Four-S Private Equity Track

Transcription

1 Four-S Private Equity Track Issue: 08 th Sept 13 th Sept 2014 Your Eye to Indian Private Equity PE activity for the week The year 2014 has so far aggregated $5.8 bn of PE investments across 421 deals compared to $7.6 bn (354 deals) during the same period last year During the week ended 12 th September, there were 17 PE/VC deals with disclosed value of $109.6 mn compared to 9 deals worth $137.9 mn in the previous week. The largest disclosed transaction during the week was $35.0mn raised by ecommerce focused logistics firm - SSN Logistics by Multiples Alternate Asset Management, Nexus Venture Partners and Times Internet. The week also saw another ecommerce focused logistics firm EcomExpress raise $16.5mn Private Equity: Investment Summary during the week Investor (s) Target Stake (%) Equity Check in ($Mn) Type of Deal 6,641 7,588 5,810 YTD 2012 YTD 2013 YTD 2014 PE Investments ($mn) No. of Deals Sector Industry Segment Multiples Alternate Asset Management, Transport SSN Logistics Pvt. Ltd NA 35.0 Growth Services Logistics Nexus Venture Partners, Times Internet Services Helion Venture Partners, Zodius Capital & Others BigBasket.com NA 32.8 Early e-commerce Internet Retail Retail Peepul Capital Ecom Express Pvt Ltd NA 16.5 Growth Services Logistics Transport Services Apax Partners Strides Arcolab Ltd PIPE Manufacturing Chemical & Pharma & Allied healthcare Mcap Ganesha Ecosphere NA 5.7 Growth Manufacturing Textiles PSF via PET recycling Elevar, Omidyar & LGT Thirumeni Finance Pvt Ltd NA 4.4 Early Services BFSI NBFC"s Exhilway Global IndiDebt.com NA 4.0 Growth Services BFSI Other Orios, India Quotient, IAN PrettySecrets NA 2.0 Early e-commerce Internet Retail Speciality retail Nexus Venture Partners Lybrate Inc NA 1.2 Early e-commerce Internet Services Healthcare Sarthi Angels M.R. Organisation Ltd NA NA Growth Manufacturing Misc Other Mfg. Manufacturing Articles IvyCap, IDG Invest eshakti NA NA Growth e-commerce Internet retail Speciality retail Indian Angel Network FarEye(RoboticWares) NA NA Early Services IT/ITES Mobile Vas Ratan Tata Jewels Online Distribution NA NA Early e-commerce Internet retail Speciality retail (BlueStone) Healthcare-Focused Healthians.com NA NA Early e-commerce Healthcare Health Services Rajan Anandan,Ravi Shah,Head of Google India & Director-Mind s Eye Creative Phantom Hands NA NA Early e-commerce Internet retail Speciality retail Angel Investors Protract Consulting NA NA Early Services Education Diversified Pragati India Fund Deep Chand Dialysis Pharma & NA NA Early Centre healthcare Healthcare Dialysis Center Source: Four-S PE Database YTD (from 01 st Jan to 12 th Sep) 1 st Sept 06 th Sept 2014

2 SSN Logistics raises $35M from Multiples, others E-commerce focused logistics firm SSN Logistics Pvt. Ltd, that runs its operations as Delhivery, has raised $35 mn in a Series C round led by Multiples Alternate Asset Management with participation from existing investors - Nexus Venture Partners and Times Internet. Founded in 2011, Delhivery is currently present in 180 towns and cities and plans to expand to over 250 by the end of this year. The company will use the funds for expansion, add fulfilment services and enhance technology portfolio. BigBasket gets $32.8M from Helion, Zodius, others Online grocery retailer BigBasket.com has raised $32.8mn in Series B round of funding from Helion Venture Partners, Zodius Capital, Ascent Capital and others. Owned by Bangalore-based SuperMarket Grocery Supplies Pvt Ltd, the company is present in Mumbai, Hyderabad and Bangalore with 10,000 products and 1,000 