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January 28, 2016

Morgan Stanley Tops League Table for Financial Advisor to Private Equity Transactions in 2015

PwC tops table inclusive of due diligence, other services; Unitus Capital tops by deal volume 

Morgan Stanley claimed the top position in the Venture Intelligence League Table for Transaction Advisor (Private Equity deals) for calendar 2015 acting as financial advisor to two qualifying PE investments worth $1,320 million during the year. The transactions advised by Morgan Stanley were the $1,150 million buyout of Senvion by Centerbridge Partners (from wind turbine maker Suzlon Energy) and the $170 million investments by Blackstone in IT Services firm IBS Software.  Arpwood Capital, which also advised the Senvion - Centerbridge Partners deal, stood next.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.

Inclusive of its roles in due diligence and related advisory activities, PwC topped the league table for transaction advisor for PE deals in 2015 advising deals with a value tag of $2,300 million (across a total of 35 deals). PwC advised deals included the $12.7 million investment by Ascent Capital into Radiant Cash Management Services and the $3 million investment by Kalaari Capital, Yournest and others into financial services portal Bestdealfinance.com.

Unitus Capital topped the tables in terms of deal volume, advising a total of 18 deals ($17.2 million) during the year. Unitus Capital advised deals included the $5 million investment by Exfinity Fund; Unitus Impact’s investment in online B2B marketplace Shotang; and the $2 million investment by FMO into solar energy solution provider Orb Energy.

New entrants into the Venture Intelligence league table for transaction advisor to Private Equity during 2015 included Arpwood Capital, Nucleus Partners, IndigoEdge, Candle Partners, Bharat Banka, Four-S Services, Novistra Capital and Khetal Advisors.

The full league tables can be viewed online at http://www.ventureintelligence.com/leagues.php

Venture Intelligence is India's longest serving 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.

January 27, 2016

SBI Capital Markets Tops Transaction Advisor League Tables for M&A in 2015

Deloitte Tops Transaction Advisor status inclusive of due diligence, other services 

SBI Capital Markets topped the Venture Intelligence League Tables for Transaction Advisor to M&A transactions for 2015 advising M&A deals worth $2,233 million (across 2 qualifying deals) followed by Credit Suisse ($1,970 million across 2 deals) and Arpwood Capital ($1,917 million across 2 deals).

SBI Capital Markets advised M&A deals during the year were the Jaiprakash Power Ventures’ sale of its hydropower projects to JSW Energy for $1,466 million and the $767 million acquisition of Lafarge India’s two cement units by Birla Corporation. Credit Suisse advised deals were the $1,170 million acquisition of telecom tower firm Viom Networks by American Tower Corporation and the $800 million acquisition of women's health business of Famy Care by Mylan Laboratories.

Arpwood Capital advised M&A deals in 2015 were the $1,150 million acquisition of Senvion by Centerbridge Partners from wind turbine maker Suzlon Energy and the $767 million acquisition of Lafarge India’s two cement units by Birla Corporation.

Goldman Sachs ($1,480 million across 2 deals) and Axis Capital ($1,466 million across 4 deals) completed the top 5 for 2015.

Inclusive of its roles in due diligence and related advisory activities, Deloitte topped the League Tables for Transaction Advisor for M&A in 2015. Deloitte advised M&A deals worth $4,169 across 25 deals (7 of them were pure financial advisory). M&A deals advised by Deloitte during the period included the $80 Million acquisition of Cellent AG by Wipro and the $258 million acquisition of Kesh King by FMCG firm Emami. PwC came in next advising M&A Deals worth $2,823 million across 24 deals (4 of them were pure financial advisory). M&A deal advised by PwC included the $117 million merger of retail business of Future Retail with Bharti Retail and the $312 million acquisition of Sharekhan by BNP Paribas.

Deloitte also topped the table in terms of deal volume, followed by Ernst & Young (whose notable deals during the year included the $315 million buyout of Crompton Greaves Consumer Electricals by Advent International & Temasek and the $78 million acquisition of DT Cinemas by PVR). BMR Advisors came in next in terms of quantum of deals advised. Notable deals advised by BMR included the $194 million acquisition of Global Hospitals by IHH Healthcare Berhad and the $15 million acquisition of Discoverture Solutions by MindTree Consulting.

New Entrants to the Venture Intelligence M&A table for Legal Advisors during 2015 include 7i Capital, Arpwood Capital, Bharat Banka, Kriscore, Novistra Capital and Intequant.

Venture Intelligence is India's longest serving 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.

January 26, 2016

Private Equity Exits that Stood Out in 2015



Venture Intelligence is India's longest serving 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.

