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September 30, 2016

Titans of the North: Forbes

A Forbes article quotes Venture Intelligence data on PE/VC investments:
Venture Intelligence’s ‘Indian Private Equity Trend Report 2016’, on private equity and venture capital investments, shows companies based in Western India accounted for almost 40 percent of PE investments in value terms in 2015, while South India companies came next with a 32 percent share and those from North India finished third with 22 percent.
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.



September 29, 2016

Domestic enterprise tech startups like Druva, Manthan get set for primary market debut: Economic Times

An Economic Times article quotes Venture Intelligence data on PE/VC-backed IPOs
According to Venture Intelligence, about a dozen private equity and venture capital-backed companies have raised over $1.3 billion in IPOs between January and September so far. In the same year-ago period, a similar number of companies went public but raised about $621 million from the market.
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.



September 28, 2016

Retail lending NBFCs emerge as a sweet spot for PE investors: Mint

A Mint article titled Retail lending NBFCs emerge as a sweet spot for PE investors quotes Venture Intelligence data on PE/VC investments & Exits in the NBFC space:


There have been 11 transactions worth $750 million involving NBFCs so far this year, according to data compiled by investment tracker Venture Intelligence. This follows $920 million that PEs invested in NBFCs last year.
In 2016, PEs have been able to sell investments in five deals worth $432 million, according to Venture Intelligence. It was $539 million across 11 deals in 2015. 
Why are PE firms chasing NBFC companies?

More excerpts from the article:
"Typically, it is considered a proxy for economic growth. PE funds believe that we are at the start of a four to five year good run in terms of economic growth. As a fund, they would want to enter and exit within the growth cycle... the delinquency is low. Margins too are better compared to wholesale lending businesses." - Sanjeev Krishnan, Partner(Transaction Services), PwC India
In July, the International Monetary Fund predicted that the Indian economy will grow at 7.4% in 2016-17, faster than the Chinese economy’s growth pace of 6.6%. Outstanding retail loans as of 22 July were Rs14.48 trillion, up 18.8% from a year ago, according to latest data available from the Reserve Bank of India. Some of the fastest growing categories were loans for consumer durables (18.4%) credit cards (29.4%) and personal loans (27.9%). 
Changing demographics and low credit penetration have made NBFCs attractive - Prakash Nene, Partner, Multiples PE.
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.

September 27, 2016

With half-a-dozen exits, Sequoia Capital spins a new startup tale: The Economic Times

An Economic Times article quotes Venture Intelligence data in an article on exits by Sequoia Capital in 2016:
Software maker Quick Heal and small finance bank licence holder Equitas Holdings, which listed earlier this year, are estimated to have delivered returns of 3.5 times and 2.25 times respectively to the venture capital fund (Sequoia Capital) according to research firm Venture Intelligence.
Venture capital investment for the period January to September 2016, dropped to 285 deals, totaling $1.03 billion, compared to 390 deals, with a cumulative value of $1.6 billion, in the year ago period, according to Venture Intelligence. Exits were valued at $1 Billion, spread across 48 deals, compared to 41 transactions, estimated at about $1.4 billion in the year ago period
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.


September 25, 2016

Mint-Venture Intelligence Deal Tracker (Sept 19)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint. The Weekly update is featured in the Deals Section on every Monday.




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.

September 23, 2016

VC Investors with Most #Unicorns in Portfolio

A Mint article showcases Venture Intelligence data on Venture Capital firms with most Unicorn companies in their portfolio. #1 Tiger Global (5), #2 Sequoia Capital India (3)




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.

ET Now Startup Central - Venture Intelligence Funding Meter (Week of Sept 19)

Catch the week's VC Stats along with a study on venture exits in 2016 in this week's edition of the Funding Meter powered by Venture Intelligence.




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.

Edelweiss Group to acquire Ambit Alpha Fund: Mint

A Mint article titled Edelweiss Group to acquire Ambit Alpha Fund quotes Venture Intelligence data on M&A deals in the asset management space:



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.



September 22, 2016

(Masayoshi) Son is still looking for the next big thing in India: Nikkei

A Nikkei article quotes Venture Intelligence Arun Natarajan on SoftBank's journey in India:
"SoftBank is one of the very few startup investors willing and able to lay down hundreds of millions of dollars in a single go" said Arun Natarajan, CEO of research company Venture Intelligence.
SoftBank's former second-in-command, Nikesh Arora, helped lead the company's Indian strategy after coming aboard in 2014 and continued to do so until his departure in June of this year. But he was not the reason SoftBank came to India, according to Natarajan. "They were in India and continue to be around regardless of Nikesh Arora," he said.
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.



