Takeover Deals Eyed by Small, and Mid-sized Private Equity Groups

The article below is an overview about small and mid-sized private equity groups are increasingly muscling in on the buyout deals space.

Ambit Pragma, Motilal Oswal and Gaja Capital are among the clutch of such firms that are adopting the strategy that was long held to be the preserve of larger global private equity firms. “We are seeing an increasing number of buyout deals in India.

There are multiple reasons as to why buyouts are becoming increasingly popular. It could be the need to divest non-core businesses, succession planning, consolidation of a fragmented industry, or the need for significant amount of capital to accelerate to the next level of growth,” said Dhanpal Jhaveri, partner and CEO of Everstone Capital Advisors, which manages assets of about $2 billion. Using the ‘buy-and build’ strategy, some of the small and midsized firms have also appointed operating partners that have taken over as the chief executive of their portfolio companies, following a model first deployed by Everstone and New Silk Route Growth Capital.

Mumbai-based Ambit Pragma, which invests about $10 million, named Nirmesh Prakash, a partner with the firm, as chief executive of Delhi-based dairy firm, Neo Milk Products, after promoter Dinkar Suri quit the organisation in September.

Source: Economic Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Ambit Pragma, Motilal Oswal, Gaja Capital, Buyout, Buyout Deals, Dhanpal Jhaveri, Everstone Capital Advisors, New Silk Route Growth Capital, Mumbai, Ambit Pragma, Nirmesh Prakash, Delhi, Neo Milk Products, Dinkar Suri.


UFO Moviez India Prices Its IPO

An India based company and the world’s largest satellite-based Digital cinema network UFO Moviez India Limited is planning to raise between $113 million to $129 million over its initial public offering later this year, a person familiar with the matter told Wall Street Journal.

Two private-equity firms would be the sellers in the share sale, the person said. London-based private-equity firm 3i Group PLC and Providence Equity Partners LLC., a private-equity firm based in the U.S., are “key investors” in UFO Moviez, the Indian company’s website said Tuesday.

A 3i spokeswoman in London declined to comment, and a Providence spokesman in Delhi wasn’t reachable. A UFO Moviez spokeswoman in Mumbai declined to comment.

Recent buoyancy in India’s capital markets has given Indian firms confidence to raise money there. The 30-stock benchmark S&P BSE Sensex is up 25% this year as investors have been encouraged by business-friendly measures promised by the government that came to power in May.

The UFO Moviez share sale is the latest example of private-equity investors seeking to cash in on the recent upswing in capital markets by exiting investments.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, India, UFO Moviez India Limited, London, London Private Equity, 3i Group PLC, Providence Equity Partners LLC, US, UK, Delhi, Mumbai, S&P BSE Sensex.


Online Grocer BigBasket Secures Rs 200 crore from Helion Ventures, Zodius Capital

BigBasket, a Bangalore-based online grocery retailer, has raised the amount of Rs 200 crore in a funding round led by Helion Ventures and Zodius Capital.

Existing investors Ascent Capital and LionRock Capital also participated in the round which saw the valuation of the two-year-old startup cross $100 million (Rs 600 crore).

The Bangalore-based firm, which is also present in Mumbai and Hyderabad, will use the funds to expand to 10 cities by December next year. It plans to expand to Pune and Delhi within six months.

“This is a billion dollar opportunity, you need to have depth of funding to do full justice to the market,” said VS Sudhakar, cofounder of BigBasket. “It is very logistics intensive, we control it up to the last mile.”

With over 12,000 products and over a 1,000 brands, BigBasket delivers food items such as fruits, vegetables, bakery, dairy products and frozen foods, to customers.

Source: Economic Times

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, BigBasket, Bangalore, Online Grocery Retailer, Online Grocer, Helion Ventures, Zodius Capital, Ascent Capital, LionRock Capital, Mumbai, Hyderabad, Pune, Delhi, VS Sudhakar, Fruits, Vegetables, Bakery, Dairy Products, Frozen Foods.


IDFC Alternatives Eyes Rs 1,000 crore for Commercial Real Estate Fund

IDFC Alternatives, a wholly owned subsidiary of IDFC Limited, is planning to raise the amount of over Rs 1,000 crore for new commercial real-estate fund, two people told Economic Times.

The fund manager is currently in the process of completing valuation of its two key assets, a Pune IT Special Economic Zone and another IT park in Noida. The assets are estimated to be valued at more than 1,000 crore together and “IDFC Alternatives is planning to transfer part ownership of these two assets to the new commercial fund as part of the sponsor’s contribution,” said one of the people.

