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December 06, 2017

The Billion Dollar Club of Indian Private Equity

With SAIF Partners India becoming the latest to join the list of India-focused Private Equity - Venture Capital firms with $1 Billion Assets Under Management (AUM), Venture Intelligence presents the league table of such investors. (Note: The data focuses on Private Equity and Venture Capital funds and excludes Real Estate funds.)




Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

December 04, 2017

PE exits through IPOs cross $1 billion in 2017: Mint

A Mint article quotes Venture Intelligence data on Private Equity and Venture Capital Exits through IPOs:
In yet another successful year of exits, private equity (PE) funds sold shares worth $1.17 billion in 2017 as their portfolio companies went public, data from Venture Intelligence shows. 
The figure is almost 25% higher than the $935 million they sold through initial public offerings (IPOs) in 2016. In 2015, PEs sold stocks worth just $287 million in IPOs.
These factors have led to an increase in the contribution of IPOs to overall PE exits, from a 3% share of overall exits worth $9.95 billion in 2015 to about 12% share of $9.97 billion exits so far in 2017, data from Venture Intelligence shows.
(Click to View)

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

December 01, 2017

Sayonara, Japanese firms wary of investing in India: DNA India

A DNA article quotes Venture Intelligence data on Japanese VCs investing in India:

According to the research firm Venture Intelligence, while investments by Japanese firms as private equity touched $1.43 billion in the first half of calendar 2017, from just $459 million in 2016, almost the whole of it or about 98.9% was accounted by SoftBank Group Corp which invested $1.40 billion.

Related:


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

November 28, 2017

Venture Intelligence - Mint Deal Tracker (November 20)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint - tracking all Private Equity, Venture Capital, M&A, Real Estate and Strategic investments in India. The Deal Tracker is featured in the Deals Section (Page 3) every Monday.


To get comprehensive coverage on upcoming PE/VC, M&A, Angel and Strategic Investments sign-up to our Weekly Newsletter. View a sample DD Newsletter here.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

November 24, 2017

New P2P Lending Regulations: An Entrepreneur Perspective

Venture Intelligence spoke to Mukesh Bubna, Founder & CEO of Peer to Peer (P2P) lending firm Monexo's on his take on the impact of the new RBI regulations on the sector and the expectations going forward.


Venture Intelligence: What was your initial reaction to the recently introduced RBI regulations on P2P?

Mukesh Bubna: RBI ushering P2P platforms as a new class of NBFCs is a welcome move that provides the entire sector increased credibility and reinforces the potential of a marketplace approach to credit delivery. RBI’s insistence on a business continuity plan in case of platform shut down, ‘Fit and proper criteria’ for promoter team are all steps that will boost confidence of platform lenders.

Despite the existence of a few grey areas around definitional constructs and prudential caps on participants’ exposure, the framework does enough to lend clarity on key issues surrounding operational requirements, role of the P2P platform as an intermediary and mandates the adoption of measures that are likely to promote further transparency. The regulator’s willingness to come forth and closely engage and seek the view of P2P platforms post the announcement of guidelines is also reassuring and comforting.


VI: How does the RBI’s order barring P2P companies from lending on its own affect the industry?

MB: The regulations mark off P2P lending as an investment with a defined risk-reward equation. This enables P2P platforms to focus on sourcing unsecured loans and adopt best practices to minimize risk and not attempt to completely eliminate it either by mis-selling or by promotion of approaches that provide for ‘secured returns’. This will also help lenders make better informed decisions and help them adhere to a loan selection policy that is in line with their appetite for risk and expectation of return.


How does the minimum capital requirement and leverage ratio factor, given that P2P companies are to operate only as an intermediary platform? 

Regarding minimum capital requirement, we believe that RBI’s emphasis was on ensuring that the P2P space lends itself as a credible and sustainable environment. While this may appear to be a high cost burden on an entity that is fundamentally not lending its own money or holding funds on its balance sheet, the capital requirement mandate ensures that platforms have sufficient skin in the game and are invested in building a platform that is robust, responsive and scalable. The process of application of a leverage ratio to P2P platforms is however presently ambiguous and we look forward to more clarity on this from the regulator.

On caps on lenders and borrowers? 

The value proposition in a P2P platform from the borrowers’ side has always been that it enables credit inclusion at fair rates of interest. The imposition of a cap on the aggregate amount that can be availed by a borrower, seems in conflict with the vision behind enabling P2P platforms to further democratize the availability of credit across individuals and small businesses. The borrower participation cap may dissuade emerging MSME businesses from tapping into P2P platforms as a viable source of credit.

