Knowledge Partners


 Basiz Fund Service    Economic Laws Practice    Avalon Consulting  

 Spark Capital    Tatva Legal   

April 25, 2012

Deal Alert: ChrysCapital invests Rs.300-Cr in Intas Pharma

From the Press Release:

Ahmedabad-based Intas Pharma, one of India’s leading private pharmaceutical companies, today announced that it is raising Rs. 300 crores from ChrysCapital in a pre-IPO round.  The Company has deferred its listing plans for the time being and intends to re-file for an IPO once market conditions stabilize.

Intas is an established global pharmaceutical player with FY 2012 revenues of over Rs. 2,700 crores.  The Company has a strong presence in chronic therapy areas and is currently ranked 12th in the domestic market by ORG-IMS.  Intas also has a fast growing and significant export base in Europe and USA under the brand name of Accord Healthcare.

This will be ChrysCapital’s second investment in Intas, having originally backed the Company in 2006 from an older fund.  As an existing investor in the Company, ChrysCapital has benefited significantly from the strong performance recorded by Intas over the past six years.  Consequently, this investment comes at a significant multiple to the 2006 investment.

Based on the Chairman, Hasmukh Chudgar’s recommendation, the Board of Directors endorsed the appointments of Binish Chudgar as the Vice-Chairman & MD and Nimish Chudgar as the MD & CEO with immediate effect. These appointments are to drive forward the Company’s ambitious growth plans and develop world-class leadership in the run-up to a public listing in the near future.

Binish Chudgar of Intas commented, “ChrysCapital has been an integral part of our journey and has played an important role in determining our business strategy along the way.  We greatly value ChrysCapital as an investment partner and look forward to extending our association further.”

Sanjiv Kaul, ChrysCapital’s nominee on the board of the Company, said, “Intas has demonstrated impressive historical growth and profitability and is poised for significant growth in the years ahead.  The Company has gained market share in a fast growing domestic market and successfully scaled up its international business at the same time.  This follow-on investment reaffirms ChrysCapital’s faith in the Company’s ability to continue to deliver superior shareholder value over the years.”

About Intas Pharmaceuticals Limited
Intas is a leading, vertically integrated Indian pharmaceutical company engaged in the development, manufacture and marketing of formulations including bio-pharmaceuticals. In the domestic market, the Company has over 55% of its revenues coming from chronic therapy areas like cardio and central nervous system.  Internationally, Intas is present in over 50 countries worldwide predominantly in North America, Europe & Latin America with exports constituting around 40% of total revenues. The Company operates 10 manufacturing facilities with approvals from leading regulatory agencies like the USFDA.

About ChrysCapital
ChrysCapital manages $2.5 billion across six funds and is one of the leading private equity funds that invest in India. With 60 investments since 1999, ChrysCapital has valuable experience in evaluating investment opportunities across a breadth of sectors that leverage growth in the Indian economy.

For further information, please contact:
Binish Chudgar, Vice-Chairman & Managing Director, Intas Pharma
Tel: 079 – 2657 6655
E-mail: binish_chudgar@intaspharma.com

Jayesh Shah, CFO, Intas Pharma
Tel: 91-9998050507
E-mail: jayesh@intaspharma.com

Deal Alert: Nexus Ventures invests in vocational training firm TalentSprint

From the Press Release:  

TalentSprint, a pioneer in creating high performance professionals for the IT and BFSI industry, has raised INR 20 Crores in Series A equity funding from Nexus Venture Partners. As part of this Series A investment Anup Gupta will join the company’s board of directors.

Co-founded by industry veterans Madhumurty Ronanki, Santanu Paul, and J.A. Chowdary, TalentSprint aims to skill 500,000 graduates by 2020.

TalentSprint, an NSDC partner company, offers employability programs to young professionals using experiential learning and iPEARL, its proprietary technology platform. The programs blend diverse skills and are delivered by best-of-class, industry practitioners to students during or after college, thereby greatly improving their prospects of getting employed when they graduate. On the demand side, the company works closely with industry partners to deliver productivity and efficiency gains in excess of 70% in terms of new talent acquisition.

