DEAL WATCHER

INDIA MARKET UPDATE – 2020 IN REVIEW FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2020 FOREWORD

Dear Clients and Associates, As we bid farewell to the year 2020, the world has moved back to normalcy with strong recovery projections for economies across the globe. Despite the ongoing uncertainty around the pace of recovery from the pandemic and the threats of fresh lockdowns with the emergence of new variants of COVID, global stock market indices and deal making activity have reached their all-time pinnacle along with the liquidity outlook continuing to remain strong.

For the year 2020, the total PE/VC deal count stood at 1,335 deals with a total deal value of US$ 43.59 bn. With the economy recovering, the Indian investment landscape has continued its robust run in the quarter ended December 31, 2020. The quarter witnessed a surge in the number of PE/VC deals, breaking all the previous records of number of PE/VC deals ever recorded in the deal watcher. In addition to this, the mergers and acquisitions activity in the country has improved vis-a-vis the previous quarter numbers.

In the quarter ended December, there were over 355 private equity investments & venture capital investments with reported values of over US$ 11.79 bn. Reliance Retail Ventures Ltd. and Prestige Estates Projects Ltd. walked away with a significant share (46% approx.) of the cumulative deal value. Key deals include: • Reliance Retail raises a colossal sum of US$ 3.88 bn from a corpus of investors with a motive to consolidate its dominance in the Indian retail market. • Blackstone Groups acquisition of certain office assets, malls and hotels from Bengaluru-based Prestige Estates for US$ 1.5 bn.

It was noticed that Information Technology and Consumer Discretionary were the most sought-after sectors for the quarter (with 213 and 61 deals respectively) followed by Consumer Staples (23 deals), Healthcare and Industrials (18 deals each). We expect these sectors to be resilient and gain traction.

For the year 2020, the total M&A transactions summed up to 678 deals with a total value of US$ 44.87 bn. Our Deal Watcher also covers over 180 M&A transactions, for the quarter ended December with Information Technology and Consumer Discretionary leading the way and witnessing the highest number of deals (66 and 25 deals respectively), followed by Financials, Healthcare and Industrials (22 deals each). Some of the prominent deals include: • Embassy REIT - ’s first publicly listed real estate investment trust has agreed to buy Embassy Tech Village (formerly known as Vrindavan Tech Village) assets from affiliates of sponsors and Blackstone Group for US$ 1.3 bn. • will sell US-based nutritional supplements maker Natrol to Jarrow Formulas Inc for US$ 0.55 bn.

We hope that this publication will act as an augmentative read amidst efforts to figure out the deal landscape. Vaibhav Manek Partner – Business Advisory Services 2 INDEX

Sr. No. Contents Page

1 Annual analysis of Indian investment landscape 4-10

2 Private equity and venture capital deals 11-16

3 Private equity and venture capital exits 17-20

4 Mergers and acquisitions 21-24

5 Analysis of key transactions for the quarter 25-32

3 ANNUAL ANALYSIS OF THE INDIAN INVESTMENT LANDSCAPE PRIVATE EQUITY & VENTURE CAPITAL : YEAR UNDER REVIEW KNAV Deal Watcher | Year ended December 2020

Despite 2020 being the turbulent wave of upheaval India is gradually becoming the center for companies desiring with COVID-19 coming forth as a black swan, the meteoric growth with startups bringing solutions to real life startup ecosystem has broadly shown resiliency and problems, thereby making India ‘Atmanirbhar’ in the true sense. recovery. Investors and entrepreneurs have steered With 11 new entries to the unicorn club in a pandemic struck through the volatility with grace, changing the ways year, India is also a home to 52 “soonicorns” carrying the of doing business whilst shifting their capital and potential to enter the US$1bn club by 2022. energy towards addressing the major challenges of our times. COVID-19 has managed to construct a Under a comprehensive lens, the ecosystem is yet infiltrated by new mural in all sense with sustainability focused economic uncertainties and a second wave hanging at the goals such as EBITDA and unit economies garnering horizon. However, the PE/VC trends are expected to hover on more traction over traditionally hailed metrics. the positive end, given accelerated tech adoption, unique demands of the Indian market and the new normal that 2020 2020 has witnessed many milestones with notable has bought along . deals such as ‘The Reliance Fundraising Spree’ alongside spurred up growth in sectors such as Healthcare, EdTech and FinTech induced by TOTAL AMOUNT RAISED = US$ 43.59 bn changing consumer and business behaviors. Having witnessed a 3.5X growth, one sector that could help 2020 Unicorn Entries Upcoming Sectors solve many of these challenges, Healthcare and • Online Gaming and OTT Pharma has undergone a busy and productive year • EdTech and Healthtech with PE/VC flows being on the higher end. • Deep-tech and Enterprise Solutions India has witnessed striking level of investment • Clean Technology inflows from Middle Eastern Sovereign Wealth • Agricultural Solutions Funds (SWF’s) over the past few months in the core • Retail-tech and sectors of the economy. Consumer Subscription Businesses • Space Technologies 5 PE/VC INVESTMENTS : YEAR UNDER REVIEW KNAV Deal Watcher | Year ended December 2020

