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: 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 9 4. Exits 10 5. Angel Investments 11 6. Investments involving AIFs 12 7. Appendix & Tables 14 2 145 + 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, Bangalore 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 3 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.) 4 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 India operations for $120 million. 5 PRIVATE EQUITY INVESTMENTS * See Appendix for stage definitions 6 PRIVATE EQUITY INVESTMENTS Investments by Industry 7 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.) 8 VEENTURE CAPITAL INVESTMENTS 9 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.) 10 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 11 INVESTMENTS INVOLVING AIFs Deals involving PE-VC firms which have an Alternative Investment Funds (AIF) vehicle. Amount Company Sector Investors ($M) Sesa Care Personal Care TrueNorth 156 Happy Auto Components Motilal Oswal 27 Forgings Consumer Durables Duroflex Lighthouse 22 (Mattresses) Axis Capital Partners, Kaizen PE, Helion Ventures, Eight Toppr Test Preparation 18 Roads Ventures, SAIF, Others Online Services (E-Commerce - Collectabilli Consumer Shopping - Alteria Capital,NB Ventures, Accel USA, Accel India 14 a Merchandised Goods - Sports) KOOH Sports Education Gaja Capital 10 Sports Online Services (E-Commerce - Healthkart Consumer Shopping - IIFL VC, Sequoia Capital India, Others 10 Pharmaceuticals) Sukkhi E-Commerce - Shopping - Fashion Duane Park, Carpediem Capital Partners 7 Jewelry Jewellery MedikaBaz E-Commerce - Marketplace - Mitsui Sumitomo Insurance Venture Capital, Kois Invest, 5 aar B2B - Healthcare Healthquad, Rebright Partners, Others Enterprise Software Hiver Kae Capital,Kalaari Capital 4 (Collaboration - Email) Online Services (Marketplace - Shunwei Capital, Tekton Ventures, Kae Capital, Inventus Truebil 3 Pre-Owned Cars) Capital Partners, Kalaari Capital Worxogo Enterprise Software (SaaS –HR) Ideaspring,Inventus Capital Partners 2 Eupheus Content Services, Educational Sixth Sense Ventures 1.25 Learning Kits LetsMD Online Services (Marketplace - WaterBridge Ventures, Orios VP, SRI Capital 1 Appointments - Doctors, 12 Diagnostic Tests) AVG Logistics Services Sixth Sense Ventures 0.1 Logistics Essel Infra (Transmissi EPC (Transmission) Edelweiss Private Equity N.A on Projects) Clensta Personal Care (Waterless) IAN Fund, Others N.A Online Services (Marketplace - FarmersFZ IAN Fund, Others N.A Fruits and Vegetables) 13 Appendix- PE-VC Investments in October 2018 Amount Company Sector Investors ($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 14 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