September 2 0 1 8

IVCA PRIVATE EQUITY-VENTURE CAPITAL REPORT

ADVOCACY SEPTEMBER 2 0 1 8

Missionaries

www.ivca.in RESEARCH

PE/ VC Report Feedback Rohan Parulekar - [email protected] EDUCATION IVCA Membership & Event Sponsorship Aakriti Bamniyal - [email protected]

Other Queries KONNECT IVCA Team - [email protected]

Delhi Office: Mumbai Office: Contact number: IVC Association IVC Association 011- 49879305 806, 8th Floor, Akashdeep Building, One Indiabulls Centre, South Annexe, 011- 498769921 26A Barakhamba Road, Connaught Place, Tower 2A, 03rd Floor, ISME Ace Senapati Bapat Marg, New Delhi – 110001 Elphinstone Road, Mumbai - 400013 TABLE OF CONTENTS

Section Page No.

1. Executive Summary 3

2. Private Equity Investments 4

3. Venture Capital Investments 8

4. Exits 10

5. Angel Investments 11

6. Investments involving AIFs 12

7. Appendix & Tables 13

2 145 + Members and growing…

EXECUTIVE SUMMARY

Private Equity Investments & Exits

• September 2018 witnesses 48 Private Equity (PE) investments worth about INR 28,015 Cr ($3.9 Billion) • The largest PE investment announced was the $1 Billion investment by Softbank in Oyo Rooms • Oyo Rooms and Udaan attain Unicorn status • IT & ITES companies topped the industry table (by value) • Delhi and Mumbai top the chart for most investments in a City (by value) • Month witnesses 11 PE exits that harvested about INR 1,215 Cr ($169 Million) • Early investors in legal BPO UnitedLex exit through a sale to CVC Capital Partners

Venture Capital Investments

• September 2018 witnesses 22 VC investments worth about INR 752 Cr ($104 million)

• The largest VC investment is the $16 million Series B investment in Carestack • IT companies top the industry table (by volume & value) • Mumbai overtakes Bangalore as top city for VC investments • Month witnesses 9 VC exits that harvested INR 1,076 Cr ($149 million)

Angel Investments

• Super Angels and Angel Networks made 12 investments (compared to 23 deals in August 2018)

PRIVATE EQUITY INVESTMENTS

Private Equity Investments in September 2018: 48 Deals, $3.9 Billion (~ INR 28, 015 Cr)

September 2018 witnessed 48 Private Equity (PE) investments worth $3.9 Billion (about INR 28,015 Cr) compared to 50 investments worth $0.9 Billion (about INR 5,652 Cr) in September 2017. The value of investments increased by 4 times from the corresponding period year-ago and increased by 37% compared to the immediate previous month of

August 2018 (which registered 50 investments worth $2.9 Billion or ~INR 20,404 Cr).

Note: The PE investment figures in this Report include Venture Capital (VC) type investments, but exclude PE investments in Real Estate.

The largest PE investment announced in September 2018 was the $1Billion (INR 7,209 Cr) investment by Softbank in hotel aggregator Oyo Rooms. (See Appendix for a listing of

top investments during the month.)

PRIVATE EQUITY INVESTMENTS

IT & ITES companies topped the industry chart with$1,961million (INR 14,135 Cr) across 29 deals led by the investment in Oyo Rooms. The second largest investment was the $225 million Series C investment in Udaan by Lightspeed Ventures and DST Global.

Manufacturing companies with $378million stand second led by the $150million

investment by Fairfax Holdings in Sanmar Group, a Chennai-based chemicals maker.

Energy companies followed closely with $368 million (INR 2640) led by the Caisse de depot et placement du Quebec (CDPQ) investment in CLP India.

PRIVATE EQUITY INVESTMENTS

* See Appendix for stage definitions

PRIVATE EQUITY INVESTMENTS

Investments by Industry

VENTURE CAPITAL INVESTMENTS

September 2018 witnessed 22 VC-type investments* worth INR 752 Cr ($104 million), compared to 35 deals (worth INR 902 Cr) in Sep 2017. The largest VC investment announced during the month was the $16 million (~INR 115 Cr) Series B investment by

Accel India and Eight Roads Ventures in Carestack, a dental practice & patient management software. (*See appendix for definitions.)

