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July 31, 2013

Deal Alert: IAN invests in IndiaCollegeSearch

The Indian Angel Network (IAN) has invested in IndiaCollegeSearch (ICS), an online service that helps students with college admissions. IAN members investing in the company include Vikram Kant Upadhyaya, Anupam Mittal and Varun Khurana. Upadhyaya and Khurana will join the company’s board.

ICS, founded by Anirudh Motwani and Parul Bansal in 2010, was the first company incubated by IAN. It helps students with information, application forms and other services with regard to college admissions. The fresh funds will be used to expand its existing user base of 10 lakh students and 1200 colleges. The startup joined the IAN Incubator in 2011 and was mentored by Upadhyaya. ICS claims to have information on more than 7,000 colleges and that over 5 lakh admission seekers use its platform every month.

Source: NextBigWhat

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 29, 2013

Deal Alert: Gozoop buys digital media agency Red Digital for Rs.7-Cr

Mumbai-based social media agency Gozoop has bought Bangalore-based Red Digital, a media agency with clients across the entertainment and technology industries, for about Rs.7 crore. Red Digital currently manages digital and social media marketing for clients such as Mumbai Indians, Mirinda and Dell. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Tandem Capital invests in mobile commerce platform Shoptimize

Mobile accelerator Tandem Capital has added Shoptimize, a Pune-based mobile commerce platform for its six month program. Targeted at traditional merchants in emerging markets, Shopitimize is a mobile first SAAS based ecommerce solution provider. Currently, it is working with more than 20 businesses outside the US. The product directs traffic to merchant sites using content curation techniques. 

Founded by Doug Renert and Sunil Bhargava in 2007, Tandem invests in six companies at the maximum with a $200,000 of seed capital per startup. 

Source: Nextbigwhat.com


Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Online graphic art marketplace Crude Area secures funding

Mumbai-based online graphic art marketplace Crude Area has raised angel funding from a clutch of investors including the founders of Webchutney and two angel investors from the US. The funds will be used to hire more people and invest in marketing. 

The company founded by Shweta Bhandari and Nidhi Dewan in November 2012, curates art and design from around the world. 

Source: NextBigWhat
 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Online price discovery platform Wicfy raises follow-on investment

Pune-based shopping discovery platform Wicfy has secured follow-on funding from multiple investors including Silicon Valley–based Ecosystem Ventures, Everest Management Fund (Switzerland) and angel groups based out of Singapore and India. The funds would be used for enhancing the platform, product development and for launching mobile app for iOS platform. Following the investment, Alexander Fries, president, Ecosystem Ventures, will join the board of the company. 

Launched in 2010 by Arun Purohit and Rajeshwari Joshi, Wicfy offers a web-based price comparison and discussion platform for users to share information on prices, products and sellers across categories in Delhi, Mumbai, Bangalore, Pune and Kolkata. 

Source: Yourstory.in

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 28, 2013

Deal Alert: Preventive diagnostics firm Xcode raises addl Rs.1-Cr from Shead Holdings, others

Chennai-based preventive diagnostics start-up XCode has raised Rs 1 crore in additional angel funding from US-based Shead Holdings and an individual investor. The capital will support the company’s upcoming launches — an anti-ageing topical application and a mobile phone-based health advice service. 

Last year, Shead Holdings and R. Narayanan (of Chennai Angels) had invested $2,50,000 in the firm, which was initially incubated at the Vellore Institute of Technology. XCode’s flagship product is a preventive wellness programme identifies an individual’s predisposition to diabetes, obesity and cardiovascular diseases by doing a DNA analysis of his or her saliva sample.

Source: Business Line

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Shared cab service Cubito raises angel investment

Goa-based Cubito, which offers shared cab services, has raised over Rs.1 crore in angel investment and has expanded its services to Bangalore. Cubito pools people sharing the same route and arranges for a common cab to transport them. 

Source: YourStory
  
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 25, 2013

Deal Alert: Tata Elxsi incubates business telephony firm Big V Telecom

Tata Elxsi, part of the $100 billion Tata group, has inducted business telephony solutions provider Big V Telecom into its incubator programme. Big V telecom is founded by Keshor Daga, has deployed its solutions in select regions in India and is looking to scale its presence across the country. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Tookitaki raises $200-K from Blume Ventures, India Internet Group, angels

Tookitaki, a social targeting and advertising optimisation platform operated by Kolkata-based startup Social Audience Pvt Ltd, has received $200,000 from a consortium of investors including Blume Ventures, India Internet Group, Harvard Angels and CIIE Ahmedabad. The group of investors also includes Craftsvilla founder Manoj Gupta, Rahul Garg (Google) and Ravi Trivedi (Srijan Capital). 