brands in its grocery list. The latest funding will be used to expand to 10 cities, including Pune, Delhi and Chennai. EcomExpress Secures $16.5M from Peepul Capital Another E-commerce focused logistics services firm EcomExpress has raised $16.5 Mn from Peepul Capital to fund its distribution network growth to 800+ centers. Operational since Jan 2013, the company has 3,000 employees with a presence in over 100 towns and over 190 distribution centres across the country. It also has 10 processing centres in Delhi-NCR, Bangalore,Hyderabad, Chennai, Kolkata, Ahmedabad and Pune. Apax Partners buys minor stake in Strides Arcolab Apax Partners has picked up a 1.2% stake in Strides Arcolab Ltd for $8 mn in a PIPE deal. The deal values the company close to $670mn. Strides is a Bangalore-based pharmaceutical company with a focus on development and manufacture of IP-led niche generics and biopharmaceuticals with presence in more than 75 countries. Its FY14 revenues were Rs 13,410mn with PAT of Rs 509mn (excluding extraordinary items). Varthana raises $4.4M from Elevar, Omidyar, LGT Thirumeni Finance Pvt Ltd, a non-banking finance company that provides loans to affordable private schools operating under the brand Varthana has raised $4.43 mn from Omidyar Network and existing investors Elevar Capital and LGT Venture Philanthropy, Switzerland. Bangalore based Varthana is also looking to raise an additional ~$0.8mn from domestic investors to bring the total Series A round to ~$5.25mn. MCap invests ~$6 mn in Ganesh Ecosphere Private equity fund MCap is acquiring ~20% stake in Kanpur-based PET bottle recycling firm Ganesha Ecosphere Ltd through preferential allotment for $5.65mn. The Board recently decided to make the issue of 3.1mn CCPS convertible to 2.75mn equity shares and 0.25mn warrants to the fund. MCAP s fully converted stake would be 19.8% for $5.65mn.. At transaction price of Rs 113 per share, the deal is valued at ttm PE of 6.9x Founded in 1987, Ganesha Ecosphere is engaged in the recycling of post consumer pet bottle waste into recycled polyester staple fibre. The Company posted FY14 revenues of Rs 4,353 mn and PAT of Rs 241 mn Exhilway Global invests in IndiDebt.com Exhilway Global, an emerging market PE fund, has invested $4 mn in upcoming debt funding platform, IndiDebt.com. IndiDebt, founded by Narayan Sen, would allow Indian companies to directly raise debt from the foreign accredited and non-accredited investors via convertible debt bonds. Expected to go live next month Indidebt will enable companies to raise $170,000 - $170 mn on the platform with an investment of minimum of $500 to the maximum of $200,000 on the platform per investor. IndiDebt.com will cater to a maximum of 5 clients p.a., irrespective of their business sector and ticket size. The Exhilway Global s Asian arm will also launch an alternative trading platform called ExhilwayLink.com for investors and the companies from around the globe and also other PE firms looking for an exit in their portfolio companies. SatNav raises $2mn via crowdfunding In a Crowdfunding success story for Indian IT space, Cloud based IT products company SatNav Technologies raised $2mn via Bridge Round Funding from HNIs worldwide. The firm had earlier raised Series A from Sequoia Capital ($7mn in 2008) and BCCL(2007). SatNav has network of 17 Sales Partners across 10 countries and has pioneered products in the areas of navigation. PrettySecrets raises $2M in Series A Online lingerie shop PrettySecrets (MTC Ecom Pvt Ltd), has raised Series A funding from Orios Venture Partners, Indian Angel Network and India Quotient.