Deal classification by count Deal classification by value (US$ bn)

748 23.8 660 628 576 17.7 513 16

410 12.2 10.3 8.6 216 183 5.1 119 4.1 4.5 55 55 58 0.43 0.53 0.7

Angel/Seed Venture Capital Public Equity Private Equity Angel/Seed Venture Capital Public Equity Private Equity

2018 2019 2020 2018 2019 2020

Of the annual PE/VC deals witnessed in the pandemic Out of the transactions for which values were disclosed, struck 2020, maximum number of deals were endorsed the total investment in this year amounted close to US$ by angel/seed investments (748 deals), followed by 43.59 bn. The highest amount of funds were invested in the venture capital (410 deals) and private equity (119 deals). form of private equity deals (US$ 23.8 bn), followed by Real estate deals and others accounted for the balance venture capital deals (US$ 8.60 bn), and public equity traction. deals (US$ 5.1 bn). Private equity deal amount is on a three year rising trend. Real estate and other deal types Angel/Seed investments are riding on a three year high cumulatively cashed in US$ 5.4 bn. volume of deals unlike venture capital or private equity which have seen a decline in the comparative number of 2020 has shown the angel/seed deal value to be minimal deals. when compared to the count.

6 PE/VC INVESTMENTS : YEAR UNDER REVIEW KNAV Deal Watcher | Year ended December 2020

Top sectors by number of deals Top sectors by value (US$ bn)

11.6 11.2 10.9 727 762 10.5 686 8.4 8.7 8.4

294 4.7 267 3.8 231 3.0 2.4 163 1.9 160 121 1.8 2.0 80 112 114 104 104 1.2 60

Information Consumer Financials Health Care Industrials Information Consumer Financials Health Care Industrials technology Discretionary technology Discretionary 2018 2019 2020 2018 2019 2020

Of the total PE/VC deals in 2020, the highest number of Out of the total US$ 43.59 bn invested in PE/VC deals investments were made in Information Technology across 2020, Consumer Discretionary ranked highest (US$ sector (762 deals) followed by Consumer Discretionary 10.5 bn) followed by Information Technology and Financials sector (231 deals) and Healthcare (114 deals). standing neck to neck (US$ 8.4 bn each). Healthcare and Information Technology has consistently outperformed Industrials (US$ 2.4 bn and US$ 1.2 bn respectively) come its three year volumes with consumer discretionary and next in the line when looking at the top sectors by value for healthcare hovering around similar trend lines. 2020.

7 MERGERS & ACQUISITIONS : YEAR UNDER REVIEW KNAV Deal Watcher | Year ended December 2020

The M&A activities in India have decelerated in 2020 as compared. to Marquee M&A deals in 2020 2019 despite the increase in aggregate M&A deal value. In 2020, the total mergers and acquisitions were 678 deals with a deal value of Target Acquirer US$ 44.87 bn, while in 2019, the deal count stood at 934 with a cumulative deal value of US$ 37.78 bn. The increase in aggregate M&A deal value in 2020 as compared to 2019 is because of mega investments of US$ 10.2 bn in Reliance backed Jio platforms by Facebook Inc. (for 9.99% stake) and Google LLC (for 7.73% stake).

The decrease in M&A activity in 2020 was due to challenges presented by COVID-19 to deal dynamics. Traditional long overlooked drafting choices underwent a significant change. Purchase price determination by post-closing price adjustment mechanisms, material adverse change clauses, incremental due- diligence procedures became normal steps in the deal making process.

Most of the significant M&As were domestic. Adani Ports and Logistics acquired Krishnapatnam Ports, Reliance Retail’s acquisition of various businesses of Future Enterprise for US$ 3.34 bn got stuck in tussle between the giants – Amazon and Reliance. Amazon called the sale a violation of a non-compete clause it had with the .

