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October 29, 2015

Why Private Equity Investors are Very Hungry!

If Venture Capital (VC) investors are busy chasing Internet & Mobile companies, how are their Private Equity cousins keeping busy? Some of them at least are gobbling up food businesses:



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 Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

October 15, 2015

VC Firm Ventureast invites Pitches via Twitter!

Ventureast brings to you “The 160 character Pitch” challenge. If you are an entrepreneur looking to get your start-up funded, or have a disruptive business idea, pitch to us in ONE TWEET! Remember to tag us with @Ventureast. If your’s is among the best entries selected, you will be invited for a private chat with the Ventureast team at the upcoming TiECON Chennai 2015. For more details about this challenge, please visit our website.

Surge in Early Stage deals powers Venture Capital investments to all time high

Early Stage investments cross $1-B mark for first time; Internet & Mobile Cos continue to rule the roost 

In just the first nine months of 2015, Venture Capital investments in India – at 323 deals worth $1,438 million - have crossed the previous historical high of 2014 (which had witnessed 304 investments worth $1,170 million across the entire year), according to data from Venture Intelligence , a research service focused on private company financials, transactions and their valuations. (Venture Intelligence classifies Venture Capital as first to fourth round of investments of not more than $20 million each by financial investors into companies not more than 10 years old.)

Venture Capital firms invested $536 million over 111 deals in India during the three months ending September 2015 – again record figures for a single quarter, the Venture Intelligence analysis showed. The investment activity during Q3’15 was 41% higher compared to the same period in 2014 (which had witnessed 79 investments worth $264 million). The activity level was 9% higher to the immediate previous quarter (which had witnessed 102 deals worth $473 million).

The main action was concentrated in the Early Stage investment segment (Seed, First and Second Round investments in companies not more than 5 years old) which, for the first time ever, has attracted over $1 billion in investments in 2015 ($1,018 million across 266 investments in the first nine months) – compared to the previous high of $553 million (across 167 transactions) in 2011 (full year).

By Industry

The overwhelming attraction of Information Technology and IT-Enabled Services (IT & ITES) companies – especially Internet & Mobile firms -  to Venture Capitalists continued in Q3’15 with the industry accounting for 79 investment worth $376 million (71% of the VC investments in volume terms and 70% in value terms).

Within IT, the larger investments by size reported during Q3’15 included Tiger Global’s $20 million fresh investment in mobile-based news service News in Shorts and a similar amount attracted by engineering services BPO Allygrow in a round led by Zodius Capital.  Tiger Global also participated in two $15 million rounds during Q3’15 – for online hotel and hostel aggregator Zostel (along with Orios Ventures and others) and online shopping recommendations platform Relevant E-Solutions.

Accel India participated in an $18 million round raised by US-based SaaS Data Analytics company Paxata and a $16 million follow-on investment into its existing portfolio company – jewelery e-tailer BlueStone.com. Two online marketplace services for pre-owned automobiles attracted about $15 million rounds each during the period: Droom from Japan-based Beenos Partners and Lightbox VC and CredR from Eight Roads Ventures (formerly Fidelity Growth Partners).



Food & Beverages companies were the second favorite destination for VC investors in Q3’15 (albeit a distant second behind IT) attracting six investments worth $27 million. Restaurant chains were in particular favor with Goldman Sachs backing pan-Asian restaurant brand Mamagoto with a $10 million investment and tea chain Chai Point attracting a similar sized second round led by Eight Roads Ventures (formerly Fidelity Growth Partners).

Among Healthcare & Life Sciences companies (which attracted four investment worth $43 million), Sequoia Capital India accounted for two deals: it committed $20 million to bio informatics firm MedGenome and $19 million women’s reproductive healthcare focused drugs maker Akumentis Healthcare.



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October 13, 2015

What's Up with the Canaan India Team?

Ever since US-based venture capital firm Canaan Partners decided (in 2014) to scale down its India operations,   Venture Intelligence has been keenly tracking what its India team - headed by one of the country's first entrepreneur-turned-VC Alok Mittal- would do next.  The answer is now in...


To track the progress of these ventures and all other happenings that matter in the Indian Private Equity/Venture Capital ecosystem, just Sign Up for the Venture Intelligence Deal Digest - India's longest serving Transaction Update newsletter.

October 06, 2015

The Modi - Private Equity Connect. Brought to you by VI !


Lots of  Venture Intelligence data coverage on ET and elsewhere today. Let the good times roll!