September 21, 2016

PEs go for the cream: mydigitalfc

A mydigitalfc article quotes Venture Intelligence data on PE/VC Exits
Since 2014, there have been about 30 exits. The ongoing year has so far seen the highest exits — worth $686 million — in 12 companies, while there were 15 exits worth $287 million in 2015; there were four exits worth $109 million in 2014, according to data sourced from Venture Intelligence.
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.

Multiples PE to venture into special situation investing: Mint

A Mint article titled Multiples PE to venture into special situation investing quotes Venture Intelligence data on Investors and investments in the Distressed Assets field. (According to the article the gross bad loans of 39 listed Indian banks, in absolute terms, rose 92% in fiscal 2016 to Rs 5.79 trillion.)


Other global private equity funds such as KKR and Co., Hong Kong-based SSG Capital Management and International Finance Corp. (IFC), the investment arm of the World Bank, have already acquired stakes in existing ARCs to buy bad loans. In January 2015, IFC invested in Encore Asset Reconstruction Co. Pvt. Ltd and in March this year, the Foreign Investment Promotion Board gave approval to KKR & Co. for picking up a stake in International Asset Reconstruction Co. Pvt. Ltd.


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.

September 20, 2016

IDFC Alternatives to create a platform for renewable energy assets: Mint

A Mint article titled IDFC Alternatives to create a platform for renewable energy assets quotes Venture Intelligence data on investments in the Renewable Energy space:


In the last two years, the renewable energy space, especially solar and wind power, has seen a lot of private capital flowing in. Recently, Greenko, which is a developer of wind and small hydro power projects, secured $230 million from sovereign wealth funds of Abu Dhabi and Singapore.
Last year, emerging markets-focused private equity major Actis Llp also created a renewable energy platform under Ostro Energy with initial commitment of $230 million.


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.

September 19, 2016

Startup Success & Failure: Does the City Play a Role?

As reports of Startup Shutdowns & "Acqui-Hires" began to flood the media in 2016, Venture Intelligence did quick study of companies that had raised angel investments in the 2010-2014 period across Bangalore, Chennai, Mumbai and National Capital Region to check if there is a city flavour to these companies. On the flip side, there were obviously also companies that managed to raise successful follow-on financing or even deliver quick exits to their investors.


Mumbai based companies had the highest "success" rate - 40% - in terms of raising a follow-on round / providing an exit. Mumbai startups showed a healthy mix of sectors being funded - be it B2C, B2B, Enterprise Software, Fintech, etc. Mumbai companies which raised follow-on funding include Ola (taxi aggregator), Goqii (wearables), Mswipe (payments) and PrettySecrets (Innerwear). Companies which shut down include Purple Squirrel, Fetise (Apparels) and LocalBanya (Hyperlocal). Being from the financial capital of the country, Mumbai startups are clearly favored by the access to a large pool of local investors - VC, Strategic and Family Offices.

Chennai based startups recorded negligible shut down rates - a phenomenon that seems attributable to the predominantly B2B flavour of their businesses (the city being India's de facto SaaS Capital) and the relatively later stage at which entrepreneurs here choose to seek external capital. (Stayzilla and Ticketgoose for instance raised their angel rounds after seven years of incorporation, while companies like Freshdesk chose to skip the angel round completely). On the flip side, its relatively low success rate seems attributable to the low access to local capital. Chennai-based companies which raised follow on funding during the period studied include Stayzilla (hotel aggregator), Uniphore Software Systems (speech analytics), Ather Energy (e-vehicles), etc. (Both Stayzilla and Ather moved their headquarters to Bangalore after raising venture capital.)

NCR & Bangalore based companies registered the highest shut down rates - >6%. Most of their casualties were in the food tech (like Spoonjoy, Dazo etc.) and hyperlocal space - which the two cities supplied to investors in plentiful numbers during the hyper-active funding environment in 2014-15. Naturally, these cities (with their large volumes of "early adopters" among young and tech-savvy IT & ITES employees) also account for some of the biggest startup successes in the B2C E-Commerce space.

View ET Now Startup Central's coverage of the study:



Business Standard has dived deeper into the Chennai angle:






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.

Mint-Venture Intelligence Deal Tracker (Sept 12)

Venture Intelligence is now powering the Deal Tracker on The Mint. The Weekly update is featured in the Deals Section on every Monday.


Below is the previous week's update:



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.


