KONNECT ADVOCACY IVCA PRIVATE EQUITY - RESEARCH VENTURE CAPITAL REPORT EDUCATION KONNECT JULY 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 July 2019 registered 52 Private Equity (PE) investments worth about ₹41,287 Cr ($5.9 Billion). The largest PE investment announced was the ₹25,433 Cr ($3.7 Billion) investment in Reliance’s Tower Infrastructure Trust by Brookfield. Funds with AIFs vehicles participated in 23 investments. Telecom companies topped the industry table (by value). Mumbai topped the chart for most investments in a city (by value). The month witnessed 10 PE exits that harvested about ₹13,403 Cr ($1.9 Billion). The largest exit was the ₹10,424 Cr ($1.5 Billion) exit by investors in hotels aggregator OYO via buyback. Venture Capital (1) Investments & Exits July registered 28 deals worth about ₹835 Cr ($120 million). The largest VC investment was the $18 million investment in Vymo by Emergence Capital and Sequoia Capital India. Funds with AIFs vehicles participated in 15 investments. 11 VC-funded startups were registered under DPIIT. IT companies topped the industry table (by volume & value). NCR topped the chart for highest investments (by volume) in a city. The month witnessed 3 VC exits that harvested about ₹10,543 Cr ($1517 million). Angel Investments Super Angels and Angel Networks made 20 investments (compared to 34 deals in Jul 2018). The largest angel investment involving angel investors was the $5 million (₹34.75 Cr) investment led by Sequoia India and angel investors including M V Nair, Somak Ghosh, Sandeep Tandon and Growx Ventures in Online SME Lending Startup Progcap. 3 Private Equity Investments Private Equity Investments in Jul 2019: 52 Deals, $5.9 Billion(₹41,287 Cr) Projected (Q3) Amount($B) Deals Projected (Q3) $12 B 240 $10 B 200 $8 B 160 $6 B 120 $4 B 80 $2 B 40 $ B 0 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul July 2019 registered 52 Private Equity (PE) investments worth about ₹41,287 Cr ($5.9 Billion). The largest PE investment announced was the ₹25,433 Cr ($3.66 Billion) investment in Reliance Tower Infrastructure Trust by Brookfield. The second largest investment was the buyout investment in healthcare analytics company CitiusTech by Baring Asia for ₹5,559 Cr ($800 million). Funds with AIF vehicles participated in 23 PE investments worth $323 million. The largest investment by an AIF was the PremjiInvest ed investment in $115 million round in Icertis. 4 Private Equity Investments By Industry $3660 M $1227 M $394 M $265 M $157 M $123 M $64 M $52 M Telecom companies topped the industry chart with the $3.7 Billion investment in Reliance Tower Infrastructure Trust. IT & ITES companies stood second with $1.2 Billion investment, led by the $800 million buyout of healthcare technology services provider CitiusTech by Baring Asia. This was followed by $115 million investment in enterprise contract management platform Icertis led by Greycroft and PremjiInvest. Energy companies stood third with $394 million investment, led by ADIA and GIC’s investment in Greenko Group. 5 Private Equity Investments $4,655 M By Region $481 M $392 M $208 M $157 M $49 M By Stage By Size $100M+ 6 Buyout $4,460 M $50-100M 3 Late $708 M $25-50M 5 Growth-PE $530 M $10-25M 9 $5-10M 7 Growth $62 M $2-5M 7 Early $58 M <$2M 15 6 Venture Capital Investments Venture Capital Investments in Jul 2019: 28 Deals, $120 Million (₹835 Cr) Projected (Q3) Amount($B) Deals Projected (Q3) $600 M 240 $500 M 200 $400 M 160 $300 M 120 $200 M 80 $100 M 40 $0 M 0 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul VC-type investments* recorded in Jul 2019 was 28 deals worth $120 million (₹835 Cr). This takes the projected investment activity in the third quarter to 84 deals worth $361 million (₹2,505 Cr). The largest VC investment was the $18 million investment in Vymo by Emergence Capital and Sequoia Capital India. Multi-category packaging services provider Bizongo, raised USD 15 million Series C round from B Capital Group, Accel India, Chiratae Ventures and IFC. Funds with AIF vehicles participated in 15 VC investments worth $59 million (₹409 Cr). 