KONNECT ADVOCACY IVCA PRIVATE EQUITY - RESEARCH VENTURE CAPITAL REPORT EDUCATION KONNECT OCTOBER 2019 NEW DELHI | MUMBAI | BANGALORE CONTENTS Executive Summary 03 Private Equity Investments 04 Venture Capital Investments 07 Exits 09 Angel Investments 10 Investments involving AIFs 12 Appendix & Tables 13 150+ MEMBERS & GROWING.. Executive Summary Private Equity(1) Investments & Exits October 2019 registered 59 Private Equity (PE) investments worth about ₹26,562 Cr ($3.7 Billion). The largest PE investment was the ₹7,614 Cr ($1.1 Billion) investment in GVK Airport Holdings Ltd by Abu Dhabi Investment Authority (ADIA), PSP Investments and National Investment & Infrastructure Fund (NIIF) of India. Funds with AIF vehicles participated in 22 investments. Travel & Transport topped the industry table (by value). Mumbai topped the chart for most investments in a city (by value). The month witnessed 14 PE exits that harvested about ₹2,489 Cr ($350 million). The largest exit was the ₹752 Cr ($106 million) exit by KKR in publicly listed SBI Life Insurance Company via a public market sale. Venture Capital (1) Investments & Exits October registered 38 investments worth about ₹1,104 Cr ($155 million). The largest VC investment was the $15 million investment in OKR software startup Ally led by Tiger Global. Funds with AIF vehicles participated in 16 investments. 13 DIPP-registered raised funding during the month. IT & ITeS companies topped the industry table (by volume & value). Bangalore topped the chart for highest investments (by volume) in a city. The month witnessed 6 VC exits that harvested about ₹919 Cr ($129 million). Angel Investments Super Angels and Angel Networks made 15 investments (compared to 16 deals in October 2018). The largest angel investment involving angel investors was the $25 million investment by Amrish Rau, Anand Chandrasekaran, Deep Nishar, Gokul Rajaram, Kunal Shah, Kunal Bahl, Jitendra Gupta with participation from venture capital firms in accounting ledger app KhataBook. Private Equity Investments Private Equity Investments in Oct 2019: 59 Deals, $3.7 Billion (₹26,562 Cr) Projected (Q4) Amount($B) Deals Projected (Q4) $12 B 240 $10 B 200 $8 B 160 $6 B 120 $4 B 80 $2 B 40 $ B 0 Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct October 2019 registered 59 Private Equity (PE) investments worth about ₹26,562 Cr ($3.7 Billion). The largest PE investment announced during the month was the ₹7,614 Cr ($1.1 Billion) investment in GVK Airport Holdings Ltd by Abu Dhabi Investment Authority (ADIA), PSP Investments and India’s National Investment & Infrastructure Fund (NIIF). The second largest investment was the ₹4,544 Cr ($640 million) investment in SBI General Insurance by PremjiInvest and Warburg Pincus. Funds with AIF vehicles participated in 22 PE investments worth $1.8 Billion. The largest investment which involved an AIF was $1.1 Billion investment by ADIA, PSP Investments and NIIF in GVK Airport Holdings Ltd. 4 Private Equity Investments By Industry Travel & Transport $1,075 M BFSI $707 M Hotels & Resorts $563 M IT & ITES $524 M Engg. & Construction $340 M Diversified $250 M Others $281 M Travel & Transport topped the chart led by the sole $1.1 Billion investment in GVK Airport Holdings Banking, Financial Services and Insurance (BFSI) companies stood second with investments worth $707 million led by the investment in SBI General Insurance by PremjiInvest and Warburg Pincus for $640 million. Hotels & Resorts came in third led by the sole investment in Leela Hotels worth $563 million. 5 Private Equity Investments By Region $2,043 M $1,075 M $258 M $291 M $73 M By Stage By Size $100M+ 7 Buyout $1,156 M $50-100M 2 Late $1,783 M $25-50M 8 Growth-PE $395 M $10-25M 7 $5-10M 7 Growth $55 M $2-5M 17 Early $102 M <$2M 11 6 Venture Capital Investments Venture Capital Investments in October 2019: 38 Deals, $155 Million (₹1,104 Cr) Projected (Q4) Amount($B) Deals Projected (Q4) $600 M 240 $500 M 200 $400 M 160 $300 M 120 $200 M 80 $100 M 40 $0 M 0 Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct In October 2019, VC-type investments* recorded 38 deals worth $155 million (₹1,104 Cr). (*See Appendix for Venture Capital definition.) The largest VC investment was the $15 million investment in OKR software startup Ally led by Tiger Global along with participation from Accel, Founders Co op, and Vulcan Capital. The second largest VC investment was the $14.8 million investment in vernacular e- commerce startup BulBul led by Sequoia Capital India along with Leo Capital and CDH Investments. Funds with AIF vehicles participated in 16 VC investments worth $76 million (₹540 Cr). 13 DPIIT-registered startups raised $43 million (₹308 Cr). Among DPIIT registered startups, Vahdam Teas raised $10.5 million from Fireside Ventures, Kris Gopalakrishnan, Sixth Sense Ventures, Ncubate Capital and others. 