Cognizant Technologies with over 8 M&A deals this year, was the most acquisitive company followed by Reliance (with 7 M&A Deals) which included the acquisition IMG Reliance, Urban Ladder and Vitalic Health among others. *Source: VCC Edge 8 MERGERS & ACQUISITIONS : YEAR UNDER REVIEW KNAV Deal Watcher | Year ended December 2020

Deal classification by count Deal classification by value (US$ bn)

43.4 648 590

414 21.5 22.5 22.7

12.1 14.0 10.6 147 151 124 4.2 93 101 111 3.9 4.5 79 92 2.1 2.0 60

Domestic Inbound Outbound Others Domestic Inbound Outbound Others

2018 2019 2020 2018 2019 2020

Of the total 678 merger and acquisition deals in the year The merger and acquisition investments for the year 2020, domestic deals have seen the most traction (414 amounted to US$ 44.87 bn, comprising of the transactions, deals) followed by inbound transactions (93 deals) and for which values were publicly disclosed. The largest outbound transactions (60 deals). cumulative annual deal values were by the way of domestic deals ( US$ 22.5 bn). Inbound deals followed with a figure of US$ 13.9 bn. Outbound deals make a tiny portion of the total The merger and acquisition deal numbers have seen an deals in the year (US$ 3.9 bn). three yearly average decline owing to the pandemic.

9 MERGERS & ACQUISITIONS : YEAR UNDER REVIEW KNAV Deal Watcher | Year ended December 2020

Top sectors by number of deals Top sectors by value (US$ bn)

261 263 20.1

215 177 162 161 142 111 9.0 99 104 6.7 8.1 7.4 88 90 6.2 6.8 80 84 74 4.4 3.0 3.9 3.9 3.0 3.0 2.5 1.9

Information Consumer Financials Health Care Industrials Information Consumer Financials Health Care Industrials technology Discretionary technology Discretionary

2018 2019 2020 2018 2019 2020

Of the total 678 merger and acquisition deals in the year Out of the transactions, for which values were publicly 2020, the highest deals were witnessed in the Information disclosed, the merger and acquisition investments for the Technology sector (215 deals), followed by Consumer year amounted to US$ 44.87 bn. The largest deal values Discretionary (99 deals), and Industrials (90 deals), were witnessed by the Financial services sector (US$ 9.00 Financials sector (80 deals each) and healthcare (74 deals). bn), followed by Industrials (US$ 7.40 bn) and Consumer The average merger and acquisition deal numbers have Discretionary (US$ 4.40 bn). Information Technology, been on a lower end when compared on a three yearly Healthcare and Materials have witnessed lower deal values graph, however the total deal value has seen a rise. in relation to the deal count.

10 PRIVATE EQUITY/ VENTURE CAPITAL DEALS PE/VC DEALS – DEAL CLASSIFICATION PE / VC deals | Quarter ended December 2020

The following charts provide an analysis of the prominent PE/VC deal classifications, in terms of number of deals and transaction values which were witnessed in the quarter.

Deal classification by count Deal classification by value (US$ mn)

209 6224

101 2588 31 1517 8 1027 3 3 216 220

Of the total 355 PE/VC deals in this quarter, maximum Out of the transactions for which values were disclosed, number of deals were endorsed by angel/seed the total investment in this quarter amounted close to US$ investments (209 deals), followed by venture capital (101 11.79 bn. The highest amount of funds were invested in the deals) and private equity (31 deals). form of private equity deals (US$ 6.22 bn), followed by venture capital deals (US$ 2.59 bn), and real estate deals (US$ 1.517 bn).

12 PE/VC DEALS – SECTOR WISE ANALYSIS PE / VC deals | Quarter ended December 2020

The following charts provide an analysis of the prominent sectors which have witnessed private equity/ venture capital investments in terms of number of deals and transaction values for the quarter.

Top sectors by number of deals Top sectors by value (US$ mn)

213 4303

2874 2431 61 1136 18 18 23 16 391 420 2 4 56 183

Of the total 355 PE/VC deals in this quarter, the highest Out of the transactions for which values were disclosed, the number of investments were made in Information investment in this quarter amounted to US$ 11.79 bn. The Technology sector (213 deals) followed by Consumer highest amount of funds were invested in the Consumer Discretionary sector (61 deals) and Consumer Staples Discretionary sector (led by the chain of investments in (23 deals). Reliance Retail amounting to US$ 3877 Mn) followed by the Financials sector (led by Blackstone Group’s US$ 1500 Mn in Prestige Estate Projects) and Information Technology Sector (led by Zomato’s US$ 450 mn fund raise).

