IVCA PRIVATE EQUITY-VENTURE CAPITAL REPORT

ADVOCACY OC T O B ER 201 8

Missionaries

w ww.ivca.in RESEARCH

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

Other Queries KONNECT IVCA Team - [email protected]

Delhi Office: 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, – 110001 Elphinstone Road, Mumbai ‐ 400013 TABLE OF CONTENTS

Section Page No.

1. Executive Summary 3

2. Private Equity Investments 4

3. Venture Capital Investments 9

4. Exits 10

5. Angel Investments 11

6. Investments involving AIFs 12

7. Appendix & Tables 14

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145 + Members and growing… EXECUTIVE SUMMARY

Private Equity Investments & Exits

 October 2018 witnessed 50 Private Equity (PE) investments worth about INR 11,465 Cr ($1.6 Billion)  The largest PE investment announced was the $210 million investment by Steadview Capital and others in publicly-listed financial services company Indiabulls Ventures  Banking and Financial Services companies topped the industry table (by value)  Delhi topped the chart for most investments in a city (by value)  Month witnessed 10 PE exits that harvested about INR 5,891 Cr ($801million)  The largest exit during the month was the INR 3,560 Cr ($483 million) part exit by Stanchart PE, JM Financial and SBI-Macquarie from GMR Airports Holdings

Venture Capital Investments

 October 2018 witnessed 23 VC investments worth about INR 669 Cr ($91 million)  The largest VC investment was the INR 134.5 Cr ($18 million) Series C investment in test preparation company Toppr  IT companies topped the industry table (by volume & value)  Mumbai, and Delhi topped the chart for highest investments in a city  Month witnessed 6 VC exits that harvested about INR 364 Cr ($49 million)

Angel Investments

 Super Angels and Angel Networks made 11 investments (compared to 22 deals in

October 2017)  The largest angel investment involving angel investors was the $5 million investment by Sunil Kalra and Arun Venkatachalam along with new VC investors in e-pharmacy Medikabazaar

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PRIVATE EQUITY INVESTMENTS

Private Equity Investments in October 2018: 50 Deals, $1.6 Billion (~ INR 11, 465 Cr)

October 2018 witnessed 50 Private Equity (PE) investments worth $1.6 Billion (about INR 11,465 Cr) compared to 55 investments worth $$1 Billion (about INR 6,740 Cr) in October 2017. The value of investments increased by 51% from the corresponding period year- ago but decreased by 60% compared to the immediate previous month of September

2018 (which registered 48 investments worth $3.9 Billion or ~INR 28,015 Cr).

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

The largest PE investment announced in October 2018 was the INR 1,539 Cr ($210 million) investment by Steadview Capital, Tamarind Capital and others in publicly-listed

financial services company Indiabulls Ventures via preferential allotment. (See Appendix for a listing of investments during the month.)

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PRIVATE EQUITY INVESTMENTS

BFSI companies topped the industry chart with $375 million (INR 2,759 Cr) across 4 deals led by the investment in Indiabulls Ventures, followed by the $93 million investment in JM Financial Credit Solutions.

Energy companies with $340 million stood second led by the $360 million investment in solar power producer Azure Power by Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ).

Manufacturing companies came third with $294 million led by ADV Partners’ buyout of Gerdau’s operations for $120 million.

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PRIVATE EQUITY INVESTMENTS

* See Appendix for stage definitions

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PRIVATE EQUITY INVESTMENTS

Investments by Industry

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VEENTURE CAPITAL INVESTMENTS

October 2018 witnessed 23 VC-type investments* worth $91 million (INR 669 Cr), down compared to 40 deals worth$98 million (INR 639 Cr) in October 20117. The value and volume of investments decreased by 7% and 43% respectively compared to the same

period last year. The largest VC investment announced during the month was the INR 134.5 Cr($18 million) Series C investment in test preparation company Toppr. (See Appendix for definitions.)

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VEENTURE CAPITAL INVESTMENTS

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PRIVATE EQUITY EXITS

October 2018 saw 10 PE-VC exits that harvested INR 5,891 Cr ($801 million) - compared to 23 deals that harvested INR 4,969 Cr ($763 million) in October 2017.