3 PrettySecrets.com that offers over 10,000 products had earlier raised around $800,000 from IAN and Harvard Business Angels (India chapter). Lybrate gets $1.23mn funding from NVP Nexus Venture Partners disclosed a $1.23 mn investment in India and US based Lybrate Inc - the company operating healthcare services Lybrate.com. Other investors that participated in the funding round are Vispi Daver, partner at Sierra Ventures, and Gokul Rajaram, head (product) at Square Lybrate is an online and mobile-based platform that connects patients with doctors. Lybrate s service is currently available in over 20 cities, including Bangalore, Mumbai, Chennai, Delhi and Hyderabad. Sarthi Angels invests in M R Organization Sarthi Angels Venture Foundation has invested an undisclosed amount in Gujarat based M.R Organization (MRO) - a one stop solution in Compressed Air Market. MRO claims to have over 40,000 aftermarket replacement non-genuine parts & kits of more than 29 global air compressor brands which are distributed through its network across 16 states in India and 68 countries through exclusive and non-exclusive channels. It has a manufacturing unit and airend rebuilding workshop in Ahmedabad and has overseas offices in USA and UK. eshakti gets funding from IvyCap, IDG eshakti, cutomised women apparel brand, has raised an undisclosed amount of funding from IvyCap Ventures and existing investor IDG Ventures India to scale up its operation, technology and talent. IDG had earlier invested $3mn in eshakti sells across 10,000 cities in the US with design teams based both in India and US. IAN invests in RoboticWares - Fareye RoboticWares Pvt Ltd, operating under brand FarEye has raised an undisclosed amount of funding from Indian Angel Network IAN. IAN members Nitin Jain and Piyush Chawla will join the board of the firm. Founded in 2013, Delhi-based Fareye is a job scheduling & tracking app for mobile workforce. The funds will be used primarily to grow sales and acquire clients as well as for product development. We also plan to improve our technology to be able to operate on a bigger scale. Ratan Tata invests in jewellery e-tailer BlueStone Ratan Tata, chairman emeritus of Tata Sons, has made his second investment, couple of weeks after investing into Snapdeal, by investing an undisclosed amount in Bangalore-based Jewels Online Distribution India Pvt Ltd. Operating as online portal BlueStone, the company offers a range of jewellery. The company recently started manufacturing its own jewellery and now plans to go offline by setting up a physical store soon Healthians.com raises seed funding Expedient Healthcare Marketing Pvt Ltd operating Healthians.com, an online marketplace for preventive health check-ups, has raised an undisclosed amount in seed funding from a healthcare-focused startup accelerator. Founded in April 2014, the Gurgaon based firm will use the funds to build new partnerships, introduce new services like video conferencing with doctors, and expanding operations to new geographies. Healthians has already partnered over 300 hospitals, including Vedanta, SRL and Apollo, besides 70 diagnostic centres across 22 cities with 200 users per day with an average spend of Rs 1,500. The firm charges 5-25 per cent commission on each transaction. ACRE sells 49% stake to SSG Capital Asset Care and Reconstruction Enterprise (ACRE) has sold 49% stake to Singapore-based SSG Capital Management Pte Ltd for an undisclosed amount. ACRE is promoted by IFCI, Punjab National Bank, Tourism Finance Corporation of India and Bank of Baroda. ACRE is now the only asset reconstruction company in India to receive 49% FDI. SSG as a strategic investor will help ACRE augment capital base through which it would be able to participate more actively in the sale of Non-Performing Assets and to acquire large value transactions. Antiques e-tailer Phantom Hands raises funding Phantom Hands Vintage Collectibles LLP, an online shop for antique products, has raised an undisclosed amount in funding from Rajan Anandan, head of Google India and others. The funding will be used to expand to new geographies and add more categories. Protract Consulting gets Angel Investment Protract Consulting, an education management outsourcing firm has secured an undisclosed amount of seed capital from angel investors. Protract EMO provides strategic and integrated solutions towards the improvement of standards, systems, and revenues of Higher Education and is also in the process of setting up India s first Green Business School in association with US based business schools.