13 CITY WISE ANALYSIS PE / VC deals | Quarter ended December 2020

The following charts provide an analysis of the prominent sectors which have witnessed private equity/ venture capital investments in terms of number of deals and the total transaction values for the quarter by the top cities. Top sectors by number of deals city-wise

MUMBAI BENGALURU NCR 46 31 51

20

18 6 10 8 10 2 2 3 3 6 6 1 1 4 1 2 2

Mumbai Bengaluru NCR

Number of Deals 67 97 69

Transaction Value 6,517 1,467 1,102 (in US$ mn) 14 TOP PE/VC DEALS Quarter ended December 2020

Investment Investee Sector Investor value Deal highlights (US$ mn)

PIF of Saudi Arabia, Mubadala Reliance Retail Ventures Limited, a subsidiary of Consumer Investment Co., GIC Pvt Ltd., TPG Limited, has raised US$ 3.8 bn as a 3,877.01 Discretionary Asia VII, Abu Dhabi Investment part of its ongoing fundraising exercise by divesting an Authority additional stake of 6.29% to a bevy of investors.

Realty Firm, Prestige Estates has sold a large portfolio of office, retail and hotel properties to global investing giant Financials Blackstone Group LP 1,500.00 Blackstone Group LP to reduce debt and increase liquidity making it one of the largest realty deals in India.

Reliance raised an investment of US$ 1 bn for its fiber Abu Dhabi Investment Authority, optic unit by the Abu Dhabi Investment Authority and Financials Public Investment Fund of Saudi 1,021.48 the Public Investment Fund of Saudi Arabia. PIF and Arabia ADIA has traded in for a 51 per cent stake in the digital (Digital Fiber fiber infrastructure trust. Infrastructure Trust)

Piramal Glass, a glass packaging manufacturing unit of US$10bn has been bought out by Materials Blackstone Group LP 1000.00 Blackstone Group in its second, high value deal for the quarter in India.

FMR LLC, D1 Capital Partners, Tiger Global Management, Kora Food delivery startup, Zomato has further pooled in Information Investments LLC, Steadview Capital 450.57 funds worth US$ 450.57 mn in its ongoing round as it Technology Management , Mirae Asset Venture gears up for public listing in the near future. Investment Co., Luxor Capital Group, Bow Wave Capital Management 15 PE/ VC ACTIVITY MONITOR Quarter ended December 2020

Investor Notable Investments Deals

Sequoia Capital Cars24 Services, Razorpay, Dreamplug 30+ Technologies, Cue Learn, Fintech Blue Growthpond Technology, TecSo Charge, Venture Catalysts 20+ Gully Network, Catchup Technologies Knoctowl Technologies, VSA Health and 9Unicorns Fund Wellness, Instoried Research 14+

Animall Technologies, Cmunity LetsVenture Fund 13+ Innovations, Citymall Internet

Medops Technology, 5C Network, Axilor Ventures 10+ Ordenado Labs, BizzTm Technology

Teachmint Technologies, Agstack Better Inc. 9+ Technologies, Nektar.ai, Vauld

Tiger Global Management Zomato, Soham Inc., Razorpay Software, 8+ Dreamplug Technologies. Chargebee Inc.

16 PRIVATE EQUITY/ VENTURE CAPITAL EXITS PE/VC EXITS – DEAL CLASSIFICATION PE/VC Exits | Quarter ended December 2020

The following charts provide an analysis of the prominent PE/VC exit deal classifications, in terms of number of deals and transaction value, which were witnessed in the quarter.

Deal classification analysis by count Deal classification analysis by value (US$ mn)

Merger / Acquisition, 17 Buyback, 2

Secondary Secondary Merger / Sales, 46 Sales, 5 Acquisition, 11

Open Open Market, 5 Market, 593

Of the 23 PE/VC exit deals in this quarter, maximum Out of the transactions for which exit values were disclosed, number of deals were executed via Mergers and the exit deals in this quarter amounted to US$ 656.46 mn. Acquisitions (11 deals), followed by Open Market and The highest value for exits were earned via Open Market Secondary Sales deals (5 deals each), and Buyback transactions (US$ 593 mn), followed by Secondary Sales transactions (2 deals). deals (US$ 46 mn) and Mergers and Acquisitions transactions (US$ 17 mn). 18 PE/VC EXITS – SECTOR WISE ANALYSIS PE/VC Exits | Quarter ended December 2020

The following charts provide an analysis of the prominent sectors which have witnessed private equity/ venture capital exits in terms of number of deals and transaction values for the quarter.

