Knowledge Partners


 Basiz Fund Service    Economic Laws Practice    Avalon Consulting  

 Spark Capital    Tatva Legal   

December 24, 2010

IVCA elects new Executive Committee

From the Press Release:

The first ever Elections for the Executive Committee of the Indian Private Equity & Venture Capital Association (IVCA) for the two year term January 2011 to December 2012 were successfully conducted with over 82% of the members exercising their votes. This is a strong endorsement of the work that IVCA has done over the year.



The Members have voted the following SEVEN to represent them on the Executive Committee of IVCA (in alphabetical order):


1. Ashley Menezes, ChrysCapital Investment Advisors
2. Darius Pandole, New Silk Route (NSR) Partners
3. Niten Malhan, Warburg Pincus
4. Nitin Deshmukh, Kotak Investment Advisors
5. Satish Kumar Mandhana, IDFC Private Equity
6. Sudhir Sethi, IDG Ventures India
7. Sumir Chadha, Sequoia Capital India


The IVCA Charter envisages that the Chairman is who polls the highest votes and the Vice Chairman is who polls the second highest votes. The following have been elected as the new Chairman and Vice Chairman of IVCA:


CHAIRMAN : Sumir Chadha
VICE CHAIRMAN : Ashley Menezes


14 IVCA Members chose to contest the elections for the 7 seats to the IVCA Executive Committee. The large number of members that ran for the seats reflect the increased attention by the PE/ VC Firms and is a strong statement that the PE/ VC industry feels the need to come together to bring about positive change, in sync with IVCA’s vision to create an environment conducive to promoting entrepreneurship and encouraging innovation and growth of private equity and venture capital in India.

IVCA serves as a catalyst for the creation of a large pool of domestic venture capital and supports the emergence of new categories of investors – including VC firms and later-stage private equity firms. IVCA also works to promote sound public policy on issues related to tax, regulation and securities through representation to the Securities and Exchange Board of India (SEBI), Ministry of Finance (MoF), Reserve Bank of India (RBI) and other Government departments.

The new Executive Committee takes charge effective 1st January 2011 till 31st December 2012.

“IVCA is playing an important role in ensuring the growth of the VC/ PE industry in India. It’s important for PE firms that are investing in India to be part of the local network, so that they can engage directly with regulators, advisory firms and industry veterans; IVCA being the common point of reference for regulators and policy makers. IVCA, by virtue of being the most representative and diverse body for the VC/ PE community, provides a platform for member firms to network and share best practices.” – Mahendra Swarup, President IVCA

Luis Miranda, out-going IVCA Co-Chairman, and Chairman IDFC Private Equity, added, "We had committed to revitalise IVCA, make it more relevant and representative, and to hold these elections in 2010. We achieved all these goals. The Private Equity and Venture Capital industry in India continues to play a key role in India's development and has helped companies like Bharti Airtel, Mphasis (now EDS), Spectramind (now a part of the Aditya Birla Group) and GMR Infrastructure grow to become world-class companies and leaders in their space."

For more information on IVCA, please visit http://indiavca.org/

December 23, 2010

Deal Alert: India Equity Partners invests $10-M in cold chain logistics firm Swastik Roadlines

From the Press Release:

Swastik Roadlines Private Limited, one of the leading food cargo supply chain service providers, raised growth equity financing of around US$ 10 million from India Equity Partners in return for a significant minority stake. This is the first round of equity fundraising by the company and subsequent rounds of funding are planned.


Swastik has very quickly grown to become one of the leading cold chain logistics solutions service providers in India under the brand ‘Coldex’ with a fungible fleet that is expected to cross 500 vehicles shortly. The Company offers pan-India solutions to marquee clients for both long haul (primary) movement of temperature sensitive cargo as well as intra-city secondary distribution in over 55 cities. In addition, the Company offers surface transportation for specialized dry cargo.

Mr. Gaurav Jain, Managing Director of Swastik, says: “We are pleased to partner with India Equity Partners in our next stage of growth. We believe that this association would facilitate in strengthening our cold chain capabilities and in developing best-in-class systems that will help in maintaining the Company’s growth trajectory”.

Mr. KK Iyer, Managing Director of India Equity Partners (“IEP”) who has deep logistics experience, says of this investment: “IEP is extremely excited to partner with Swastik because of its unique positioning underpinned by the strong Indian consumer growth story. We look forward to working actively with Gaurav and his team as significant and active shareholders, both at an operating and board level, to help build the market leader for cold chain services in India. We will bring our considerable operational experience in facilitating the implementation of management systems and human resource planning as a backbone to Swastik’s exciting growth plans”.

Mr. Sid Khanna, Chairman of India Equity Partners, says: “This investment is consistent with IEP’s strategy of backing segment leaders with a competitive edge. In addition to our operational value-add, IEP has deep strategic relationships in the market segments that Swastik operates in and we will leverage these to support Swastik’s growth”.

