Four-S Private Equity Track

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1 Four-S Private Equity Track Issue: Your Eye to Indian Private Equity PE activity for the week The year 2014 has so far aggregated $1.5 bn of PE investments across 175 deals compared to $2.9 bn (128 deals) during the same period last year. During the week ended 12 th April, there were 7 PE/VC deals worth $74.7 mn compared to 15 deals worth $169.1 mn in the previous week. The largest disclosed transaction during the week was by CDC Group, Asia Capital and others investing $54.6 mn in Ratnakar Bank Ltd. Private Equity: Investment Summary during the week , , ,504 YTD 2012 YTD 2013 YTD 2014 PE Investments ($mn) YTD (from 01 st Jan to 12 th April) No. of Deals Investor (s) CDC Group, Asia Capital, Others Target Stake (%) Equity Check in ($Mn) Type of Deal Sector Industry Segment Ratnakar Bank Ltd NA 54.6 Growth Services BFSI Banking Walden International, Qualcomm Ventures, Others IDG Ventures, Unilazer Ventures, others Ineda Systems Pvt Ltd NA 17.0 Growth Manufacturing Electronics Semiconductor SilverEdge Technologies Pvt Ltd NA 1.5 Growth Services IT/ITeS Internet Services Accel Partners Neev Knowledge Education NA 1.5 Growth Services Education Management Pvt Ltd Services Angel funding Wits Solutions Pvt Ltd NA 0.1 Early Services IT/ITeS Software Ah! Angels, Venture Nursery, Calcutta Angels Starting Blocks Media Ventures Pvt Ltd (Catapooolt) NA NA Growth Services IT/ITeS Internet Services Unitus Free3 Healthcare Pvt Ltd NA NA Early Services Healthcare Clinics Source: Four-S PE Database Ratnakar Bank raises third round of funding Ratnakar Bank Ltd has raised around $54.6 in third round of funding from CDC Group, Asia Capital and Advisors along with participation from existing investors IFC and Gaja Capital. The funds will be used to expand its branch network in semi-urban and rural areas and in providing a suite of financial products and services to the unbanked sections of society. As of March, 2014, RBL Bank has grown to a network of 175 branches and 350 ATMs across 12 Indian states. Ineda Systems secures series B round of funding Hyderabad based semiconductor startup Ineda Systems Pvt Ltd has raised $17.0 mn in Series B round led by Walden International, Samsung Catalyst Fund, Qualcomm Ventures, IndusAge along with the participation of other existing investors. Proceeds from the latest round will be

