Four-S Private Equity Track Issue: 14 th Oct 19 th Oct 2013 Your Eye to Indian Private Equity PE activity for the week The year 2013 has so far aggregated $6.85 bn of PE investments across 398 deals compared to $7.42 bn (387 deals) during the same period last year. During the week ended 19 th October, there were 8 PE/VC deals worth $102.2 mn compared to 14 deals worth $363.4 mn in the previous week. The largest disclosed transaction during the week was bysilver Lake Kraftwerk investing $41 mn in software development firm Eka Pvt Ltd. 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 9,856 339 387 7,420 398 6,851 YTD 2011 YTD 2012 YTD 2013 PE Investments ($mn) No. of Deals 440 400 360 320 280 240 200 160 120 80 40 0 Private Equity: Investment Summary during the week Investor (s) Silver Lake Kraftwerk Sequoia capital, Others IDFC Alternatives T Rowe Price, Chrys Capital Helion Venture Partners Undisclosed Angel Investors India Quotient Samara Capital Partners Target Eka Pvt Ltd Stake (%) Equity Check in ($Mn) Type of Deal Druva Pvt Ltd NA 25.4 Growth Medi Assist Healthcare Pvt Ltd NA 41.0 Growth IT/ITeS YTD (from Jan 01 to 19 th October) Sector Industry Segment IT/ITeS NA 20.9 Growth Healthcare Infotech Enterprises Ltd 2.7 12.2 PIPE IT/ITeS Mygola Technologies Pvt Ltd NA 1.5 Growth IT/ITeS K2 Learning Resources India Pvt Ltd NA 1.2 Early Education Tyched Web Pvt Ltd (wishberg.com) NA NA Early IT/ITeS Lotus Surgical Specialities Pvt Ltd NA NA Growth Manufacturing Healthcare Insurance Internet Commerce Education Internet Medical Appliances Source: Four-S PE Database Eka raises fund from Silver Lake, Nexus Venture Bangalore-based Eka, a company that builds software for commodity trading has raised $41 mn from Silver Lake Kraftwerk, along with existing investor Nexus Venture Partners. The company would be utilizing the fresh capital for expansion purposes and to acquire new functional capabilities. Silver Lake, the lead investor in the latest round of funding will hold a minority stake. Druva raises third round of funding Data Protection provider Druva has secured series C funding from Tenaya Capital and its existing investors Sequoia capital and Nexus Venture Partners. It has raised $25.4 mn in its third round of funding for its
insync platform. The company, which has offices in California, has raised a total of $42 mn in venture funding so far. The new funding will be used for R&D, expanded global sales and marketing, and expansion of the company's cloud infrastructure to support new deployments. Medi Assist gets investment from IDFC Alternative Bangalore-based Medi Assist Healthcare has received an investment of $20.9 mn from IDFC Alternatives. The funds will be utilized for developing its proprietory technology platform further, while the rest will be used for acquisitions.this is the second round of capital raised by the healthcare service provider following Bessemer Venture Partner s investment in 2011. T Rowe Price and Chrys Capital invests in Infotech Enterprises T Rowe Price and an entity of ChrysCapital have picked 2.73% stake in Infotech Enterprises in the open market from its long term investor General Atlantic for $12.2 mn. The exact stake picked by the two PE funds is not disclosed. Mygola gets investment from Helion Venture Helion Venture Partners has invested $1.5 mn in travel planning startup Mygola.com. The startup has raised Series A round of funding with participation of existing investor Blumberg Capital, iamwire states. The funds will be utilized by the company to expand its presence in U.S from where it gets 25-30% of its revenue.mygola will also utilize the funds for experimenting with various marketing channels, build a better mobile experience and to power growth in general marketing channels. K2 Learning secures angel funding Bangalore-based education startup, K2 Learning has raised $1.2 mn in angel funding to develop tablet labs in 100 colleges. The tablets will have online coursework, games, activities and other data. The startup runs offline classes and also provides online help and content.founded by Sripal Jain in 2010, K2 Learning offers professional commerce courses including Chartered Accountancy, Company Secretary program and IPCC and plans to be the one-stop destination of commerce education. Wishberg gets funding from India Quotient Mumbai-based Wishberg has raised an undisclosed amount of money from India Quotient. Founded by Pravin Jadhav and Kulin Shah, Wishberg lets one wish for almost anything from food to fashion, from books to movies, from adventures to travel, from cars to gadgets. Wishberg was launched in July 2012. The platform focuses on high involvement categories like Travel, Cars, Bikes, Gadgets, Electronics and Real Estate and the company aims to build Social Graph for Product & Purchase Intents. Lotus Surgical raises PE funding from Samara Capital