VENTURE CAPITAL INVESTMENTS

PRIVATE EQUITY EXITS

September 2018 saw 11 PE-VC exits that harvested about INR 1,215 Cr ($169 Million) -

compared to 29 deals that harvested INR 6,018 Cr ($935 Million) in September 2017.

The largest VC exit with disclosed value during the month was INR 136 Cr ($18.6 million) exit by India Financial Inclusion Fund, Michael & Susan Dell Foundation and Unilazer

Ventures from Micro Housing Finance Corporation. (See Appendix for a listing of top exits during the month.)

VENTURE CAPITAL EXITS

September 2018 witnessed 9 VC exits that harvested $149 million (about INR 1,076 Cr) compared to 8 deals (that harvested $206 million) in September 2017

ANGEL INVESTMENTS

In September 2018, Super Angels and Angel Networks made 12 investments compared to 23 deals in August 2018.

Top Angel Investments

Top Angel Investments in September 2018 Amount Company Sector Investors ($M) Grey Orange Industrial Equipment (Robotics - Warehouse Binny Bansal,Others 140 Robotics Automation)

Mamaearth Personal Care Kunal Bahl,Rohit Bansal,Others 4

Kunal Bahl,Rohit Bansal,Elad Gil, Leena AI Enterprise Software (SaaS - HR) 2 Others

NewsBytes Mobile VAS (Content - News) Mumbai Angels,Others 1

*Includes share of co-investing Seed/VC investors

INVESTMENTS INVOLVING AIFs

Deals involving PE-VC firms which have an Alternative Investment Funds (AIF) vehicle.

Amount Company Sector Investors ($M) More Supermarket Samara Capital 300

Grey Industrial Equipment (Robotics - Orange Mithril Capital, Blume Ventures, Tiger Global, Others 140 Warehouse Automation) Robotics

SBI General Insurance - General PremjiInvest, Others 67 Insurance

E-Commerce (Marketplace - Think Investments, Fundamentum, Bessemer, Eight Roads PharmEasy 35 Pharmacy, Diagnostic Tests) Ventures, Others

Online Services (Personal Finance Fosun Group, Sistema Asia Fund, Endiya Partners, Vertex, Kissht 30 - Loans) Ventureast

M-Commerce - Consumer 3ONE4 Capital, Sistema Asia Fund, InnoVen Capital, Licious 25 Shopping - Meat Ordering Bertelsmann India Investments, Vertex, Mayfield, Others

Stanley Furnishing & Fixtures Oman India Joint Investment Fund 24 Lifestyles

Online Services (Beauty & Nykaa.com Lighthouse 16 Wellness)

Enterprise Software (SaaS - GoBolt Aavishkaar 5.5 Logistics Management)

Online Services (Lending - Upwards Shunwei Capital, India Quotient, Mayfield 5 Personal Loans)

Sharrp Ventures, Fireside Ventures, Stellaris Venture Mamaearth Personal Care 4 Partners, Others

Sequretek IT Products (Security) Unicorn India Ventures, GVFL, Others 4

Enterprise Software (SaaS - CRM - Strings.ai Speciale Invest N.A Sales)

Online Services (Lending - Bon Axilor Ventures, Omidyar Network, Others 1.1 Personal Loans)

Haazri Restaurants (Tea) Artha India Ventures 0.17

Online Services (Loans - E- Slicepay Das Capital, Simile Venture Partners, Blume Ventures, Others N.A Commerce Puchases by Students)

DailyNinja M-Commerce (Groceries) Saama Capital, Matrix Partners India, Sequoia Capital India N.A

Online Services (Marketplace - BabyChakra Equanimity Investments, Artha India Ventures, Others N.A Parenting, Babycare)

SoftTech Enterprise Software (ERP) SIDBI VC N.A Engineers

Appendix- Top PE Investments in September 2018

Amount Company Sector Investors ($M) Online Services (Aggregator - Budget Greenoaks Capital, SoftBank Corp, Lightspeed 1000 Oyo Rooms Hotels) Ventures, Sequoia Capital India

