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 $1.3 bn of PE investments across 153 deals compared to $1.9 bn (101 deals) during the same period last year. During the week ended 29 th Private Equity: Investment Summary during the week Investor (s) Anurag Dixit, Others Target Next India Pvt Ltd Stake (%) Equity Check in ($Mn) Type of Deal , , ,260 YTD 2012 YTD 2013 YTD 2014 PE Investments ($mn) No. of Deals Sector Industry Segment NA 60.0 Growth Services WestBridge Capital AIA Engineering Ltd PIPE Manufacturing Capital Goods ChrysCapital Torrent Pharma Ltd NA 20.0 PIPE Manufacturing Xander Trent Ltd PIPE Services Retal WestBridge Capital Avalon Ventures, Nexus Venture Partners Incofin IM s Rural Impulse Fund II, Others Tata Capital Healthcare Fund March, there were 14 PE/VC deals worth $158.8 mn compared to 9 deals worth $48.9 mn in the previous week. The largest disclosed transaction during the week was by Anurag Dixit investing $60.0 mn in Next India Pvt Ltd. Cholamandalam Investment & Finance Co Ltd Chemical & Allied Products Engineering Components Pharmaceutical Speciality Retail PIPE Services BFSI NBFC Indix NA 8.5 Growth Services IT/ITeS Data Analytics Annapurna Microfinance Private Ltd YTD (from 01 st Jan to 29 th March) NA 5 Growth Services BFSI Micro Finance Sandor Nephro Services Pvt Ltd NA 3.5 Growth Services Healthcare Dialysis Chain Kalaari Capital Germinait Pvt Ltd NA 3.0 Growth Services IT/ITeS Data Analytics Aspada NeoGrowth Credit Pvt Investment Ltd Company NA 1.7 Growth Services BFSI NBFC Lok Capital, Everest Edusys Pvt Ltd NA 1 Growth Services Chennai Angels Products Chennai Angels, Skyfi labs Pvt Ltd NA NA Growth Services Spark Capital Products ChrysCapital LiquidHub NA NA Growth Services IT/ITeS IT Services

2 Times Internet Ltd GradeStack Pvt Ltd NA NA Growth Services Source: Four-S PE Database Ed-tech firm Next raises angel funding Anurag Dixit, who made his fortune from online poker firm PartyGaming, has made a large bet on India's rising education sector by investing in Hyderabad-based Next India Pvt Ltd by investing around $60.0 mn in the firm. The other investors include Deependra Bhartari, Kedar Choudhary and Raveendranath Kamath all former executives at PartyGaming. Next was founded in It has created classroom-friendly and learner-centric products that are transforming the lives of students across India in various cities.there are around 6 million students studying in 6000 partner schools. WestBridge Capital picks stake in AIA Engineering Private equity firm WestBridge Capital has picked around 2.83% stake in Ahmedabad-based engineering components maker AIA Engineering for around $24 mn through open market transaction. AIA Engineering manufactures and designs engineering components for various industries such as cement, mining and thermal power generation. The company also provides services for installation of high chromium wear and corrosion and abrasion-resistant parts used in these industries. According to its website, AIA is the second largest hichrome casting producer in the world. ChrysCapital buys stake in Torrent Pharma Private equity firm ChrysCapital has quietly built a small stake in Ahmedabad-based drugmaker Torrent Pharmaceuticals Ltd for around $20.0 mn. ChrysCap had previously picked stake in another public listed pharma company Ipca Labs. Xander buys 3% more in Trent Global investment firm Xander has hiked its holding in Tata group s public listed retail company Trent Ltd. It acquired an additional 3% stake in Trent for $18.0 mn from its own co-founder Siddharth Yog. With the latest deal it would own over 5% in Trent. Xander has exposure of 1-2% in various public listed companies but this is the first time when it owns as much as 5% stake in a listed entity. WestBridge buys into NBFC Cholamandalam Public markets focused Indian private equity firm WestBridge Capital has struck its fourth new investment since January 1 by picking shares of Chennai-based nonbanking finance company (NBFC) Cholamandalam Online Investment & Finance Co Ltd. The deal is worth $14.1 mn for 2.1% stake. Cholamandalam, a financial services arm of Murugappa Group, primarily focuses in the rural and semiurban sector with 90% presence across tier III and tier IV towns and has a loan portfolio of around over $3 bn. Indix Secures Series A Funding Big Data startup, Indix has raised $8.5 mn in