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December 23, 2011

ET NOW’s ‘Super Angels’ helps Fetise.com raise up to Rs. 25 Crores from Seedfund

From the Press Release:

ET NOW’s Super Angels, a special series on the ‘Starting Up’ show which provides a platform for start-ups to make pitches to Angel Investors, witnessed a Mumbai based start-up company – Fetise.com (Men’s Apparel e-commerce platform) raise capital up to Rs. 25 Crores from Seedfund, represented by Mahesh Murthy, one of the Super Angels on the show.

On what attracted Seedfund to invest in Fetise.com, Mahesh Murthy, Managing Partner of Seedfund says, “Very often we see e-commerce start-ups who want to sell everything to everybody. But here we found a team that focussed on one target audience: upscale men and they’ve executed well to build a wide and deep line of products for the audience, as well as significantly differentiate from other e-com players.”

On the experience of raising funds on the Super Angels platform, Chetan Bafna of Fetise.com says “The sheer pace of growth within e-commerce in India makes this an exciting business. Our fundraising process started 6 months ago on Super Angels, and we’re overjoyed that the fundraising has closed on the TV platform too.”

The next phase of Super Angels will be beginning in January 2012 with 10 start-ups making a bid to follow Fetise.com and raise funds successfully on the platform.

Super Angels is a part of Starting Up which plays out every Tuesday at 10.30 PM, Saturday at 9 PM and Sunday at 10 AM only on ET NOW.

Related video:

Deal Alert:Trinity Ventures, Nexus invest $5.3 M in database software firm ScaleArc

Edited Extracts from the Press Release:
ScaleArc , a Mumbai and Silicon Valley-based database infrastructure software maker founded by Varun Singh, former CTO of Web18, has secured a $5.33 million second round of financing. The round was led by Trinity Ventures with participation from existing investor Nexus Venture Partners. The new funds will accelerate geographic and staffing expansion to meet increased demand.

In addition, ScaleArc announced the appointment of Justin Barney, who previously ran sales divisions at companies like Citrix and Juniper Networks, as president and COO.

ScaleArc’s iDB software, which is available for MySQL, SQL Server, Oracle and Postgres database environments, offers real-time query analytics and control, instant horizontal scaling, caching, dynamic load balancing and more, all without any changes to existing applications or databases.

ScaleArc customers include e-commerce, SaaS, online gaming and digital media companies.
With exponentially growing data and increasing transaction rates, organizations face substantial cost and complexity in scaling their database architecture in a cost-effective manner while increasing performance, visibility and uptime. The ScaleArc iDB software provides a wide spectrum of capabilities: real-time query-analytics and control, instant horizontal scaling for capacity growth or high availability, one-click query caching, automated sharding, dynamic load balancing, enforcement of security policies, and much more, all without any changes to existing applications or databases. It is the only solution that reduces overall CapEx and OpExcosts by up to 50% and delivers instant performance improvements of 6x-24x with no disruptions to existing environments.

ScaleArc’s customers cover a wide range of industries including eCommerce, web 2.0 / SaaS, online gaming, digital media companies, service providers, and enterprises.

Quotes

"As a leading mobile and online games company, Indiagames runs some of the most sophisticated and demanding database environments in the world, and our game RA.ONE Genesis pushed all boundaries for scale," said Vishal Gondal, founder & CEO Indiagames Ltd. "Using the ScaleArc iDB product in our production environment has led to significant productivity gains for our DBAs and simplified how we horizontally scale our systems for capacity growth and high availability without changing our applications or databases. We are especially pleased with the real-time query analytics capability of ScaleArc iDB and the instant troubleshooting and comprehensive control that it provides to our DBAs. We think some day all database environments will be deployed like this."

"At Netmagic Solutions we manage mission critical IT infrastructure for our enterprise customers delivering over 99.99% uptime to more than 1,000 customers worldwide,”said Sharad Sanghi, founder and CEO of NetMagic Solutions. “The ScaleArc iDB software plays an important role in our constant drive to increase service levels while reducing service costs.iDB has greatly improved the efficiency of our IT Operations by simplifying traditionally complex tasks such as adding or removing application or database servers. We have also seen substantial increase in performance through iDB's one-click caching, and having full visibility into every query helps us pinpoint and solve problems in seconds."

“Justin brings a wealth of operational leadership built over a distinguished career working with start-ups as well as large companies,” said Varun Singh, ScaleArc founder and CEO. “Justin’s appointment and Series B financing from Trinity Ventures and Nexus Venture Partners will allow us to meet increased demand as we continue to develop and market our new breed of database infrastructure software technology.”

“ScaleArc has struck upon a powerful yet elegant architectural approach to solve many thorny problems in today’s dynamic high performance data center applications,” said SandeepSinghal, co-founder of Nexus Venture Partners.

“Trinity Ventures has been actively looking for innovative companies solving database scaling and performance issues and ScaleArc’s new database infrastructure software approach is as refreshingly simple as server virtualization was a decade ago,” said Fred Wang, general partner at Trinity Ventures. “ScaleArc is the type of innovative company that Trinity Ventures seeks to support.”

