the founder’s familiarity with local Conference Administrator 主旨演讲 资深经济学家 独家专题演讲 payments service, will no doubt follow. financial services providers through a previous Amelie Poon Consolidation in the Southeast Asia mobile business venture. Conference Coordinator Fiona Keung, Jovial Chung Andrew Chung payment space seems like a logical outcome, Relationships – and the way in which they Mark Machin Alfred Schipke although it remains to be seen how long this can facilitate the navigation of idiosyncratic local Publishing Director 马勤 席睿德 钟子威 process takes and what path it follows. bureaucracies and business networks – are also a Allen Lee There is no questioning the size of the key factor in whether these payments providers opportunity. Frost & Sullivan estimates that can expand into new markets within Southeast the value of B2C e-commerce in Singapore, Asia. As a result, there is often an emphasis on Incisive Media Head of International and Snr. Resident Representative for China, Managing Partner Indonesia, Malaysia, the Philippines, Thailand and collaboration rather than competition. Unit 1401 Devon House, Taikoo Place Vietnam will grow from $7 billion in 2013 to $34.5 Similarly, there is a reluctance to cast the 979 King’s Road, Quarry Bay, President of Asia, CPPIB ASIA INC. INTERNATIONAL MONETARY FUND KHOSLA VENTURES Hong Kong 国际部总裁兼亚太区董事长, 驻华首席代表, 管理合伙人 billion in 2018. At the same time, some markets threat posed by the PLDT-Rocket alliance and T. (852) 3411-4900 lack the infrastructure required to support this Alibaba’s Alipay in binary terms. Payments F. (852) 3411-4999 加拿大养老基金亚洲投资公司 国际货币基金组织 科斯拉创投公司 E. [email protected] expansion. Though credit card penetration may providers can see themselves working with these URL. avcj.com be low, mobile penetration is high and rising giants, for example, facilitating access to a range Beijing Representative Office higher – so there is obvious potential in payment of banks within a particular market. Indeed, it is No.1-2-(2)-B-A554, 1st Building, REGISTER NOW to join the most premium private equity event in China No.66 Nanshatan, services on handheld devices. hoped that the arrival of large-scale e-commerce Chaoyang District, Beijing, Email: [email protected] or Call us at +852 3411 4936 A handful of start-ups have received venture players might accelerate the introduction of People’s Republic of China T. (86) 10 5869 6203 For sponsorship enquiries, please email: [email protected] or call: +852 3411 4919 capital funding with a view carving out a slice alternative payment instruments and ease F. (86) 10 5869 6205 of this market. This week 2C2P raised $7 million reliance on Visa and MasterCard. E. [email protected] from Amun Capital and GMO Venture Partners What this means for the long-term future Asia Series Sponsor Co-Sponsors and the company has outlined bold plans for of these VC-backed providers – as potential The Publisher reserves all rights herein. Reproduction in whole or regional expansion and a broader portfolio acquisition targets, large-scale platforms or in part is permitted only with the written consent of AVCJ Group Limited. of products and services. It claims to have smaller-scale also-rans – remains to be seen. ISSN 1817-1648 Copyright © 2015 processed $2.2 billion in transactions in the 2014 financial year, up 400% on 2013. However, picking winners in a market that remains relatively immature is tricky. First, Tim Burroughs Legal Sponsors VC Legal Sponsor industry participants tend to emerge from Managing Editor various niches. Coda Payments uses telecom Asian Venture Capital Journal Join our WeChat for avcjchina.com latest AVCJ Feeds Number 15 | Volume 28 | April 28 2015 | avcj.com 3 NEWS GLOBAL Fosun to support Cirque du GREATER CHINA Soleil’s China expansion Lexington raises largest Chinese conglomerate Fosun International and Ratan Tata buys stake in TPG Capital have together acquired Canadian ever secondaries fund circus entertainment company Cirque du Soleil China’s Xiaomi Lexington Partners reached a final close on with a view to growing the business in China. The Ratan Tata, chairman emeritus of the company its eighth global secondaries fund at the hard deal is understood to value the business at $1.5 that controls Tata Group, has invested an cap of $10.1 billion. It is the largest dedicated billion. TPG will own 60% while Fosun will take undisclosed sum in VC-backed Xiaomi, the first secondaries vehicle ever raised. There are more a 20% stake. The remainder is held by Canadian investment by any Indian in the Chinese smart than 300 LPs, with existing investors account for pension fund Caisse de dépôt et placement phone maker. Xiaomi entered the Indian market the majority of the corpus. The fund is already du Québec, and Cirque du Soleil founder Guy last July but early success was cut short by patent 30% deployed having completed six transactions. Laiberte, each of which has 10%.