Founded in 2012 by Abhishek Chatterjee and Jeeta Bandhopadhyay, this appears to be Tookitaki’s third angel funding round. Earlier this year it raised Rs 12 lakh from Srijan Capital and other angels. In April it raised around Rs 1 crore in lieu of a 22.5 per cent stake from Anirudh Suri, Ravi Gururaj and Ramesh Kumar Shah at Startup Roots, an initiative under the Nasscom 10,000 Startups programme. The company was incubated at iAccelerator, the on-campus startup incubator at IIM Ahmedabad under CIIE. 


Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Online skills assessment Wheebox raises Series A capital

Gurgaon-based Integrated Learning Solution Pvt Ltd, which runs an online skill assessment venture under Wheebox.com, has raised Series A funding from Lumis Partners, Indus Balaji PE fund, Signature Capital Advisors and The HR Fund. As part of the deal, Pankaj Bansal of The HR Fund and Ujjwal Singh of Indus Balaji PE fund have joined the board. 

Founded in 2009, Wheebox is a skill assessment site that allows members to assess their skills in language, cognitive skills and domain skills to find suitable jobs. Wheebox has sales offices in Johannesburg, Durban and Cape Town in South Africa for Pan Africa Network and Luton in United Kingdom. 

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 23, 2013

Deal Alert: Enterprise mobility solutions startup Gray Routes raises $100-K

Gray Routes, a Mumbai-based mobile solutions start-up that targets the FMCG and other sectors, has raised $100,000 from a group of angel investors in Bangalore and Silicon Valley. The company is developing enterprise mobile applications and solutions that enable players in the FMCG, food services, telecom and logistics sectors, to automate and monitor their distribution operations in the field. The funds raised will be used to recruit talent and acquire patents for some of the company’s solutions. 

Gray Routes was founded by Soubhagya Sahoo, an IIT Kharagpur and IIM Ahmedabad alumnus, and Sapna Patel, who earlier led business development at IIT Bombay-incubated InOpen Technologies. The firm employs 12 people across Mumbai and Delhi. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: TheShoppingPro raises Rs.22 Lakh from serial entrepreneurs

Gurgaon based Intelligent Shoppro Pvt Ltd, which creates shopping solutions under the brand TheShoppingPro.com, has raised Rs.22 Lakh in angel investment from serial entrepreneurs Gaurav Bhatnagar, Ankush Nijhawan and Manish Dhingra. The funds will be utilized to create tools that simplify online shopping for consumers. 

Founded by IIT (Delhi) alumni Ashish Gupta and Lavesh Bhandari, TheShoppingPro is working on a series of web and mobile tools to make online shopping easier. The portal is generating over 200 transactions a month. The site has close to a 100 partners including Flipkart, Jabong, Myntra and MakeMyTrip. Ashish Gupta had earlier co-founded StudyPlaces.com (acquired by EduComp) and was a partner at Tekriti Software. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: DIY e-commerce platform KartRocket raises seed funds from 5Ideas, 500 Startups

Big Foot Retail, a Delhi-based startup that owns do-it-yourself e-commerce platform KartRocket, has raised seed funding from 5Ideas Startup Superfuel and 500 Startups. Jatin Aneja, partner at Amarchand Mangaldas also participated in the round. Founded in 2011 by Saahil Goel, Gautam Kapoor and Vishesh Khurana, KartRocket targets small and medium enterprises keen to launch their own stores online. 

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: “DIY” app development firm SnapLion raises capital from seed funds, angels

SnapLion.com, a Delhi-based ‘do-it-yourself’ platform that enables a user to build custom mobile apps, has raised funding from Orios Venture Partners, India Internet Group, Blume Ventures, Indian Angel investors including Rajan Anandan, Sandeep Soni and Gaurav Sharma, and Silicon Valley Angels including Nickhil Jakatdar (CEO Vuclip, Silicon Valley) and Piyush Shah. 

SnapLion.com helps restaurants, musicians, artists, designers, event promoters and photographers to update content and design in real time by updating the back end CMS at the portal. It has signed up some marquee clients like Kings XI Punjab and Anoushka Shankar. 

Source: Yourstory.in

 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 19, 2013

PE/VC Firms vie with Middle East Investors for piece of Indian Agri-Businesses

Agri-Biz Investments rise 75% in first 6 months of 2013  


Last week, publicly listed packaged rice exporter Kohinoor Foods agreed to sell a 20% stake for almost Rs.113 crores ($18.8 million) to Al Dahra Holdings, an Abu Dhabi-based investment firm which makes investments around the world to secure food supplies to the UAE. Kohinoor has also entered into a joint venture with the investor to develop and manage a rice processing and storage facility in Abu Dhabi. The JV will source a minimum of 25,000 MT of basmati rice per year from Kohinoor.

In March 2013, Qatar-based Hassad Food had acquired a 69% stake another rice exporter - Bush Foods Overseas - for $135 million. The deal fetched Bush Food's investor, StanChart Private Equity - the winner of the Best Private Equity Investor of the Year Award at the Venture Intelligence APEX'13 Awards in February - a 2.5 times return on Rs.110 crore ($24.4 million) investment it had made in April 2011, according to the Venture Intelligence Private Equity Deals Database.