IDFC Alternatives didn’t respond to an email seeking comment.

Earlier this year, IDFC Alternatives, a private-equity arm of infrastructure finance company IDFC Ltd, raised Rs 750 crore for its first real-estate fund, IDFC Real Estate Yield Fund. That fund is targeting under-construction residential projects in Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Pune.

Source: Economic Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, IDFC Alternatives, IDFC Limited, Commercial Real Estate Fund, Real Estate Fund, Commercial Real Estate, Pune IT Special Economic Zone, IT Park, Noida, IDFC Ltd, IDFC Real Estate Yield Fund, Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Pune.


Holisol Logistics Banks $1.5M in Venture Capital Funding

A Delhi-based e-commerce logistics solution provider Holisol Logistics has raised the amount of $1.5 million in venture capital funding, as it expands operations.

City-based Holisol, which was set up in June 2009, has received its first venture capital funding of USD 1.5 million from oil and gas professional Sundeep Bhandari, a company official said.

The investment was made by Bhandari through his company Datavision.

Bhandari has been a key figure in the oil and gas industry, having established a number of successful oil and gas ventures in the last two decades. He was Chairing the Corporate Advisory Board of Cairn India till recently and is currently on the Board of dual listed Australian oil and gas company Oilex Ltd.

“The investment has helped Holisol expand its business in new areas and geographical locations,” the official said.

In the current year, Holisol expects to achieve a turnover of about Rs 40 crore.

Source: Business Standard

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, Delhi, E-Commerce, Holisol Logistics, City, Sundeep Bhandari, Oil and Gas, Bhandari, Datavision, Oil and Gas Ventures, Cairn India, Australian Oil and Gas Company, Oilex Ltd.


Maximum Private Equity Investment in Bangalore

During the first half of 2014, the maximum private equity investment has been towards the real estate market in Bangalore beating the national capital Delhi as well as the commercial capital Mumbai, reported property consultancy firm Cushman & Wakefield.

Led by high demand for office spaces as well as steady demand for residential property, the city’s real estate market saw PE investments jump nearly 20 times yearon-year to Rs 2,005 crore. The city had received PE investments worth Rs 103 crore in the first six months of 2013.

While Mumbai received investments worth Rs 1,140 crore, Delhi-NCR got Rs 490 crore and Chennai Rs 200 crore during the same period. “Availability of investible leased office assets and stable yields kept the interest levels high,” said Sanjay Dutt, executive managing director, South Asia, at Cushman & Wakefield.

Source: Economic Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Bangalore, Real Estate, Real Estate Market, Real Estate Investment, Bangalore Real Estate, Delhi, India, Mumbai, Cushman & Wakefield, Chennai, Sanjay Dutt, South Asia.


Sabre Partners Leads an $8M Round for Vyome Biosciences

Sabre Partners, the Delhi-based bio-pharmaceutical company, announced it has led an $8 million funding round for Vyome Biosciences Pvt Ltd., a biopharmaceutical company, develops drugs for dermatology care.

Proceeds from the Series B round of funding, in which Vyome’s existing backers, Aarin Capital and Kalaari Capital have also participated, will be used to drive the completion of critical milestones of US Food and Drug Administration filings, as well as Phase 1 and Phase 2 clinical research for some of its lead compounds and other development and commercialization efforts of its Rx and OTC pipeline.

“This financing is a major landmark in Vyome’s journey to translate cutting edge science into differentiated products and innovative commercialization strategies,” said N. Venkat, chief executive of Vyome.

According to him, Vyome is developing a pipeline of molecules for killing dandruff-causing fungus, new antibiotics that kill resistant acne-causing bacteria, and has developed a robust global patent portfolio.

Source: Economic Times

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, Sabre Partners, Delhi, Pharmaceutical Company, Vyome Biosciences Pvt Ltd., Biopharmaceutical Company, Dermatology Care, Aarin Capital, Kalaari Capital, US Food and Drug Administration, N. Venkat.


Capital Float Receives $1M from SAIF Partners

Capital Float, a Bangalore-based digital SME finance company, received the amount of $1 million or Rs 6 crore in growth capital from SAIF Partners is a leading private equity firm.

Capital Float provides working capital loans to small businesses in India through a technology-led loan origination and credit underwriting platform. It works with SMEs across Bangalore, Mumbai, Delhi and other cities in India, SAIF Partners said in a statement.