Utopia Advisors Private Limited, a boutique Investment Bank was the exclusive financial advisor to Swastik for this equity fundraising.

Abhishek Jhawar, Managing Director of Utopia Advisors, says: “The Indian cold chain market is largely serviced by several players from the unorganized sector. There is immense scope for investment and development in this sector. Swastik has succeeded in differentiating itself and is poised for significant growth and performance”.

December 19, 2010

Have academic incubators lost relevance?

From a Businessworld article
Far from being hotbeds of student-driven entrepreneurial activity, like in a Stanford University or an MIT (Massachusetts Institute of Technology), India’s B-school incubators now find themselves on the sidelines of the powerful entrepreneurial wave that is sweeping the country. During 2000-10, close to 150,000 startups have sprung up outside such incubators; 37,500 of these are in the five metros, according to Amit Grover, member of angel investment firm Mumbai Angels.

Among the eight incubators the IITs and IIMs set up nearly two decades ago, SINE is tagged the most successful. Since 2004, it has incubated 35 startups, of which 20 are ‘graduated’ and are in various stages of progress. Three have shut operations due to reasons including their inability to raise fresh capital, difficulties in finding customers and gaining scale at the right time. Others have been in the incubator well beyond the incubation period of three years for similar reasons. For example, Vegayan Systems, a communications network solutions venture founded by IIT-Bombay faculty Girish Saraph has been on campus for four years. Saraph, who teaches at the electrical engineering department at IIT-B, says, “The infrastructure at SINE and the credibility of IIT-B help us. But we need time to take the product to the market.”

It’s a similar story across most IIT- and IIM-run incubators. The first one, Science and Technology Entrepreneurship Park (STEP), set up at IIT Kharagpur in 1986, has incubated 80 firms. But only 40 have graduated so far. Worse, 12 shut down after they moved out of the incubator. The situation at IIT Roorkee is even more bleak. In spite of grants from the state-run Department of Science and Technology in 1987, there is no functional incubator on campus. The only entrepreneurial activity is in the form of an Entrepreneurship Development Cell started by a group of students four years ago. “The Cell is run like a club,” says Aditya Sahay, alumnus and founder of Radbox, a video bookmarking service, which was born three years after he graduated from IIT-R. Sahay says he never sought mentorship from the IIT as it lacked faculty commitment and industry interfacing.


Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in

December 18, 2010

ET profile of Commodities Trading Software firm Eka

From the profile

Beginning with software for trading in agri-commodities the company has added on packages for metals and will do so for energy trading by February 2011 with the business built around the licence model.Eka has offices in the United States and in London and will soon have one in Sydney.

...With revenues of $10 million,the company is now planning to open its fourth office in Australia.The plan is to become a $100-million venture in the next five years, says Garg,who feels there is no need for further rounds of capital.



Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in

Economic Times profile of Actis India head JM Trivedi

ET has a profile following the Paras Pharma buyout.
Actis bought an ownership stake in Punjab Tractors,the tractor company owned by the Punjab government."When we started investing in India,India was entirely a growth market," says Trivedi, who heads the South Asian operations of Actis."We started doing buyouts because we realised many promoter families were no longer interested in running their businesses." Yet,buyouts have been few and far between,even for Actis.According to Venture Intelligence,an aggregator of data on deals,PE funds have done 2,085 transactions in India between 2005 and 2010.Of these,just 76,or 3.6%,have been buyouts;the remaining 2,009 have been growth deals.

Three PE firms stand out in the buyout space: Actis,ICICI Venture and Blackstone.Of the three,Actis leads with eight buyouts with a total deal value of $495 million.That buyout number is a fraction of the 37 deals Actis has closed in India.

...Trivedi,58,is the face of Actis in India. But he's not as high-profile as some of his peers,or as colourful as the man he succeeded at Actis,Donald Peck. While Peck spewed words and chased adventure sport,Trivedi is more likely to retire with an annual report. For many on the other side of the table,that quiet nature is a big plus. JM is very approachable and down-to-earth, says Mahesh Singhi,founder and CEO of Singhi Advisors." Promoters of mid-sized and small-sized companies feel comfortable talking to Actis."

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in

December 16, 2010

Announcing APEX'11 PE/VC Summit & Awards

Don't miss renowned speakers including Gurcharan Das, Ex-CEO of P&G India and author of India Unbound and The Difficulty of Being Good, confirmed to address the 2011 Awards Function. This edition of APEX will build on the success of APEX'10, which drew over 300 participants including from Limited Partners, PE/VC firms, Entrepreneurs & CXOs from across sectors, Investment Banks, Consultants, Corporate Law firms, HR firms, etc. Among last year's highlights were an address by Ajay Piramal, Chairman of the Piramal Group, who subsequently pulled off 2010's most talked about M&A deal - the sale of the Piramal Healthcare's domestic formulations business to Abbott Labs at 9 times revenues.