The rising appetite for Indian Agri-Business companies among overseas investors also seems to have catalyzed Private Equity and Venture Capital firms in the country to pay more attention to the industry. During the first fix months of 2013, PE/VC investors have written cheques for $126 million to pick up stakes in nine Indian Agri-Business companies  - a 75% increase over the $72 million (invested across six companies) during the same period last year, data from the Venture Intelligence Private Equity Deals Database shows. Multiples Private Equity wrote the largest of these cheques, picking up a 50% stake in Bangalore-based Agri Equipment firm Milltec Group for Rs.250 crore ($43.24 million). Milltec is engaged in the development of technology and machinery for rice milling, roller flour milling, maize (corn) milling and agro processing plants.

Another buyouts focused PE firm, India Value Fund, has committed $40 million to pick up a majority stake in Kochi-based spices firm VKL Seasoning. VKL, a spin out from the Vallabhdas Kanji Group, provides seasonings and flavors to customers - typically Quick Service Restaurants (QSR) - in India, the Middle East and Africa. "(India Value Fund) invested in VKL based on expectations of robust growth in the underlying QSR and processed foods industries and strong positioning of the company to expand within existing customer segments," the firm says of the investment rationale.

Apart from Private Equity buyouts, the latest quarter (ending June 2013) also witnessed Venture Capital funds and specialist agri-business focused funds stepping up their investment activity in Agri-Businesses. So much so that Agri-Business tied with Healthcare as the second favorite industry among VCs based on the number of investments (after Information Technology companies) during the period. The Agri-Business focused Omnivore Partners announced two new investments in the latest quarter: in pork products firm Arohan Foods and fly trap maker Barrix Agro Sciences. Two other companies in the industry that attracted VC investors during the period included Khyati Foods (focused on Soybeans, Oilseeds, Spices) from SEAF and Sarona Asset Management and Lawrencedale Agroprocessing (focused on Agri Logistics) from Aspada Investments.

At Venture Intelligence, as providers of data and analysis on Private Company Financials, Transactions and their Valuations, we will be watching whether the rising appetite - among both Private Equity and Strategic Investors - for Indian Agriculture sustains in the quarters ahead. A great way for you to keep track of the deals in Agri-Business and other industries would be to subscribe to the FREE Weekly edition of the Venture Intelligence Deal Digest, India's First & Most Exhaustive Transactions Newsletter. Click Here to view more information on our various information products and also sign up for Free Deal Digest Weekly newsletters. 

July 18, 2013

Deal Alert: Price comparison engine FindYogi raises $100-K from Way2SMS founder

Bangalore-based price comparison website FindYogi has raised $100,000 in seed funding from Raju Vanapala, the Founder & CEO of Way2SMS, an SMS based messaging service provider. FindYogi helps customers make better buying decisions and has recently added features such as score for gadgets and FindYogi index. FindYogi was founded by Anil Bhat, Ankit Govil and Naman Sarawagi, who have experience in technology, marketing and sales at MNCs and startups like Yahoo, Novell, Oracle, Capillary Technologies, Freecharge and ZipDial. 

Source: Nextbigwhat
 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: VentureNursery adds five cos to 3rd batch

Accelerator VentureNursery has kicked off its third batch with five start ups: 

Catapooolt: crowd-funding platform focused on movies, music and entertainment projects, offering a 3-tier reward system. Entrepreneurs can use it to get funding and mentoring support, while the communities will use it because of rewards associated with their contribution.

iLeathergraph: Founded by Rattan Joneja, a former venture capitalist, iLeathergraph is an identity theme -based small leather products brand, it specialises in transcribing the customer identity, autograph or monogram designs on the product. 

Perspective.ly: News recommendation system that uses technology to better collate information. The key product, a recommendation system for news, is targeted at online publishers, blogs and media houses. The founder Ankit Goel is an artificial intelligence expert. 

Peter’s Pan: a Pune-based quick-service restaurant that offers all day dining options for all age groups. The founder Amit Sharma, a serial entrepreneur, launched Peter’s Pan after exiting Eggsunday! a food outlet on Mumbai-Pune expressway. 

Trelta: an online patient management platform aims to make healthcare easy and accessible for everyone in India, by connecting doctors, patients, laboratories and pharmacies. The co-founders, Varun Achar and Vaishali Singh, were part of the R&D team at Zycus Infotech.

Source: Yourstory.in

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 17, 2013

Deal Alert: Goa based PowerStores raises $2-M from Hong Kong investor

Goa based e-commerce enabler PowerStores has raised around $ 2 million funding from a Hong Kong-based angel investor. The portal allows businesses to create and manage content and e-commerce based websites. The funds raised will be used to grow the team, market the product and expand operations globally. Founded in late 2011 by Cory York and Indrajit Chowdhury, PowerStores was started with the revenues generated from SociaLinked.com.