Series A round from its existing investors Avalon Ventures and Nexus Venture Partners. The latest round of funding will be used to boost its R&D operations in India. Founded in 2012, Indix is a Saas and big data analytics company. Its product offerings include a product intelligence application for brands and retailers, and APIs for products, prices, promotions, stores and more to power business systems and consumer applications. BIO, Rural Impulse Invest In Annapurna Microfinance Annapurna Microfinance Private Ltd has raised $5.0 mn in Series B funding led by Belgian Investment Company for Developing Countries (BIO) along with participation from existing investor Incofin IM s Rural Impulse Fund II. The investment will help the MFI in providing technology based innovative financial solution to thousands of SHGs. Founded in 2009, Annapurna Microfinance (AMPL) is a Central Eastern geography based MFI, active in Orissa and Chhattisgarh provides livelihood support to the financially underserved households in the Central Eastern region. It contributes towards establishing a self-sustainable and economically empowered rural, tribal & sub-urban society. Tata Capital Healthcare Fund invests in Sparsh Nephrocare Hyderabad-based Sandor Nephro Services Pvt Ltd, which runs a dialysis chain under the brand Sparsh Nephrocare, has raised its first round of investment of around $3.5 mn from Tata Capital Healthcare Fund. The company runs 20 dialysis centres and plans to add 100 more in a few years. Big Data Firm Germin8 raises PE funding Mumbai based big data analytics company Germinait Pvt Ltd has raised $3.0 mn in Series A round from Kalaari Capital. Proceeds from the latest round will be used to scale its R&D operations and expand into international market. Founded in 2008, Germin8 offers an analytical tool Explici8, which help companies to analyse stakeholder

3 conversions drawn from social media and news as well as from private sources such as s and chats. Everest Edusys Gets Investment Chennai based startup Everest Edusys Pvt Ltd has raised around $1.0 mn in Series A round from Lok Capital and Chennai Angels. Proceeds from the latest funding will be used to expand its network of science labs in schools across South India. Founded in 2011, Everest Edusys provides schools and teachers exhibit based education for students. It has developed a range of tools that are being deployed in over 100 schools reaching above 20,000 children. NBFC NeoGrowth Credit gets Investment Mumbai based NBFC NeoGrowth Credit Private Ltd has raised $1.7 mn from Aspada Investment Company. NeoGrowth Credit is SEBI registered non-deposit NBFC that extends short term working capital and inventory loans to small merchants in India against future credit and debit card sales. Currently its area of operation is Mumbai and we have plans to expand to all metropolitan regions. Edu-Startup Skyfi Raises Funds Bangalore based Skyfi labs has received an undisclosed amount of investment from Chennai Angels and Spark Capital. The funding will be used to expand its offerings, reach and upgrade its technology. Founded in 2010, Skyfi Labs provides Indian engineering students practical training. It develops structured training programs that involve both offline and online activities to help students acquire relevant skills in the areas of Computer Science, Mechanical and Electrical Engineering. LiquidHub Secures Funding From ChrysCapital Digital integrator LiquidHub has secured Series B funding from ChrysCapital to support its growth plans which include an emphasis on strategic mergers and acquisitions to become a leader in the digital customer engagement services market. Founded in 2001, LiquidHub is a digital integrator that partners with businesses to improve customer engagement and drive growth. GradeStack Secures Funding From Times Internet GradeStack, an online course store for students has raised an undisclosed amount of funding from Times Internet Ltd. Founded in 2013, Gradestack is a mobile course store that allows users to take courses for GRE, CFA, CBSE boards on their smartphones or desktop. GradeStack right now offers more than thirty courses and adds 8-10 courses to the store every month. The company has partnered with publishers and institutes to create mobile-ready content with features like assessments, flashcards, and discussions. The app is currently