On the lending side, the introduction of an arbitrary INR 10 lakh limit on lending without due consideration to the nature of the lending participant makes lender acquisition a high volume retail game focused on retail investors - no doubt a large mass market but also one with significantly lower risk appetite.

Having said this, we are optimistic that RBI will be willing to gradually taper off such caps over time which will enable HNIs and institutional investors to look at P2P lending as a ‘serious’ asset class for long term wealth creation.

What will P2P companies now focus on to grow their business? How should VCs evaluate P2P companies going forward?

With RBI regulations in place, the short term focus for the existing P2P players will be applying for registration before January 2018, plugging gaps in current practices and getting compliance requirements and supervision right. The key activities which P2P players have to continue focusing on are (a) Credit model to screen out bad borrowers (b) Digital on boarding of customers (c) Forging key alliances for growth and (d) Managing profitability


For VCs, P2P lending in India is at an early stage of evolution. Most P2P players are raising Pre - Series A or Series A. At this juncture the team and traction are strong pointers for VCs to look at. Currently, VCs are also wondering whether the cap of Rs. 10 lakhs per lender could be hindrance to the growth of the industry. However, no regulation is cast in stone and always evolves as the industry evolves. It is time for the VC's to place their bets.

Where has Monexo hit right with the RBI regulations? What other innovative features has Monexo implemented?

We were the first to implement an operational Escrow account with a leading trustee company when most P2P platforms were still passing around physical cheques between borrowers and lenders. Our decision was in line with RBI’s decision on the need for funds to move directly between borrower and lender’s bank accounts and adoption of the Escrow framework.

At Monexo, we have had disclosure norms focused on promoting transparency such as mandatory regular data sharing with respect to loan statistics, delinquency details etc, which provided useful metrics to lenders with sufficient visibility over the platform’s track record as an intermediary instead of relying on assumptions of credit quality. Having said that, the requirement to share the borrower’s entire information including personal info seems a bit excessive at this stage as it diminishes the platform’s role as an intermediary to manage the marketplace.

We had also adopted a fair approach that affixes each loan on the platform with a fixed interest rate from 13 - 30% and an associated Monexo credit rating compared to alternative approaches that tend to be ‘negotiable’ and ‘bid-based’ between participants in other platforms.


How will the added role of Credit Bureaus help the P2P industry?

The ability to report loans into credit bureaus is a huge positive with significant benefits to both borrowers and lenders. Borrowers who avail loans through P2P platforms have the ability to improve their credit scores over time, subject to good credit behavior while intentional defaulters are heavily disincentivized from entering the system which in turn will provide added comfort to lenders.


Is the regulation in line with Monexo’s and industry expectations?

Overall, our view is that the RBI has pursued a progressive agenda focused on arming P2P platforms as NBFC’s that will pursue an alternative credit model focused on expanding and deepening access – driven by innovation, reduced costs and increased transparency. The regulation provides the P2P industry with the recognition that it has the ability to be a transformative new addition to India’s consumer finance ecosystem.

At Monexo, we are already beginning to see enormous enthusiasm from the investing community which is now beginning to take notice of P2P lending as an official asset class that is backed by a regulatory framework. No piece of regulation can claim itself as being entirely perfect and in that context - the regulator’s conservative tone in terms of participatory caps and minor definition vacuums, we hope, will gradually evolve into a more perfect framework that provides aspiring fintech startups like Monexo the ammunition to operate on a larger canvas focused on pioneering a more efficient, scalable approach to consumer credit needs. 

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

November 23, 2017

2017 Is The Biggest Year For PE/VC Exits: Business World

A Business World report quotes Venture Intelligence data on 2017 being the biggest year for Private Equity and Venture Capital exits in :
Data available with research firm Venture Intelligence shows fund managers have already recorded 213 exits worth $10 Billion so far this calendar year, making 2017 a bumper year for PE/VC exits. And, that is not all. The industry has also witnessed the highest number of PE-backed IPOs. In January-October 2016, total number of PE/VC exits stood at 198 with the total value amounting to $7.4 Billion. During the said months in 2015, as many as 240 PE/VC exits took place worth $9.1 Billion.
Take a look at some of the successful exits this calendar year. SAIF Partners garnered a 26.5x return on its investment in One97 Communications in May 2017 when SoftBank Corp acquired a stake in it in a secondary sale. In a public market sale, TPG Capital made a 4.6x return from its investment in Shriram City Union Finance.
Some of the top PE-backed IPOs in 2017 include AU Small Finance Bank’s listing that helped Warburg Pincus, IFC, ChrysCapital, Kedaara Capital exit and ChrysCapital’s exit from Eris Lifesciences’ IPO.
Wish to view exit insights from our half yearly report on Private Equity and Venture Capital exits? Mail Varatha at research@ventureintelligence.com