4 Blume Ventures has invested in three startups Early stage investor Blume Ventures has announced three new investments in its quarterly report. The value of transactions was undisclosed. App development and marketing company Snaplion was founded by Nikhil Sama (former Director at Rocket Internet), Tapan Raj (one-half of the Indian electronica band Midival Pundit), Rohan Gupta and Aditya Kapoor. Social Blood, founded in 2011 and based in Bangalore is an online network of blood donors, blood banks and hospitals Snapbizz is an e-commerce enabler and marketing company based in Bangalore. Fund Raising & Liquidity Events IFC converts Vinati s FCCBs, > 4x unrealized gains International Finance Corporation that had invested $5mn in Vinati Organics in August 2011 via FCCBs is converting the same into equity, getting 4.4% stake in the company. The Board of Vinati Organics has approved allotment of 2.21 mn equity shares at the conversion price of Rs 100 and at current market price of Rs 425 each translates into over 4x unrealised gains for IFC. Clearwater exits Dolphin Offshore Clearwater Capital Partners has exited Dolphin Offshore Enterprises India by selling its remaining 6.53% stake through open market transactions for undisclosed amount, estimated by news reports to be around $ mn Clearwater had invested into the Company via FCCBs worth $15mn in ChrysCap part exits construction firm NCC ChrysCapital has partially exited its investment in Nagarjuna Construction Company Ltd (NCC). It had invested total of $34.2mn across four transactions in 2011 for 7.8% stake in the company. Carlyle raises $3.9 bn for Asia fund Carlyle Group LP has closed its fourth Asia fund - Carlyle Asia Partners IV (CAP IV) at $3.9 bn. This is the secondlargest private equity fund ever raised for Asia focused investments. The fund corpus is more than 50% of its previous Carlyle Asia Partners III fund and adds to the $140 billion of dry powder that various PE firms have raised for the region. MakeMyTrip floats $15M innovation fund India s leading online travel services firm MakeMyTrip has created an innovation fund worth $15 mn to invest in early-stage ventures operating in the travel and tourism space, with a focus on mobile and IP-based startups. THe NASDAQ-listed firm floated this fund as part of its inorganic growth strategy and take early stage positions. LeapFrog PE raises New Fund Private Equity firm Leapfrog is raising $400 mn for making investments in Asia and Africa with ticket size of $10-50mn The fund will have 25% earmarked for IndiaLeapfrog is backed by investors including George Soros, JP Morgan, American International Group, Europe's second-biggest insurer AXA, Swiss Re, Alliance Trust and Zurich Insurance Group. Founded in 2007, LeapFrog is the largest investment firm focused on micro-insurance products as well as broader financial services for low income consumers in Africa and Asia.. Villgro to launch early-stage social impact fund Social enterprise incubator Villgro plans to launch Rs 200mn early-stage social impact fund by March 2015 and has has received over 50% of the commitment from 10 foundations including Rockefeller, Citi and Lemelson. It recently backed three startups - Ujjeewan Healthcare, Aindra Systems, Scholowiz Educational. Being a not for profit organization with foreign commitments, Villgro has not taken any equity stake in these ventures. Ryerson Futures to launch $5M seed fund in India Ryerson Futures Inc, a Toronto-based technology startup incubator, plans to launch a seed fund of $5 mn in India with ticket size of $50,000 and $500,000 each. Ryerson, in partnership with Bombay Stock Exchange Institute in Mumbai, recently launched a startup accelerator called Zone Startups in India. JP Morgan To Exit Seven Hills Healthcare JP Morgan and promoter Jitendra Das Maganti are planning to sell their majority stake in hospital chain, SevenHills Health valued at $350 Mn. Goldman Sachs has been mandated to find strategic as well as PE buyers for around 75% stake jointly held by the two. JP Morgan had picked up 35% stake through its Asia fund in the healthcare chain in 2008 and further infused $50 Mn last year With the valuation expected JP Morgan is expected