Impact Investments witness 8% rise during 2015

Social VCs deploy $95 Million across 53 Deals; Focus on Cos Leveraging IT



January 25, 2016

AZB & Partners Tops League Table for Legal Advisors to M&A Transactions in 2015

Luthra & Luthra, Cyril Amarchand Mangaldas claim the No.2 & No.3 slots


AZB & Partners topped the Venture Intelligence League Tables for Legal Advisors to M&A transactions in 2015 advising deals with a value tag of $9224 million (across 64 qualifying transactions). AZB & Partners was followed by Luthra & Luthra which advised deals worth $6123 million (across 10 deals); Cyril Amarchand Mangaldas ($5459 million across 31 deals).

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.

AZB & Partners advised M&A deals during the period included the $1,170 million acquisition of telecom tower firm VIOM Networks by American Tower Corporation and the $800 million acquisition of women's health business of Famy Care by Mylan Laboratories. Transactions advised by Luthra & Luthra included the $4,004 million acquisition of iGate by France-based Capgemini and PVR’s $78 million acquisition of DLF’s cinema exhibition business DT Cinemas. Cyril Amarchand Mangaldas advised deals included Jaiprakash Power Ventures’ sale of its hydropower projects to JSW Energy for $1466 million and the $767 million acquisition of Lafarge India’s two cement units by Birla Corporation.

Other legal advisors who had advised significant M&A deals during the year included Shardul Amarchand Mangaldas ($4,785 million across 27 deals), Khaitan & Co. ($3,977 across 36 deals) and J Sagar Associates ($2041 million across 32 deals).

AZB & Partners also topped the table in terms of deal volume. AZB was followed by Khaitan & Co and J Sagar Associates in terms of quantum of deals advised.
The period also saw a lot new entrants like Veritas Legal, PDS Legal, Legalogic Consulting and Patanjali Associates enter the Venture Intelligence Legal Advisors for M&A league table.
The full league tables can be viewed online at http://www.ventureintelligence.com/leagues.php


January 23, 2016

AZB tops Legal Advisor League Table for Private Equity Transactions in 2015


Cyril Amarchand Mangaldas, Khaitan & Co claim the No.2 & No.3 slots


AZB & Partners retained its status – for the sixth consecutive year – as the Top Legal Advisor (Private Equity) during 2015. According to Venture Intelligence League Tables, AZB advised PE deals worth $8,969 million (across 68 qualifying deals) during 2015. Cyril Amarchand Mangaldas ($3,943 million across 37 deals) and Khaitan & Co ($2,872 million across 31 deals) enjoyed the second and third spots.

The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.

AZB advised deals during the period included the $383 million investment by Apax Partners into NBFC firm Shriram City Union Finance and the $500 million investment by Temasek, PremjiInvest, Softbank Corp and others into E Commerce firm Snapdeal. Transactions advised by Cyril Amarchand Mangaldas included the $500 million investment by Baillie Gifford, Falcon Edge Capital, Tiger Global, SoftBank Corp, DST Global and others into cab-hailing firm Ola and the $300 million investment by Goldman Sachs in a Joint Venture with realty firm Nitesh Estates. Transactions advised by Khaitan & Co included the $500 million investment by India Value Fund and TA Associates in broadband internet service provider ACT Broadband and Temasek and Advent International’s stake purchase from Avantha Group in Crompton Greaves Consumer Electricals for $315 million.

Trilegal ($2,223 million across 30 deals) and IndusLaw ($2,202 million across 53 deals) completed the top five for 2015.

AZB & Partners also topped the tables in terms of deal volume, whereas IndusLaw (53 deals) and Impact Law Ventures (42 deals) came in next. IndusLaw advised deals included the $150 million investment by Tiger Global, Kinnevik and Steadview in online classifieds firm Quikr. Impact Law Ventures advised deals included Tano Capital’s $12.5 million investment in drugmaker Windlas Biotech. Cyril Amarchand Mangaldas (37 deals) and BMR Legal (36 deals) finished the year at fourth and fifth spot in terms of quantum of deals advised.

Some of the new entrants into the Venture Intelligence league table in the category during 2015 included Veritas Legal, Verist Law, LegaLogic Consulting, Themis Law Associates and Patanjali Associates.

The full league tables can be viewed online at http://www.ventureintelligence.com/leagues.php

January 22, 2016

ET-NOW - Venture Intelligence Funding Meter kicked off

ET-NOW - Venture Intelligence Funding Meter kicked off on the channel's Startup Central show.


Catch It Each Friday 6.30 pm on TV or etnow.tv

Venture Intelligence is India's longest serving 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.