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

Sequoia Capital sells Just Dial stake worth Rs35 crore: Mint

A Mint article quotes Venture Intelligence data on PE/VC investments and exits in JustDial:
Sequoia Capital started selling its stake in Just Dial in the third quarter of the current calendar year. On 5 September, Sequoia Capital sold a total of 3.6 million Just Dial shares worth approximately Rs135 crore, thereby bringing down its shareholding by 5.17% to 4.11%. In 2016, Sequoia Capital sold shares worth around Rs60 crore, while in 2015, it offloaded stake worth about Rs1,218 crore in Just Dial, according to data compiled by Venture Intelligence, a research service focused on private company financials, transactions and valuations. Sequoia Capital first invested in Just Dial in 2009. 
Tiger Global made a complete exit from Just Dial in 2015, data from Venture Intelligence shows. 
Sequoia, along with venture capital firm SAIF Partners and Tiger Global made a investment of Rs16.44 crore in the company in 2009. In 2012, Sequoia invested Rs60 crore along with venture capital firm Sapphire Ventures. Subsequently in 2012, Sequoia made its third investment of Rs305 crore in Just Dial.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

November 16, 2017

Venture Intelligence - Mint Deal Tracker (November 6)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint - tracking all Private Equity, Venture Capital, M&A, Real Estate and Strategic investments in India. The Deal Tracker is featured in the Deals Section (Page 3) every Monday.

(Click to View)

To get comprehensive coverage on upcoming PE/VC, M&A, Angel and Strategic Investments sign-up to our Weekly Newsletter. View a sample DD Newsletter here.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

November 14, 2017

How IDG Ventures India's Late Stage Tech strategy is filling a key gap in the VC Ecosystem

With global investors such as Tiger Global and SoftBank vacating the sub-$100 million Late Stage Technology segment - that they were aggressively active during 2014-15 - the Indian Venture Capital ecosystem clearly needs to fill this yawning gap.

In the absence of new funds being raised specifically for this segment, one potential way is for Private Equity firms to "come down" from their typical sweet spot (in terms of both deal values and level of company maturity). The "old India hands" in the PE segment like Warburg Pincus and Temasek have indeed started to dabble in Late Stage Tech investing in the last couple of years. Between them, these firms have invested into companies like Rivigo, Capillary Technologies, CarTrade.com and Manthan Systems. However, given their mandate to invest across multiple sectors, these firms cannot overexpose themselves to just one sector.

The other option is for some of the Early Stage technology investors to “go up” the deal value chain. IDG Ventures India, co-founded by Sudhir Sethi and T.C. Meenakshi Sundaram (who have successfully supported startups in India from the 2000-era - when they had represented Silicon Valley VC firm Walden International), is leading the way on this front. IDG's recent investment in Policybazaar.com, where it co-led the online insurance pioneer's $79 million round (alongside global asset manager Wellington Management and home grown PE firm True North), is a good example of the firm’s Late Stage Tech focus. The firm expects to make at least one or two Late Stage Tech investments each year.


"While retaining our core Early Stage focus, IDG Ventures India started investing about 25% of our Fund II in Late Stage tech companies and this strategy continues in Fund III now," says Sudhir Sethi, IDG Venture India’s Founder & Chairman. The firm had raised its $150 million first fund in 2006, from which it had successfully invested into startups like Myntra (acquired by Flipkart in 2014) and Manthan Systems (exited via Secondary Sale). IDG Ventures India now manages $465 million across four funds. "For Late Stage tech, we will typically come in with a $15 million cheque (which can go up to $30 million) as part of Series D and later rounds where the total round size is above $40 million," Sudhir says. The firm's experience in scaling technology companies has prompted Late Stage Tech investees to invite IDG's representatives onto their board - despite its relatively lower stake holding (compared to when it makes a traditional Early Stage investment). 