Top sectors by number of deals Top sectors by exit value (US$ mn)

1 6 Telecommunication Services Health Care 1 Materials 15 Industrials Health Care 2 46 Financials Industrials 3 121 Information Technology Financials 4 224 Consumer Discretionary 5 Telecommunication Services

7 Information Technology Consumer Discretionary 244

Of the 23 PE/VC exit deals in this quarter, the highest Out of the transactions for which values were disclosed, the number of exits were in Information Technology (7 deals) exits in this quarter amounted to US$ 656.46 mn. The highest followed by Consumer Discretionary (5 deals) and exit values were recorded in Consumer Discretionary (US$ Financials (4 deals). 244 mn) followed by Telecommunication Services (US$ 224 mn) and Information Technology (US$ 121 mn).

19 TOP PE/VC EXITS PE/VC Exits | Quarter ended December 2020

Exit value Target Sector Sellers Exit Type Deal highlights (US$ mn) Blackstone Group and Bengaluru developer Embassy The Blackstone Group will sell an office park they own in Bengaluru to Group LP, Embassy REIT (a real estate investment trust they have Mergers / Financials Embassy Office 1,310.82 jointly sponsored) for INR 9,782 crores. The park formerly Acquisitions Ventures Pvt. known as Vrindavan Tech Village (renamed to Embassy Ltd. Tech village) was acquired by Embassy Office parks (a JV between Embassy Group and Blackstone) in 2014. Switzerland-based investment firm Partners Group, has Warburg agreed to acquire a significant undisclosed equity stake Secondary Industrials Pincus India 250.00 in Ecom Express Pvt. Ltd, from Warburg Pincus in a Sales Pvt. Ltd. deal that will make it an equal shareholder along with Warburg Pincus. Airtel subsidiary Nettle acquired an additional 4.94% Providence stake in Bharti Infratel from Providence Partners and Equity Telecommunication Open EdgePoint Global. EdgePoint owned 3.34% stake in Partners, 224.35 Services Market Bharti Infratel before the transaction. The Providence EdgePoint Partners was allotted 3.25% stake, in November as part Global of a merger of Bharti Infratel and Ltd. Advent International and Temasek Holdings made a return Temasek of about 3.19 times from yet another partial exit in Holdings Consumer Crompton Greaves. Advent has sold 5.75% stake, for INR Advisors, Open Market 220.26 Discretionary 1,070 crore while Temasek has offloaded a 3.01% stake, Advent for about INR 561 crore. This translates into an internal International rate of return (IRR) of roughly 26%. Baring Private Equity Asia sold 3.8 million shares, or a 6.27% stake, in IT solutions company Ltd. for INR Information Baring Asia Open Market 118.85 878 crores. The private equity firm, through its Hulst BV Technology Private Equity unit, sold 2.9 million shares on NSE and 900,000 shares on the BSE. 20 MERGERS & ACQUISITIONS MERGERS & ACQUISITIONS M&A Deals| Quarter ended December 2020

The following charts provide an analysis of the prominent sectors which have witnessed merger and acquisition investments in terms of number of deals and transaction value for the quarter ended December 2020.

Top sectors by number of deals Top sectors by value (US$ mn)

66 1685

952 776 22 22 22 25 575 11 325 355 5 224 1 3 3 92 1

Of the total 180 merger and acquisition deals in the quarter Out of the transactions, for which values were publicly ended December 2020, the highest deals were witnessed in disclosed, the merger and acquisition investments for the the Information Technology sector (66 deals), followed by quarter amounted to US$ 4.99 bn. The largest deal values Consumer Discretionary (25 deals), and Industrials, Health were witnessed by the Financial services sector (US$ 1.69 Care and Financials sector (22 deals each). bn), followed by Materials (US$ 0.95 bn) and Health Care sector (US$ 0.78 bn). 22 M&A DEAL TYPES Quarter ended December 2020

▪ Merger and acquisition transactions are spread domestically Analysis of M&A deal types by number of deals and internationally. Within international transactions, deals may involve flow of money into India (Inbound) or flow of money out Outbound, 13 of India (Outbound). Analysis of these deal types have been graphically represented. All other combinations have been Inbound, 17 classified as Others. ▪ Domestic deals were the most common, with 113 out of the 180 deals (i.e. 62.78% of the deals, with total value of US$ 3.57 bn). Others, 37 Domestic, 113 ▪ This was followed by Inbound deals constituting 17 out of the 180 deals (i.e. 9.44% of the deals, having total value of US$ 0.35 bn). Marquee inbound deals for this quarter included: I. Flipkart’s acquisition of 7.8% stake in Aditya Birla Fashion Analysis of M&A deal types by value (US$ mn) Retail Ltd. for US$ 203.85 mn. II. Another notable inbound deal is acquisition of controlling Outbound, 333 stake in Elara Technologies (holding company of PropTiger, Housing.com and Makaan.com) by News Inbound, 345 Corp. and REA Group for US$ 104.5 mn.