“SME lending presents a large and growing opportunity in India. We believe this segment requires a differentiated approach, with a potential to use technology to disrupt existing models. We look forward to a mutually-fulfilling partnership with Capital Float, as they accelerate their journey to be a leading firm in this segment,” said Ravi Adusumalli, Managing Partner at SAIF Partners.

Source: Hindu Business Line

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, SAIF Partners, Capital Float, Bangalore, India, Mumbai, Delhi, Ravi Adusumalli.


A Pair of IITians Seek to Raise Venture Capital Funding

Two IITians teamed up to start a tea cafe chain ‘Chaayos’ in the NCR region and seeking to raise venture capital to open nearly 50-odd stores across the country.

Currently, there are five cafes with the theme ‘Experiments with Chai’ in Gurgaon and Noida and five more would be opened by the end of this year.

“We already have raised one round of angel investment of over Rs 2 crore from Powai Lake Ventures, led by Zishaan Hayath who is an angel investor. We are planning to go in for institutional round towards end of this year,” said Nitin Saluja, founder of Chaayos.

The chain plans to add another 50 cafes in the next two years by covering at least two more cities and increase penetration in Delhi NCR region.

“We are targeting cities with lots of young population,” he said.

Source: Economic Times

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, IITians, Tea Cafe Chain, Chaayos, Experiments with Chai, Gurgaon, Noida, Angel Investor, Powai Lake Ventures, Zishaan Hayath, Nitin Saluja, Delhi.


Sequoia Capital Leads a $15M Series A Round for Octro

Sequoia Capital, an American venture capital firm located in Menlo Park, California, has led a $15 million series A funding round for Delhi-based mobile gaming company Octro.

The marquee venture fund’s bet on mobile gaming rides on India’s rapidly growing smartphone penetration and games cornering the largest chunk of the app market.

Founded by Saurabh Aggarwal in 2006, Octro started off as a voice over internet protocol (VoIP) player but transitioned into a pure-play mobile games developer just two years ago. It creates popular Indian offline games such as Teen Patti and Rummy and makes them available on the mobile platform.

“We are in the top five downloaded games across multiple categories on Google Play,” said Octro’s founder & CEO Aggarwal, who had earlier co-founded PDAapps, the creator of VeriChat, a mobile IM solution which was acquired by Intellisync in 2005.

Source: The Times of India

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, Menlo Park Venture Capital, California Venture Capital, Sequoia Capital, American Venture Capital, Delhi, Mobile Gaming Company, Octro, India, App Market, Saurabh Aggarwal, Teen Patti, Rummy, Mobile Platform, Google Play, PDAapps, VeriChat, Intellisync.


American Venture Capital Firm Boosts IndiaHomes with Rs 150 cr

A global venture capital firm New Enterprise Associates, which is headquartered in Timonium, MD, invested Rs 150 cr in property broking portal IndiaHomes.

IndiaHomes, which started operations in 2009, is present in Delhi, Gurgaon, Noida, Mumbai, Bangalore and Kolkata, is planning to expand its presence to other major cities.

This is the second round of private equity fund raising by the company. It had earlier raised Rs 120 crore from Helion Venture Capital and Foundation Capital.

“We have decided to expand our operations to 50 major towns in India. We have raised Rs 150 crore private equity led by NEA. Our existing partners Helion Venture and Foundation Capital have also invested,” IndiaHomes Founder and Managing Director Samarjit Singh told reporters here.

Source: Economic Times

 

Tags: Venture Capital, Venture Capital Firm, Venture Capital Group, Venture Capital Industry, Venture Capital Investment, Venture Capital Investor, Venture Capital Fund, VC Funding, VC, US Venture Capital, American Venture Capital, New Enterprise Associates, Timonium, MD, Property Broking Portal, IndiaHomes, Delhi, Gurgaon, Noida, Mumbai, Bangalore, Kolkata, Helion Venture Capital, Foundation Capital, Private Equity, Samarjit Singh.


Fortis Healthcare Appoints Udai Dhawan to Its Board

Fortis Healthcare Ltd, an established chain of super speciality hospitals based in Delhi, is pleased to announce the appointment of Udai Dhawan, a Standard Chartered Private Equity India Head and Managing Director, as an additional director on the board of directors.

The appointment is effective from February 11, 2014, which is in pursuance of SCPE’s agreement with the Company, the disclosure said.