Santanu Paul, CEO and Managing Director at TalentSprint said, “India has tripled the number of higher education seats since 2000 and will do so again between now and 2020. However, quality has become a massive challenge.  Our solution combines rich content, industry-experienced instructors and technology-aided delivery to provide meaningful employability outcomes. The near term goal is to integrate 100 colleges into the TalentSprint College Network.”

Anup Gupta, Managing Director, Nexus Venture Partners, said, “Infusing quality into the higher education system is essential for India to be able to sustain its economic growth. We are very pleased to back TalentSprint’s strong management team and its innovative model that brings skill development and industry expertise to colleges and youth through smart use of technology. The goal is enable up-skilling on a large scale without compromising on quality.”

About TalentSprint

TalentSprint (www.talentsprint.com) is a pioneer in creating high performance professionals for the global IT and BFSI industry through fast-track transformations. TalentSprint offers employability programs that are delivered by best-of-class industry practitioners using experiential learning and iPEARL, its proprietary technology platform. The industry-relevant programs, targeted at young professionals during or after they graduate from college, greatly improve their prospects of getting employed.

The company has successfully graduated 3,000 professionals that have been recruited by 60+ leading companies in the IT and BFSI sector. TalentSprint has world class learning facilities in Hyderabad and Chennai and a strong College Partner Network.

About Nexus Venture Partners

Nexus Venture Partners (www.nexusvp.com) is India’s leading venture capital fund, with offices in India and Silicon Valley. It has $320m under management and an active portfolio of over 35 companies across technology, internet, media, consumer, business services 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 Cloud.com (Cloud provisioning platform acquired by Citrix), Gluster (cloud storage, acquired by Red Hat), Pubmatic (Publisher Ad revenue optimization), DimDim (Web Conferencing acquired by Salesforce.com), Snapdeal.com (eCommerce), Mapmyindia (Digital Navigation), Netmagic (Managed Services acquired by NTT Com), Komli (Online ad network), Prana (Animation services), Druva (Enterprise data protection), Greywater (Waste Water Treatment), EyeQ (affordable eye care),SohanLal Commodity Management (Agri-logistics solutions provider) and Bigshoebazaar (Online wholesale cash & carry platform).Investors in Nexus include leading university endowments, foundations and sovereign funds.

April 17, 2012

A "Bansal Mafia" in E-Commerce?

From a TiE Mumbai SmashUp e-poster:



We've heard of "McKinsey Mafia", "IIM-A Mafia", etc. being used to refer to the sheer number of alum of these hallowed institutions that go on to join the Indian PE/VC industry. But what explains the high odds of raising dollops of venture capital funding for your e-commerce venture if your second name is a Bansal?

Company

No. of Co-founding
Bansals

VC Raised (US$ M)

Flipkart

2

180

Snapdeal

1

50

Myntra

1

40

Lenskart

1

4

Total

5

$275 M

* Source: Publicly reported data - including especially this Mint report for the last
$150-M round raised by Flipkart

Please do let us know if we should modify the above table in light of any new data - either on the number of Bansal companies or the value of the investments.

While the above is not the kind of normal research that we do, 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.

April 13, 2012

Deal Alert: Nexus Ventures invests $3-M in US-based Social Media Benchmarking firm Unmetric

From the Press Release:

Unmetric, a Chicago, USA-headquartered firm with offices in Chennai & Coimbatore in India, has raised $3.2 million in Series A financing led by Nexus Venture Partners. Unmetric will use the funds to continue developing its benchmarking platform, enabling companies to better survey and analyze the content strategy of a brand and the key terms that are triggering customer engagement. Unmetric will also be using the round to further expand its team in the U.S.