Samara Capital Partners has struck its third known investment in the healthcare sector by picking stake in Mumbai-based medical consumables maker Lotus Surgical Specialities Private Limited.Samara Capital has earlier invested in companies like pharma chain Guardian and diagnostic services provider Thyrocare Technologies. Fund Raising & Liquidity Events General Atlantic sells stake in Infotech Enterprises General Atlantic Partners has further cut its stake in Infotech Enterprises as the Hyderabad-based firm's scrip hit 52-week high on Friday. The PE firm sold 2.73% stake in the market for $12.2 mn. The shares were picked up by T Rowe Price and an entity of ChrysCapital. India Quotient closes maiden fund Early stage investment firm India Quotient as closed its maiden fund at $4.9 mn with capital from investors like Omidyar Network, SIDBI, Times Internet, Ronnie Screwvala s Unilazer Ventures, among others, reported Startup Central quoting its co-founder. The round also saw participation from angel investors like Vijay Shekhar Sharma, founder and CEO of One97, and Uday Sodhi, CEO of HeadHonchos, among others. The funds will be utilised for product development as well as adding engineering and design talent. Landmark exits Wave Group project Delhi-based real estate investment firm Landmark Holdings has exited its investment in Wave Group s 4,500 acre Hi Tech City project in Ghaziabad for $56 mn making over 3x on its original investment.the private equity player had invested around $18.5 mn in the project in 2008. The developer bought back the stake held by the investment firm.
Private Equity News Snapdeal plans fund raising Ecommerce marketplace, Snapdeal.com is planning a fresh round of fund raise to the tune of $150-200 mn from Japanese telecommunications giant SoftBank and a group of other PE investors. ebay which had earlier picked up under 10% stake in the company is also evincing interest to hike its stake. In April this year, ebay had invested $50 mn along with existing investors which include BVP, Nexus Venture and IndoUS Venture Partners. In June, Intel Capital, Russian venture fund ru-net and Saama Capital added another $50 mn to the round which began in April. Kauvery Hospital plans PE fund raise Chennai-based Kauvery Hospital is planning a second round of PE funding to expand operations by setting up 1,000 beds in next three years with an investment of $16.7 mn. The investment would be a mix of debt and equity.as a leading chain of hospitals with a presence in Chennai and Trichy in the state of Tamil Nadu, India, Kauvery hospital has long been at the forefront of the hospital industry offering various healthcare services.the company plans to set up four to five hospitals with around 200 beds each in tier 1, tier 2 cities in Tamil Nadu. Xander in talks to acquire Shriram's Gateway SEZ Foreign investor Xander is in talks to acquire an IT SEZ in Chennai from Shriram Group for $115 mn. Located near Tambaram, Shriram The Gateway SEZ is designed as an integrated development project comprising 6 mn sqft of IT/ITES SEZ offices and about 2.5 mn sqft of residential development.the entire campus measures about 58 acres, of which 40 acres is designated for IT offices. The residential enclave is designed adjacent to the SEZ and measures about 18 acres. LalitGangadhar Constructions looking to raise funds Lalit Gangadhar Constructions Pvt Ltd (LGCL), a Bangalorebased realty company promoted by Girish Puravankara, is looking to raise close to $8 mn. With this investment, company s investment partner Kotak Reality Fund is likely to get an exit. In 2008, Kotak Realty Fund had invested in both the parent firm and separately in projects being developed by the firm. HomeShikari.com in talks to raise PE funding HomeShikari.com, a real estate marketplace owned and operated by Bangalore-based business group TTK Pvt Ltd, is in talks with a few Indian VC investors to raise up to $5 mn to expand to 7-8 cities in the next couple of years.the firm is looking to be present in 7-8 cities in the next couple of years, with Mumbai and Delhi getting first priority. Hippocampus eyes up to $5 mn in fresh funding Karnataka-based rural education service provider Hippocampus Learning Centres (HLC), which received its previous funding over one year ago, is doing the groundwork for its next round of private funding which it plans to close next year. The firm has previously raised cash from Lok Capital, Acumen, Unitus Seed Fund besides few angel investors. IPO & Other offerings SSIPL appoints bankers for IPO SSIPL Retail Pvt Ltd (formerly Moja Shoes), a company which manufactures shoes for various international brands and is also a retailer for Nike in India, has decided against the idea of raising a private equity round and is going for its IPO for raising funds. The company is expected to come with its offering in the second half of FY14.