▪ Lastly, there were only 13 Outbound deals with a total deal Others, 733 value of US$ 333 mn. I. Acquisition of iCiDIGITAL Inc. by Ltd. for a total deal value of US$ 125 mn. Domestic, 3574 II. Ltd’s acquisition of Eximius Design LLC for US$ 80 mn. 23 TOP M&A DEALS Quarter ended December 2020

Deal Target Acquirer/s Sector value Deal highlights (US$ mn) Embassy Reit, India’s first public listed real estate investment trust agreed to buy Vrindavan Tech Village Pvt. Ltd.’s assets Financials 1,310.82 from affiliates of sponsors Embassy Group and Blackstone Group LP and other shareholders. The deal will be subject to regulatory approvals. Aurobindo Pharma will sell US-based nutritional supplements maker Natrol to US-based private equity player New Mountain Healthcare 550.00 Capital and its affiliate Jarrow Formulas Inc in an all-cash deal. Aurobindo Pharma will use the proceeds to reduce the company’s debt and fund new strategic initiatives. flagship firm announced the sale of its fertilizers business (Indo Gulf Fertilizers) to Indorama Corporation for a lump-sum cash consideration of INR 2,649 Materials 356.92 crores. The deal is a significant value unlocking exercise for Grasim while Indo Gulf Fertilizers will benefit from synergies and expertise of Indorama Corporation’s existing agri portfolio. , the manufacturers of the Fevicol brand of adhesives completed the acquisition of US-based Huntsman 284.05 Group’s Indian subsidiary HAMSPL. HAMSPL manufactures and Materials sells adhesives, sealants and other products under brands such as Araldite, Araldite Karpenter and Araseal in the country.

Bharti Airtel Ltd, through its wholly owned subsidiary Nettle Infrastructure Investments Ltd, acquired an additional stake of 133 million shares or 4.94% in tower company Bharti Infratel Ltd Telecommunication 224.35 for INR 2,882.32 crore. With this acquisition by Nettle, the aggregate shareholding of and Nettle has increased from 36.73% in the September quarter to 41.66% in lnfratel.

24 ANALYSIS OF KEY TRANSACTIONS Advanced Enzyme acquires SciTech Specialities

▪ Advanced Enzyme Technologies Limited has picked up a majority stake in a contract manufacturer that focuses on specialty Transaction Value products – SciTech Specialities Private Limited. US$ 4.29 mn (INR 31.62 crs) ▪ Advanced Enzyme shall subscribe to approximately 5.2 lakh shares of the Target via private placement and secondary Stake Acquired purchases in an all-cash deal. According to sources, the deal 51% (approx. 5.2 lakh shares) value has been estimated at approximately US$ 4.29 mn (roughly INR 31.62 crores). Deal Structure ▪ The acquisition will help Advanced Enzyme in leveraging synergies with SciTech and consolidate its position in the Private Placement and business-to-consumer segment. The transaction shall provide the Secondary Sale acquirer, access to important applications in three of its existing business verticals namely, human health, animal nutrition and food while also providing new delivery systems for existing products. ▪ The Target on the other hand, shall utilize these funds for capacity expansion, quality control and research development, Exclusive Due Diligence Partner and repay debt. The company currently operates two manufacturing facilities for nutraceuticals and pharmaceuticals, and exports products to several countries including France, Peru, Honduras, Ecuador, Vietnam, Thailand and Turkey. Deal Rationale ▪ The transaction comes on the back of robust financials posted by Advanced Enzyme can leverage synergies to both the parties with the acquirer having raised a fresh round of consolidate business to consumer segment by PE funding from Nalanda Capital in the month of September. expanding its product portfolio ▪ KNAV is proud to announce that it has provided crucial diligence support to Advanced Enzyme Technologies with SciTech Specialities shall utilize the funds for respect to the financial analysis of the Target, ensuring capacity expansion, R&D and repayment of corporate and regulatory, direct and indirect tax compliance. debt Sources: VCCircle, Business Standard 26 Wellesta Healthcare joins hands with Naari Pharmaceuticals