APEX'11 Awards Function - Evening of Feb.9

APEX'11 Awards is an unique gathering of top executives in the Indian Deal ecosystem to network, introspect & brainstorm and reward its best. (Leading LP firms like Religare Global Asset Management, Hermes GPE, Evolvence, etc. have confirmed participation.)

  • The awards evening will begin with a high power PE/VC industry panel that will reflect on the year gone by and the challenges ahead from a dealmaker's perspective
  • This will be followed by short talk by the Special Guest Gurcharan Das and a release of the 2011 edition of the Private Equity Impact report, Venture Intelligence's biennial research effort to showcase the contribution of PE/VC funds towards the broader economy
  • We will then have the awards function, followed by networking over cocktails

APEX'11 Summit - Day long on Feb.10

The APEX'11 summit - which is expected to involve 100+ entrepreneurs from across sectors - will begin with a panel of leading PE/VC Investors and Advisory Firms which will “crystal ball gaze” on what 2011 holds for the investment environment in India. This will be followed by panels discussions on investments in the following industries:

  • Cleantech
  • Logistics & Transportation
  • Real Estate & Hospitality

Speakers at the summit include:

  • Dr. Vivek Tandon, Co-Founder, Aloe Private Equity
  • Shashi Kiran Shetty, CMD, Allcargo Global Logistics*
  • Inderpreet Wadhwa, CEO, Azure Power
  • Vinod Kala, MD, Emergent Ventures
  • Ashis Nain, MD, Expressit Logistics Worldwide
  • Vishal Gandhi, Partner, Gandhi & Associates
  • Sankalp Shukla, CEO, Inlogistics*
  • Mohit Bhatnagar, MD, Sequoia Capital India
  • Siddhartha Das, General Partner, Ventureast

For Speaking & Sponsorship opportunities, contact Arihant at +91-98419-33455 or info@ventureintelligence.in

For the detailed event agenda and participant registration, Click Here

December 15, 2010

Religare's asset management gathering

Pensions & Investments has an article on Religare's recent PE fund-of-fund acquisitions.
Its strategy is to buy a majority interest in boutique investment management firms and let the acquired firm's executives continue to control the day-to-day work of investing...Religare's board has approved committing up to $1 billion to strategic investments in diversified asset management businesses globally.

“We prefer majority stakes or minority stakes with a path to a majority interest,” he said. “We are looking at opportunities in Europe, Australia, other parts of Asia and Latin America.” However, Mr. Mongia expects most of the acquired firms to be based in the United States. “The U.S. has far and away the deepest and the most developed” investment management business, he said. “Particularly, if you look at the independent boutique firms, they are more compatible with our philosophy and culture.”

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in

December 14, 2010

Deal Alert: Pragnya Fund to invest in Habitat Ventures' Bangalore realty project

From the Press Release

Pragnya Fund has formed a joint venture with Habitat Ventures Ltd for developing a contemporary ‘Work-Live-Relax’ residential cum commercial development with all modern amenities at Whitefield, Bangalore. The project is ideally located close to International Tech Park (“ITPB”), on the Whitefield Road (ITPL Road).



The project is based on a distinctive concept called “Villaments”, which combine the features of a villa and a high end apartment. This product is targeted at higher income families working out of Whitefield & Outer Ring Road, key technology hubs, who would like to have a villa ambience at the price of a higher end apartment. The project has obtained most of the permissions and the launch is scheduled for early 2011.

This will be the first investment by Pragnya Fund in Bangalore. Pragnya Fund has been in the real estate investment business in India and Sri Lanka since 2005-06. The present portfolio of the fund includes an 87 acre integrated township at Chennai, an IT SEZ project at Kochi, a premium mixed-use development project in Colombo, two residential projects at Asansol and Barrackpore in West Bengal and a second residential project at Chennai. The total built up space in these projects is over 12 million square feet.

Habitat Ventures is an upcoming developer who has been operating in the Bangalore market for over 6 years. They have successfully completed plotted developments, apartment projects and commercial projects in various locations around Bangalore.

Mr. Subba Rao Dukkipati, Managing Partner of the Fund said that “Our tie-up with Habitat Ventures on this interesting project in Bangalore is in line with the diversification strategy of our fund in to new real estate markets. Going ahead we plan to strengthen our presence in the city.” Mr. Shivaram Kumar Malakala, Director, Habitat Ventures, expressed that, ‘We are happy to associate with Pragnya Fund on this project and are eagerly looking forward to build on this relationship going forward.” Mr. Bhaskar T N, Director, Habitat Ventures said that “Habitat Ventures aims to make this a landmark project and establish ourselves as the Real Space Provider of Choice in Bangalore, across Residential & Commercial Segments. The Project will showcase our ability to conceptualize, implement & deliver high quality homes and commercial spaces”.

Deal Alert: Aureos Capital invests $10-M in Central India Hospotal Chain BSR Super Specialty Hospitals

From the Press Release

Funds managed by Aureos Capital have completed a $10m investment in the BSR Super Speciality Hospitals Limited (BSR), a leading Indian healthcare group.