Source: Yourstory.in

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 16, 2013

Deal Alert: Invest India raises funds from KfW

German-state owned development bank KfW has acquired a 30% stake in Invest India Micro Pension Services Private Limited (IIMPS). Other major existing shareholders of IIMPS are UTI Asset Management Company Limited, SEWA and Michael & Susan Dell Foundation (MSD). HSA Advocates advised the company while AZB & Partners advised MSD. 

Source: Legally India
 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Forum Synergies and Axon Capital invest Rs.20-Cr in electric bike company Ampere

Coimbatore-based electric bike company Ampere has raised its first round of funding of Rs 20 crore from Forum Synergies and Spain's Axon Capital in return for a minority stake. The company will use the funding to scale up Ampere's production, distribution and sales network. 

Source: Economic Times

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 15, 2013

Deal Alert: Commodities trading software maker Eka acquires Australian firm MatrixGroup for $20-M

Bangalore-based commodity software maker Eka Software Solutions has invested $20 million (Rs. 120 crore) to completely acquire MatrixGroup, an Adelaide, Australia-based commodity handling software vendor in an all cash deal that is expected to deliver key clients such as Rio Tinto, BMA and BlueScope. 

Promoted in 2004 by Manav Garg, a former commodity trader, Eka had, in April, bought Canada-based EnCompass Technologies, a provider of energy transaction and risk management solutions. Eka has raised $16 million (about Rs. 95 crore) from Thailand-based GP Group and Nexus Venture Partners so far. Eka expects to touch revenues of $250 million (about Rs. 1,500 crore) within five years.

Source: Economic Times

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 12, 2013

Legal Corner: Investor Veto: Right without a Remedy?

Veto or affirmative rights are designed to prohibit an investee company from acting on matters which are meant to protect the value of an investor's investment without the approval of the investor. While such a right is intrinsically expected to provide certain level of control to the investor, the Delhi High Court in its recent judgment in World Phone India Ltd. v. WPI Group Inc. appears to have diluted the efficacy of this right and added to the already existing controversy regarding investor rights in shareholders' agreements.

In this case, a board meeting of the company approving a rights issue was sought to be invalidated on the ground that consent of one of shareholders who had an affirmative vote under the terms of a joint venture agreement was not taken. The Delhi High Court held that where the articles are silent on the existence of an affirmative vote requirement, it will not be possible to hold that a clause in an agreement between the shareholders would be binding on the company. The Court further elaborated that the law does not contemplate that clauses in an agreement which are not reflected in the articles of the company to be enforceable just because such clauses are not repugnant to the Companies Act, 1956 (Act) – what is needed first and foremost is the existence of such a clause in the articles of association. To understand the rationale behind the judgment, it is worthwhile to look at the different approaches taken by the judiciary on this point in the past.

In the context of share transfers, the commonly held view is that a contractual arrangement imposing a restriction on transfer of shares in a private company is valid so long as the same is incorporated in the articles of that company. This is a longstanding view based on the landmark decision in the case of V.B. Rangaraj v. V.B. Gopalakrishnan where the Supreme Court held that any restriction on transferability of shares of a company shall not be binding on the company unless incorporated in its articles. Equally worthy of merit is the Madhusoodhanan case where the Supreme Court has, without overruling the decision in, but distinguishing the facts from, the Rangaraj case held that the while a restriction on transfer of all shares of a company was void in the absence of such restriction being incorporated in the articles, an agreement between particular shareholders relating to the transfer of specified shares is valid. It has further been observed that it is not necessary for the company to be a party to any agreement relating to the transfers of shares for such agreement to be specifically enforced between the parties to the transfer. 

Reiterating the principle set out in the Rangaraj case and taking it a step further, the Bombay High Court, while dealing with restrictions on resignation of directors set out in the shareholders' agreement, held that the provisions in an agreement cannot be given effect to insofar as the management of the affairs of the company is concerned, unless such provisions are incorporated in the articles of association of the company. On the same principle, the Gujarat High Court denied a claim for exercising pre-emptive rights of a shareholder as the same were not incorporated in the articles of the company.

Unfortunately, these cases do not shed any light on the validity of investor protective covenants vis-à-vis the shareholders who have entered into an agreement to safeguard such rights. However, two contrary decisions passed by the Bombay High Court merit discussion here - overruling its earlier judgment, the Bombay High Court held that arrangements entered into by shareholders must prevail as long as it is in conformity with the Act and are not in conflict with the articles of the company. The Bombay High Court has relied on two decisions of the Supreme Court where it was observed that consensual arrangements between particular shareholders relating to their shares can be enforced like any other agreement and is not required to be embodied in the articles of association. However, based on the Rangaraj decision, it will not bind the Company. In a lesser known case, the Company Law Board has, while dealing with the affirmative vote of a shareholder in relation to a rights issue, also observed that the shareholders are not prevented from enforcing the agreement for breach of the agreement or for a specific performance in appropriate cases.