(Click to View)
Exit Focus

IDG's Late Stage Tech bets are aimed at fetching exits with time frames of 3-4 years. Some of firm’s 2013-14 Late Stage investments have started to produce good exits. In 2016, IDG successfully steered online travel firm Yatra.com to an Nasdaq listing (via a $92 million reverse merger) - after leading a $19 million fifth round in 2014 and a follow-on investment the next year. IDG is also set to reap significant gains from the additional capital it invested in Flipkart in 2014 - on top of swapping its shares in Myntra - which it is now exiting to new investor SoftBank. (The E-Commerce leader was valued at $3 billion in 2014 and is now valued - as part of the latest investment by SoftBank and others - at over $11 billion.)

(Click to View)

In Dec-13, IDG (alongside Ascent Capital) had invested INR 100 Cr (about $17 million then) in Newgen Software Technologies. The Delhi-based workflow & document management software company has now filed for an IPO. Two of IDG’s vertical e-commerce bets - the eyewear focused Lenskart and baby products e-tailer FirstCry - are aiming to file for IPOs in India soon.

Recent months have witnessed Infosys Co-founder Nandan Nilekani announce a $100 million fund to focus on growth stage technology start-ups. The UC-RNT Fund, a joint venture between the University of California endowment and former Tata Sons Chairman Ratan Tata - who is also an advisor to IDG Ventures India - has contributed over $41 million to cab aggregator Ola's latest round.

With IDG and such well respected Ultra-HNIs showing the way, it looks like fast growth startups that Early Stage investors have been churning out in recent years, will not suffer for the "last mile" capital they need to become self sustaining and publicly traded companies.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

November 13, 2017

League Table Update - October 2017


Looking to promote your firm's work to top PE/VC Investors and Corporates - Reach out to Varatha at research@ventureintelligence.com to participate/update your firm's standings. 

Need to track transactions in India? Keep tabs on your competition? Venture Intelligence helps Investment Banks, Legal and other advisory firms track in-depth data on Private Equity, Venture Capital, M&A, Real Estate transactions and Private Companies Financials. Reach out here  to see how we can help you have access to the best data resource on Private Companies.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

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November 09, 2017

Focus Turns to New Verticals as Fintech Investments Gathers Pace in Post-DeMo India


Venture Capital investors invested in as many as 8 fintech companies in just the month of October 2017 - representing a new high for the sector during the year. Early Stage investors have been favouring the sector over yesteryear star of B2C E-Commerce making 11 seed and 17 Series A bets in Fintech companies during the tear.

A year after the Indian Government Demonetized ("DeMo") its high value notes, which saw mobile wallet companies like Paytm and Mobikwik gain very significant heft, investors seem to have decided that sufficient funding has gone into the payments category. They are now focused on new verticals within Fintech - especially Insurance marketplaces (Policybazaar, Renewbuy), SME focused lenders (Lendingkart, Capital Float), Credit evaluation (Credit Vidya, Datasigns), micro-credit for students (Krazybee and Slicepay), end-of-month credit for salaried professionals, etc.

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Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

November 06, 2017

Venture Intelligence - Mint Deal Tracker (October 30)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint - tracking all Private Equity, Venture Capital, M&A, Real Estate and Strategic investments in India. The Deal Tracker is featured in the Deals Section (Page 3) every Monday.


To get comprehensive coverage on upcoming PE/VC, M&A, Angel and Strategic Investments sign-up to our Weekly Newsletter. View a sample DD Newsletter here.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

PE/VC Backed IPO: Mahindra Logistics

The IPO of Kedaara Capital backed Mahindra Logistics was subscribed 7.9 times with Kedara Capital making a part exit with INR 415 Cr. The IPO was a complete offer for sale by existing shareholders. With data from Venture Intelligence PE/VC Database and Company Financials Database we look at Mahindra Logistics's journey and how it's investor fared in the IPO.



Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

October 30, 2017

Venture Intelligence - Mint Deal Tracker (October 23)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint - tracking all Private Equity, Venture Capital, M&A, Real Estate and Strategic investments in India. The Deal Tracker is featured in the Deals Section (Page 3) every Monday.


To get comprehensive coverage on upcoming PE/VC, M&A, Angel and Strategic Investments sign-up to our Weekly Newsletter. View a sample DD Newsletter here.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

What sets global PE firm General Atlantic apart from its peers: ET

The Economic Times's story on General Atlantic investments in India quotes Venture Intelligence data:

Click here to read the article.