About ScaleArc

ScaleArc is the pioneer in a new category of database infrastructure software that simplifies the way database environments are deployed and managed, and lowers costs without any changes to applications or databases. The ScaleArc iDB software abstracts database servers from application servers to provide instant horizontal scaling and connection management, and enables real-time visibility into every query to provide instant analytics and troubleshooting, one-click query caching, wire-speed security enforcement, etc. Until now, achieving such capabilities required significant investment in engineering resources and ongoing maintenance with too manysingle-purpose solutions from multiple sources that require constant changes to applications, as well as individual management and upkeep. Visit us at www.ScaleArc.com


Varun Singh
Founder & CEO

Varun is a technologist with broad experience in several fields, from running Linux-based BBS systems in the pre-internet-boom days, to writing about technology and open source software at magazines like PC Quest, CHIP, Digit and Network Computing, to creating India's top online technology brands such as TechTree and Tech2, to hosting technology shows on TV Channels like CNBC TV18, CNN-IBN and ET Now. He led large engineering teams for Web & Application Development as CTO at Network 18's web division and built the highly scalable technology behind large websites like IN.com, MoneyControl.com and various other portals. Varun's direct, hands-on experience with web and database technologies is what led him and his team to identify the emerging challenges of database environments and to their subsequent inventions around database virtualization and the formation of ScaleArc.


Venture Intelligence is 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.

December 19, 2011

Deal Alert- Accel Partners invests in Trivone Digital

From the Press Release:

Accel Partners has completed Series A investment in Trivone Digital a Bangalore-based new age digital media and content company.

The funds will be utilised by Trivone towards meeting its working capital requirements as well as pushing growth through the inorganic route in the months ahead.

“We are delighted to have Accel Partners on board and look forward to working closely with them as we chart out a growth path for ourselves. We believe that the expertise gathered by Accel Partners over 25 years of building more than 300 successful enterprises will hold us in good stead,” said Subu Subramanyan, Founder and CEO of Trivone Digital Services.

Trivone’s strategy is the ability to create world class content, which will enable it to build Digital media properties and offer managed services to clients. Currently the company offers services by way of creating, sourcing and packaging content for online delivery to a wide cross-section of large Enterprise customers.

“Trivone, given the media and Content expertise of the team, is well set to build a best in class Digital Media Company”, said Mahendran Balachandran, Partner at Accel India.

Trivone is promoted by veteran journalist L. ‘Subu’ Subramanyan and it manages three premier IT Media Properties – www.techtree.com, www.channeltimes.com and www.cxotoday.com. The company plans to build several Digital media properties in specific verticals and increase its presence in the Digital Media landscape in India.

Earlier in the year Trivone had acquired the management rights for the three IT portals, viz., Techtree.com, ChannelTimes.com and CXOToday.com from UTV.
Explaining the rationale for pure play digital media, Subu said, "Internet penetration in India is at the cusp of rapid growth. We see a tremendous opportunity for these properties to grow, both online and mobile".

About Accel

Founded in 1983, Accel Partners has a long history of partnering with outstanding entrepreneurs and management teams to build world-class businesses. Accel today invests globally using dedicated teams and market-specific strategies for local geographies, with offices in Palo Alto, California, New York City, London and Bangalore, as well as in China via its partnership with IDG-Accel.

Accel has helped entrepreneurs build over 300 successful companies, many of which have defined their categories, including 99designs, Actuate, AdMob, Agile Software, Alfresco, Angry Birds (Rovio), Atlassian, BBN, Bonobos, Braintree, Brightcove, Cloudera, ComScore, Diapers.com (Quidsi), Dropbox, Etsy, Facebook, Fusion-IO, Gameforge, GlamMedia, Groupon, Imperva, Infinera, Interwoven, IronPlanet, JBoss, Kayak, Lookout, Macromedia, metroPCS, MoPub, OPOWER, Polycom/PictureTel, Playfish, Portal Software, QlikTech,Rapt, Real Networks, Redback, Responsys, Riverbed, Spotify, Squarespace, SunRun, Trulia, UUNet, Veritas, Walmart.com, Webroot, Wonga, XenSource and Zimbra. In India, Accel has made investments in companies such as Babyoye, enStage, Exclusively.in, Flipkart, HealthcareMagic, Kaatizone, Letsbuy, Myntra, MuSigma, Perfint, Virident, QwikCilver, Deeksha, and Vinculum.

For more information, please visit the Accel Partners web site at www.accel.com find us on Facebook at www.facebook.com/accel.

About Trivone Digital Services

Trivone Digital Services Pvt. Ltd. is India’s leading digital media and content services company that runs some of the country's top IT portals including techtree.com, India’s largest consumer technology portal, CXOToday.com, an exclusive portal for decision makers and Channeltimes.com, the information vehicle for IT channel partners. The company also undertakes Managed Services including creating, editing, sourcing and packaging content for delivery online and complete outsourcing of all Digital Content assets for a wide variety of clients.

Venture Intelligence is 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.