In the background of the existing body of precedents, it appears that the current legal position is that while an investor can seek remedies in the nature of damages or injunction for a breach or proposed breach of its affirmative rights, a resolution, which is otherwise passed in accordance with the Act and is not repugnant to the articles of the company, cannot be nullified on the ground of it being in violation of the shareholders' agreement. The investor may not have a remedy against the company even if the company is a party to the shareholders' agreement, and in fact, if one were to take a strict and conservative view, the provision in the shareholders' agreement which purports to bind the company may itself be held to be invalid. What is slightly more concerning is that the investor may not have an effectual remedy against other shareholders on whom the shareholders' agreement is binding and potentially one may be left with only a claim for damages for breach of the agreement.

Even assuming that any and every matter in relation to the corporate affairs or management of a company needs to be incorporated in the articles for it to be valid and binding on the company, the question that remains is even if such protective provisions are incorporated in the articles, will they stand the test of voidness if it conflicts with the Act?

Authors: This article has been authored by Kosturi Ghosh, who is a partner and Ipsita Chowdhury, who is an associate at the Bangalore office of Trilegal. Kosturi heads the corporate practice group in Bangalore and her area of expertise is private equity and venture capital investments. 

Disclaimer: The contents of this article are intended for informational purposes only and do not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein.

About Trilegal

Trilegal is one of India's leading law firms with offices in four of India’s major cities - Mumbai, New Delhi, Bangalore and Hyderabad. The firm has the experience and expertise in acting on complex, high-value, cross-border as well as domestic transactions, leading to its key practices winning top industry awards and accolades. The firm’s key practice areas include private equity and venture capital; corporate - mergers and acquisitions, strategic alliances and joint ventures, projects, energy and infrastructure, banking and finance, restructuring, capital markets, telecoms, media and technology, dispute resolution, competition law, labour and employment, real estate and taxation. Trilegal is recognised as having a market leading practice with a client base that includes leading international and Indian companies as well as smaller growing businesses. The firm’s client roster comprises many of the world's leading funds, corporations, banks and financial institutions. http://www.trilegal.com

Footnotes

World Phone India Ltd. v. WPI Group Inc. [2013] 178 CompCas 173 (Delhi)
AIR 1992 SC 453
M.S. Madhusoodhanan v. Kerala Kaumudi Pvt. Ltd. and Ors. [2003] 117 CompCas 19 (SC) and S
IL and FS Trust Co. Ltd. v. Birla Perucchini Ltd. [2004] 121 CompCas 335 (Bom)
Mafatlal Industries Ltd. v. Gujarat Gas Co. Ltd. and Ors. [1999] 97 CompCas 301 (Gujarat)
Western Maharashtra Development Corpn. Ltd. v. Bajaj Auto Ltd. [2010] 154 CompCas 593 (Bom) Messer Holdings Limited v. Shyam Madanmohan Ruia and Ors. [2010] 159 CompCas 29 (Bom) Madhusoodhanan case (supra) and S.P. Jain v. Kalinga Tubes AIR 1965 SC 1535
Jiji Antony and Ors. v.JRG Securities Limited and Ors.[2011] 161 CompCas 304 (CLB)

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 11, 2013

Deal Alert: Online corporate gifting firm Giftxoxo raises funding from Kshatriya Ventures

Bangalore-based Nreach Online Services Pvt Ltd, which operates online gifting platform Giftxoxo.com, has raised angel funding from Kshatriya Ventures. The funds will be used to expand the company’s operations in Delhi and Mumbai as well as for hiring talent. The startup competes with Giveter, Giftbig, Indiangiftsportal, Gifts2India, BuddyGifting, Wishpicker, Giftology, Social Buddies and Badhai. 

Source: NextBigWhat
 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 10, 2013

Deal Alert: Flipkart raises $200-M from existing investors

E-commerce major Flipkart has secured a fresh round of funding $200 million from existing investors Naspers, Accel Partners, Tiger Global and ICONIQ Capital. The deal values Flipkart at $1.5 billion, or over Rs 9,000 crore. The company plans to use the funds to improve its tech platform which powers its marketplace, e-book business and payment solutions, strengthen its supply chain and for hiring. The firm claims 9.6 million registered users, 1 million unique monthly daily visitors and more than $500 million in gross merchandise value. It hopes to cross $1 billion mark by 2015.

This is Flipkart’s fifth round of funding, after raising a reported $150 million in August 2012, $20 million in June 2011, $10 million in June 2010 and $1 million in 2009. Naspers had invested 858 million rand (around $102.1 million) in Flipkart in return for 10% stake in the company in August 2012. Flipkart had sold its front end retail operations WS Retail to a group of investors led by former OnMobile COO Rajiv Kuchhal in February 2013 and had adopted Amazon-like hybrid marketplace model in April 2013. It has also applied for a semi-closed prepaid wallet license.


Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Tata Capital invests in cloud-based file sharing firm Vaultize

Vaultize, a Pune based enterprise file sharing and sync (EFSS) and mobility vendor, has raised funding from Tata Capital Innovations Fund. Founded by Anand Kekre in 2010, Vaultize provides a secure enterprise-grade platform for file sharing, endpoint protection through backup and encryption, Google Apps backup and enterprise mobility. The funding will help the company scale up its go-to-market strategy, including expansion across the world, with immediate plans to establish operations in the US and Europe. The company will also use the funds towards building its best of breed sales, marketing and engineering teams and to enhance its global partner program. 

Source: Yourstory.in
 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 09, 2013

Deal Alert: E-com enabler IndiaOrders raises capital from Vijay Group

IndiaOrders, an online platform for offline stores, has raised funding from Vijay Group, a real estate company in Mumbai owned by Ateev Gala. With its affiliate model, Mumbai- and Pune-based IndiaOrders showcases products from various offline stores and charges a predefined commission from its registered merchants on each sale. IndiaOrders will scale up operations in 5 cities including Jaipur, Kolkata and Delhi. 

Source: iamwire  

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 08, 2013

Deal Alert: Pluss Polymers raises Rs.15-Cr from Tata Capital

Gurgaon-based Pluss Polymers has raised Rs 15 crore in venture capital funding from Tata Capital Innovations Fund, a fund managed by Tata Capital, to help the company in its research, development and manufacturing initiatives in specialized polymers and phase change materials. Pluss Polymers was incorporated in 1993 to commercialise the technology for grafted modified polymers and alloys and blends. 

Source: Business Line

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Student rental listings firm Flat.to raises funding from Aakrit Vaish

Mumbai-based real estate listing website Flat.to has raised funding from Aakrit Vaish, Director of Flurry India and an angel investor. It has also officially launched the website after running it in beta phase.

Launched by Gaurav Munjal, Flat.to helps students to find accommodation and roommates. The website connects them with agents and owners nearby who specialize in renting out to college students. Agents can list properties on Flat.to by paying a subscription fee and students can contact them via website or directly. The company plans to use the raised funds to expand its services all across Mumbai. Later it plans to expand to Pune and Bangalore. 

Source: iamwire

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: GramVaani raises US$500-K from IAN, others: report

Delhi-based social tech company GramVaani has raised $500,000 in its first equity investment round from Indian Angel Network and a few other investors. GramVaani, started in 2009, is a social media platform for rural India providing voice and video based local media platforms. It has three main verticals which include GRINS, a product for community radio stations having more than 40 installations in India and Africa, vAutomate - a suite of voice applications and Mobile Vaani network. It claims to serve more than 2 million users in over 15 Indian states as well as in Afghanistan, Pakistan, Namibia and South Africa. Gramvaani will use the raised funds to expand the team.

Source: iamwire

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 06, 2013

Pros and Cons of SEBI's New Rules for Angel Investments

StartupCentral has a nice roundup of the +ves and -ves of the newly announced rules here along with an article by "Super Angel" K.Ganesh here.

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 05, 2013

Perk up in public markets aids PE exits in Q2’13

JustDial IPO fetches over 10x return for SAIF; TPG exits Shriram Transport Finance with over 6x

Private Equity firms obtained exit routes for their investments in 29 Indian companies during Q2 ’13 up 38% over the 21 exits in the same period a year ago (and 21% over the 24 exits in the immediate previous quarter), according to data from Venture Intelligence (http://www.ventureintelligence.in), a research service focused on private company financials, transactions and valuations in India. Of the divestitures during the latest quarter, 21 represented complete exits; the remainder partial ones. Sale of shares in already listed companies (via the public markets) accounted for nine exits during Apr-Jun ’13 (compared to four in the same period in 2012); Strategic Acquisitions for seven (vs. six in Q2’12); Secondary Sales (i.e., purchases of shares held by one PE firm by another) for six (vs. seven in Q2’12) and Buybacks for six (vs. four in Q2’12). Note: The above figures do not include exits in the Real Estate segment. (Please see separate section below for data on PE-RE exits).

The sole PE-backed IPO during the latest quarter – that of Internet- and mobile-based local search firm JustDial - provided a healthy exit for its investors SAIF, Tiger Global, Sequoia Capital India and SAP Ventures whose sale of shares comprised over 80% of the Rs.927.37 crore ($167.11 million) issue. The shares, which provided JustDial a market capitalization of $667 million at the IPO price of Rs.530, were trading 20% higher at the end of the quarter. At the IPO price, SAIF was sitting on an over 10x return on its investment; Tiger Global, 7.3x; Sequoia Capital India, over 2x and SAP Ventures, 1.3x. The JustDial IPO marks the second successful Indian “Internet play” brought to the public markets by SAIF, following the Nasdaq IPO of MakeMyTrip in August 2010.