▪ Wellesta Holdings Pte. Ltd., the holding entity for Wellesta Healthcare Pvt. Ltd. has entered into a joint venture agreement with Naari Pte. Ltd. for the formation of NaariEsta Pte. Ltd. ▪ Wellesta is engaged in the business of marketing and commercializing various pharmaceutical products (including women’s health related products) in various geographies including Singapore, Brunnei, Philippines, Malaysia, India and Indonesia ▪ Naari Pharma on the other hand, is engaged in the business of development, manufacture, marketing, and distribution of various women’s health products. ▪ Via this joint venture, the two companies shall collaborate to market women’s healthcare products in Singapore and Brunnei. Both the companies shall transfer their existing women’s healthcare products to the joint venture and Wellesta shall commercialize such products in the South Asian market Exclusive Transaction Advisor for Wellesta as the managing partner of the joint venture. ▪ The joint venture aims at synergistically combining the core expertise of both the partners.. Deal Rationale ▪ KNAV was the exclusive transaction advisor to Wellesta Wellesta shall leverage its expertise in Holdings Pte. Ltd. with respect to the deal structuring, negotiations and legal documentation. marketing, distributing and commercializing pharmaceutical products for the joint venture Naari Pharmaceuticals shall bring its women’s healthcare products into the joint venture to expand its geographic footprint

27 Wellesta Healthcare raises fresh round of capital

▪ Wellesta Holdings Pte. Ltd. has entered into an agreement with AVAA1 Pte. Ltd. and Sunrise Investments Pte. Ltd. for investment of fresh capital into the business to aid its expansion plans. ▪ Wellesta is engaged in the business of marketing and commercializing various pharmaceutical products (including women’s health related products) in various geographies including Singapore, Brunnei, Philippines, Malaysia, India and Indonesia. Exclusive Transaction Advisor for Wellesta ▪ Wellesta shall utilize these funds for business expansion in newer geographies via acquisitions, setting-up manufacturing capacities and investing in therapeutic partnerships with multi- Deal Rationale national companies. ▪ KNAV was the exclusive transaction advisor to Wellesta Wellesta shall utilize the infused funds Holdings Pte. Ltd. for the structuring of the fund raise, and towards expanding its geographic presence, drafting the underlying legal documents. setting-up manufacturing capacities and partnering with MNCs for distribution of pharma products in South Asian geographies

28 Brooks Laboratories & Strides Pharma’s SteriScience join hands to venture into new territories

▪ Brooks Laboratories Limited, a known name in the pharmaceutical space operating in the national and global markets has formed a joint venture with SteriScience Pharma Pvt. Limited. SteriScience has been declared as a dedicated arm for the global injectables business of Strides Pharma, which invested $400Mn in the company in a deal signed off in September 2020. ▪ The Brooks-SteriScience JV aims to blend Brooks manufacturing expertise with SteriScience’s domain proficiency to gear into a global carbapenem business through two joint venture entities. ▪ Carbapenems, a class of highly effective antibiotic agents form reportedly a $2 billion+ global opportunity with limited players in the arena. ▪ As a part of this deal, Brooks and Steriscience will lay up a front-end entity, marketing carbapenem products in the global markets. The economic interest of Brooks in this deal is about 44.33% with Exclusive Deal Partners Steriscience putting in INR 100Mn to speed up regulatory filings. ▪ Further as a part of the manufacturing JV, post shareholder approval, Brooks shall transfer its EU approved Vadodara facility to the JV formed on a debt-free basis. Steriscience will infuse INR 400Mn in the said facility to create additional production capabilities . ▪ This JV controlled facility shall act as an exclusive partner for global markets to the front-end entity formed as an outcome of this synergy. Front End Entity Steriscience to EU approved ▪ KNAV is proud to announce that it has been an exclusive for global infuse Rs.100 Mn Vadodara Investment Banker partner and advisory support partner to marketing for regulatory facility to be Brooks Laboratories Limited, for commercial aspects, will own LP’s, filings and INR 400 transferred to negotiations, structuring, diligence support and execution of ANDA and dossiers mn into the facility the JV the deal. KNAV will continue to assist for post-integration Source: VCCircle, Economic Times, Brooks Press Release support activities. 29 CRED inches closer to unicorn status