Aureos Capital Limited is a private equity fund management company specialising in investing in small and medium sized businesses in emerging markets.



BSR currently owns and operates six diagnostic centres and two major hospitals across five cities in Central India. The hospitals include a 175-bed tertiary hospital (BSR Super Specialty Hospital, Bhilai) and the first specialist cancer hospital (BSR Cancer Hospital) in the state of Chattisgarh.

BSR Super Specialty Hospital is the first tertiary care hospital in the region, providing thousands of patients to date with previously unattainable levels of care.

BSR Cancer Hospital, the first specialist private sector cancer hospital in Chattisgarh state, is currently undergoing an extensive remodelling to increase quality and depth of its cancer care offering.

BSR Hospitals also owns Bhilai Scan and Research Limited (BSRL), who operate imaging diagnostics centres fully equipped with radiology and pathology services, across Central India.

BSR’s strategic alignment with Aureos will pave the way for continued expansion in its network of hospitals and diagnostic centres in wider geographies. BSR Hospital intends to start nine new imaging diagnostic centres and several new hospitals in the region, including a 150-bed multi-specialty hospital in Nagpur and a hospital in Rajnandgaon.

Analysts expect the hospital and diagnostic services market in India to grow at 20% per annum. G.V. Kumar, Partner of Aureos in India, comments: “The Indian healthcare sector, particularly in the underserved region of Central India is chronically under-funded, which has created a huge demand for private investment in the Indian hospital industry.”

Statistics reveal that there are 3,316 people to every hospital bed in Central India. The government aims to reduce this to one for every 800 people, suggesting that private sector investment will need to play a major role in increasing hospital capacity.

G.V. Kumar comments: “BSR Hospitals, driven by the visionary Dr. Khanduja, is a well-established healthcare group and a recognised brand. Its continued expansion into many of India’s most overlooked regions makes both a compelling investment case but has obvious benefits for the region’s population.”

“As well as providing critical healthcare services to the region, BSR Hospitals’ consultative status allows students to train within the facility, creating more doctors and healthcare professionals in an area that is widely expected to require an injection of medical expertise to cope with the growing population.”

The company has recently completed a deal with the Medica Synergie Group in Kolkata, a 500-bed hospital, to manage their entire radiology department, marking the first time that the group will operate a diagnostic centre on behalf of another organisation.

Balaji Srinivas, Managing Partner of Aureos in India comments “Our aim is to offer management all the help they need to facilitate the growth of the healthcare group as it expands throughout Central India and looks to establish itself as the leading provider of healthcare facilities in Central India.”

“India’s rapidly growing middle class population is driving demand for healthcare services across Central India. Higher levels of disposable income per household as well as increased awareness of lifestyle related diseases such as cardiac ailments have led to increasing levels of health insurance amongst the population.”

“Aureos’ investment in BSR is in line with its philosophy of reaching the tier 2 cities in India to propel investment and growth. We intend to use our capital to expand into Tier 3 cities as well, where demand for quality affordable healthcare services outstrips supply. This is in line with Aureos India’s core strategy to move into underserved cities within India to invest in basic industries servicing the domestic market that provides attractive risk-adjusted returns by building sustainable business leaders of the future.”

BSR Hospitals was founded in 1993 by Dr. M K Khanduja, a leading Paediatrician in Bhilai. Dr.Khanduja, has figured in the “best 50 pathfinders” (entrepreneur doctors) published by Express Health Care magazine of The Indian Express group. Dr. Khanduja is the only person from all of Madhya Pradesh, Chhattisgarh, Orissa and Vidharbh to figure in this magazine.

Dr. M K Khanduja, Chairman & Managing Director of BSR Healthcare, comments: “Our growth story is a mirror of the need for far reaching changes impacting healthcare. We have been pioneers in bringing the modern medical technology to the region and have worked closely with the community to provide diagnostic and therapeutic services. We are sure that our growth plans will get a boost with partnering with Aureos. We will continue to focus on fulfilling the healthcare needs of the community at large.”

N. Muthuraman, Director at RiverBridge Investment Advisors Pvt. Ltd., comments: “It has been a truly satisfying experience to work with BSR Group in their maiden capital raising plan and Aureos India. We are proud to have assisted a first generation entrepreneur from an under-banked Tier 2 market such as Chhattisgarh in accessing mainstream capital. We had strong conviction on the investment proposition because of the significant growth potential in BSR Healthcare with its unique combination of diagnostic services and mid-size hospitals.”

BSR Super Speciality Hospitals Limited, owns and operates Apollo BSR Hospital, Bhilai, in association with Apollo Hospitals Enterprises Ltd. Chennai, the largest chain of healthcare providers in India. BSR Hospitals specialise in Cardiology, Cardio Thoracic, Oncology, Neurology, Orthopedic, Nephrology, Pediatrics, Urology, Gastroenterology and emergency care. The hospital aims to provide quality healthcare at affordable cost.