available on Android and will soon be available on ios. Fund Raising & Liquidity Events IFC part exits NBFC Cholamandalam International Finance Corp (IFC), the private sector investment arm of the World Bank, has partially exited its investment in Chennai-based non-banking finance company (NBFC) Cholamandalam Investment & Finance Co Ltd. The PE fund sold 2.1% stake for $14.0 mn to another PE frim WestBridge Capital. It held 8.26% stake as of December 31, Goldman Sachs part exits Bharti Infratel with haircut Goldman Sachs, which had invested in Bharti Airtel s telecom tower arm six years ago, has made a part exit by selling over 0.6% stake for $37 mn. This marks a 10% loss compared with the cost of purchase in rupee terms but accounting for the depreciation in currency against the dollar, it would translate into almost 40% haircut for the foreign investor in dollar terms. Frontline Strategy exits Valiant Communications, Alfa Transformers Strategic Ventures Fund (SVF), managed by Indian private equity firm Frontline Strategy, has exited two of its eightyear old investments in Valiant Communications Ltd and Alfa Transformers by selling its entire stake in the companies, incurring a loss of around 70-80%. Frontline Strategy has been active in the India PE scene for more than a decade and has raised two funds Strategic Ventures Fund and India Industrial Growth Fund. IL&FS PE exits City Centre Mall project in Nashik 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 exited from City Centre Mall project in Nashik which is expected to be at a loss.

4 Recently it also exited a retail project investment in Pune with a haircut. Private Equity News Solaron raising funding from IAN Bangalore-based Solaron Sustainability Services Pvt Ltd, a Big Data and cloud-based rating agency which offers ESG (environmental, social and corporate governance) services to international institutional investors, is close to raising an undisclosed amount in funding from Indian Angel Network (IAN). Through on-the-ground investment research, Solaron provides information via primary and direct data collection, and reduces the investment community s over dependence on publicly available information. Orios Venture Plans Fund Raise To Back Startups Rehan Yar Khan is in talks with HNI and few institutional investors to raise around $40-50 mn for its fund, Orios Venture. The new fund will provide seed capital to startups, who build technology based products. Orios Venture Partners is an early stage venture fund which primarily invests in software and technology-enabled startups. Since its inception, it has invested in 15 companies which includes security software maker Druva, video technology provider Vuclip, car rental service Olacabs, Preetsecrets, Jigsee, Unbxd, DocSuggest, IndiaCollegeSearch are among others. Sula Shipping Plans PE Fund Raise Delhi based Sula Shipping & Logistics Private Ltd is planning to raise around $150.0 mn from various PE investors to fund its business plans. The logistics shipping company is close to signing three large projects of which the smallest project has capex of $50.0 mn. The fund raising plans are in context of Sula s line-up of projects for the next two-three years. Founded in 2011, Sula Shipping offers global logistics services and solutions from India. It brings cargo from deep waters and then trans-ships it into shallow waters through smaller ships, which helps clients save costs by as much 15-20%. Cleartrip Plans PE Fund Raise Online travel agency Cleartrip Travel Services Private Ltd is looking to raise funds around $50.0 mn through PE route and is in various stages of appointing an investment banker to start the process. Established in 2006, the company is mainlyengaged in providing online travel services through its website, cleartrip.com. Its services include online booking and reservationservices, booking status, schedules and guides for both international and domestic flights, trains and hotels, IRCTC railwaysreservation and PNR status. Aloe eyes first close of new cleantech fund next quarter Aloe Private Equity, which recently launched its fourth fund, hopes to hit the first close for the new Asian cleantech fund at $75.0 mn towards the end of next quarter. The PE firm expects to have a portfolio of over half dozen firms from the new fund. General Atlantic, Apax Partners To Buy Stake In PNB Housing