Related Stories:




Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

October 23, 2017

PE investments into real estate up a tad in first 9 months: The Economic Times

An ET article quotes Venture Intelligence data on Private Equity investments in Real Estate in 2017:

Private equity investments in real estate for the first nine months of the year rose marginally to touch $3.16 billion across 40 deals as global and domestic institutional investors continue to infuse capital into Indian real estate, especially in the commercial segment. 
The average investment size has also increased as similar inflow was registered during the year-ago period across 66 transactions, data from Venture Intelligence showed. The latest quarterly figures take the total PE investments in real estate in the first nine months of 2017 to $3.16 billion across 40 deals, up marginally compared to $3.14 billion across 66 deals in the same period in 2016. 
In the third quarter, commercial space continued to dominate in terms of volume and value. Six deals worth $356 million were announced in the commercial space compared to five deals worth $340 million in the residential space in the September quarter. Real estate companies and projects attracted 11 investments worth $696 million. The quarter before saw 12 worth $1.23 billion, data showed. 
Want more data on Private Equity Investments in Real Estate - Check out our Real Estate Deals Database.

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

October 22, 2017

How consumer product startups are battling roadblocks to stand out amid giants: Economic Times

ET quotes Venture Intelligence data on FMCG startups taking on industry giants:
The rising wave of consumer startups has triggered a surge in investments this year. Data from research platform Venture Intelligence show $230 million was infused into consumer product startups in just the first three quarters of this year, as compared with $78 million all through 2016. 



The article also quoted other interesting stats on the industry:


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

Trial to Venture Intelligence Deal Database

October 20, 2017

Venture Intelligence - Mint Deal Tracker (October 9)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint - tracking all Private Equity, Venture Capital, M&A, Real Estate and Strategic investments in India. The Deal Tracker is featured in the Deals Section (Page 3) every Monday.


To get comprehensive coverage on upcoming PE/VC, M&A, Angel and Strategic Investments sign-up to our Weekly Newsletter. View a sample DD Newsletter here.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

October 17, 2017

Shardul Amarchand Mangaldas tops M&A League Tables for Q3'17

AZB & Partners continued to top the League Table in terms of both value and volume for the first nine months of 2017 

For the three months ended September 2017, Shardul Amarchand Mangaldas topped the League Table for M&A transactions advising deals worth $785 M, followed by AZB & Partners ($682 M) and Khaitan & Co. ($668 M).

Deals advised by Shardul Amarchand Mangaldas during the period included General Atlantic's buyout of Karvy Computershare', Mars Inc's acquisition of Tasty Bites and the Carlyle's buyout of GE Capital's stake in its cards processing JV with SBI. AZB & Partners also advised the first two deals as well as the Advent International's investment in Dixcy Textiles.

Khaitan & Co. advised the stake increase of Tokio Marine in its Indian insurance joint venture IFFCO Tokio and the Wilmar International investment in Shree Renuka Sugars.

For the first nine months of 2017, AZB & Partners continued to top the League Table in terms of both value and volume advising 37 qualifying deals worth $15.3 Billion.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.


In 9 Months ending 2017:

Advisors to the Idea Cellular and Vodafone merger - AZB & Partners, Shardul Amarchand Mangaldas, Vaish Associates, SR Associates and Bharucha & Partners continued to top the League Tables for the year. Foreign firm Slaughter & May also advised the deal.

AZB was followed by Khaitan & Co. in deal volume (27 deals) and Cyril Amarchand Mangaldas (21 deals). HSA Advocates and Shardul Amarchand Mangaldas shared the fourth spot with 18 deals each. J Sagar Associates completed the top five with 16 deals.

The full league table can be viewed online at http://www.ventureintelligence.com/leagues.php

To update your firm's standings in the League Tables for October 2017, reach out to Varatha at research@ventureintelligence.com

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

October 16, 2017

AZB advises PE deals worth about $11 B in First 9 Months of 2017

AZB & Partners continued to top the Venture Intelligence League Tables for Private Equity Transactions during the first nine months 2017 advising deals worth $10.9 Billion. AZB was followed by Cyril Amarchand Mangaldas ($5.8 B) and Khaitan & Co. ($4.3 B). J Sagar Associates ($2.2 B) and Shardul Amarchand Mangaldas ($2.1 B) completed the top 5 for the year so far.

AZB topped the table by number of deals as well reporting 60 qualifying deals followed by Cyril Amarchand Mangaldas (53 deals) and Khaitan & Co. (30 deals). Shardul Amarchand Mangaldas (23 deals) and IndusLaw (22 deals) completed the top 5 by deal volume.