5 clock over 2x returns. Seven Hills has two hospitals in Vishakhapatanam and Mumbai. Private Equity News Premji Invest makes first overseas investment Premji_Invest, the family office of Wipro s Chairman Azim Premji, has participated in the $106 Mn pre-ipo round led by Kleiner, Perkins, Caufield and Byers in US based database management company DataStax Inc. The funds will be used to expand geographically and further enhance technology. Premji Invest with a corpus of Rs 100 bn has earlier invested into Indian companies including Future Lifestyle, Myntra, Carnation Auto and Fortis Healthcare. Hathway Cable to raise funds India s largest cable service operator Hathway Cable & Datacom is raising ~ $24.7 mn through preferential allotment of shares to CLSA Global Market Pte Ltd. The Company has also announced that it will raise $50 mn through a preferential allotment of shares to Small Cap World Fund Inc and American Funds Insurance Series - Global Small Capitalization, which are managed by Capital Research and Management (Capital Group). Manhattan School of Music, New York City for its professional program, international DJs for the DJing courses, and studio & live sound and music production courses authored by The Academy of Contemporary Music, UK. THe fundraise will be used to launch franchises in Delhi, Bangalore, Chennai, Pune and Hyderabad. Pragati India to invest in DeepChand Dialysis Centre Delhi-based dialysis chain Deep Chand Dialysis Centre Private Limited has struck a deal to raise its first round of external funding from Pragati India Fund of ~$4.3 mn Bluegape.com in talks to raise up to $10M Bluegape LifeStyle Pvt Ltd, a fan merchandise & customisation platform, is in talks with three VC firms to raise $8-10 mn in funding. Founded in 2011 the firm is based in Delhi. Shalimar Paints plans to raise funds Asia s oldest paint maker Shalimar Paints plans to raise over $16mn via PE route route to fund its future growth and expansion plans. The mandate has been assigned to Axis Capital. True School of Music plans fund raise Vocational music training firm - The True School of Music, will raise $20 mn for brand building and geographical expansion. Founded by composer Ashu Phatak it has a student base of 60 with international faculty drawn from

6 Merger & Acquisitions During the week ended 12 th September, 2014, there were 10 M&A deals with disclosed value of $114.6mn. Acquiror Target Business Stake (%) Deal value ($ mn) Biocon Syngene International (GE's stake in Biocon's subsidiary) Pharmaceutic Aditya Birla Group Jayshree Chemicals' Chlor Alkali Unit Chemical & A SIS Prosegur ISS' Cash Management Business BFSI Two manufacturing units from Okasa Medispray Laboratories P Group Pharmaceutic KPIT Technologies LimitedImpact Automotive Solutions Auto Ancillar S Chand Saraswati House Education NA Larsen &Toubro Ltd Ramboll Denmark AS Engineering 50.0 NA Peppermint Hospitality Boutique Hotel Management & Marketing Services Hotel NA NA Spice Digital Ltd Vavia Technologies ITeS 26.0 NA SP Lohia Group Industries Chimiques du Sénégal (ICS) Chemical & A NA NA Stock Market Updates Key Domestic Indices Index Indian Market Movements 52 Week 08-Sep Sep-14 Change (%) High Low BSE Sensex 27,320 27, % 27,355 19,265 S&P CNX Nifty 8,174 8, % 8,180 5,735 CNX Nifty Junior 17,582 17, % 17,674 10,975 Nifty Mid Cap 50 3,319 3, % 3,455 1,847 CNX IT 11,168 10, % 11,183 8,005 Bank Nifty 16,207 16, % 16,310 9,583 CNX Infrastructure 3,244 3, % 3,524 2,113 CNX Realty % Source: BSE, NSE Key Global Indices Index Global Market Movements 52 Week 08-Sep Sep-14 Change (%) High Low NASDAQ 4,090 4, % 4,111 3,118 DJIA 17,111 16, % 17,221 14,719 S & P 500 2,002 1, % 2,011 1,646 NIKKEI 15,705 15, % 16,320 13,749 Hang Seng 25,190 24, % 25,363 21,138 DAX 9,758 9, % 10,051 8,490 FTSE 6,807 6, % 6,905 6,317 Source: Yahoo Finance

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