Earlier in September last year, Standard Chartered Private Equity Mauritius III Ltd had invested Rs 37.7 crore in Fortis Healthcare afresh in a preferential allotment, raising its total investments to around Rs 250 crore in the healthcare company.

Also, Fortis Healthcare’s executive director Balinder Singh Dhillon has stepped down from the board of the company, effective February 11, 2014. He will, however, continue as President of the Governance Function.

Meanwhile, the private hospital chain posted a decline of 45 per cent in its consolidated net profit for fiscal third quarter ended on December 31, 2013, to Rs 389.09 crore from Rs 705.03 crore in the year ago period, despite one-time gain of Rs 424.16 crore due to stake dilution in Quality Healthcare primary care business in Hong Kong.

Source: VC Circle

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Fortis Healthcare Ltd, Delhi, India, Standard Chartered Private Equity India, Udai Dhawan, Standard Chartered Private Equity Mauritius III Ltd, Balinder Singh Dhillon, Hong Kong.


Sequoia’s Knowlarity Communications Buys Unicom Techlabs

Knowlarity Communications, Gurgaon-based cloud telephony firm, has acquired Unicom Techlabs Pvt Ltd, a Delhi-based cloud telephony startup.

The acquisition brings Unicom’s 200 plus customers in SMB, e-commerce, real estate, healthcare, education and media segment under Knowlarity. Besides Unicom’s IT domain and customers, Knowlarity will get full ownership of intellectual property belonging to the company.

Knowlarity is backed by Sequoia Capital which invested Rs 34 crore in the company in January 2012. Previously, it also raised funding from Emergic Venture Capital.

“We at Knowlarity are overwhelmed to have successfully acquired Unicom. It is also a great learning experience for all the consequent deals in the pipeline for 2014 which will take us further towards our goal of market consolidation. Knowlarity is more than willing to help startups looking for an exit option in a fast consolidating market. We have more acquisitions planned in the coming year which is definitely a promising start to 2014 for all of us at Knowlarity,” said Shruti Agarwal, CFO, Knowlarity.

Source: VC Circle

 

Tags: Venture Capital, Venture Capital firm, Venture Capital group, Venture Capital industry, Venture Capital investment, Venture Capital Investor, Venture Capital fund, VC Funding, VC, Knowlarity Communications, Gurgaon, Cloud Telephony Firm, Sequoia Capital, Unicom Techlabs Pvt Ltd, Delhi, Startup, Start-Up, SMB, E-Commerce, Real Estate, Healthcare, Education, Media Segment, Emergic Venture Capital, Shruti Agarwal.


Online Furniture Store Urban Ladder Scores $5M Funding

Urban Ladder, a Bangalore-based online furniture store declared that it has raised $5 million (Rs 31.2 crore) from SAIF Partners and Kalaari Capital in first funding round.

The proceeds will be used to expand its footprint, products range and build its technology platform, according to a press statement released by the company.

“We are on track to achieve our goal to be the largest furniture store, online or off-line, in India within the next 18 to 20 months,” said Ashish Goel, cofounder and chief executive, Urban Ladder.

This is the second round of funding for the company, which was launched in 2012, and provides furniture solutions in Bangalore, Delhi, Mumbai, Chennai and Pune. In August last year, it had raised $1 million from Kalaari Capital.

Source: Economic Times

 

Tags: Venture Capital, Venture Capital firm, Venture Capital group, Venture Capital industry, Venture Capital investment, Venture Capital Investor, Venture Capital fund, VC Funding, VC, Urban Ladder, E-Commerce, Online Furniture Store, SAIF Partners, Kalaari Capital, Ashish Goel, in Bangalore, Delhi, Mumbai, Chennai, Pune, Kalaari Capital.


Asia’s SAIF Partners Launches Hedge Fund

SAIF Partners, a leading Asian private equity firm, with dedicated local offices in China and India, is planning the launch of its first hedge fund.

Asian Investor reported that SAIF, which provides growth capital to companies in Asia, will launch the new offering this month. The hedge fund will utilize a long/short strategy targeting companies with “substantial exposure to the Chinese economy or a large base in Greater China,” with at least $400 million in market capitalization.

The article added that SAIF has been running the hedge fund, run by Beijing-based partner Brandon Lin, with internal money for over a year and had been looking to expand with seed capital from one of its main investors.