7 Venture Capital Investments By Industry 31 3 3 1 IT & ITES FMCG Food & Beverages Others By City By Size Bangalore 16 $10-20M 4 NCR 11 $5-10M 6 Mumbai 5 $2-5M 17 Others 6 <$2M 11 8 Private Equity Exits Private Equity Exits in October 2019: 14 Deals, $350 million (₹2,489 Cr) Projected (Q4) Amount($B) Deals Projected (Q4) $4 B 60 $3 B 45 $2 B 30 $1 B 15 $ B 0 Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct October 2019 saw 14 PE-VC exits that harvested ₹2,489 Cr ($350 million). The largest exit during October 2019 was the ₹752 Cr ($106 million) exit by KKR from SBI Life Insurance Company via a public market sale. This was followed by the $100 million exit by ShopClues investors via a strategic sale to Singapore-based e-commerce platform Qoo10. By Industry BFSI $173 M IT & ITES $130 M 9 Venture Capital Exits Venture Capital Exits in October 2019: 6 Deals, $129 million (₹919 Cr) Projected (Q4) Amount($B) Deals Projected (Q4) $2.5 B 30 $2.0 B 24 $1.5 B 18 $1.0 B 12 $0.5 B 6 $0.0 B 0 Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct October 2019 witnessed 6 VC exits that harvested $129 million (about ₹919 Cr). The largest VC exit was the $100 million exit by investors from ShopClues. Angel Investments 99 In October 2019 super angels and angel 79 networks made 10 investments. The largest angel investment involving angel 59 51 investors was the $25 million investment by 45 Amrish Rau, Anand Chandrasekaran, Deep Nishar, Gokul Rajaram, Kunal Shah, Kunal Bahl, Jitendra Gupta with participation from GGV Capital, Tencent, Partners of DST Global, and 15 Sequoia India in accounting ledger app KhataBook. Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct 10 Annual PE-VC Investments Private Equity in 2019: 673 Deals, $31.1 Billion (₹2,18,356 Cr) Projected ($B) Amount($B) Deals Projected $40 B 1000 $30 B 750 $20 B 500 $10 B 250 $ B 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Including the investment activity in the latest month, 2019 saw 673 PE-VC investments worth $31.1 Billion (₹2,18,356 Cr). 11 Top Investments involving AIFs *Deal value includes share of Non-AIF investors participating in the round. Amount Company Sector Investors (US$M) GVK Airport Holdings Aviation (Airport) NIIF, ADIA, PSP Investments 1,075 Leela Hotels Hotels Brookfield 563 Dindigul Thalappakatti Restaurants CX Partners 36.5 Restaurants Enterprise Software (SaaS - ERP - Steadview Capital, Accel India, Carestack 28 Dental) Eight Roads Ventures, Others Greyhound Capital, Rainmatter Capital, Tanglin Venture Partners, Whiteboard Capital, Amica Financial Beenext, 3ONE4 Capital, Digital Bank 23 Technologies Global Founders Capital, Rocket Internet, Matrix Partners India, Sequoia Capital India, Others Fireside Ventures, Kris Gopalakrishnan, Sixth Sense Vahdam Teas Packaged Foods (Tea) 11 Ventures, Ncubate Capital, Others Falcon Edge Capital, DST Online Services (B2C - Social DealShare Global, Omidyar Network, 8 Commerce) Matrix Partners India, Others BlackSoil Capital, Rainmaker Melorra M-Commerce - Shopping - Jewelry Ventures, Burman Family 8 Office, Lightbox, Others Go-Jek, Beenext, Kalaari Mall91 E-Commerce (Consumer Shopping) 7.5 Capital, Others Enterprise Software (SaaS - Axilor Ventures, Tiger Global, UrbanPiper 7.5 Restaurants) Sequoia Capital India, Others Bikaji Foods Packaged Foods Axis PE 5.63 White Owl Brewery Beverages (Beer) IIFL VC 5.6 Beenext, Pravega Ventures, Shubh Loans Marketplace - Consumer Loans SRI Capital, Omidyar Network, 4.8 Saama Capital Enterprise Software (SaaS - Pravega Ventures, Steadview Fyle Technologies 4.5 Expense Management) Capital, Tiger Global, Others PeeSafe Personal Care (Hygiene) Alkemi Venture Partners 4.23 12 Appendix - Top PE Investments in October 2019 Company Sector Investors Amount(US$M) GVK Airport Holdings Aviation (Airport) NIIF, ADIA, PSP Investments 1,075 SBI General Insurance Insurance - General PremjiInvest, Warburg Pincus 640 Leela Hotels Hotels Brookfield 563 Highway Concession Infrastructure (Toll Roads) CDPQ 336 One Pharmaceuticals, Financial Piramal Enterprises Services, Healthcare CDPQ 250 Information Management MX Player Video Streaming Tencent, Others 110 IT Products (Security Horizons Ventures, Tencent, JS myGate 56 Devices) Capital, Tiger Global, Others NoBroker Classifieds - Real Estate Tiger Global, General Atlantic 50 Branded Apparel Enamor Advent International 45 (Lingerie) Consumer App - Delivery Dunzo CapitalG, Lightbox, Others 45 Services Kogta Financial NBFC Creador Capital, Morgan Stanley 42 Dindigul Thalappakatti Restaurants CX Partners 37 Restaurants 13 Appendix - Top VC Investments in August 2019 Company Sector Investors Amount(US$M) Enterprise Software (SaaS - Vulcan Capital, Tiger Global, Ally 15 Collaboration - OKR) Others CDH Investments, Leo