December 12, 2010

Businessworld profile of day care surgery firm Nova Medical

From the article:
The operative word in Nova’s model is ‘minor’. Need a heart bypass? Nova is not the place. But, need an appendix or a cataract removed? A stomach (or gastric) banding to lose weight? A hernia patched up? Or a facelift? That’s right up Nova’s alley. In other words, surgeries that are low-risk, don’t need expensive support systems, and where the patient can go home the same day.On average, Nova claims to bill 15-20 per cent lower than a large tertiary care hospital since, with no in-patient stay, its costs are lower.

...Of late, health insurers that insisted on a minimum 24-hour hospital stay to reimburse expenses are paying for day-care. “Insurers are no longer an impediment to doing procedures as day-care,” says Nayan Shah, CEO of Paramount, a third-party administrator for health insurers. Shah says that some insurers have a standard list of day-care procedures, while others opine anything that can be done as day-care because of “scientific advancement”, should be.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in

Businessworld profile of online retailer Flipkart

From the article

Flipkart is now the undisputed leader in the online books retail category; it sells an average 5,000 titles every day, against a couple of thousand by Infibeam. But the ride has been bumpy. Initially, Binny and Sachin approached 15 publishers, out of which only two agreed to associate with them. It took them 10 days to sell the first book, remembers Sachin. Today, Flipkart has 500 publishers onboard and another 200 publishers are waiting to tie up with them. “It took us one year to get 15-20 publishers to be on our platform, but today we have a huge back-log. Initially, we chased them and now they chase us,” exclaims Binny.

...Flipkart has been growing exponentially and expects sales to cross Rs 100 crore this fiscal, from just Rs 5 crore in 2008-09 and Rs 20 crore in 2009-10. In comparison, Rediff does about Rs 60 crore of home-shopping business. Flipkart is also increasing its investment in infrastructure, and the number of warehouses will increase from the current four to 10 in a couple of years.

...a book ordered from Flipkart is sold by them — almost like an online version of a bookstore. Flipkart only sells its own warehoused products and is completely inventory managed. While it stocks books that have a high demand, others are sourced from the supplier only when it receives an order for them.
Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in

December 10, 2010

Nexus Ventures launches Nexus Seed program

From the Press Release:

Nexus Venture Partners, an early stage venture capital fund, announced today that it is launching a seed stage program called "Nexus Seed" which will help build a stronger entrepreneur ecosystem in India.


Nexus Venture Partners will use the Nexus Seed program to identify and fund high potential entrepreneurs who are building technology and Internet companies. Through this initiative, Nexus will invest Rs. 20 lakhs to 2 crores ($50k-$500k) each in up to 50 companies over the next 5 years. Entrepreneurs are encouraged to submit a summary of their plans to plan@nexusvp.com.


Nexus Venture Partners is the leading venture capital fund in India with total fund size of $320 million. Apart from investing in early to early growth companies, Nexus has also been incubating and investing in seed stage companies since 2006. These include Sedemac, Scalarc, Vdopia and several others. Many of these companies have gone on to raise further financing and build leadership positions in their markets.


Speaking about the seed program, Dr Naren Gupta, Managing Director of Nexus Venture Partners said, "We are excited to launch this platform to identify and assist entrepreneurs passionate about building leading companies to serve Indian or global markets. This will enable selected entrepreneurs to get access to expert help as well as seed stage capital which they can use to refine the concept and reduce some of the early stage risks."

About Nexus Venture Partners

Nexus Venture Partners (www.nexusvp.com) is India's leading venture capital fund, founded by successful entrepreneurs in India and Silicon Valley. It has $320m under management and an active portfolio of over 25 companies across technology, internet, media, consumer, business services and agribusiness sectors. The Nexus team plays an active role in helping entrepreneurs and management teams build market leading businesses. Some of the companies that Nexus has invested in include Komli (Internet advertisement network), Suminter (Organic farming), Dlight (Solar Lighting), DimDim (Open Source Web Conferencing), Mapmyindia (Digital Navigation), Deccan Pharma (Neutraceuticals), Gluster (Open source storage), Cloud.com (Cloud infrastructure), Pubmatic (Publisher Ad revenue optimization), Prana (Animation services) and Netmagic (Internet Infrastructure).

December 09, 2010

Deal Alert: Headland Capital invests Rs.40-Cr in Microqual Techno

From the Press Release:

Microqual Techno Ltd. one of India’s leading telecom infrastructure providers has raised growth funding of Rs. 40 crore from a wholly owned subsidiary of The Headland Asian Ventures Fund 3 Limited (HAV3), a fund advised by Headland Capital Partners Limited (Headland) (formerly HSBC Private Equity (Asia) Limited). This is the second round of funding received by Microqual which is a comprehensive infrastructure solutions provider for the Indian telecommunications sector. Its clients include all major telecom carriers.



The funds will be utilised for expansion in Bangladesh, Nepal, Africa & other emerging markets, strategic acquisitions, and implementing newer technologies. The company had secured the first funding in July 2007 from IndoUS Venture Partners, JAFCO Investment (Asia Pacific) Ltd. and BTS India Private Equity Fund.