PE investors successfully timed the run up in the markets between mid-April and end-May to exit few of their investments in listed companies. The largest public market sale fetching a complete exit was the sale of Rs.1,652 crore worth shares in truck finance firm Shriram Transport Finance (STF) by TPG. Post this sale of its final 10% holding, TPG realized an over 6 times on its Rs.547 crore investment in STF starting in Feb 2006. Another significant complete exit via the public markets during the quarter was that by Warburg Pincus from Havells India with an about 2.5x return on the Rs.484 crore investment it made in the electrical equipment & domestic appliances maker beginning in Oct-07. Among notable partial exits through this route, Apax Partners sold Rs.128 crore worth of shares in Apollo Hospitals during the the quarter, while ICICI Venture and Norwest began selling their holdings in NBFC firm Shriram City Union Finance.

Secondary Sale transactions during Q2’13 witnessed global funds - both old and new - making significant sized investments to buyout their peers. While Warburg Pincus was a seller (to KKR) in the $460 million buyout of the off-highway tires focused Alliance Tire Group, the same firm was a buyer of the 30% held by Actis in auto components firm Avtec. The $270 million buyout of the existing PE investors (SAIF, Goldman Sachs and Sierra Ventures) in IT Services firm CSS Group marked the first direct investment in an Indian company by Partners Group.

The strategic sale of online bus ticketing service redBus to South Africa-headquartered media group Naspers for a reported $100 million capped a good quarter for Venture Capital exits.
Starting in Jul-2007, reBus had raised about $9.3 million from VC investors including Seedfund, Inventus Capital and Helion Ventures. Six out of the seven Strategic Sales were of VC-backed IT companies including that of online marketing services firm WebChutney (sale by Capital18 to ad agency Japanese ad agency Dentsu) and the acquisition of another of Nexus Ventures’ US-based portfolio companies – mobile productivity apps firm Astrid - by Yahoo. The sole non-IT exit via strategic acquisition was Turkey’s Trakya Cam Sanayii  acquisition of IFC's stake in glass maker HNG Float Glass for $12 million.


Real Estate
The Private Equity in Real Estate segment witnessed five buybacks of investor stakes by developers or their promoters.

IL&FS Investment Managers (IIML) sold its stake in Bhartiya City, a 125 acre integrated township project in Bangalore for Rs.325 crores. IIML had invested Rs. 1500 million for a 26% stake in 2007 by way of compulsorily convertible preference shares.

Listed developer Godrej Properties bought back the stake held by HDFC PMS in two of its projects: in Chennai and Chandigarh. HDFC had held a 49.9% in the Chennai residential project named Godrej Palm Grove. HDFC PMS had invested Rs.55 crore in the project starting in March 2010. HDFC PMS had held a 49% in the Chandigarh commercial project, Godrej Eternia. In March 2010, HDFC PMS had invested Rs.45 crores in this project.  Listed real estate firm Parsvnath Developers disclosed that it has repatriated Rs.34.56 crore to PE investor Sun Apollo from the Exotica Gurgaon residential project.

ICICI Prudential PMS exited its investment in Shriram Properties' Shriram Sahaana and Suhana residential projects in Bangalore with an average return of about 24.5% (across two of its funds).
 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 04, 2013

Deal Alert: E-com firm Klip raises angel funding

Online product discovery site Klip.in has raised funding from angel investors linked to start-up accelerator VentureNursery. The Mumbai-based company helps users discover unique lifestyle products from across the web by aggregating and curating them based on their social connections and interest graph. It was part of VentureNursery’s second batch that concluded in April.

Klip is part of Smursh Ecommerce, founded in 2011 by college friends Harsh Gadia and Maneesh Madambath. Klip, which claims to have a 1,000-strong user base, has curated products from over 100 sites. 
Source: Economic Times

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: Online Real Estate listings firm CommonFloor raises $7.5 M more from Tiger Global, Accel India

Bangalore-based real estate search engine and listings site CommonFloor has raised $7.5 million in additional funding from existing investors Tiger Global Management and Accel India. The funds will be used to expand into new markets, for sales and marketing and for product development.

From the Venture Intelligence PE Deal database: In August 2009 Accel India had invested $0.22 million and in September 2011 Tiger Global and Accel India had invested $3 million in CommonFloor. 

Source: Techcrunch

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 03, 2013

Deal Alert: Jungle Ventures leads $1.1 M Series A round for impacting funding platform Milaap

Milaap Social Ventures, an impact-focused fundraising platform, has raised a Series A round of $ 1.1 millionled by Singapore-based early stage investment firm Jungle Ventures. Other investors included Toivo Annus – co-founder & former Head of Engineering at Skype; Lionrock Capital – a Singapore-based family investment office; Jayesh Parekh – co-founder of Sony Entertainment TV; and existing investor Unitus Seed Fund.