Among foreign firms, Gunderson Dettmer advised 3 deals worth $2.9 B including SoftBank's investments in Flipkart and Oyo Rooms.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.


In Q3 2017

The Indian legal advisors to the mega $2.5 Billion Flipkart - SoftBank deal included AZB & Partners and Khaitan & Co. AZB & Partners also advised the IPO Exit of Fairfax from ICICI Lombard General Insurance

Cyril Amarchand Mangaldas, Desai & Diwanji, Shardul Amarchand Mangaldas, and foreign firms Latham & Watkins and Slaughter & May advised the Carlyle investment in SBI Cards & Payments. Apart from Gunderson Dettmer, AZB & Partners, Cyril Amarchand Mangaldas, IndusLaw, and Themis Associates advised the SoftBank investment in Oyo Rooms.

The full league table can be viewed online at http://www.ventureintelligence.com/leagues.php

To update your firm's standings in the League Tables for October 2017, reach out to Varatha at research@ventureintelligence.com

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

SBI - GE cards deal propels Morgan Stanley to Top 3 in M&A Chart

Carlyle's July buyout of GE Capital's stake in its cards processing JV catapulted Morgan Stanley into second position of the Venture Intelligence M&A League Table for 2017.

Other large deals during the July-September quarter included the Edelweiss Financial Services and IMAP India advised INR 800 Cr investment by Wilmar International into Shree Renuka Sugars. Axis Capital advised the Axis Bank - Freecharge acquisition and the strategic investment by Reliance Industries into Balaji Telefilms.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.


The advisors to the $12.4 Billion Vodafone - Idea Cellular merger announced in March - Axis Capital, Morgan Stanley, Kotak, Robey Warshaw and Rothschild - continued to account for the top 5 spots during the first nine months of 2017.

By number of deals, Ernst & Young topped the table with 10 deals followed by Axis Capital, Avendus, Ambit Corporate Finance and KPMG advising 5 deals each. Deloitte came in at third with 4 deals.

Including Due Diligence services, Ernst & Young topped the table with deals worth $28.9 B followed by Deloitte ($12.8 B) and Axis Capital ($12.8 B). By no. of deals, Ernst & Young topped the table with 25 deals followed by KPMG (10 deals) and Deloitte (7 deals).

The full league table can be viewed online at http://www.ventureintelligence.com/leagues.php

To update your firm's standings in the League Tables for October 2017, reach out to Varatha at research@ventureintelligence.com

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

October 14, 2017

Flipkart - SoftBank propels Goldman Sachs, Citi to top of 2017 League Table

Aided by the biggest investment in Indian Private Equity history i.e. Flipkart - SoftBank, financial advisors to the deal - Goldman Sachs and Citi - topped the Venture Intelligence League Tables for 2017. Avendus came in at third place advising Dixcy Textiles - Advent International and Paras Healthcare - Creador deals. Standard Chartered and ICICI Securities completed the top five.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.


Including due diligence deals, Citi came first followed by Ernst & Young advising $2.7 B across 25 deals. Goldman Sachs came in at third.

Going by no. of deals, Avendus topped the League Tables with 10 deals in 2017, followed by Unitus Capital and Creedcap Asia which advised 7 deals each. Veda Corporate, IndigoEdge and Sprout Capital came in at third advising 6 deals each.

Including due diligence deals, Ernst & Young topped the table advising 25 deals worth $2.7 B.

For the Quarter ending September in 2017:

Apart from the Flipkart - SoftBank deal, advisors to Carlyle's investment in SBI Cards & Payment Services -  Morgan Stanley and Barclays - also leapfrogged in to the top 10 for the year.

Allegro Advisors came third in Q3 2017 with 2 deals worth $183 M and 11th in 2017. They advised the exit by Truenorth (earlier India Value Fund) from Manipal Health Enterprise. JM Financial came fourth in Q3 2017 advising the Marigold Capital acquisition of Hotel Leela Palace in Chennai.

The full league table can be viewed online at http://www.ventureintelligence.com/leagues.php

To update your firm's standings in the League Tables for October 2017, reach out to Varatha at research@ventureintelligence.in

Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

October 12, 2017

VC Interview: Manish Kheterpal of WaterBridge Ventures

Even as 2017 witnesses a shrinking of overall Early Stage Venture Capital activity, WaterBridge Ventures – a new early stage focused firm - has notched up as many as six investments already during the year. In an interview to Venture Intelligence, Manish Kheterpal, WaterBridge’s Founder & Managing Partner– an IIT-Delhi & Stanford alum who had worked earlier at Providence Equity Partners, Actis Capital and Rho Capital Partners - expands on the firm’s fund raising experience and investment outlook.