December 18, 2011

Kidswear retail gets serious

Extract from the Business Today article:


There is quite a crowd on the kids' wear bandwagon, and segmentation has stretched in the past year to include luxury. While Big Bazaar is among those that cater to the mass segment, Gini & Jony and Lilliput operate in the medium category. Homegrown brand Lilliput Kidswear, which started in 2003, has the early mover advantage, with 261 exclusive outlets and 541 shop-inshops in the country.

...The Associated Chambers of Commerce and Industry estimates that the industry is worth Rs 38,000 crore, and growing at a compound annual rate of about 20 per cent to reach Rs 80,000 crore by 2015. Kidology's same-store sales - a retail industry metric to distinguish a rise in sales within a store from an overall increase in sales due to the opening of new stores - have grown more than 40 per cent in the past year. Besides its own stores in Delhi and Mumbai, Kidology also sells through other retail outlets in Mumbai and Hyderabad. It is in talks with private equity funds, and plans new stores in Chandigarh, Ludhiana and elsewhere.

"Competition is definitely increasing, and consumers are becoming brand-conscious," says Anil Lakhani, Executive Director, Gini & Jony. The 31-year-old brand, which sells through 230 exclusive stores besides other outlets, is growing at a compound annual rate of 33 per cent.

Venture Intelligence is 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.

December 16, 2011

"Focus on your 3Cs: Credibility, Cash Flow and Crew" – Rajeev Mecheri of Mecheri Smart Capital

Cross-posting from the Venture Intelligence Entrevista series:

Lessons from the Startup to Scale-up to Successful Sale of iMetrex Technologies, a building technologies and security venture catering to the Indian enterprise market - The Venture Intelligence Team



Rajeev Mecheri, Managing Director, Mecheri Smart Capital (Bio & LinkedIn)

Interview by Hari Krishnan of Venture Intelligence, followed by interaction with students at the Department of Management Studies IIT-Madras on November 9, 2011.

Highlights:



Please click on the links below to view corresponding video snippets:




Click Here to Download the Audio of the Interview
- mp3 format - 52 mins; 24 MB
Use Right Click & Save As to download to your desktop

Click Here to Download the Audio of the Q&A session - 21 mins; 10 MB
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Venture Intelligence is 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.

December 04, 2011

"2012 to be poor for exits, good for investments"

In an interview published in The Mint (in text and video formats), Vikram Utamsingh, Partner - Transactions and Restructuring & Private Equity Advisory, KPMG India, says that while the exit track record of India-dedicated PE funds has not been great in the last few years, things are likely to improve from here.
...results are going to be bad for a couple of years because the industry is holding on to a portfolio of investments and we can assume that at least one-third of them will not make returns. So what are investors going to do with these investments? Ultimately, investors will have to exit them, write them off, or something. I think the industry will continue to see some bad news, for a couple of years.

Hopefully, the next 12 months are going to be a very good period for PE investments. To begin with, we have a stock market which is not very vibrant. So, there are a lot of IPOs that are not happening. These companies are now coming to PE firms to raise money. Those firms are also getting a bit tempered on their valuation expectations. There is a hope for the industry that 2012 will actually be a good year for PE investments. From the exit point of view, it will certainly be negative but from investment point of view it will hopefully be positive.

...I think returns will improve over a period of time simply because the quality of PE deals that investors are doing has improved. If you go back to investments in 2005-06-07, there was to some extent a herd mentality, people were thinking they were losing out at an investment opportunity becaushttp://www.blogger.com/img/blank.gife five firms were bidding for it. There was undue excitement on investments. I think PE firms have significantly matured now, they have undergone a negative business cycle and I guess reality has struck them.They are not in a rush to make investments today. There is no pressure on funds to do two, three investments a year. I think the quality of investment has improved and, therefore, you shall see the results of quality of investment in 2014, 2015.

Click Here to download the latest KPMG report on PE exits in India.

Venture Intelligence is 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.

December 02, 2011

"India’s entrepreneurial journey at least 5 yrs behind China’s"

From the article in Forbes by Journalist Rebecca Fannin.

India’s entrepreneurial journey is at least five years behind China’s path. There’s no Jack Ma or Robin Li in sight or a big-time IPO like Youku. India lacks the entrepreneurial buzz and fast pace of China tech clusters. Indian entrepreneurship has been led by grassroots efforts, and the government hasn’t always been venture friendly.

If India is ever to break through, it needs to ditch an image as just for outsourcing or low-cost engineering and business services—a major challenge for the world leader of the booming $500 billion global outsourcing market. But India could eventually become a tech minipower and grab some of the limelight from China. Contemporary corporate centers such as Whitefield on the outskirts of Bangalore and the Gurgaon satellite city in Delhi showcase that India is rising.

For sure, India needs a lot more deals with the stature of online travel site MakeMyTrip, a deal that barely gets noticed next to China’s higher-profile Internet home runs. After all, MakeMyTrip listed on NASDAQ in August 2010, nearly seven years after Ctrip, China’s leading travel site, had its own debut.


Venture Intelligence is 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.