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 Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

October 05, 2015

Record Jul-Sep quarter poises PE investments to cross all time high in 2015

Q3’15 tally up 125% to $5.9-B; IT & ITES Cos Grab Majority of the pie; Buyout deals make a comeback 

With the nine month investment tally touching $13 billion (across 504 transactions), Private Equity investments in India for 2015 are poised to cross the historical highs of 2007 (which had witnessed $14.7 billion being invested across 535 transactions), shows data from Venture Intelligence (http://VIonWeb.com), a research service focused on private company financials, transactions and their valuations. PE firms invested a record $5,893 million (across 177 deals) during the quarter ended September 2015, up 125% over that invested in the same period last year ($2,621 million across 126 transactions) and 38% higher than the immediate previous quarter (which had witnessed $4,272 million being invested across 151 transactions). The nine month PE investment tally for 2015 is 82% more than the $7,131 million across 387 transactions in the first nine months of 2014, the Venture Intelligence data showed. Note: All figures in this note are exclusive of PE investments in Real Estate and strategic investments from players like Alibaba, etc. 

There were as many as 16 PE investments worth $100 million or more (with seven over $200-M) during Q3’15 compared to three such transactions in the same period last year and 11 during the immediate previous quarter, the Venture Intelligence analysis showed. Apart from the Internet “Unicorns” of Flipkart, Snapdeal and Ola – which raised $700 million, $500 million $245 million respectively – others large PE investments in Q3’15 included the $500 million investment by TA Associates and India Value Fund in ACT Broadband, Blackstone’s $383 million repurchase of BPO firm Intelenet (from UK’s Serco) and Bain Capital’s $200 million infusion in publicly listed non banking financial services firm L&T Finance

IT Companies Grab Majority Share of Pie  

The mega deals in the Internet sector along with the Blackstone buyout of Intelenet ensured that IT & ITES companies grabbed 57% of the PE investment by value (attracting $3,358 million across 107 deals) during Q3’15. Other Internet companies that attracted $100 million rounds in Q3'15 included music service Saavn.com, furniture e-tailer Pepperfry.com and hotels aggregator Oyo Rooms. Tata Capital meanwhile was reported to have committed a similar amount as part of US-based taxi hailing app firm Uber's latest fund raise. 

Energy companies surged to second spot attracting $549 million across seven transactions led by the GIC - Greenko Group ($256 million), I Squared Capital – Amplus Energy ($150 million) and Macquarie – Ind-Bharath Energy transactions. 

PE Investments by Industry – Q3’15 (by Value)




Buyouts Stage Comeback Growth Capital investments in unlisted companies accounted for 68% of the PE investment pie during Q3’15 (including Venture Capital type investments which accounted for 10% of the pie by value). Buyout type investments saw a spurt in interest and, at 11 investments worth $1,496 million, accounted for as much of 26% of the pie (in value terms). The ACT, Intelenet and Greenko deals were followed by the Fairfax Group’s buyout of a 74% stake in agri-logistics firm National Collateral Management Services for INR 800 crore ($126 million) and ChrysCapital’s $63 million buyout of US-based IT Services firm Infogain

Despite the Bain Capital – L&T Finance deal, PE investments in listed companies (PIPEs) – at 8 investments worth $341 million - accounted for just 6% of the investment pie (by value) during Q3’15. Another notable transaction in the segment was KKR Special Situations Fund investing INR 491 Cr ($77 million) in polyester yarn maker JBF Industries. StanChart PE, Apax Partners and Temasek acquired additional shares in existing listed portfolio companies of Prime Focus, Shriram City Union Finance and Justdial respectively via the public markets. 

About Venture Intelligence 

Venture Intelligence, a division of TSJ Media Pvt. Ltd., is the leading source of information on private company financials, transactions and their valuations in India. For more information, please visit http://www.ventureintelligence.com

October 04, 2015

Are Corporate Accelerators a Farce?

Anand Sanwal of CB Insights believes they are. Extract from his recent newsletter article.
When I see a big corporation launch a buzzwordy accelerator program, I hear the sound of money getting flushed down the toilet. They launch these to get some buzz/look cool and, in theory, support and learn from startups. But here's the rub: if you're a giant, slow-moving company not known for being particularly innovative, the startups attracted to your accelerator are going to be 2nd or 3rd tier. 
..That said, if you are focused on trying to "look innovative," here is the full list of tactics..: 
* Build a startup-y office with an open floor plan, showers, and an Xbox/Playstation... 
* Launch an innovation lab or accelerator. It doesn't matter what it does (if anything) — but do this. 
* Tell people that you don't wear suits and that you wear jeans to work.
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 Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.