General Atlantic LLC and Apax Partners are planning to acquire Destimoney s 49% stake in PNB Housing Ltd. PNB Housing Finance Ltd is a registered housing finance company with National Housing Bank. It provides housing loans to individuals and corporate bodies for construction, purchase, repair and upgradation of houses. It also provides loans for commercial space, loan against property and loan for purchase of residential plots. Grocery Retailer Greenz Seeks PE Funding Hyderabad based Greenz is planning a PE fund raise to expand in the regions of Bangalore and Chennai. The expansion will help the organization tap a turnover of $16.6 mn in a couple of years. Green Infrastructure Project Private Ltd (GIPPL)'s fruits and vegetables store Greenz deliver clean products within 24 hours of the farmers delivering it at pack-houses. They have four pack-houses located in Telangana with collection centres across the country. It enables to buy the daily needs of freshly harvested produce without having to stock. GVFL To Float Fund For Japanese Ventures Ahmedabad s Gujarat Venture Ltd is planning a $1 bn fund exclusively for Japanese ventures in Gujarat. The company is on expansion mode and is in talks with Japanese and other South East Asian investors to invest through fund. The $1 Bn PE fund will see ticket size of around $33 to 83.3 mn per venture and will act as growth capital. GVFL hopes to achieve financial closure for the Japanese fund by Aditya Birla PE To Invest In Adlabs Imagica Aditya Birla PE is planning to acquire 6% stake in entertainment theme park Adlabs Imagica for $16.7 mn. The capital raised will be used to build a water park and a

5 hotel. The company is going for pre-ipo placement and plans to raise around $70-80 mn through public offer. Promoted by Manmohan Shetty, Adlabs Imagica is the flagship venture of Adlabs Entertainment Ltd. The 300- acre theme park, situated on the Mumbai-Pune Expressway, was set up with an initial investment of about $200.0 mn. Satya Group to raise funding for residential project Gurgaon-head quartered real estate developer Satya Group is in advanced stages of discussion with investors to raise over $25.0 mn for a residential project. The company is talking to multiple investors and discussions have reached the term-sheet stage. colleges Srigayatri Academy is looking to raise $15 mn. The firm has revenues of around $20.0 mn. Women s apparel brand Jashn looks to raise funding Mumbai based women s ethnic wear brand Jashn is looking at raising $13.0 mn through private equity (PE) investors. In January this year, Future Lifestyle Fashions picked 27.5% stake in women s fashion apparel brand Desi Belle. Reliance PE to invest in Dembla Reliance Private Equity is in an advanced stage of discussions to invest $2.5 mn in Dembla Valves Limited (DVL), a Maharashtra-based manufacturer of fluid control valves. Srigayatri Academy looking to raise funding Ramky Group-backed educational institution that runs coaching classes for competitive exams and residential M&A Activities During the week ended 29 th March, 2014, there were 11 M&A deals worth $16.5 mn. The largest deal during the week was by Golden Oak (Mauritius) Ltd acquiring undisclosed stake in FTIL s India Energy Exchange for $12.0 mn.

6 Acquiror Target Business Stake (%) Deal Value ($ mn) Golden Oak (Mauritius) Ltd FTIL (India Energy Exchange) BFSI NA 12.0 Natronix Semiconductor Technologies Southern Petrochemical (SPEL Limited) Oil & Gas Mallya Hospital Medinova Diagnostic Services Ltd (Bangalore Facility) Healthcare Lupin Ltd Laboratorios Grin, S.A. De C.V. (Grin) Chemical & Allied NA Patni Brothers Waterfield Advisors Pvt Ltd Consulting NA Harrow Investment Holding Ltd Redington (India) Ltd (Easyaccess) BFSI 14.0 NA Global Analytics Holdings Inc Workpays LLC IT/ITeS NA Arvind Ltd Wholesale Trading Pvt Ltd RMG 49.0 NA Butterfly Gandhimathi ApplianceLLM Appliances Ltd (Manufacturing Consumer NA JWT Unit) Social Wavelength Pvt Ltd Media 55 NA IFCI Stock Holding Corporation of India (IDBI's Stake) BFSI NA Stock Market Updates Key Domestic Indices Index Indian Market Movements 52 Week 24-Mar Mar-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 24-Mar Mar-14 Change (%) High Low NASDAQ % DJIA % S & P % NIKKEI % Hang Seng % Straits Timex Index % FTSE % Source: Yahoo Finance

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