Chennai start-up failure rate lower than NCR and Bengaluru: Business Standard

A Business Standard article quotes Venture Intelligence data on investments & exits in startups across cities in India:


According to Venture Intelligence data, the failure rate among start-ups in Chennai between 2010 and 2014 was one per cent. The rates in Bengaluru and the NCR were six per cent and seven per cent, respectively.
Arun Natarajan, Founder, Venture Intelligence, said Chennai had higher resilience in the business-to-business (B2B) and software as a service (SaaS) businesses and that the city's start-ups had a clear focus on the business and revenue models. "Chennai does not follow the me-too concept," he said. 
Bengaluru and the NCR have a head start in large enterprises and these cities have investor communities willing to experiment with new ideas. Investors in Chennai, on the other hand, are more conservative and bet on good ideas.
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.


September 15, 2016

Edu-tech start-up ConceptOwl seeks to raise Rs100 crore: Mint

A Mint article quotes Venture Intelligence data on PEVC investments in the Edtech space
According to data from Venture Intelligence, the ed-tech space has seen investments worth $169 million, across 17 deals, so far this year, compared to $68 million that was invested across 20 deals in 2015.
Further Reading:

PE/VC Investments in Education spike up in 2016


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.

September 14, 2016

The Japanese & Chinese Connection in India

A Mint article showcases Venture Intelligence data on Chinese and Japanese VC and Strategic investors in India:


"According to data collated by researcher Venture Intelligence, till 5 September 2016, there were seven investments made by Chinese investors as against six in all of 2015 and 18 deals closed by Japanese investors against 21 in 2015. Against a total of 27 deals this year with about four months left to go, there were 28 investments made by Chinese and Japanese investors in 2015. 
However, there has been a decrease in the average deal size in 2016, specifically in the case of Japanese investors. While an investment commitment of $1870 million was recorded in 2016 through 21 deals by Japanese investors, it was just $138 million this year. On the other side, Chinese companies are still aggressive and making large investments. A total of $870 million has been invested by Chinese investors in Indian start-ups so far this year."

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.


September 13, 2016

India Value Fund Advisors to invest $40 million in SeedWorks: Mint

A Mint article showcases Venture Intelligence data on investments in Seed Companies in India:
"The largest was global private equity giant Blackstone’s $56 million investment in Nuziveedu Seeds Ltd in 2008, according to data from Venture Intelligence. Other significant investments in the space include Summit Partners’ $29 million in Krishidhan Seeds in 2010, $10 million by CLSA Capital Partners in Camson Bio Tech and $9 million in Ganga Kaveri Seeds by Samara Capital."



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.


September 12, 2016

Sequoia Capital in talks to sell stake in eight firms for $200 million: Mint

A Mint article titled Sequoia Capital in talks to sell stake in eight firms for $200 million, quotes Venture Intelligence data on investments and exits by Sequoia Capital.




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.

September 07, 2016

Startup ecosystem sees a consolidation wave: The Economic Times

An Economic Times article quotes Venture Intelligence data in the consolidation of startups: 
There were 28 M&A deals in the first eight months this year vis-a-vis 32 in the whole of last year, according to Venture Intelligence.

The article also quotes:

Deepak Natraj, Managing Director, Aarin Capital

"It's a clear case of consolidation. In many cases, the target companies are sub-optimal businesses, not having enough capital to expand their business verticals."

Anil Joshi, Managing Partner at Unicorn India Ventures

"Too many companies in the same space doesn't provide enough room for them to play. Also, the market is still nascent and not ready to absorb too many companies."

Sujayath Ali, Co-Founder, Voonik.com

"The sweet-spot for any startup M&A deal is technology. Most deals are struck for want of technological capabilities."

Related Stats:

In a study of Bridge rounds in India, Venture Intelligence identified 
"More than 250 startups, which between them have raised over $600 million in Seed/Series A funding, are now "overdue" to raise new money (ie, it's now 12+ months since their last round)."
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.