Ernst & Young India were the exclusive financial advisors to Microqual for this round of Series B funding as well as the Series A round in 2007.

Speaking on the development Mr. Mahesh Choudhary, Founder and CEO of Microqual Techno Ltd. said, “The telecom industry continues to grow at a rapid pace and has a long term potential both in Indian and emerging markets. To be a differentiator in the telecom industry we believe that we have to think out of the box to drive costs down for our clients. We would like to use existing resources for alternate applications which will enable us to continue to redefine competition.”

He added, “We have been able to grow the company from strength to strength by working on the core problems of our customers and designing innovative solutions to address the same. Microqual fully understands the changing needs of mobile operators in an ever increasing price competitive environment and their customer’s need to build and operate networks with optimal investment and yet “go to market” in shortest timeframe.”

James Savage, Partner of Headland also commented on the investment, “Microqual has grown into a leading provider of telecom infrastructure products and services in the Indian market. With some exciting new products and innovative services being launched in India and significant potential to service its customers overseas, we believe that Microqual is well positioned to capitalise on these opportunities.”

Alok Gupta, Partner of Headland based in Mumbai also commented on the investment, “We were attracted to Microqual due to its ability to understand and address the opportunities in the dynamic telecom sector. We look forward to working closely with the management team to realize their business and growth aspirations.”

Since inception in 1999, Microqual has demonstrated rapid growth from being just a component supplier to becoming one of India’s leading total service providers of telecom infrastructure.


About Microqual Techno Ltd.

Microqual Techno Ltd. is a comprehensive infrastructure solutions provider in the telecommunications sector. It manufactures and supplies passive microwave components, radio frequency antennas and cables, in-building solutions materials, tower accessories, electrical and mechanical site materials required for telecom infrastructure installation. The company provides complete lifecycle of services from site implementation, managed services, engineering, procurement & construction and project management. Microqual has three state of the art manufacturing facilities at Aurangabad, Bengaluru and Rudrapur, and a dedicated R&D department at Bengaluru.

For more information, please visit: www.microqual.com

About Headland Capital Partners

Headland Capital Partners Limited, formerly, HSBC Private Equity (Asia) Limited, has been advising private equity and venture capital funds since 1989. Headland endeavours to be a trusted and commercially-minded investment partner for entrepreneurial management teams in Asia and strives to assist these teams to build upon or achieve industry leadership positions for their businesses. The firm believes such partnerships support these companies and their management teams to attain sustainable financial success while delivering attractive returns for its advised funds.

During its history, Headland has advised six private equity and three venture funds, as well as several country-specific funds, with aggregate capital of approximately US$3.4 billion. Current active funds, with committed capital of approximately US$2.4 billion, include: The Headland Private Equity Fund 6 L.P., The Headland Private Equity Fund 3 Limited, The Headland Asian Ventures Fund 3 Limited, and The Headland Asian Ventures Fund 2 Limited. Funds advised by Headland have invested in more than 140 companies located primarily in Greater China, India, South Korea and Southeast Asia.

For more information, please visit: www.headlandcp.com

December 07, 2010

Deal Alert: Pragnya Fund invests in VGN Developers' residential project in Chennai

Edited extracts from Press Release:

Real estate-focused PE investor Pragnya Fund has formed a JV with VGN Developers for a residential development project in Chennai. The project, covering an area of 6 lakh square feet at Paruthipattu on the Poonamalli- Avadi High Road, beside State Highway 55, will cater to the affordable housing segment of the market. The launch is scheduled for mid-2011.




From the Venture Intelligence PE-RE Deal database
: In 2007, Pragnya Fund had taken a 24.5% stake in L&T South City township project (L&T Eden Park) on Chennai's Old Mahabalipuram Road/IT corridor.

Pragnya Fund has been in the real estate investment business in India and Sri Lanka since 2005-06. In addition to their Chennai projects, the Fund has also invested in an IT SEZ project at Kochi, a mixed-use project in Colombo, two residential projects at Asansol and Barrackpore in West Bengal and another project in Bangalore. The total built up space in these projects is around 12 million square feet. Mr. Subba Rao Dukkipati, Managing Partner of the Fund said that “We are happy to invest in Chennai with VGN as we believe Chennai is a growing market. This project being on the main road is ideal to meet the requirements of the middle income group of Avadi and nearby areas.”

VGN Developers is a leading real estate developer in Chennai and have been in operation since 1942. VGN have developed major residential layouts and apartments across Chennai with a total built space of over 20 million sq. ft. Some of the major projects include VGN Zodiac Ville, VGN La Parisien, VGN Minerva, VGN Platina, VGN Ferndale, VGN Pinnacle and VGN Brixton. Mr. Pratish, Managing Director, VGN Developers Ltd, said that “VGN has always worked to offer customer satisfaction in all their projects and it is same with this project. We will provide apartments that give value to our customers. This is also our first project with a foreign Private Equity Fund and we are sure our partnership with Pragnya Fund would make the project a great success.”

