Q 3 ( J U L Y - S E P )

Transcription

1 IVCA PRIVATE EQUITY-VENTURE CAPITAL REPORT ADVOCACY Q 3 ( J U L Y - S E P ) w w w. i vmissionaries c a. i n RESEARCH PE/ VC Report Feedback Rohan Parulekar - rohan.parulekar@ivca.in EDUCATION IVCA Membership & Event Sponsorship AakritiBamniyal - aakriti@ivca.in KONNECT Other Queries IVCA Team - info@ivca.in Contact number: Delhi Office: IVC Association 806, 8th Floor, Akashdeep Building, 26A Barakhamba Road, Connaught Place, New Delhi Mumbai Office: IVC Association One Indiabulls Centre, South Annexe, Tower 2A, 03rd Floor, ISME Ace Senapati Bapat Marg, Elphinstone Road, Mumbai Bangalore Office: IVC Association Axilor Transit, 3B, West 1 Wing Sobha Pearl, No. 1, commissariat road, Bangalore

2 TABLE OF CONTENTS Section Page No. 1. Executive Summary 3 2. Private Equity Investments 4 3. Venture Capital Investments 8 4. Exits Angel Investments Fund Raising Activity Venture Debt Monitor Appendix & Tables Members and growing 2

3 EXECUTIVE SUMMARY Private Equity Investments & Exits Q witnessed 155 Private Equity (PE) investments worth INR 64,536 Cr ($9.2 Billion) The largest PE investment announced was the $1. 2 billion investment (INR 8, 242 Cr) by ADIA and TPG Capital in UPL Corp IT & ITeS companies topped the industry table (by value and volume) Buyout transactions increased 7x times to $2.8 Billion Mumbai topped the chart for highest investments (by value) in a City Q saw 46 PE exits that harvested INR 19,725 Cr ($2.8 Billion) The largest exit was the INR 6,947 Cr ($1 Billion) exit by investors in Star Health Insurance India-focused funds raised INR 16,649 Cr across 10 funds Venture Capital Investments Q witnessed 81 VC investments worth INR 2,579 Cr ($368 million) Largest VC investment was the $20 million (about INR 137 Cr) investment in co-working space provider Awfis IT & ITeS companies topped the industry table (by volume & value) Bangalore topped the chart for highest investment in a City Q saw 25 VC exits that harvested INR 4,340 Cr ($319 million) The largest VC exit was the $225 million exit by investors in Ola Investments by Super Angels and Angel Networks increased to 62 deals (compared to 44 deals in Q2 2018) 3

4 PRIVATE EQUITY INVESTMENTS Private Equity Investments in Q3 2018: 155 Deals worth INR 64,536 Cr ($9.2Billion) The third quarter of calendar year 2018 witnessed 155 Private Equity (PE) investments worth INR 64,536 Cr ($9.2Billion). The value of investments rose 74% compared to same period in 2017 (which registered 146 investments worth INR 37,088 Cr or $5.8 Billion). It also rose 17% compared to the immediate previous quarter which had witnessed 191 investments worth INR 55,238 Cr ($8.2 Billion). Note: The PE investment figures in this Report include Venture Capital (VC) type investments, but exclude PE investments in Real Estate. The largest PE investment announced in Q3 18 was the $1.2 billion investment commitment (INR 8, 242 Cr) by Abu Dhabi Investment Authority and TPG in publicly listed agri-business company UPL Corp to help finance the acquisition of US-based Arysta Lifesciences. This was followed by the SoftBank led $1 Billion investment in Oyo Rooms. 4

5 PRIVATE EQUITY INVESTMENTS IT & ITeS companies topped the industry chart led by investments in hotel aggregator Oyo Rooms ($1 Billion). IT companies accounted for 40% (INR 22,206 Cr) of the PE investment value pie in Q3 18. Banking and Financial services companies stood second led by investments in Star Health and Allied Insurance and Computer Age Management Services (CAMS). 5

6 PRIVATE EQUITY INVESTMENTS Investments by Industry 6

7 PRIVATE EQUITY INVESTMENTS 7

8 VENTURE CAPITAL INVESTMENTS Venture Capital firms made 81 investments worth INR 2,579 Cr ($368 million) in Q % lower (in volume terms) compared to 90 deals worth INR 2,037 Cr ($317 million) recorded in the same period in Investment activity was 30% lower than the 116 deals (worth INR 2,967 Cr) witnessed in the immediate previous quarter. Co-working space provider Awfis Space Solutions raised USD 20 million (INR 137 Cr) in series C funding from existing investors Sequoia Capital India, The Three Sisters: Institutional Office (TTS:IO) and venture debt firm InnoVen Capital. Consumer lending startup PaySense raised $18 million (INR 124 Cr) in its series B round of funding led by PayU (owned by Naspers) with participation of existing investors. 8