“Brands around the world today are witnessing an explosion in opportunities to reach customers through social media,” said Jishnu Bhattacharjee from Nexus Venture Partners. “We’ve seen many social media monitoring and listening tools, but what impressed us most about Unmetric is that its technology platform uniquely mines the much-needed benchmarks from the deluge of social media data to provide firms with actionable insights on how they are performing against their competitors.”

Using a combination of advanced algorithms and human computing power, Unmetric delivers data and benchmark insights for various industry sectors that were previously unavailable, such as content strategy, engagement, growth, timing and frequency of tweets and posts on Twitter and Facebook. Brands are finally able to answer the basic business question of “Are we doing well?” when it comes to their social media presence.

The Unmetric Score is an innovative addition to the Unmetric platform, and is designed to take benchmark algorithms to the next level. The score gives marketing managers and Chief Marketing Officers a snapshot of exactly how their brand performs next to others within their industry. “The Unmetric Score provides intuitive and industry-first social media benchmarks,” said Lakshmanan Narayan, CEO and cofounder of Unmetric. “With companies like Pepsi and Coke, or Ford and GMC hinging on their rivalries to drive business and engage their customers, the Unmetric Score is an intuitive, yet comprehensive way to gauge performance every month.”

Since the platform was launched in September 2011, Unmetric has been aggressively acquiring new customers, targeting the largest brands in the world, and counts distinguished companies like Citibank and Nestle as clients. With IDC projecting that the social media analytics industry will grow by 38 percent through 2014, Unmetric supplies a distinct, high-demand service for brands that stops companies from flying blind with their social media efforts.

About Nexus Venture Partners:

Nexus Venture Partners (www.nexusvp.com) is India’s leading venture capital fund, with offices in India and Silicon Valley. It has $320m under management and an active portfolio of over 35 companies across technology, internet, media, consumer, business services 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 Cloud.com (Cloud provisioning platform acquired by Citrix), Gluster (Open source cloud storage, acquired by Red Hat), Pubmatic (Publisher Ad revenue optimization), DimDim (Open Source Web Conferencing acquired by Salesforce.com), Snapdeal.com (Daily deals platform), Mapmyindia (Digital Navigation), Netmagic (Managed Services and Cloud acquired by NTT Com), Komli (Online ad network), Prana (Animation services), SohanLal Commodity Management (Agri-logistics solutions provider) and Bigshoebazaar (Online wholesale cash & carry platform).Investors in Nexus include leading university endowments, foundations and sovereign funds.

About Unmetric:

Unmetric Inc. is headquartered in Chicago with offices in Chennai & Coimbatore, and works with clients in North America, India and other regions. The Unmetric platform was established to give Fortune 500 companies and other large global brands key performance data around which they could benchmark their social media efforts and answer the question “Are we doing well?”.

For more information, visit www.unmetric.com, or check out the Unmetric blog at http://blog.unmetric.com

April 12, 2012

Deal Alert: Pragati India Fund invests US$5-M in Jash Engineering

From the Press Release:

Pragati India Fund today announced its maiden investment in Indore-based Jash Engineering Limited, a leader in the manufacture of customized engineering goods for water and waste water infrastructure sector.

Jash Engineering is a leading manufacturer of customized equipment across the value chain in the water and waste water management industries. Founded in 1972, the company has market leading positions in its product categories of gates, screens, valves and is now expanding into manufacturing of process equipment for treatment plants, Archimedean screw pumps and generation of clean power from residual water of water treatment plants using Hydropower screw generator technology. Jash’s products are widely used across India’s largest municipalities which are increasingly focused on the urgent requirement to augment water and waste water treatment capacities. In the corporate sector, Jash’s products are used for liquid and bulk solid waste handling in cement, paper, chemical, steel and power plants. With 800 employees across three plants in Indore, the company exports its products to over 20 countries globally. The company has recently entered into an agreement with Rehart, Germany, a leader in Archimedean screw pumps and Hydropower screw generator technology, enabling Jash to pioneer the manufacture and installation of these systems in India.