M&A Activities Acquiror Target Business Stake (%) Deal value ($ mn) ONGC Ltd Campos Basin of Brazil Oil & Gas 12 526.0 Bupa Inc Altai Investments Ltd (Fortis Healthcare Ltd) Healthcare 100 355.0 The Middleby Corporation Celfrost Innovations Pvt Ltd Food & Beverage 100 20.0 Voltas Ltd Rohini Industrial Electricals Pvt Ltd Electricals 16 NA Qualcomm Inc (Wireless Venture in Bharti Airtel Ltd India) Telecom 49 NA Phoenix Mills Ltd Offbeat Developers Pvt Ltd Real-estate 29.29 NA Stock Market Updates Key Domestic Indices During the week ended 19 th October, 2013, there were 6 M&A deals worth $901.0 mn (Size of 3 deals was not known). In the largest transaction during the week, an ONGC Ltd through its subsidiary ONGC Videsh Ltd acquired Campos Basin of Brazil for $526 mn. Index Indian Market Movements 52 Week 07-Oct-13 12-Oct-13 Change (%) High Low BSE Sensex 20528.6 20882.9 1.7% 20882.9 15749.0 S&P CNX Nifty 6096.2 6189.4 1.5% 6229.5 5975.6 CNX Nifty Junior 11827.8 11866.6 0.3% 12798.1 12322.6 Nifty Mid Cap 50 2003.5 2022.3 0.9% 2486.5 2060.3 CNX IT 8870.2 8893.9 0.3% 8870.2 6298.7 Bank Nifty 10622.2 10744.9 1.2% 13414.3 12735.1 CNX Infrastructure 2271.0 2300.7 1.3% 2684.7 2363.0 CNX Realty 174.3 174.3 0.0% 312.3 154.8 Source: BSE, NSE Key Global Indices Index Global Market Movements 52 Week 07-Oct-13 12-Oct-13 Change (%) High Low NASDAQ 3791.9 3914.3 3.2% 3914.3 2726.7 DJIA 15237.1 15399.7 1.1% 15542.4 12035.1 S & P 500 1703.2 1744.5 2.4% 1690.5 1266.7 NIKKEI 14404.7 14561.5 1.1% 14381.3 8239.0 Hang Seng 23218.3 23340.1 0.5% 23944.0 19426.0 Straits Timex Index 3179.7 3192.9 0.4% 3464.8 3160.8 FTSE 6487.2 6622.6 2.1% 6720.1 5229.8 Source: Yahoo Finance
About Four-S Four-s is a boutique firm focusing on cutting-edge Financial Research, Business Advisory and Investment Banking services for clients. Through our deep research into India's high growth industries and accurate and objective advice we have helped many marquee institutional investors take informed investment decisions in private equity and public markets. Four-S has proven success in business advisory, investment banking and investor relations mandates with 100+ corporate clients and large PE funds. For further information on the company please visit www.four-s.com Disclaimer The information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, is made as to the fairness, accuracy or completeness of any information, projections or opinion contained in this document or upon which any such projections or opinions have been based. Four-S Pvt. Ltd. will not accept any liability, whatsoever with respect to the use of this document or its content. This document has been distributed for information purposes only and does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document shall not form the basis of and should not be relied upon in connection with any contract or commitment whatsoever. This document is not to be reported or copied or made available to others. The Company may from time to time solicit from, or perform consulting, or other services for, any company mentioned in this document. For Further details/clarifications please contact: SeemaShukla Email- seema@four-s.com Address: Gurgaon Four-S Pvt. Ltd. 214, UdyogVihar Phase-I, Gurgaon -122016 Haryana, INDIA Tel: +91 124 4251443 +91 9810408474 Mumbai Four-S Pvt. Ltd. 501, A C Market, Tardeo Mumbai -400034 Tel: 022-42153659