2 used to form ultra power semiconductors and software that can be used in wearable segment. SilverEdge raises PE funding Delhi based startup SilverEdge has raised $1.5 mn from IDG ventures and Unilazer Ventures along with participation of existing investors GSF Accelerator and Dave McClure (Founder of 500startups). Proceeds from the latest round will be used to expand its existing team in the US. Founded in 2012, SilverEdge is an advertising company which operates SilverPush platform that allows consumer brands to track users across the mobile web and apps. The firm notable clientele list includes Dominos, Toyota, Samsung and Airtel with other office in San Francisco. EduPristine secures series A from Accel Partners Mumbai based Neev Knowledge Management, a company that offers finance courses under the brand name EduPristine has raised $1.5 mn in Series A round from Accel Partners. Founded in 2008, EduPristine provides certified finance training courses like GFA,FRM, PRM for current graduate students as well as professionals with B.Com, BMS/BBA, CA, CFA, CS, ICWA, MBA/MMS, and M.com. Currently, it offers more than 25 courses with presence more than 8 cities in India and an online presence in 40 global locations abroad. Wits Solutions raises angel funding Bangalore based Wits Solutions has raised funding of $50K from Devindra Mankare of Clockwork Business Solutions. Wits Solutions, started in 2013, develops user friendly mobile application and provide other services like digital marketing, custom software development, product engineering, and also QA/Testing & Website Development. Crowdfunding platform Catapooolt raises funding Mumbai based Crowdfunding platform Catapooolt has secured an undisclosed amount in seed round from Ah! Angels, Venture Nursery and Calcutta Angels. Launched in July 2013, Catapooolt enables entrepreneurs to engage with communities to raise funds and resources through its platform. It is now endeavouring to leverage the power of Crowdfunding in unique project categories including sports, politics, social enterprises and start-ups apart from creative projects. Smile Merchants secures seed funding Mumbai based Smile Merchants, a dental clinics chain owned by Free3 Healthcare Pvt Ltd has raised an undisclosed amount in seed round from Unitus. The latest round of funding will be used to expand its footprint into other areas of Maharashtra and other states as well. Two years old company, Smile Merchants provides dental services to semi-urban & rural population of India. The company is aiming to improve the national standards of oral health by opening up a nation-wide chain of dental clinics in non-metros areas. Fund Raising & Liquidity Events Milestone Capital exits Pune commercial property PE firm Milestone Capital Advisors has exited its investment in a 2.5 lakh sq ft commercial property in Pune for about $24.0 mn. The firm held an undisclosed stake in the project which was sold to a high-net-worth individual (HNI). The investment was made way back in 2008 and the operational property currently houses offices of names like Reliance Communications, Standard Chartered and Vodafone. IL&FS PE exiting Phoenix United Mall project IL&FS Investment Managers Ltd (IIML) or IL&FS PE, the country s largest home-grown private equity firm by assets under management (AUM), has negotiated an exit for its investment in Phoenix United Mall Project. The exit is expected to be made on loss. Proposed to be jointly developed with The Phoenix Mills and another realty venture, the project did not move beyond land acquisition stage. Private Equity News AION to invest in Mercator The special situation fund launched by AION Capital Partners is making an investment of $70-75 mn in a diversified conglomerate Mercator Ltd. AION will invest through a structured deal, with a combination of equity and debt. BSE listed Mercator group has diversified business interests in Coal, Oil & Gas, Commodity Transportation and Dredging. The company expanded its oil and gas business recently by acquiring an LPG carrier from Varun Shipping Ltd and will use the fund for further vessel buyouts and clearing its debts.

3 Avendus Capital partners Zodius Capital to float fund Avendus through its Alternate Asset Management subsidiary along with Zodius is planning to float a fund and invest in $ mn in India-centric Digital and SMAC Businesses. The duo planned fund Zodius Capital II will invest primarily in late-stage and pre-ipo companies in the next 3-4 year. The targeted Digital Business investments would cover both Internet and Mobile, and areas such as Media, Commerce and Consumer Services. LIC's realty fund to invest in four housing projects LIC Housing Finance Ltd maiden realty fund LICHFL Urban Development Fund has made four investments in midincome housing projects in Pune and Bangalore. The fund with a corpus of around $88.0 mn focuses on investing in housing projects, putting in around $10-12 mn in each transaction. It is looking to close 4-5 deals this year investing around $33.3 mn. The fund will also invest in IT enabled services and warehousing projects. Rajasthan VC fund targets for third fund Rajasthan Venture Capital Fund (RVCF), which essentially chases investments in small and medium enterprises (SME), is targeting corpus of around $83.0 mn for its third fund and has started talks with domestic and overseas investors. The venture fund is looking to make the first close within six months. Dodsal Group to exit QSR business Dubai based Dodsal Group is in talks to sell its Pizza Hut s India food business and has appointed boutique investment bank Euromax Capital to scout for buyers. The company is being valued at around $33.3 mn. Kilachand family, the owners of Dodsal would focus on its engineering and construction business in the Middle East and exit the QSR food business which it operates with 86 retail restaurants. Pizza Hut, KFC and Taco Bel are three flagship brands of US based Yum! International. The Dodsal promoted Group owns the franchisee rights for South and West India and runs six KFC quick service restaurants in Mumbai and Bangalore. Ashoka University plans to raise funds Liberal art university, Ashoka University is planning to raise around $66.6 mn from businessmen, NRI s and other HNI s. The co-founders of the company have invested $16.6 mn to build the university. Ashoka University is a philanthropic initiative by some of the most eminent scholars and visionaries. It is being set up as an independent non-profit private university established by the Haryana Private Universities Act. Music portal Bajaao.com plans PE fund raise Mumbai based online portal Bajaao.com is raising up to $6.0 mn from two US-based investors. The funds will be used to expand the company s operations in small towns, add more musical instrument categories and labels, besides introducing its own private label. Started in 2005, the venture is the online retailer for musical instruments and pro-audio equipment. istreet Network looks to raise funds istreet Network Ltd is planning to raise up to $16.7 mn for expanding its internet retail Store Network istreet Bazaar. The funds will be used for building fulfillment facility, upgrading software for strengthening its back-end technologies, introducing new opportunity to the network partners, operations and working capital. The company aims to set up 1100 stores during the current fiscal year and 2800 by the end of Social VC firm Gray Ghost aims to raise new fund Social venture investment firm fund Gray Ghost Ventures is looking to raise its third fund with a corpus of $60.0 mn and is looking to invest in three companies this year after its closes the fund in June, according to a news report by The Economic Times citing a top company executive. The proposed new fund by Gray Ghost, which has $80.- million in assets under management, will make investment in companies that leverage the mobile platform, mostly for financial services. IFC to invest in Lucid Colloids International Finance Corp (IFC), the private sector investment arm of the World Bank, is investing $30.0 mn through a combination of equity and long-term debt in Lucid Colloids Ltd, one of the top four producers of guar gum. The Lucid Group manufactures, markets and distributes natural, modified and derivatised hydrocolloids like guar, tamarind and cassia, gum blends, emulsifiers, food stabiliser systems, nutritional ingredients, food additives and ingredients, foodstuffs, agro commodities and fine chemicals. Digital media Startup PK Online plans fund raise To consolidate its technology platform and brand building, PK Online, a digital media startup is in talks with VC funds to raise around $16.7 mn in its first round of funding by mid this year. Nirvana Venture and Bertelsmann India