9 VENTURE CAPITAL INVESTMENTS 9

10 PRIVATE EQUITY EXITS Private Equity firms in India made 46 exits from Indian companies that harvested INR 19,725 Cr ($2.8 Billion) (including value of stock swap transactions) during the Jul - Sep 2018 quarter - a 26% decrease in deal volume compared to 62 deals that harvested INR 19,684 Cr ($3 Billion) in the same period in This takes the total amount realized in the first nine months of 2018 to about INR 1,56,000 Cr ($23.2 Billion) across 176 deals. The largest PE exit during Q3'2018 (in value terms) is the INR 6,947 Cr ($1 Billion) exit by Star Health Insurance investors via a secondary sale to a WestBridge-led consortium. 10

11 PRIVATE EQUITY EXITS 11

12 VENTURE CAPITAL EXITS Venture Capital investors made 25 exits harvesting INR 4,340 Cr ($619 million) in Q % decrease (in Value terms) compared to the same period in The largest VC exit during Q3'18 is the $225 million part exit by Ola investors via a secondary sale to Temasek. ANGEL INVESTMENTS Angel investments (by angel networks and super angels) rose in Q3 18 to 62 deals - compared to the 44 investments in Q2 18. Top Angel Investments in Q Company Sector Investors Amount($M) Grey Orange Robotics Robotics - Warehouse Automation Binny Bansal, Others 140 LoanTap NBFC Ashish Goenka, Others 6.25 HealthSignz Enterprise Software (SaaS - Healthcare) Dr Kantilal Patel 5 Shop 101 M-Commerce - Consumer Shopping Ramakant Sharma, Raghunandan G, Others 5 *Includes share of co-investing Seed/VC investors 12

13 FUND RAISING ACTIVITY India-focused funds raised INR 16,649 Cr ($2.4 Billion) across 10 funds in Q an 85% increase compared to INR 8,976 Cr ($1.4 Billion) across 8 funds in the same period in VC firm Sequoia Capital India closed its sixth fund at USD 695 million while PE firm True North Capital (formerly India Value Fund Advisors) raised USD 600 million for its Fund VI. Greater Pacific Capital achieved a first close of its USD 700 million second fund at USD 300 million. Matrix Partners India closed its third fund at USD 300 million, with commitments from 43 investors. 13

14 VENTURE DEBT MONITOR Company Sector Investors Amount(INR Cr) PharmEasy E-Commerce (Marketplace - Pharmacy, Diagnostic Tests) InnoVen Capital 40 RAW Pressery Beverages (Fruit Juice) Alteria Capital 34 ZoomCar Cabs (Self Drive) Trifecta Capital 25 Cardekho Online Services (Classifieds - Cars) Trifecta Capital 25 Eruditus Higher Education (Management Education) InnoVen Capital 16 Popicorn Packaged Foods Anicut Capital 14 SigTuple Enterprise Software (Saas - Data Analytics - Healthcare) Trifecta Capital 10 Flinto Equipment & Accessories (Educational Kits) InnoVen Capital 6 Bounce Online Services (Marketplace - Bike Rentals) InnoVen Capital 0.4 Glocal Healthcare Systems Hospitals BlackSoil Capital - WheelsEMI NBFC BlackSoil Capital - Yumlane E-Commerce - Consumer Shopping - Food Delivery BlackSoil Capital - 14

15 Appendix- Top PE Investments in Q Company Sector Investors Amount ($M) UPL Corp Agri Chemicals ADIA, TPG Capital 1200 Star Health and Allied Insurance Company Insurance (Health Insurance) WestBridge, Rare Enterprises, Madison India, Others 1000* Oyo Rooms Online Services (Aggregator - Budget Hotels) Greenoaks Capital, SoftBank Corp, Lightspeed Ventures, Sequoia Capital India 1000 Ramky Enviro Engineers Waste Management KKR 530 CLP India Power Projects (Solar, Wind, Coal) CDPQ 368 One97 Communications Mobile VAS (Payments) Berkshire Hathaway 360* More Supermarket Samara Capital 300 Max Healthcare Institute Hospitals KKR 294 Ola Consumer App - Taxi Booking Temasek 225 Udaan E-Commerce (Marketplace - B2B) DST Global, Lightspeed Ventures 225 CAMS Registrar & Transfer Agent Warburg Pincus 173 Sanmar Group Chemicals Fairfax Holdings 150 Grey Orange Robotics Robotics - Warehouse Automation Mithril Capital, Blume Ventures, Tiger Global, Others 140 CureFit Wellness (Preventive Healthcare) Accel USA, Oaktree Capital, Accel India, IDG Ventures India, Kalaari Capital, Others 120 Bookmyshow Online Services (Ticketing) Stripes Group, Accel USA, TPG Growth, Capital18, Accel India, SAIF 100 Five Star Business Credits NBFC TPG Capital, Norwest, Sequoia Capital India, Morgan Stanley 100 Freshdesk Enterprise Software (SaaS - CRM) Accel USA, Google Capital, Accel India, Sequoia Capital India 100 Dream11.com Gaming - Fantasy Sports Tencent 100 Sharechat Mobile VAS (Consumer Apps - Social Networking) Morningside Ventures, Xiaomi, Shunwei Capital, DST Global, Lightspeed Ventures, SAIF 100 RR Kabel Cables & Wires TPG Capital 88 15