December 06, 2010

Deal Alert: TVS completes Rs.35-Cr investment in Dusters; Co. acquires M&E-focused facilities management firm Facilitec Services



TVS Shriram Growth Fund-I, managed by Chennai-based TVS Capital, has announced that it has completed its Rs.35 crore investment commitment (originally announced in Nov-09) in Facilities Management Service provider Dusters Total Solutions Services (DTSS), with a balance Rs.10 crore tranche. Formed by merging two companies run by Shamsher and Jasmer Puri, the Bangalore-based DTSS has offices in Mumbai and other cities across 10 states.

Simultaneously, it was also announced that DTSS has acquired Facilitec Services, a Singapore- and Bangalore-based FMS provider specializing in the Service, Operations and Maintenance of Electrical and Mechanical Systems. Following the acquisition, KC Gupta, MD of Fascilitec Services will head the M&E vertical in DTSS.

December 03, 2010

Deal Alert: Ojas Ventures invests in RiverSilica Tech

Bangalore-based early stage VC fund Ojas Ventures has invested in RiverSilica Technologies, a company that provides a hardware-based solution for speeding up video streaming services.



RiverSilica's solution accelerates video streaming in a device agnostic way for enhancing end user experience and lowering the cost of video delivery to content delivery networks (CDNs) and content owners.

The company, which also has an office in Japan, is led by Jagannathan Balaji, who previously founded Purple Vision Technologies, a Bangalore-based company engaged in chip design services with a special focus on image processing. Puruple Vision, which had raised funding from CVC International, was acquired by TES Electronic solutions in 2005.

December 02, 2010

Angel Investing: Join a Network or Go Solo?

Economic Times has an interesting article on the emerging trends in the Indian Angel Investing space.
“Without a doubt individual investing is a growing trend but individuals are few and scarce whereas with a network all that an entrepreneur has to do is apply online and gain access to a pool of nearly a hundred,” says Sasha Mirchandani, founder Mumbai Angels who was an individual investor before he set up the angel group.

...“Start-up entrepreneurs usually give up 30-40 % of equity to an angel network and by the time first round of venture capital funding comes round they could be left with just 20% of the ownership and lose motivation ,” says LR Narayanan, whose investment banking firm MasterKey Holdings works with early-stage technology firms. But beyond the money the real draw of individual angels is the personal mentoring they provide.

“For this model to work angels must nurture just two or three start-ups at a time,” says Krishnappa, who is floating a model where individuals put in Rs 25-50 lakh in each start-up for a fifth of the equity.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in

December 01, 2010

Capvent's 3rd Biennial China-India-Brazil Private Equity Manager Summit

Partner Event Promotion:

Following the success of our first two Emerging Market GP events in Shanghai, PRC (Sep 2007) and Goa, India (Apr 2009), we at Capvent invite select fund managers from China, India, Brazil and other Emerging Markets to attend our Summit, a 3rd in the series.

The Summit provides a unique platform for practitioners to develop their networks, forge new business relationships, and identify investment opportunities for their portfolio companies. It will also leverage Capvent’s insights and deep networks in the region, to bring together at one place the best minds in the business, to discuss, understand and explore these synergies through a professional network similar to their own.

AGENDA OF THE SUMMIT

3 days of interesting deliberations by leading practitioners in Emerging Markets on the way forward for Private Equity, especially in the Emerging Markets. It will also include 2 nights of networking cocktails and dinner to develop networks and new business relationships.

Key topics to be discussed include:

· The Future of Private Equity in Emerging Markets

Leading fund managers will share their thoughts and experiences on the path of collaboration between businesses in the 3 countries, the probable risk and the role of private equity as a bellwether of capital for Sino-Indian and global competitiveness.

· Round Table Discussions on Various Sectors

Several industries in the Emerging Markets are growing at a very healthy pace, holding significant potential for the future as well.

Food & Agribusiness: The food processing industry in India and China is the world’s largest in terms of production, consumption, export and growth. The region accounts for over 40% of the global population.

Education: With a large and growing population, demand for educational services has grown exponentially with government support lagging. As such, the private sector has an opportunity to tap the education sector as secondary and tertiary enrollment rates grow.

Information & Communication Technologies: China and India are likely to become the world’s two largest economies by mid-century. Although India has underperformed China over the last decade, there is a strong possibility that India will close the gap.

Clean Technology: Emerging Markets are poised to become market leaders in the development of clean technologies with large government support. Having said this, what are the risks for private equity investors in this sector?

Pharmaceuticals & Healthcare: Increased healthcare coverage in Emerging Markets has been largely driven by government subsidies and increased economic accessibility by the general public. International pharmaceutical companies are looking for new sources of revenues and expanding aggressively through M&A transactions.