September 02, 2016

Does More Trouble Lie Ahead for Indian Startups? Knowledge@Wharton

A Knowledge@Wharton article quotes Venture Intelligence data while analyzing issues in the startup ecosystem in India:
"Venture Intelligence, a leading provider of data on private company financials, transactions and valuations, notes while from April 2014 to March 2016 there were around 29 acquisitions in the Indian tech startup space, from April this year to mid-August the number has shot up to around 40."
"Venture Intelligence also notes that in 2015, 16 VC-funded startups shut shop during the course of the year. In 2016, from January to July itself an equal number of startups have already folded up. These include Fashionara, PepperTap, Zippon and Murmur. Post July, shutdowns include Exclusively, a fashion portal which was acquired by Snapdeal last year, TaxiForSure which was acquired by cab-hailing app Ola last year, and online market place and classified portal Askme.com."
"...from January to June 2015, India saw PE investment of $7.31 billion across 373 deals and VC investment of $970 million across 242 deals. During the same period in 2016, PE dropped to $7.16 billion across 314 deals and VC dipped to $646 million across 211 deals."
What Lies Ahead?
Arun Natarajan, founder of Venture Intelligence, however, is more optimistic. He points out that several seed capital funds and India-dedicated VC firms including Sequoia Capital India, Kalaari Capital, Nexus Ventures and IDG Ventures India have raised new funds in the last 12 months. Also, several family offices, like that of industrialist Ratan Tata and the founders and executives of Infosys, have turned active startup investors. “So, there is sufficient ‘dry powder’ available within India to support new startups as well as existing portfolio companies [provided they are] able to demonstrate traction.”
Natarajan adds that given India’s growth potential, Indian startups “should also be able to attract sufficient long-term focused foreign investors as indicated by the increasing investments here by VC and strategic investors from Japan, South East Asia and China.” A recent example is the $175 million investment in August from Tencent, the founder of WeChat, China’s bestselling instant messaging app, and Foxconn Technology Group from Taiwan, in Hike, the Indian messaging app founded by Kavin Mittal. This is one of the largest investments in Indian startups in 2016 and values Hike at $1.4 billion.
...Mohandas Pai also shares - “India is sadly becoming a battleground for American and Chinese companies and Indian capital is losing out.” Pointing out that in China, 65% of VC funds is Chinese money while in India, only 5% comes from domestic capital, Pai says: “The Indian capitalists want assured returns with no risks. This mindset has to change. They should allocate at least 20% to 25% of their funds for venture capital.”

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.


September 01, 2016

When is a start-up no longer a start-up?

What exactly is a startup?

According to Y Combinator founder Paul GrahamA team of good people making something customers actually want and spending as little money as possible to do so.  

According to Stanford Prof Steve Blank: A startup is an organization formed to search for a repeatable and scalable business model.

According to #StartupIndia (ie, DIPP) an entity will be identified as a startup.
1. Till up to five years from the date of incorporation.
2. If its turnover does not exceed 25 crores in the last five financial years.
3. It is working towards innovation, development, deployment, and commercialisation of new products, processes, or services driven by technology or intellectual property.
4. Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a 'startup';
Now, Business Line has interviewed entrepreneurs and VCs to get their personal definitions.

Entrepreneurs:

K Ganesh, Portea Medical

A start-up moves to the next stage after it has “cracked the code.” That is, when it has been able to validate the business model. After that it is replicating the same proven model.” A seven-year-old company a start-up is like saying "a 20-year-old child".

A decade back, when a site handled 100 orders a day, it was considered good and investors would look at funding the venture. The venture was still a start-up but there was proof of concept. That number has changed. Now, 10,000 orders are required for proof of concept.

Sabarinath Nair, Skillveri

Skillveri is about four years old and “we are no longer calling ourselves a start-up” and stopping referring to themselves as a start-up had nothing to do with funding, but more to do with market traction. “Around the time we crossed cumulative turnover of INR 1 crore, that is the time internally we thought we should no longer call ourselves a start-up.”

Zishaan Hayath, Toppr 

A start-up is one that is growing fast. “When companies stop growing rapidly and become flat, they are no longer start-ups.”

Nipun Goyal, Curofy

“My thesis is as long as you are growing exponentially, you are a start-up. Also, if you have achieved self-sustainability, that is also the point where you tend to be a mature company.”

Investors:

Parag Dhol, Inventus Advisors India has an interesting take:

“Many people use 1,000 days as a marker.” There are various milestones for that migration. For instance, the venture shifts office a second time, the CEO no longer knows every employee by name, and the venture has raised Series A funding. 

Bharati Jacob, Seedfund

“a start-up remains a start-up till it is able to understand and define its business model. By business model, I mean who will buy the product or service, how will it be delivered, how does it fit into the consumer’s life, how will the company make money, how much will it cost to deliver – the legs and nuances of the business model.”

Whenever an entrepreneur starts a company, he or she does so with a hypothesis on the business model. Once the hypothesis becomes reality then the company ceases to be a start-up, says Bharati. “I wouldn’t measure a start-up in terms of years, rather in terms of evolution of its model,” she adds.

Karthik Reddy, Founder, Blume Ventures

It is the stability of the business model that determines whether a venture is still in the start-up phase or not. Its no more a startup - when the founding team moves away from product altogether on a day-to-day basis.

“The other more subjective metric around that is whether the business model itself has been iterated enough that the proposition is clear to the customer.” For Google and Facebook, he adds, this would have been at a scale when the advertiser knew exactly what it was buying when it got the click-throughs and could measure the cost per click.

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.