Mr. L.D. Amin, the CMD said “Jash has focused on emerging as India’s first water infrastructure product company with solutions across the water treatment value chain. With the central and state governments pushing for world class water treatment solutions, we are excited about contributing to the push for quality water infrastructure across Indian cities, contributing to safer, healthier living standards nationwide.”

Mr. Pratik Patel, the MD added “We are excited about partnering with Pragati Fund in this new phase of growth for Jash Engineering. Over the past few years, our rapid growth has been fuelled by pioneering new technology and continuously entering successive stages of the water infrastructure value chain in our quest to build an integrated product company. This investment will help us significantly expand capacity, strengthen our export business and partner municipalities to generate clean power from residual water.”

Pragati is a private equity fund primarily focused on providing growth capital to SMEs based in North and Central India. Pragati is backed by the Commonwealth Development Corporation (“CDC”) and International Finance Corporation (“IFC”). Speaking about the investment, Narayanan Shadagopan, Managing Director of Pragati Equity Advisors, said “Jash Engineering impressed us with their strategy for a water infrastructure product company and their passion for technological excellence. The company also practices high standards of corporate governance and an environment focused approach in their product and manufacturing strategy. We are enthusiastic about the management’s growth strategy and look forward to working closely with them on building a market leader in the water infrastructure products space.”

April 09, 2012

Partner Event: World’s best finance minds converging at IVCA CONCLAVE 2012 on April 19

Partner Event Press Release:

- IVCA celebrates 10 years of Private Equity and Venture Capital in India
- Upbeat promoters to discuss the contribution of Private Equity and Venture Capital business to the economic growth of the country
- Investments through PE continue to grow at double digit: Over Rs. 2,50,000 crores invested in the country in the last 10 years


New Delhi, April 5, 2012: Indian Private Equity & Venture Capital Association (IVCA), a unified and influential voice of private equity and venture capital, is organising - IVCA Conclave 2012. The first such industry conclave is organized to showcase the contribution of Private Equity and Venture Capital to the economic growth of the country. The conclave with a theme of “Celebrating the 10 years of PE VC”, will project the positive contribution of the industry in fostering innovation and entrepreneurship at the mega conclave scheduled on April 19th at The Leela Palace, Chanakyapuri, New Delhi.

“Aptly themed, the conclave intends to send out optimistic message to prepare the industry for a better tomorrow,” says, Mahendra Swarup, President, IVCA.

Calling upon all stake holders in PE, VC and policy makers to join and discuss every possibility of collaboration for growth, Mr. Swarup says, “This probably is the best opportunity when all of us, the Limited Partner’s, General Partner’s and policy makers will be together to create an avenue of projecting ‘the India Potential’ to all stakeholders. There have been heavy investments in technology, telecom, infrastructure, supply chain and logistics in the last decade. With the recent Union Budget proving to be beneficial to the Venture Capital industry, keeping in mind the ‘removal of restriction of VCFs to invest in nine sectors’, we feel that this move will now support the start ups across industries and will further fillip the growth of the sector. Venture Capital and Private Equity Funds are urgently needed by the small and medium sector to start new ventures and scale up existing ones. This segment needs to be expanded fast not only for innovative and high tech start ups but also for conventional industries.”

Supported by all major players of the industry, the Conclave will see over 250 + thought leaders from across the globe sharing their vision and views. IVCA Conclave will enclose key sessions focusing on Milestones & Learning over the past 10 years, Investment Opportunities & Emerging Markets Strategy, Opportunities and Challenges as we look forward and Role of Early Stage Investing in India.

Sumir Chadha, Chairman, IVCA, elaborated on the objective of the IVCA Conclave 2012, says, “The Conclave is ‘for the industry’ and ‘by the industry’. It will cultivate the spirit of commonality of issues and create a platform for private equity and venture capital professionals to interact, network and come together to join hands with IVCA to encourage close cooperation amongst the various stake holders of the industry.”