CLP India Power Projects (Solar, Wind, Coal) CDPQ 367

More Supermarket Samara Capital 300

Max Healthcare 293 Institute Hospitals KKR

Udaan E-Commerce (Marketplace - B2B) DST Global, Lightspeed Ventures 225

CAMS Registrar & Transfer Agent Warburg Pincus 173

Sanmar Group Chemicals Fairfax Holdings 150

Grey Orange Industrial Equipment (Robotics - 140 Robotics Warehouse Automation) Mithril Capital, Blume Ventures, Tiger Global, Others

Online Services (Gaming - Fantasy 100 Dream11.com Sports) Tencent

Mobile VAS (Consumer Apps - Social Morningside Ventures, Xiaomi, Shunwei Capital, DST 100 Sharechat Networking - Content Sharing) Global, Lightspeed Ventures, SAIF

RR Kabel Cables & Wires TPG Capital 88

SBI General 67 Insurance Insurance - General PremjiInvest, Others

Mobile VAS (Consumer App - Taxi 50 Ola Booking) Sailing Capital, Others

Appendix- Top PE Exits in September 2018

Amount Company Sector Exiting Investor Acquirer ($M) Micro Housing India Financial Inclusion Fund, Michael & Susan Svatantra Holdings Finance NBFC (Housing Loans) Dell Foundation, Unilazer Ventures Private Limited 18.56 E-Commerce - Beauty Nykaa.com & Wellness TVS Capital Lighthouse 15.72 Open Market Hikal Pharmaceuticals IFC Transaction 9.27 BPO (Legal Process Helion Ventures, Canaan Partners, Madison CVC Capital UnitedLex Outsourcing) India, Blue Lagoon Capital Partners N.A Miles Enterprise Software Software (Financial Services) Zephyr Peacock, Lighthouse Ebix N.A Micro Housing India Financial Inclusion Fund, Michael & Susan Svatantra Holdings Finance NBFC (Housing Loans) Dell Foundation, Unilazer Ventures Private Limited 18.56 E-Commerce - Beauty Nykaa.com & Wellness TVS Capital Lighthouse 15.72 Open Market Hikal Pharmaceuticals IFC Transaction 9.27 BPO (Legal Process Helion Ventures, Canaan Partners, Madison CVC Capital UnitedLex Outsourcing) India, Blue Lagoon Capital Partners N.A Miles Enterprise Software Software (Financial Services) Zephyr Peacock, Lighthouse Ebix N.A Micro Housing India Financial Inclusion Fund, Michael & Susan Svatantra Holdings Finance NBFC (Housing Loans) Dell Foundation, Unilazer Ventures Private Limited 18.56

Appendix: Definitions of Stages-of-company-development used:

Venture Capital (Early Stage) 1. First / Second Round of institutional investments into companies that are: 2. Less than five years old, AND 3. Not part of a larger business group, AND 4. Investment amount is less than $20 M

Venture Capital (Growth Stage): 1. Third / Fourth Round funding of institutional investments OR 2. First/Second Round of institutional investments for companies that are >5 years old and <10 years old OR spin-outs from larger businesses, AND 3. Investment amount is less than $20 M

Growth-PE: 1. First-to-Fourth Round Investments >$20 M into companies <10 years old, OR 2. Fifth / Sixth rounds of institutional investments into companies <10 years old

Late Stage: 1. Investment into companies that are over 10 years old, OR 2. Seventh or later rounds of institutional investments

PIPEs: 1. PE investments in publicly-listed companies via preferential allotments / private placements, 2. Acquisition of shares by PE firms via the secondary market

Buyout: 1. Acquisition of controlling stake via purchase of stakes of existing shareholders

Knowledge Partner

Note: This report aims to provide a snapshot of the transaction activity for the corresponding period with data available at the time of its creation. Please refer to Venture Intelligence to access the latest and most accurate data for your internal presentations and other requirements.

This report is meant solely for informational purposes, not for trading purposes or advice. IVCA and Venture Intelligence are not responsible for decisions, damages or other losses resulting from the use of the Information.

Delhi Office: Mumbai Office: Contact number: IVC Association IVC Association 011- 49879305 806, 8th Floor, Akashdeep Building, One Indiabulls Centre, South Annexe, 011- 4987699216 26A Barakhamba Road, Connaught Place, Tower 2A, 03rd Floor, ISME Ace Senapati Bapat Marg, New Delhi – 110001 Elphinstone Road, Mumbai - 400013 E-mail: [email protected]