The largest exit during the month was the INR 3,560 Cr ($483 million) part exit by Stanchart PE, JM Financial and SBI-Macquarie from GMR Airports Holding via buyback. (See Appendix for a listing of exits during the month.)

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VEENTURE CAPITAL EXITS

October 2018 witnessed 6 VC exits that harvested $49 million (about INR 364 Cr) compared to 1 deal (that harvested $2 million) in October 2017.

The largest VC exit during the month was the $14 million (INR 104 Cr) complete exit by Kalaari Capital, Blume Ventures and M&S Partners from HR tech startup Mettl via a strategic sale to Global HR consulting firm Mercer, realizing 2-7x returns.

ANGEL INVESTMENTS

In October 2018, super angels and angel networks made 11 investments compared too 22 deals inn October 20018.

Top Angel Investments in October 2018 Amount Company Sector Investors ($M) Arun Venkatachalam,Sunil MedikaBazaar E-Commerce - Marketplace - B2B - Healthcare 5 Kalra,Others

Ketan Shah,Sunil Agarwal,Naval Bir Captain Zack FMCG (Pet Care) Kumar,Chaitanya Desai,Kushal 1.5 Desai,Japan Vyas

LG Chandrasekhar,SRI VideoKen Enterprise Software (Utility - Video Editing) 0.9 Capital,Hyderabad Angels,Others

*Includes share of co-investing Seed/VC investors

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INVESTMENTS INVOLVING AIFs

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

Amount Company Sector Investors ($M) Sesa Care Personal Care TrueNorth 156

Happy Auto Components Motilal Oswal 27 Forgings

Consumer Durables Duroflex Lighthouse 22 (Mattresses)

Axis Capital Partners, Kaizen PE, Helion Ventures, Eight Toppr Test Preparation 18 Roads Ventures, SAIF, Others

Online Services (E-Commerce - Collectabilli Consumer Shopping - Alteria Capital,NB Ventures, Accel USA, Accel India 14 a Merchandised Goods - Sports)

KOOH Sports Education Gaja Capital 10 Sports

Online Services (E-Commerce - Healthkart Consumer Shopping - IIFL VC, Sequoia Capital India, Others 10 Pharmaceuticals)

Sukkhi E-Commerce - Shopping - Fashion Duane Park, Carpediem Capital Partners 7 Jewelry Jewellery

MedikaBaz E-Commerce - Marketplace - Mitsui Sumitomo Insurance Venture Capital, Kois Invest, 5 aar B2B - Healthcare Healthquad, Rebright Partners, Others

Enterprise Software Hiver Kae Capital,Kalaari Capital 4 (Collaboration - Email)

Online Services (Marketplace - Shunwei Capital, Tekton Ventures, Kae Capital, Inventus Truebil 3 Pre-Owned Cars) Capital Partners, Kalaari Capital

Worxogo Enterprise Software (SaaS –HR) Ideaspring,Inventus Capital Partners 2

Eupheus Content Services, Educational Sixth Sense Ventures 1.25 Learning Kits

LetsMD Online Services (Marketplace - WaterBridge Ventures, Orios VP, SRI Capital 1 Appointments - Doctors,

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Diagnostic Tests)

AVG Logistics Services Sixth Sense Ventures 0.1 Logistics

Essel Infra (Transmissi EPC (Transmission) Edelweiss Private Equity N.A on Projects)

Clensta Personal Care (Waterless) IAN Fund, Others N.A

Online Services (Marketplace - FarmersFZ IAN Fund, Others N.A Fruits and Vegetables)

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Appendix- PE-VC Investments in October 2018

Amount Company Sector Investors ($M) Indiabulls Broking Steadview, Others 210 Ventures

Azure Power Renewable Power Projects (Solar) CDPQ 185

Sesa Care Personal Care TrueNorth 156

Gerdau Steel Metals & Alloys (Steel) ADV Partners 120 India

JM Financial Credit NBFC (Real Estate) Falcon Edge Capital, GIC, Others 93 Solutions

Gemini Edibles & Edible Oils Proterra Investment Partners 87 Fats

Cleartax.in Online Services (Utility - Tax Filing) Composite Capital 50

Ess Kay Auto NBFC (Auto Finance) Evolvence India, TPG Growth, Norwest 42 Finance

IndWealth.in Online Services - Wealth Management Steadview 30

Veritas NBFC Norwest 30 Finance

Online Services (Marketplace - Trucks - Sands Capital, Accel India, Sequoia Capital BlackBuck 27 Inter City) India