11 DPIIT-registered startups raised $48 million (₹334 Cr). Among DPIIT registered startups, Bizongo raised $15 million from B Capital Group, Accel India, Chiratae Ventures and IFC. 7 Venture Capital Investments By Industry 20 5 2 1 IT & ITES FMCG Travel & Transport Others By City By Size NCR 12 $10-20M 3 Mumbai 6 $5-10M 7 Bangalore 5 $2-5M 6 Others 5 <$2M 12 8 Private Equity Exits Private Equity Exits in Jul 2019: 10 Deals, $1.9 Billion (₹13,404 Cr) Projected (Q3) Amount($B) Deals Projected (Q3) $20 B 80 $18 B 70 $15 B 60 $13 B 50 $10 B 40 $8 B 30 $5 B 20 $3 B 10 $ B 0 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul July 2019 saw 10 PE-VC exits that harvested ₹13,404 Cr ($1.9 Billion). The largest PE and VC exit during Jul 2019 (in value terms) was the ₹10,424 Cr ($1.5 Billion) exit by investors from hotels aggregator OYO via buyback. This was followed by sale of shares worth $325 million by General Atlantic in healthcare analytics company CitiusTech. By Industry IT & ITES $1,846 M BFSI $83 M 9 Venture Capital Exits Venture Capital Exits in Jul 2019: 3 Deals, $1.5 Billion (₹10,543 Cr) Projected (Q3) Amount($B) Deals Projected (Q3) $14 B 35 $12 B 30 $10 B 25 $8 B 20 $6 B 15 $4 B 10 $2 B 5 $ B 0 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul Jul 2019 witnessed 3 VC exits that harvested $1.52 Billion (about ₹10,543 Cr) led by the $1.5 Billion exit by investors from hotel aggregator OYO via buyback. Angel Investments 79 In Jul 2019 super angels and angel networks 60 made 20 investments. 45 41 The largest angel investment involving angel 33 investors was the $5 million (₹34.75 Cr) investment led by Sequoia India and angel investors including M V Nair, Somak Ghosh, 20 Sandeep Tandon and Growx Ventures in Online SME Lending Startup Progcap. Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul 10 Annual PE-VC Investments Private Equity in 2019: 456 Deals, $22.4 Billion (₹1,56,717 Cr) Projected ($B) Amount($B) Deals Projected $50 B 1000 $40 B 750 $30 B 500 $20 B 250 $10 B $ B 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Including the investment activity in the latest month, 2019 has raised 456 deals worth $22.5 Billion (₹1,56,717 Cr). 11 Investments involving AIFs *Deal value includes share of Non-AIF investors participating in the round. Company Sector Investors Amount(US$M)* B Capital Group, PremjiInvest, Eight Roads Ventures, Icertis Enterprise Software (SaaS - CLM) 115 Others Falcon Edge Capital, Accel India, Matrix Partners India, Stanza Living Online Services (Aggregator - Hostels) 50 Sequoia Capital India Future Lifestyle Discount Retail (Branded Apparel) AION Capital 43.5 Fashions Elevar Equity, Omidyar Network, CDC Group, Accel India, Indifi Online Services (Marketplace - SME Loans) 21 Others Capital Small Finance Banking (Small Finance Bank) Pi Ventures, Amicus Capital, Others 19.26 Bank Bizongo E-Commerce - Marketplace - B2B - Packaging B Capital Group, Accel India, Chiratae Ventures, IFC 15.23 CDE Asia Industrial Equipment (Wet Processing) IIFL VC 14.5 Osam Dairy Milk Products Lok Capital, CDC Group 9.44 Equipment & Accessories (AR Enabled Educational Bharat Fund, IDFC Parampara Capital, Inventus Capital PlayShifu 7 Kits) Partners, Chiratae Ventures Mobile VAS (Mobile Operating System - Regional Indus OS Samsung Ventures, Ventureast 5.75 Language) IntelligenceNODE Enterprise Software (SaaS - Programming Tools - Cornerstone Venture Partners Fund, Orios VP, NEA, 5.5 Consulting Data Analytics - Retail) Others WinZO Consumer App - Gaming Kalaari Capital, Others 5 Atlan Enterprise Software (SaaS - Data Analytics) WaterBridge Ventures, Others 2.5 SupplyCompass Online Services (E-Commerce - B2B - Fashion) Unicorn India Ventures, Others 1.86 Mobikwik Mobile VAS (Payments - Mobile Wallet) Trifecta Capital, Others 1.27 Advantage Club Online Services (B2B - Employee Benefits) Sprout Venture Partners, Axilor Ventures, Others 1.0 Enterprise Software (SaaS - Marketplace - Agri Procol Rainmatter Capital, Blume Ventures 1 Commodities Procurement) Enterprise Software (SaaS - Marketing - Wigzo Cornerstone Venture Partners Fund 1.0 ECommerce) Online Services (B2B - Aggregator - Healthcare HealthAssure Blume Ventures 0.87 Services) 12 Appendix - Top PE Investments in July 2019 Company Sector Investors Amount(US$M) Reliance Tower Infrastructure Telecom Infrastructure (Towers) Brookfield 3660 Trust CitiusTech Enterprise Software (Healthcare) Baring Asia 800 Greenko Group Renewable Power Projects (Multiple Sources) ADIA, GIC 392 Ola Electric Mobility Mobility (Electric) SoftBank Corp 250 Owl Ventures, Qatar Investment Authority, Byjus Classes Test Preparation 150 General Atlantic B Capital Group, PremjiInvest, Eight Roads Icertis Enterprise Software (SaaS - CLM) 115 Ventures, Others Future Lifestyle Fashions Discount Retail (Branded Apparel) Blackstone 79 Online Services (Marketplace - Industrial Composite Capital, Tiger Global, Sequoia Capital Moglix 60 Equipment) India Falcon Edge Capital, Accel India, Matrix Partners Stanza Living Online Services (Aggregator - Hostels) 50 India, Sequoia Capital India Future Lifestyle Fashions Discount Retail (Branded Apparel) AION Capital 43.5 Qualcomm Ventures, Accel India, Canaan MindTickle Enterprise Software (SaaS - HR - Training) 40 Partners, Norwest, Others NiYO