Consumption-driven business models: Brand building is an integral part of consumption-driven economies. While brand building is different in different parts of the world, it is also perceived differently across the Emerging Markets and the developed countries.

· Limited Partner Perspectives

Hear from LPs on their views on transparency, allocation and return expectations; the flexibility of GPs vs. LP demands; how to earn LP trust and build a long and sustainable relationship; and whether LP expectations are reasonable.

· Planning your Fundraising Activities

In today’s challenging fundraising environment, how should fund managers better position themselves? Hear from the panel on various aspects dealing with this challenge including perspectives on the fundraising environment over the coming months, competing for capital, key skills being looked for in fund managers operating in Emerging Markets etc.

- For detailed agenda, click here.

We are receiving tremendous interest from fund managers across various regions, and have a list of prominent speakers and delegates. For a list of our current confirmed speakers, click here.

About Capvent’s 3rd Biennial China-India-Brazil Private Equity Manager Summit 2011

This forum will take place at the Alila Diwa Resort, Goa, India, 6 – 8 April 2011. It is for practitioners only. This year's Summit will bring together renowned fund managers from Europe, the US, and Asia, as well as a number of Limited Partners looking to cultivate relationships, explore business opportunities and share and gain insights on the development of various sectors and new business models that are emerging in China, India and Brazil.

Please note that the Summit is a closed business event, and participation is on an invitation-only basis, with the number of participants strictly limited.

For more information on the Summit, you may refer to the below contact information or visit our website: http://www.capvent.com/conf-11/index.html

ABOUT CAPVENT

Capvent is a globally oriented firm with activities in Private Equity Fund of Funds as well as specific direct and co-investment programs in Asia. The firm was founded in July 2000 by founding partners Thomas Clausen and Varun Sood, and now manages and advises alternative investment programs of over $2.2BN in size. To know more about us, click here.


CONTACT INFORMATION

Contact: Bernice Almeida (ba@capvent.com) and Hemlata Malani (hemlata@capvent.com)

Telephone: +91 22 26489 551/ +91 22 26489 552

For more information on the Summit, you may contact the above or visit our website: http://www.capvent.com/conf-11/index.html


November 23, 2010

Deal Alert: Vinculum Solutions raises funding from Accel Partners

Vinculum Solutions Private Limited has received investment from Accel Partners India. The funding will help Vinculum to enhance its suite of products and to accelerate growth in India and itsglobal operations.

Mr. Mahendran Balachandran, Partner,Accel India (Ex Country General Manager India, Apple) has joined the Board of Vinculum Solutions.

About Vinculum Solutions Limited:
Vinculum Solutions Limited is a focused company providing IT Products and Solutions to leading Retailers, Supply Chain/Logistics and Manufacturing/Distribution companies

Vinculum’s product portfolio spans the retail value chain and comprises of fully owned products such as Vin MMS (Merchandising Solutions), Vin Store Solutions ( BOS, POS), Vin Commerce, Vin Procure, Vin MDM (Master Data Management). Vinculum services include a) helping customers develop a long term IT strategy covering Applications, processes , people and Infrastructure b) Application Development services c) Package Implementation, localization and integration services for best of breed products like Oracle Retail Suite (RMS, ORPOS, AVT, Planning) ,Demantra, ASCP, Infor WMS, TMS, Manthan BI &Revionics Price Optimization solutions.

For more information, please visit the Vinculum Group website at www.vinculumgroup.com

November 19, 2010

Moser Baer's Power Foray

Economic Times has published a feature on the Moser Baer Group's foray into the power generation business. (The group recently raised PE funding from Blackstone for one of the ventures.)
It’s as big a reinvention the Puris have undertaken as any. Over the next five years, the Puris plan to invest Rs 34,000 crore -- about 16 times the current revenues of Moser Baer India -- to set up 5,000 MW of power capacity across three mediums: thermal, hydro and solar. And they are doing all this outside the flagship company.

...For the Rs.34,000 crore investment required, the Puris are looking at a debt-equity ratio of 75:25. However, the banks they are talking to are asking for 30% equity, as Moser Baer is new to the power business. At 30%, the equity component is about Rs 10,000 crore. So far, it has got Rs 1,350 crore from Blackstone. The Puri family has brought in Rs 700-800 crore, most of it providentially realised from the sale of personal land just before Lehman Brothers collapsed, taking the real estate market with it....The remaining Rs 8,000-odd crore is expected to come by diluting equity, both to the public and to private equity. Moser Baer Projects has also tied up a loan of Rs 2,000 crore each from Axis Bank and SBI Caps.

...The Puris have taken a clean approach to structuring the power business. It’s separate from Moser Baer India, the listed entity that is into digital storage and PV cells. Says Ratul Puri: “Development businesses are very different from manufacturing. The risk profiles are different, as are the mindsets and approaches required.” So, for the power business, there’s a holding company, Moser Baer Projects, in which the Puris and Blackstone are shareholders. Moser Baer Projects has three subsidiaries, one for each power business; mining is a division of the holding company.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in