Venture Intelligence: You had announced a first close of your INR 100 Cr ($15 M) fund in mid 2016 with about $5 M (INR 33 Cr). How was the fund raising experience? 



Manish Kheterpal: We were fortunate to launch the fund in 2016 without the need for an anchor investor. That helped us get our team, processes and market presence sorted, and also make some early investments while being highly selective about our portfolio. Since we are building a curated portfolio of 15 - 20 companies (as opposed to spreading our bets thin) with a keen filter of high value-addition, we have been careful about fund expansion. 

We started with a much smaller target of INR 50 -75 crores but we are fortunately already over INR 100 crores in commitments and will likely close the fund by in Q1 2018 at around $25 - 30M. Fund expansion from our initial target has not led to any change in our investment strategy but has given us more ammunition to keep supporting our investee companies through their future rounds of funding. Our LP list is balanced amongst organized family offices, financial investors, corporate treasuries, 2nd generation business owners, and HNI professionals from the field of Tech & Investing. At final close, we expect to have a 60% India and 40% overseas representation in our LP base. 

How would you describe the current environment for fund raising for VC/seed funds in the domestic market?

Domestic market is quite robust for the alternative asset class especially for VC funds. Indian economy is at the right juncture for this asset class to become attractive for corporates and HNI’s in-order to fulfill their diversification needs. This spells of maturity of the Indian fund ecosystem. In the next couple of years, I am expecting to see increased interest from corporate treasuries and DFI’s as well. I also expect to see a sharper focus on fund differentiation and returns from more sophisticated LP’s in the domestic market.

Would it be correct to assume your focus will be on Seed and Series A investments?

Our sweet spot is Pre-Series A in a lead role to Series A as a co-lead. On some occasions and as we flesh out our investment thesis in some sub-sectors, we may be involved in some seed deals as well with a clear path to further funding.


How many investments do you see yourself making out of the new fund? Is there a max. allocation per company? 

15 – 20 investments with not more than 5% exposure in any one investee company as a broad benchmark. Having said that exceptions can always be made especially as the portfolio matures and when we are investing in follow-on rounds.

WaterBridge’s early investments have been in Edtech, Fintech and Medtech. Can you talk about the sectors that specifically interest you for new investments?


WaterBridge Ventures is a Catalyst for Tech Entrepreneurship in India. We believe $50 billion of investment will create $250 billion of value in this space during 2015 – 2030. We back passionate entrepreneurs that are solving problems for consumers and businesses with Tech as the exponential enabler. Instead of trying to forcefully create natural diversification within Tech, we analyse every investment opportunity bottom-up. What’s common in all our investments is Passionate founders, Product-market fit in Large markets, Attractive capital structure & Unit economics and a Sustainable moat. 


Instead of looking at each sector like Education or Finance individually, we instead look at Tech disruption playing a role in themes like Work & Home Automation (Machine Learning, AI, IoT); Consumption Enablers (Real-estate, Auto, E-com, Food); Urbanization & Rising quality of life (Health, Education, Travel); Digital Finance; Enterprise solutions; and Core Tech (Robotics, Life Sciences).

Do you see the presence of hyper funded companies like Paytm in Fintech, Byjus in Edtech and CureFit in Healthtech a challenge for new startups?

For every Series C, D funded or later stage company, there are 100’s of exciting early stage start-ups solving problems in a unique way. We always evaluate the ‘800 pound gorilla beating you at your own game’ risk but having well-funded companies does not stifle innovation especially in large markets. If Byju’s was focused on K-12, we supported a company like Unacademy which was unique both in its content creation (user-generated) and Target Group (higher education market). While a CureFit is focused on solving for Consumer health, fitness; our investee company LetsMD is solving for information and price asymmetry of high value uninsured medical procedures like IVF, Bariatric surgery by becoming a trusted patient, hospital partner through medical service provider engagement and the consumer decision journey. Having said that, given the changing regulatory regime, PayTm’s position and presence of other players like Freecharge, Mobikwik, we decided to stay away from the payments space for the time being as we didn’t see much room for innovation. Sometimes hyper-funded spaces also yield a lot of lessons for the next breed of companies which have a better and more robust business model, MagicPin is one such company in our portfolio.