January 19, 2016

Private Equity investments in Real Estate crosses $5-B in 2015 to Highest Level Since 2008

Year witnesses several JV platforms being created by large investors & established developers

Private Equity Real Estate (PERE) firms deployed over $5 billion in Indian Real Estate companies and projects – the highest since the financial crisis of 2008. According to research from Venture Intelligence, a provider of data on private company financials, transactions and their valuations, PERE firms made 90 investments in India during 2015. Of these, 85 transactions had an announced value of $5,061 million. While the activity level was 20% higher compared to the 75 investments in the previous year, the transaction values spiked significantly compared to 2014 (which had witnessed reporting of $2,214 million across 57 deals with announced value).



The Venture Intelligence study pointed out that 2015 witnessed several Joint Venture (JV) platforms being created between large investors and established developers. Standard Chartered announced that it will invest $302 million or INR 2,000 crore in Tata Realty & infrastructure to form a INR 3,000 Cr investment platform to buy commercial assets across the country.  Goldman Sachs committed $300 million or INR 1,850 crore to a 74:26 JV with listed developer Nitesh Estates again focused on commercial real estate assets. Warburg Pincus invested $175 million in a JV with the Embassy Group (which invested $75 million) to build warehouses across the country.

Piramal Realty attracted minority equity investments of $150 million (INR 900 crore) from Goldman Sachs and $284 million (INR 1,800 crore) from Warburg Pincus to be used for its residential projects in Mumbai.StanChart PE, IFC and ADB together decided to invest $200 million (INR 1,280 crore) for a 70% stake in a joint venture with Shapoorji Pallonji Group that will focus on the affordable housing segment. 

Among the bigger transactions in 2015 was Blackstone’s buyout of Gurgaon-based builder Alpha G: Corp for $301 million or INR 1,600 crore. The deal marks the first full buyout of a real estate company in India. Singapore sovereign wealth fund GIC formed a joint venture with DLF Home Developers, a wholly-owned subsidiary of publicly listed DLF, to invest $300 million or INR 1,990 crore to develop projects in two land parcels acquired by DLF in Delhi. 

Residential projects accounted for over 71% of the investments by volume (and almost 80% including townships) during 2015, followed by commercial projects with a 10% share of the pie, the Venture Intelligence data showed.

Among the bigger transactions in 2015 was Blackstone’s buyout of Gurgaon-based builder Alpha G: Corp for $301 million or INR 1,600 crore. The deal marks the first full buyout of a real estate company in India. Singapore sovereign wealth fund GIC formed a joint venture with DLF Home Developers, a wholly-owned subsidiary of publicly listed DLF, to invest $300 million or INR 1,990 crore to develop projects in two land parcels acquired by DLF in Delhi. 

Residential projects accounted for over 71% of the investments by volume (and almost 80% including townships) during 2015, followed by commercial projects with a 10% share of the pie, the Venture Intelligence data showed.

Piramal Fund was the most active PERE investor during 2015 announcing 13 new investments in 2015, followed by Edelweiss Capital (6 deals). GIC, Goldman Sachs and India Infoline RE reported four deals each. 

Source: Venture Intelligence PE-RE Deals Database

For a copy of the full PE in Real Estate 2015 report, which includes additional data points including on top exits, etc. Contact Venture Intelligence .

January 17, 2016

When Startup Hype Meets Bureaucratic Guile



How can start-ups complain when the Prime Minister makes the government machinery work on a Saturday evening to unveil plans for making the country more Start-up friendly?

The media coverage had set expectations high. Lowering of Capital Gains tax - including apparently plans to do away with it. And the Evil Startup / Angel Tax was as good as abolished. Unfortunately, The Devil, as they say, lies in The Details (Page 33 onwards to be specific).

Are you the founder of a company that's 5 years and 1 day old? Sorry old chap, your baby is no longer a Startup. Regardless of the age bias, it looks like most of the benefits under the #StartupIndia schemes will accrue only to companies that are a part of government supported / recognized incubators. Here's the extract from the official document:
In order for a “Startup” to be considered eligible, the Startup should:
• be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from an Incubator established in a post-graduate college in India; or
• be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to promote innovation; or
• be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP ( Department of Industrial Policy and Promotion), from an Incubator recognized by GoI; or
• be funded by an Incubation Fund/Angel Fund/ Private Equity Fund/ Accelerator/Angel Network duly registered with SEBI* that endorses innovative nature of the business; or
• be funded by GoI as part of any specified scheme to promote innovation; or
• have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being promoted.
In addition, to qualify for any of the tax breaks,  your firm's "innovation"  needs to be whetted by "An Inter-Ministerial Board setup by DIPP".

And, according to the document at least, there are no plans to do away with the "Startup / Angel Tax" (which treats equity investments over Fair Value as income in the hands of the company). All it says (after describing the issue beautifully) is: "Currently, investment by venture capital funds in Startups is exempted from operations of this provision. The same shall be extended to investment made by incubators in the Startups."