Byjus Classes Test Preparation General Atlantic 27

Happy Auto Components Motilal Oswal 27 Forgings

Duroflex Consumer Durables (Mattresses) Lighthouse 22

Strides Pharmaceuticals ICP Investment Advisors 20 Consumer

Axis Capital Partners, Kaizen PE, Helion Toppr Test Preparation Ventures, Eight Roads Ventures, SAIF, 18 Others

Collectabillia Online Services (E-Commerce - Alteria Capital, NB Ventures, Accel USA, 14 Consumer Shopping - Merchandised Accel India

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Amount Company Sector Investors ($M) Goods - Sports)

LetsTransport Online Services (Aggergator - Trucks) Fosun Group, Others 12

KOOH Sports Sports Education Gaja Capital 10

Online Services (E-Commerce - Healthkart IIFL VC, Sequoia Capital India, Others 10 Consumer Shopping - Pharmaceuticals)

myGate IT Products (Security Devices) Prime Venture Partners 9

Grover Liquor (Wine) VisVires Capital, Others 8 Zampa

Sukkhi Fashion E-Commerce - Shopping - Jewelry Duane Park, Carpediem Capital Partners 7 Jewellery

Lucideus IT Services (Cyber Security) JC2 Ventures 5

Mitsui Sumitomo Insurance Venture Capital, E-Commerce - Marketplace - B2B - MedikaBazaar Kois Invest, Healthquad, Rebright Partners, 5 Healthcare Others

Bajaj Corp Personal Care SAIF 5

Enterprise Software (Collaboration - Hiver Kae Capital, Kalaari Capital 4 Email)

Innov8 Co-Working Space Credence Family Office, Others 4

Shunwei Capital, Tekton Ventures, Kae Online Services (Marketplace - Pre- Truebil Capital, Inventus Capital Partners, Kalaari 3 Owned Cars) Capital

Worxogo Enterprise Software (SaaS - HR) Ideaspring, Inventus Capital Partners 2

Solara Active Pharmaceuticals HBM Healthcare Investments 2 Pharma

Consumer App - BFSI - Wealth Cube Wealth Asuka, Beenext, Others 2 Management

Eupheus Content Services, Educational Kits Sixth Sense Ventures 1.25 Learning

Kredily Enterprise Software (SaaS - HR) Fosun Group 1

LetsMD Online Services (Marketplace - WaterBridge Ventures, Orios VP, SRI Capital 1

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Amount Company Sector Investors ($M) Appointments - Doctors, Diagnostic Tests)

Mylo App Consumer App (Community - Parenting) Fosun Group 1

Online Services (Lending - Personal Perk Finance Fosun Group 1 Loans)

Enterprise Software (Utility - Video VideoKen SRI Capital, Others 1 Editing)

AVG Logistics Logistics Services Sixth Sense Ventures 0.1

Manjushree Packaging (Plastic Containers) Advent International N.A Technopack

SolarArise Renewable Power Projects (Solar) ThomasLloyd N.A

Essel Infra EPC (Transmission) Edelweiss Private Equity N.A (Asset Sale)

PLG Renewable Power Projects (Solar) Sindicatum N.A Photovoltaic

Capillary Enterprise Software (Retail - Loyalty Warburg Pincus N.A Technologies Program)

Sistema Asia Fund, Lightbox, Ru-Net E-Commerce - Consumer Shopping - Faasos Holdings, Evolvence India, Sequoia Capital N.A Food Ordering India

Clensta Personal Care (Waterless) IAN Fund, Others N.A

Online Services (Marketplace - Fruits and FarmersFZ IAN Fund, Others N.A Vegetables)

Hospals Medical Tourism Spiral Ventures N.A

Online Services (Healthcare - Disease Medimetry 3737 North Capital N.A Management)

HoloSuit IT Products (Hardware - Virtual Reality) YouWeCan Ventures N.A

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Appendix- VC Investments in October 2018

Amount Company Sector Investors ($M)

Axis Capital Partners, Kaizen PE, Helion Toppr Test Preparation 18 Ventures, Eight Roads Ventures, SAIF, Others