The Private Equity (PE) and Venture Capital (VC) industry is growing rapidly in India and has played an important role in the growth of the Indian industry across sectors. Today, India is a part of an investment of Rs. 2,50,000 crores, which is huge and speaks volume about the growth. The total market value of PE industry is estimated to be at least $200 billion.

The eminent panelists discussing various issues related to the industry will be Prashant Saran, Whole Time Member SEBI, Raja Kumar, Ascent Capital, Ashish Dhawan, ChrysCapital, Anil Ahuja, 3i, Ajay Relan, CX Partners, J M Trivedi, Actis, Sandeep Singhal, Nexus Venture Partners, KP Balaraj, WestBridge Capital, Archana Hingorani, IL&FS, Tim Flower, Harbourvest, Pavan Gupte, Hermes-Gartmore, Nirav Kachalia, Morgan Creek Capital, Alain Berdugo, AXA Private Equity Asia, Satish Mandhana, IDFC PE, Nitin Deshmukh, Kotak PE, Akhil Gupta, Blackstone, Sanjeev Aggarwal, Helion Ventures, Andress Goh, Allianz Capital, Mohit Bhatnagar, Sequoia Capital amongst other distinguished.

Darius Pandole, New Silk Route and Niten Malhan, Warburg Pincus, who are also the notable Executive Committee members of IVCA, will be moderating the key sessions on Learning & Milestones of PE VC and Opportunities & Challenges: looking forward.

The IVCA 2012 Conclave will bring an opportunity to learn, share and evolve with the masters in the business, explore vibrant ideas, witness innovation, network and celebrate outstanding achievements in the business of PE and VC in India.

About Indian Private Equity & Venture Capital Association (IVCA)

Indian Private Equity and Venture Capital Association (IVCA) is a member based national organization that represents venture capital and private equity firms, promotes the industry within India and throughout the world and encourages investment in high growth companies. IVCA members comprise venture capital firms, institutional investors, banks, incubators, angel groups, corporate advisors, accountants, lawyers, government bodies, academic institutions and other service providers to the venture capital and private equity industry. Members represent most of the active venture capital and private equity firms in India. These firms provide capital for seed ventures, early stage companies, later stage expansion, and growth finance for management buyouts/buy-ins of established companies.

April 03, 2012

Deal Alert: TA Associates investments in online payment firm BillDesk

Edited excerpts from the Press Release:

TA Associates, a leading global growth private equity firm, today announced it has acquired a minority stake in BillDesk,India’s largest online payment services company. Dhiraj Poddar, Director, TA Associates Advisory Pvt. Ltd., will join the company’s Board of Directors.

Founded in 2000, BillDesk partners with multiple banks, card issuers, service providers and merchants in providing electronic bill presentment and payment and online payment services in India. Today, BillDesk’s network is used by over 50 of India’s largest banks and by large merchants across diverse industry segments, including utilities, telecom, insurance, mutual funds, travel and e-commerce.

“While India is today dominated by paper-based transactions, electronic transactions are quickly gaining favor,” said Naveen Wadhera, Director, TA Associates Advisory Pvt. Ltd.,“There is growing acceptance of online payments by retail consumers, for products and services procured both online and offline, such as electrical service, mobile phone service and insurance. The very large Indian market, with its low but rapidly increasing online penetration, should continue to present significant growth opportunities for an established industry leader such as BillDesk.”

Khaitan & Co and Goodwin Procter LLP provided legal counsel to TA Associates. AZB & Partners served as legal counsel to BillDesk.