"Start Up India, Stand Up India" is clearly a great booster for government supported incubators and startups associated with them. But what does it have for "other" Startups and Investors - including the founders of Uber and SoftBank - who were in attendance at the event? Just the opportunity for a selfie with the PM?

Agree or feel differently about the issue? Chime in on LinkedIn.

Related Links: 

Deepak Shenoy's analysis of #StartupIndia on his blog here.

Praveen Chakravarty (in Mint) has a problem with the government using tax payer money for investing into the risky asset class of Venture Capital funds.

Internet & Retail entrepreneur K. Vaitheeswaran (in YourStory) also dislikes government getting into funding and considers the proposal relating to making it easier to close down failed businesses to be the most important.

Sign Up for the FREE Weekly Edition of the Venture Intelligence Deal Digest: India's First & Most Exhaustive Transactions Newsletter. Since 2002. No Hype. Just Delivery.

January 12, 2016

What does Foodtech & Hyperlocal Cos Giving Up on Tier II Cities mean?



One by one, well funded players in the foodtech and hyperlocal sectors - including leaders Zomato and Grofers - are announcing closing down of their operation in Tier II cities.

The withdrawal reminds one of the early days (2006 - 2008) of Private Equity Investing in Real Estate when PE-RE firms had spread out beyond the metros to invest in cities like Jodhpur, Kochi, Jaipur, Nagpur, Nashik, Mysore, Indore and Vishakhapatnam. The stats highlighting the boom across Tier II & Tier III towns were, of course, supporting.  But, come financial crisis, PE-RE investors turned allergic to Tier II and started to explicitly state that they would henceforth focus on Tier I markets only.

Does the Zomato and Grofers experience mean that the "pent up demand in small town India" phenomenon that works for big guys like Flipkart and Snapdeal, will not work for food and local delivery? At least until the road traffic in these cities and towns does not make going out to eat or to pick up groceries painful enough?

Share your views on the comments thread (on LinkedIn).

Venture Intelligence is India's longest serving 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.

The Indian Venture Capital Funnel: Darwinism at Work?

Extract from the Venture Intelligence India Venture Capital Report 2015:


The Darwinian nature of the VC funding process means that there are several companies - at each funding stage - that struggle to raise their next round. And are hence ripe for acquisition.  Would you like a list of potential target companies - say, those that have not managed to raise additional funding for 18 months  - that you can cherry pick from? Contact Us with your specific request (Industry/Sector, Valuation, etc).

Venture Intelligence is India's longest serving 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.

Why don't Indian clones of Amazon care for its DNA?

Haresh Chawla has an biting beginning-of-the-year post for start-ups at Founding Fuel.
There are two Indias: the top 10% that can afford your clone offering, and the remaining 90% that can’t or simply won’t...The Indian consumer is value-driven, not convenience-driven. We have all the time in the world to research and find the best price. Most have time to find a competing offer. We hate paying for service. And loyalty—what is that? Indians will not pay for delivery, service or extra conveniences and will accept deals from your competitors with both hands. Does your clone-model account for this? Servicing the 90% can become a continuous drain on your business. There is no farming with them, only hunting.
What I find utterly baffling is that while our startup entrepreneurs put up Amazon, Uber and Airbnb as their idols, they never focus on how these folks did it. They never tune into the fact that Amazon’s founder Jeff Bezos knows that he is playing a thin-margin game and winning depends on how tightly Amazon is run.
It’s ironic that while Amazon prides itself on frugality, the clones in India are hiring people by the thousands, setting up fancy offices with free lunch for their teams. Their fixed costs, payrolls are nothing short of astronomical. A joke doing the rounds is that there are more top-tier McKinsey and Bain crop of consultants employed in Indian e-commerce companies than in the consulting companies’ Indian operations themselves.
Venture Intelligence is India's longest serving 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.

January 07, 2016

January 02, 2016

Private Equity investments surge 50% YoY to hit all time high of $16.8 B in 2015

Private Equity investments in India touched a record high of $16.8 billion in 2015 (across 661 deals), 16% higher than the previous high of $14.5 billion (across 529 deals) recorded in 2007 and a whopping 50% higher than the $11.2 billion (across 530 deals) invested during the previous year, according to early data from Venture Intelligence, India’s longest serving research service focused on private company financials, transactions and valuations. The surge was led by continued mega investments in consumer targeting Internet & Mobile Services companies that accounted for almost $5.3 billion or 31.5% of the investment pie during the year. (Note: Venture Intelligence’s figures on PE investments do not include investments in Real Estate.)

2015 witnessed 44 investments of $100 million or more, compared to only 19 such deals in 2014, the Venture Intelligence analysis showed. The average deal values climbed steadily till the third quarter before taking a breather in the last quarter.

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