What is your reading of the whole upcycle in funding for consumer Internet & Mobile businesses in 2015-16 and the current down-cycle? 

Like most financial markets, cyclicality is par for the course especially for seasoned multi-cycle investors. VC funding also swings to extremes both in the up and down cycles, this is further amplified in emerging economies with underlying enablers like demographics, high growth potential and yet to fully develop entrepreneurial ecosystem. 2014 – H1 2016 period definitely saw a huge uptick in VC funding activity and by the same token last 12 months have seen softness especially in Series B, C, D funding activity. In the former period, we also saw the entry of big sovereign, strategic groups from other parts of Asia chasing new growth markets, and private market focused hedge funds for the first time in India - which all added to the average deal size and volume of deals. 

Rightfully sectors like E-commerce that had run ahead of their fundamentals have seen some correction in 2016/2017. Overall though, if one peels the onion a bit, entrepreneurial activity has not slowed down as no. of Seed, Angel and pre-Series A stage deals hasn’t reduced and now Series B, C activity is picking up again. There is enough dry powder waiting to be deployed and during this temporary slowdown we have certainly seen average quality of entrepreneurs go up along with sharpness in business plans. The focus has shifted to ‘long-term profitability’ from ‘GMV’s and Irrational Marketing spend based User acquisition’. This cycle has been healthy for the development of the Indian start-up ecosystem. 

Three of WaterBridge’s first investments have been in NCR based companies. Is that a conscious focus?

We have funded 6 deals and are just about funding our 7th deal. This is after having spent time on over 700 opportunities. Our portfolio companies are evenly split between Delhi NCR and Bangalore with one based in western India. We are a pan India player but given we are based out of NCR, there is a natural concentration in NCR deals due to network effects. Our deal pipeline has 45% NCR and 35% Bangalore mix, which is not too far from a pan India industry activity. We will be opening presence in Bangalore later this year which should balance things out for us and given our focus on Tech, it is natural to have Bangalore as a key part of our strategy.

Also in the type of companies we back, HQ location has less bearing on their circles of influence. As an example, we have worked closely with the founders of one of our Bangalore based portfolio company called Dataweave, in their re-location to the US to focus on high Average Selling Price (ASP) and much larger market for their Analytics and Big Data global-scale product. Similarly for a company like 99RetailStreet, we have helped the founding team to focus on Sri Lanka’s virgin Ad Tech and Supply Chain Analytics last mile Retail space. Then there are companies like MagicPin & Ziploan which are naturally growing their consumer and business focus in multiple markets of India given their unique and powerful value proposition.  

What are the primary sources of deal flow for WaterBridge? 

We have a balanced mix of deal flow from 4 sources – Inbound direct + Intermediaries (30%), Angel networks + Incubators (25%); Peer funds (20%) and Proprietary (25%). We feel differentiated funds like us will continue to see an even higher representation of proprietary deals going forward.



What would you advise entrepreneurs to expect in terms of timelines for raising capital - from first meeting to cash-in-the bank?

Always have 9 - 12 months of cash in the bank before initiating the process, run a tight process and expect to get funded in 6 – 9 months. Especially in early stages of the company, we suggest that entrepreneurs use their warm network to reach out to investors before engaging any intermediaries. Few high-quality investor discussions would always yield better funding results and/or learning as opposed to carpet bombing the investor universe. While investors may not admit it, they like proprietary access to deals and entrepreneurs. We also recommend that start-ups look for semi to fully organized (institutional) capital post seed, angel stages as opposed to having a confusing and distributed cap table which can become an issue in later rounds of funding. Not every business requires VC funding but those that do should raise capital early from high quality value-add investors. 

As someone who has worked at large PE firms like Actis and Providence earlier, what drew you to the early stage segment of the market?

I started my investing career in VC 14 years ago and through various stages of venture and growth capital investing with 3 different funds (Rho, Actis, Providence) and my angel portfolio, I have found many common threads. Personally, I have enjoyed high value-add involved investing and seen a high correlation with that kind of investing and return profile of my investments. It has been a lot more fun and learning post investment in such deals too. Over the next decade, I see Tech disruption in almost all sectors of the Indian economy and highest need for institutional investment in the early stages of start-ups (given the high failure rate and fragmented capital). Combine that with my passion of working closely with entrepreneurs to help realize their vision and you will understand my excitement behind founding WaterBridge Ventures as a platform for impact in Tech VC investing in India.


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