4 Investments are the two VC funds, who are looking forward to pick up 25%-30% stake in the company. The current funding is aimed to fuel its expansion plans for next 3-4 years. Utthishta Yekum Fund to target tech startups Hyderabad-based Utthishta Management Advisors LLP is planning to target close to 20 tech startups a year through its maiden seed fund named Utthishta Yekum Fund a fund with a corpus of around $12.0 mn. The fund seeks to invest in mobility, software, analytics and cloud computing startups. The fund which has till now made 7 seven investment which include New Delhi-based GreatWideOpen, an adventure travel company, and Claimback, which takes care of customer grievances against brands, and Hyderabad-based happyweddings.com. Affine Analytics in talks to raise Series A Bangalore-based Big Data firm Affine Analytics is in talks to raise its Series A round of funding led by Helion Venture Partners. In November 2012, the company raised around $1.0 mn in angel funding. Soch looks to raise PE funding Bangalore-based women ethnic wear brand Soch is looking at raising up to $20.0 mn through private equity funding to support its expansion plans. Recently, Everstone Capital picked a minority stake in fashion label Ritu Kumar.

5 M&A Activities During the week ended 12 th April, 2014, there were 4 M&A deals worth $3.2 bn. The largest deal during the week was by Sun Pharma Ltd aquiring 63.7% stake in Ranbaxy Ltd for $3.2 bn. Acquiror Target Business Stake (%) Deal Value ($ mn) Sun Pharma Ltd Ranbaxy Ltd Pharmaceutical Steel & Tube Holdings Tata Steel Ltd (Tata Steel International (Australasia) Ltd) Metal-Steel Clay Craft India Pvt Ltd Jaipur Ceramics Pvt Ltd Ceramics NA EverPower Wind Holdings Inc Suzlon Ltd (Big Sky Wind Park Inc) Windpower NA Stock Market Updates Key Domestic Indices Index Indian Market Movements 52 Week 07-Apr Apr-14 Change (%) High Low BSE Sensex % S&P CNX Nifty % CNX Nifty Junior % Nifty Mid Cap % CNX IT % Bank Nifty % CNX Infrastructure % CNX Realty % Source: BSE, NSE Key Global Indices Index Global Market Movements 52 Week 07-Apr Apr-14 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance

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