About BillDesk
A flagship brand of IndiaIdeas.com Ltd., BillDesk is India’s leading payments service provider.The companyoperates as a neutral service bureau aggregating multiple banks, billing companies and other corporations onto a common standards-based platform for delivering electronic payments and collection services across multiple electronic channels. BillDeskdelivers and manages specialized electronic payments solutions of various vertical markets such as banking, telecom, insurance, utilities and financial services. Built on a versatile platform, BillDesk makes the payments experience faster, more convenient, more reliable and more secure for both the consumer and the financial institution. India’s largest billing companies and about 50 of the leading banks in the country partner with BillDesk in enabling electronic payments and collections solutions for their customers. BillDesk is headquartered in Mumbai, with offices throughout India. For more information, please visit www.billdesk.com.


About TA Associates

Founded in 1968, TA Associates is one of the largest and most experienced middle-market growth private equity firms. The firm has invested in over 400 companies globally and has raised more than $16 billion in capital. With offices in Boston, Menlo Park, London, Mumbai and Hong Kong, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the healthcare, technology, financial services, business services and consumer industries. More information about TA Associates can be found at www.ta.com.

Drying up of mega deals drives PE investments to below $2-B in Q1’12

Secondary transactions rise as global PE firms buy out stakes of earlier investors

Private Equity firms invested about $1,886 million across 90 deals during the quarter ended March 2012, according to a study by Venture Intelligence . The investment amount was almost half that was invested in the same period last year ($3,614 million across 107 transactions). The immediate previous quarter had witnessed $1,470 million being invested across 120 transactions. There were six reported PE investments worth over $100 million (and none above $200 million) during Q1’12 compared to 9 such transactions in the same period last year (which included 5 transactions over $200 million).

Three of the $100 million+ investments in Q1’12 went into the hospitals & clinics sector: $110 million into Care Hospitals (by Advent International) and $100 million each into DM Healthcare and Vasan Healthcare (by Olympus Capital and by the Singapore Government-owned GIC respectively) reinforcing the year-end Venture Intelligence survey in which PE investors highlighted healthcare as the most attractive sector for investments in 2012. Another Singapore government owned PE investor, Temasek, invested $137 million in publicly listed FMCG firm Godrej Consumer Products.

Overall, the Healthcare & Life Sciences industry attracted $581 million (31% of the value pie) across 14 investments (16% of the investment volume) during the period. It was followed by IT & ITES companies with $308 million across 35 reported investments and BFSI firms with $280 million across 11 investments.

The trend of the larger PE firms buying out the stakes of earlier PE/VC investors in Indian companies gathered momentum during the latest quarter. Examples of such transactions during the period included the GIC-Vasan deal (which saw a part exit for Sequoia Capital India); the $104 million investment by General Atlantic in Fourcee Infrastructure (complete exit for Mayfield) and the $50 million investment by Warburg Pincus (part exit for Motilal Oswal PE). Even new VC investors like the Patni family sponsored Nirvana Ventures, at the time of its investment in mobile gaming firm Games2win, chose to provide a similar exit via secondary sale to early investors (Nexus Ventures and ICICI Venture).

Real Estate

Private Equity-Real Estate firms made 12 investments (amounting to US$477 million across 10 deals with disclosed values) during the quarter ended March 2012. The pace of investments during the quarter was less than half that during the same period last year which witnessed 28 investments (with $1,523 million being invested across 26 deals with disclosed values) and also lower compared to the immediate previous quarter which witnessed 18 deals (with $641 million being invested across 13 deals). In fact, PERE investment volumes have decelerated for the fourth consecutive quarter in Q1’12.

The largest PERE investment announced during Q1’12 - and the only deal over $25 million reported during the period - was GIC’s $100 million investment in a Godrej Properties office project in Mumbai's Bandra Kurla Complex.

More detailed analysis of the Q1'12 numbers will be released in the upcoming Venture Intelligence India Roundup Q1'12 report.

The latest deal by deal information can also be looked up on the Venture Intelligence PE Deal database

About Venture Intelligence

Venture Intelligence, a division of TSJ Media Pvt. Ltd., is the leading source of information on private equity and M&A transactions in India. For more information, please visit http://www.ventureintelligence.in