16 Company Sector Investors SPOTON Logistics Services (Road Transport) Amount ($M) Xponentia Fund Partners, Samara Capital 79 NSPIRA Consulting BanyanTree Growth Capital, Morgan Stanley 75 SBI General Insurance Insurance - General PremjiInvest, Others 67 MEP Sanjose Infrastructure (Roads) I Squared Capital, IFC 65 Appendix- Top PE Exits in Q Company Exiting Investor Acquirer Star Health and Allied Insurance Company Tata Capital, Sequoia Capital India, ICICI Venture, Apis Partners, Tata Capital Growth Fund, Others Safecrop Holdings Pvt Ltd, WestBridge AIF, Rakesh Jhunjhunwala and Madison Capital Amount ($M) 1000 AU Small Finance Bank Warburg Pincus, Kedaara Capital Open Market Transaction 248 Ola Helion Ventures, Accel India, Bessemer, Others Temasek 225 Hexaware Technologies Baring Asia Open Market Transaction 160 Medall Peepul Capital Constellation Alpha Capital (SPAC) 143 AU Small Finance Bank Ramky Enviro Engineers IFC Open Market Transaction 111 IIML, SCI Asia KKR 100 SPOTON India Equity Partners Samara Capital, Xponentia Fund Partners 78 Lenskart.com IDG Ventures India, TPG Growth, Unilazer Ventures TR Capital, Steadview, Epiq Capital 75 TCNS Clothing Company TA Associates IPO 72 Grameen Koota MicroVentures IPO 72 Welspun Corp Apollo Management Open Market Transaction 34 16

17 Appendix: Definitions of Stages-of-company-development used: Venture Capital (Early Stage) 1. First / Second Round of institutional investments into companies that are: 2. Less than five years old, AND 3. Not part of a larger business group, AND 4. Investment amount is less than $20 M Venture Capital (Growth Stage): Growth-PE: Late Stage: 1. Third / Fourth Round funding of institutional investments OR 2. First/Second Round of institutional investments for companies that are >5 years old and <10 years old OR spin-outs from larger businesses, AND 3. Investment amount is less than $20 M 1. First-to-Fourth Round Investments >$20 M into companies <10 years old, OR 2. Fifth / Sixth rounds of institutional investments into companies <10 years old 1. Investment into companies that are over 10 years old, OR 2. Seventh or later rounds of institutional investments PIPEs: 1. PE investments in publicly-listed companies via preferential allotments / private placements, 2. Acquisition of shares by PE firms via the secondary market Buyout: 1. Acquisition of controlling stake via purchase of stakes of existing shareholders 17

18 Knowledge Partner Note: This report aims to provide a snapshot of the transaction activity for the corresponding period with data available at the time of its creation. Please refer to Venture Intelligence to access the latest and most accurate data for your internal presentations and other requirements. This report is meant solely for informational purposes, not for trading purposes or advice. IVCA and Venture Intelligence are not responsible for decisions, damages or other losses resulting from the use of the Information. (C) TSJ Media Pvt Ltd. Any unauthorized distribution of this report or its contents is a violation of copyright law. Contact number: info@ivca.in Delhi Office: IVC Association 806, 8th Floor, Akashdeep Building, 26A Barakhamba Road, Connaught Place, New Delhi Mumbai Office: IVC Association One Indiabulls Centre, South Annexe, Tower 2A, 03rd Floor, ISME Ace Senapati Bapat Marg, Elphinstone Road, Mumbai Bangalore Office: IVC Association Axilor Transit, 3B, West 18 Wing Sobha Pearl, No. 1, commissariat road, Bangalore