Milaap had earlier raised $250,000 in seed investments from Unitus Seed Fund, First Light Ventures, Vijay Shekhar Sharma (founder, One97) and Rajiv Madhok (founder, Oorja). Milaap’s platform has routed over $800,000 in loans impacting over 25,000 lives across 10 states.

Source: Yourstory.in

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

Deal Alert: CashKaro to raise $750-K from UK angels

Cashkaro.com, a subsidiary of UK-based Pouring Pounds is to close its first round of funding of Rs 4.5-5 crore ($750,000) from a group of angel investors in London. Cashkaro is a cashback and coupon website which works with over 350 companies and has about 40,000 registered users.

Source: Business World

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

July 02, 2013

Mega buyouts prop PE investments to $2.3 B in Q2’13; 6 month figure drops 19%

Manufacturing Cos grab a third of pie; Deal Volumes remain flat QoQ; Goldman steps on the Gas  

Private Equity firms invested about $2,330 million across 82 deals during the quarter ended June 2013, according to early data from Venture Intelligence (http://www.ventureintelligence.in), a research service focused on private company financials, transactions and valuations in India. The investment amount was 17.7% higher than that invested in the same period last year ($1,980 million across 114 transactions) and almost 2.3 times than that invested during the immediate previous quarter ($1,021 million being invested across 80 transactions). Note: The above figures do not include PE investments in Real Estate, the figures for which are here. Also the $1,260 M investment by Qatar Foundation in publicly listed Bharti Airtel has been excluded for the purpose of this analysis.  The latest numbers take PE investments in the first six months of 2013 to $3,351 million (across 163 investments) down 19.1% compared to the corresponding period of 2012 ($4,143 million across 238 investments).

There were seven PE investments worth over $100 million (with three above $200 million) during Q2’13 compared to three such transactions in the same period last year and just one during the immediate previous quarter, the Venture Intelligence analysis showed.

The top two PE transactions during Q2’13 involved the buyout of existing PE investors by new ones
: KKR’s $460 million acquisition of a majority stake in off-highway tires focused Alliance Tire Group (from fellow PE investor Warburg Pincus and the promoters) and the $270 million buyout by Partners Group of the existing PE investors in IT Services firm CSS Group (SAIF, Goldman Sachs and Sierra Ventures). Baring Asia's $257 million investment in Lafarge India, the Indian subsidiary of French cement giant Lafarge, was the third largest in the period.

Apart from exiting CSS, the PE arm of global investment banking firm Goldman Sachs was also particularly active on the investing side during the quarter. Goldman invested an additional $135 million in existing portfolio company ReNew Wind Power; $110 million in listed cable TV firm Den Networks and $20 million in medical devices firm BPL Medical Technologies. 

Led by the Alliance Tire and Lafarge India deals, Manufacturing companies grabbed over a third of the PE investments (by value) in Q2’13. Manufacturing ($796 million across six investments) was followed by IT & ITES ($448 million across 31 investments) and Energy ($235 million across four investments) in terms of being the most favored industries for PE investments in the period. Outside of the CSS Group buyout, the top PE investments in IT & ITES companies in Q2’13 included the $50 million follow-on round raised by e-commerce firm Snapdeal.com from a consortium of investors (led by strategic investor eBay and including new investors Intel Capital and Russia based RuNet Holdings) and the $25 million investment by TA Associates in Fractal Analytics. Among Energy deals, the ReNew Power deal was followed by the $90 million raised by NSL Renewable Power from a consortium including IFC, DEG, FE Clean Energy, ADB, Asia Clean Energy and Proparco.

VC type investments accounted for 49% of the investments during Q2’13 (in volume terms) compared to 54% in the corresponding period a year ago. The share of Late Stage deals remained flat (at 24%), while the share of listed company investments showed tick up to 13% (from 11%).

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

PE Investments in Real Estate Perk up in Q2'13

Private Equity-Real Estate firms made 13 investments (amounting to $318 million across 12 deals with disclosed values) during the quarter ended June 2013, according to the data from Venture Intelligence. The volume of investments was a significant perk up from the seven investments in the same period in the previous year (which witnessed $172 million being invested across six transactions with disclosed values) and also the eight investments (worth $569 million) during the Jan-Mar 2013 quarter. However, PE-RE investments in the first six months of 2013 at 21 transactions ($887 million across 20 deals with disclosed values) are still down 16% compared to the 25 investments in the corresponding period in 2012 ($659 million across 22 investments).

Ascendas Trust's Rs.600 crore (about $110 million) acquisition of 2 million sq. ft of office space in Hyderabad from Phoenix Group was the largest investment during Q2’13. This was followed by Xander's Rs.280 crore ($52 million) investment in Supertech's 125 acre township project in Gurgaon and Clearwater Capital’s (along with Ajay Piramal Group non-banking financial company PHL Finance) Rs.300 crore ($50.2 million) investment to finance VGN Developers’ acquisition of a land parcel for a gated community project in Chennai.

Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.