Online Services (Aggergator - LetsTransport Fosun Group, Others 12 Trucks)

KOOH Sports Sports Education Gaja Capital 10

myGate IT Products (Security Devices) Prime Venture Partners 9

Sukkhi Fashion E-Commerce - Shopping - Jewelry Duane Park, Carpediem Capital Partners 7 Jewellery

Lucideus IT Services (Cyber Security) JC2 Ventures 5

Mitsui Sumitomo Insurance Venture Capital, E-Commerce - Marketplace - B2B - MedikaBazaar Kois Invest, Healthquad, Rebright Partners, 5 Healthcare Others Enterprise Software (Collaboration - Hiver Kae Capital, Kalaari Capital 4 Email)

Innov8 Co-Working Space Credence Family Office, Others 4

Online Services (Marketplace - Pre- Shunwei Capital, Tekton Ventures, Kae Capital, Truebil 3 Owned Cars) Inventus Capital Partners, Kalaari Capital

Worxogo Enterprise Software (SaaS - HR) Ideaspring, Inventus Capital Partners 2

Consumer App - BFSI - Wealth Cube Wealth Asuka, Beenext, Others 2 Management

Eupheus Content Services, Educational Kits Sixth Sense Ventures 1.25 Learning

Kredily Enterprise Software (SaaS - HR) Fosun Group 1

Online Services (Marketplace - LetsMD Appointments - Doctors, Diagnostic WaterBridge Ventures, Orios VP, SRI Capital 1 Tests) Consumer App (Community - Mylo App Fosun Group 1 Parenting)

Online Services (Lending - Personal Perk Finance Fosun Group 1 Loans)

Enterprise Software (Utility - Video VideoKen SRI Capital, Others 1 Editing)

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Amount Company Sector Investors ($M)

Clensta Personal Care (Waterless) IAN Fund, Others N.A

Online Services (Marketplace - Fruits FarmersFZ IAN Fund, Others N.A and Vegetables)

Hospals Medical Tourism Spiral Ventures N.A

Online Services (Healthcare - Disease Medimetry 3737 North Capital N.A Management)

IT Products (Hardware - Virtual HoloSuit YouWeCan Ventures N.A Reality)

Appendix- PE Exits in October 2018

Acquirer/ Amount Company Sector Exiting Investor Exit ($M) Route GMR Airports StanChart PE, JM Financial, SBI- Aviation (Airports) Company 483 Holding Macquarie

Aavas NBFC (Housing Finance) Partners Group, Kedaara Capital IPO 169 Financiers

Kalaari Capital, Blume Ventures, M&S Mettl Online Services (HR Services) Mercer 14 Partners

Hillhouse Sharechat Social Networking India Quotient 7 Capital

Online Services (Content - StyleCraze Ventureast Tenet Istyle 3 Beauty & Wellness)

Enterprise Software (SaaS - E- Beenos Partners, Grace Capital Betaout Bluecore N.A Commerce Marketing) Ventures, East Ventures

Kalaari Capital, SIDBI VC, India FoodPand Holachef.com E-Commerce - Food Ordering N.A Quotient, Ratan Tata, InnoVen Capital a

Gaja KOOH Sports Sports Education Faering Capital N.A Capital

Advent Manjushree Packaging (Plastic Containers) Kedaara Capital Internatio N.A Technopack nal

Skeiron Renewable Power Projects Greenko Olympus Capital, Asia Climate Partners N.A Renewable (Wind) Energy

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Appendix- VC Exits in October 2018

Acquirer/E Amount Company Sector Exiting Investor xit Route ($M) Kalaari Capital, Blume Ventures, M&S Mettl Online Services (HR Services) Mercer 14 Partners

Hillhouse Sharechat Social Networking India Quotient 7 Capital

Online Services (Content - StyleCraze Ventureast Tenet Istyle 3 Beauty & Wellness)

Enterprise Software (SaaS - Beenos Partners, Grace Capital Ventures, Betaout Bluecore N.A E-Commerce Marketing) East Ventures

Holachef.co E-Commerce - Food Kalaari Capital, SIDBI VC, India Quotient, FoodPanda N.A m Ordering Ratan Tata, InnoVen Capital

KOOH Gaja Sports Education Faering Capital N.A Sports Capital

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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

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Knowledge Partner

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