Founded in 2001, SAIF has additional locations in Beijing, Shanghai and Delhi. It currently manages over $3.5 billion in capital. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Hong Kong Private Equity, Asia Private Equity, China Private Equity, India Private Equity, SAIF, SAIF Partners, Hedge Fund of Funds Business, Hedge Fund, Hedge Funds, Fund of Hedge Funds, Hedge Fund of Funds, Hedge Fund industry, Hedge Fund Group, Hedge Fund Market, Hedge Fund Investments, Hedge Fund Advisory Firm, Chinese Economy, China, Asia, Hong Kong, India, Greater China, Beijing, Shanghai, Delhi, Brandon Lin.


Lotus Greens Receives Rs 1,000 cr Investment from Red Fort Capital

Red Fort Capital, a leading private equity real estate firm focused on India, will be investing Rs 1,000 crore in Lotus Greens, which focuses on real estate, hospitality, healthcare and education.

Lotus will develop two townships in Delhi, a senior company official said. Lotus Greeen also has interest in hotels, healthcare and education. “The PE firm will invest over Rs 635 crore in new projects that will be jointly developed with Lotus Green and rest Rs 365 crore will be invested in two existing projects which includes a township project Gurgaon and another on Yamuna Expressway,” Lotus Green vice chairman P Sahel said.

Red Fort Capital will pick up about 50% stake in these projects from the conceptualisation stage, a person close to the deal said. “Since PE firm will be involved in the early stages, they will invest at cost. These projects will be in residential space that will be self liquidating and help on time exit for the PE firm in the next 4-5 five years from the start of the projects,” he added. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Lotus Greens, Red Fort Capital, India Private Equity, India Real Estate, India Real Estate Investment, , Hospitality, Healthcare, Education, Lotus Greens, Delhi, New Delhi, Gurgaon, Yamuna Expressway, P Sahel.


Oman Investment Fund Eyes Stake in NCDEX

Oman Investment Fund (OIF), a sovereign wealth fund, is in final step of discussion with Jaypee Capital Services for acquiring 9.7% stake in India’s agricultural futures exchange National Commodity and Derivative Exchange Limited (NCDEX), according to a newspaper report.

India’s Economic Times said that Delhi-based broker Jaypee Capital Services, the anchor investor in NCDEX, is in advanced talks with domestic and foreign private equity players to sell a chunk of its 22.4 per cent stake in the bourse.  The shareholder, according to sources, is close to selling 14.7 per cent to IDFC Private Equity Fund and Oman Investment Fund for Rs1,320 million ( Rs180 a share). About five per cent will go to IDFC PE for Rs440 million while 9.7 per cent will be sold to OIF for Rs.880 million.

The two deals value NCDEX at Rs9,120 million, lower than rival MCX’s value of Rs1,4360 million. Motilal Oswal’s Investment Banking arm is Jaypee’s advisor. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Oman Investment Fund, OIF, Jaypee Capital Services, National Commodity, Derivative Exchange Limited, NCDEX, India, Economic Times, Delhi, New Delhi, IDFC Private Equity Fund.


Kotak Realty Fund Eyes Permanently Close of $400 Million Offshore Fund in H1

The real estate private equity fund of Kotak Mahindra Group will do the money injection of $15-20 million in each project.

Kotak Realty Fund, the real estate private equity fund of Kotak Mahindra Group, expects to close its international fund in six months, a top company executive told VCCircle. The fund has already received commitment of $200 million from Abu Dhabi Investment Authority (ADIA) to mark the first close of the fund. ADIA is one of the two sovereign wealth funds of UAE representing Abu Dhabi and an active investor in India through public market deals.

V Hari Krishna, director, Kotak Realty Fund, said the firm is looking to raise $400 million from overseas investors but declined to share details of other LPs it is in negotiations with for the rest of the fund.

He said the fund will invest an average of $15-20 million in each project and that it will put in money from the first close in 10-12 projects.

The fund is looking to generate an IRR of 20 per cent for investors of the new fund.

The Kotak Mahindra group has invested $30 million in the fund. Kotak Realty Fund will be investing in projects across Delhi, Mumbai, Bangalore and Pune. It will mark investments purely in the residential segment and it has already started vetting deals to invest from the money it has raised. Source

 

Tags: Private Equity, Private Equity fund, Private Equity investment, Real Estate, Real Estate investment, Private Equity Real Estate, Kotak Realty Fund, Offshore Fund, Real Estate Private Equity fund, Kotak Mahindra Group, VCCircle, Abu Dhabi Investment Authority, ADIA, UAE, V Hari Krishna, The Kotak Mahindra group, Delhi, Mumbai, Bangalore, Pune.


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