▪ Credit card repayment app CRED has raised US$ 81 mn in its Series C round at a post-money valuation of US$ 806 mn. The round was led by DST Global, and saw the return of existing investors including Sequoia Capital India, Ribbit Capital, Tiger Global and General Catalyst. ▪ It brings the total funds raised to US$ 228 mn across four rounds, including US$ 1mn in seeding from founder- Kunal Shah ▪ CRED is Kunal's second venture after Freecharge — a coupon- powered mobile recharge app, which Snapdeal bought for US$ 400 mn in 2015. ▪ Founded in 2018, Cred lets users pay credit card bills and rewards US$ 81 mn US$ 806 mn them in the form of credit coins, which can be redeemed across partner businesses. This also gives the app an insight into Transaction Post Money customer spends, which can be used for cross-selling and up- Value Valuation selling products. ▪ The raised funds would support CRED’s next phase of growth. ▪ Along with the fresh infusion, the company has bought back employee stock ownership plan (ESOP) shares worth US$ 1.2 mn from existing and former employees. In its first ever buyback initiative, eligible employees were able to sell up to 50% of their vested ESOP shares. ▪ According to the company, it has built a 5.9 mn member base with a median credit score of 830 in two years and processes 20% of all credit card bill payments in India currently. Cred claims that over 35% of premium credit card holders in India are on the platform today. Source- Firstpost, VCCircle, Livemint, Economic times 30 Flipkart acquires minority stake in Aditya Birla Fashion

▪ Aditya Birla Fashion and Retail (ABFRL) and e-commerce major Flipkart have entered into an agreement where Flipkart infuses INR 1,500 crore into the company for a 7.8 per cent equity stake on a fully diluted basis. The retailer would issue 73 million preference shares to Flipkart at INR 205 per share. ▪ The promoter and promoter group companies of Aditya Birla Fashion would hold about 55.13 per cent stake upon the completion of the issue. ▪ The current arrangement with Flipkart will involve the sale and distribution of various apparel brands and will provide for pre- emptive rights and the right of first refusal to Flipkart for 1-5 years Deal Matrix from the date of allotment of equity shares, or if the equity shareholding of the investor falls below a certain threshold, along 73 million preference shares to be issued to with a board seat. Flipkart Investment at Rs 205 per share ▪ The capital raise would further bolster ABFRL's balance sheet and accelerate growth. The partnership would also enable the company Promoters of Aditya Birla Fashion will hold to strengthen its omni-channel presence. 55.13% stake after the transaction ▪ Aditya Birla Fashion plans to aggressively scale-up its existing businesses where it holds strong, market leading positions and accelerate execution of its large-scale digital transformation strategy. Flipkart looking at offline presence; Aditya Birla seeking strong online channel ▪ This will deepen the consumer connect of its brands, expand reach of its diverse brand portfolio, build strong omni-channel functionalities and augment its backend capabilities, positioning it Agreement will involve sale and distribution amongst the most comprehensive omni-channel fashion players in of apparel brands the country. ▪ Apparel industry in India is poised to touch US$ 100 bn in the next 5 Aditya Birla has a network of 3004 stores years. Fashion retail in India is set for robust long-term growth due to strong fundamentals of a large and growing middle class, favorable and has presence across 23,700 multi brand demographics, rising disposable incomes and aspiration for brands. outlets Rapid growth of technology infrastructure will further accelerate this process. Sources: Live Mints, The Hindu, Business Standard 31 Cars24 drives into unicorn club

▪ Cars24 made its way into the unicorn club by raising US$ 200 milion in its Series E round, taking the company’s valuation to over US$ 1 billion. Transaction value – US$ 200 mn ▪ The funding round was led by billionaire Yuri Milner’s fund DST Investors Global along with participation from existing investors - Exor Seeds, Unbound and Moore Strategic Ventures. ▪ The startup offers a tech-enabled platform to customers to buy and sell pre-owned vehicles. It allows car owners to sell their cars, providing features such as instant payment and taking responsibility for all paperwork including registration certificate transfers. Outlets across India- 230 ▪ After witnessing a sharp decline in the business during the lockdown, the company said it has witnessed a robust recovery. Annual transaction > 2,00,000 Units The pandemic augmented the appetite of the industry with increase in inquiries for pre-owned vehicles. Currently, the company claims to be operating above pre-COVID transactions with annual transactions exceeding 200,000 units and a 4X increase in website 4X Increase in website engagement engagement. ▪ Despite the pandemic, it has been able to expand its presence from 155 outlets in 35 cities to 230 outlets till September. ▪ Cars24 will use the funds to bolster its technology, product innovation and scale new business verticals such as pre-owned two wheelers, customer financing and servicing. Valuation US$ 1Billion+ ▪ Vikram Chopra, CEO and Co-founder of Cars24 said that company’s focus would be on used two-wheelers category that was launched during the unlock phase as well as financing business. The company also acquired an NBFC license last year for its consumer lending business, Cars24 Financial Services, with an aim to provide seamless and instant access to credit. Source: VCCircle, Dalal Street Asia, Money Control 32 CONTACT US

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33 ABOUT KNAV

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Editorial credits - Deals Snapshot Editorial Board: KNAV Business Advisory Services Team, Mumbai

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