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January 31, 2017

Double Take on Donald Trump: The Frail Ego & The Negotiator

Extracts from "Black & White and More"  by  Raj Nair, Chairman, Avalon Consulting which discusses the impact in 2017, of the 3 Black Swan events of 2016: Brexit, Trump’s Presidency and Modi’s demonetization (emphasis ours):
There is enough material to understand Trump’s DNA including his own book, “Art of the Deal.” He displays a megalomaniac exterior to cover his insecurities and his very vulnerable ego. He is more a deal maker than a leader.
...He recommends and also uses ‘hope’ and ‘fear’ most of the time to soften his counter party or his own people to accept his proposition and then sells them a grand dream which is beyond their stretch, to win them over. The electorate lapped it up. He gave them some hope and a lot of fear during his campaign. He will continue to do that with counterparties in negotiations. His ego is easily punctured and vengeful acts are par for the course.
...It is therefore safe to conclude that eventually, Trump’s bite as the President will be markedly weaker than his bark during his campaign. After, the initially flurry of decisions in his first few weeks in office, office, to show that he acted as threatened, he will let his chosen team do more reasonable things.
Agree with the Raj's take? Disagree? Meet and interact with him at:



Raj's take concurs with that of Cartoonist Scott Adams, who seems set to become as famous as the man who could predict Trump's actions (including his election win) correctly as for creating Dilbert. According to Adams, the key to understanding Trump is to understanding his standard negotiating technique: Open with an extreme first offer which provides him (Trump) enough room to "negotiate back to something reasonable". "If you don’t recognize the method, it looks crazy, random, and racist."

Extracts from Adams post on Trump's temporary ban on immigration from select Islamic nations - a move that has evoked wide protests in Silicon Valley as well as the predictable outrage across social media (emphasis ours):

Trump’s temporary immigration ban set a mental anchor in your brain that is frankly shocking. It will make his eventual permanent immigration plan (”extreme vetting”) look tame by comparison....He acts the same way every time. He wrote a book about it. He talks about it publicly. Then he does it right in front of us, over and over. And no matter how many times he does it, half the country still thinks the opening offer is the real one. 
..The system (America) is actively trying to eject Trump like some sort of cancer cell. And the worse it gets, with protests and whatnot, the more leverage Trump has to tell his far right supporters that he has gone as far as the country will let him go. He needed that. The protests are working in his favor. He couldn’t negotiate with the extreme right without them.
...Trump has created a situation – or will soon – in which the peaceful Muslims will either have to do a lot more to help law enforcement find the terrorists in their midst or else live with an increasingly tainted brand. Trump is issuing no free passes for minding your own business. His model makes you part of the solution or part of the problem. No one gets to sit this one out.
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.

January 30, 2017

IDG Ventures India closes Rs $200 M fund: Economic Times

An ET article quotes Venture Intelligence data of VC fund raising in India:
Led by local affiliates of Silicon Valley heavyweights, Sequoia Capital and Accel, VC (with) funds dedicated to India raised $2.2 billion in 2016, up from $1.5 billion in the previous year, according to Venture Intelligence. Another VC fund which made a final close in 2017 was Saama Capital, which mopped up $58 million for its third fund. 
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.


Bombay Stock Exchange: PE Backed IPO Analysis


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.

Don't Raise Money From VC In First Round Seed Stage

In a Linkedin article, one of India's most active angel investor Sanjay Mehta advises startups not to raise seed funding from VCs for the following reasons:
  • There is reluctance among new investors at Series A if the VC at seed stage doesn't participate. " For start-up if the VC firm decides not to write the second cheque Series A then it's sure shot curtains for that business as NO other VC firm in the town is going to write that second cheque.."
  • Startups can have "enough & more expertise, face time and mentoring" from the lead angel investor as "Seed stage first cheque funded companies will never be a priority for a VC firm."
  • VCs are more willing to write off investments than angel investors as "losing money is accepted norm for the VC firm with the seed stage first cheque invested companies". ".. VCs are playing a high-stakes all-or-nothing game."
  • Raising a seed round from VCs denies entrepreneurs "the only opportunity for entrepreneurs to bring in marquee names or valuable experts on the cap table."
  • Raising large sums of capital early from VCs "creates a pressure cooker type situation for entrepreneur and forces them to throw money to problems. VC capital always comes with non negotiable deadline to deliver. In comparison, the angel investor rounds are more measured, it's optimum use of capital and focused approach to experimentation and more flexibly to adapt the learning as it's not a stoned deadline."
Click here to read the entire article.

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.



PE investors may go slow on startup funding: Forbes

A Forbes article quotes Venture Intelligence data on venture capital investments:
In 2016, as many as 620 transactions were sealed in the PE/VC space, according to data available with research firm Venture Intelligence. Of this, about 65 percent comprised startup investments. In 2015, the year that created history for the highest amount of PE and VC investments, both by value and volume, of the total of 775 investments sealed in the January-December period that year, 512 were startup deals. 
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.

January 25, 2017

Financial Sector Reforms – Developments and Opportunities

Analysis by

In past one year the Government has put in motion a number of reforms with the intent to attract more foreign direct investment in India and simplify ease of doing business in India. As the year draws to a close, we look back upon the pivotal developments in financial laws effected or proposed during the year. Although there are several areas which could be discussed, such as, change in securities law, land bill, etc; in this article we have covered a brief overview of the developments in (i) corporate bankruptcy laws, (ii) debt restructuring and (iii) foreign direct investment policy.

Corporate Bankruptcy Laws


The corporate insolvency procedure is presently covered under the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) 2002, the Companies Act 2013 and Sick Industrial Companies (Special Provisions) Act (SICA), 1985.  Under different laws, different forums, such as, debt recovery tribunals (DRTs), Board of Industrial and Financial Reconstruction (BIFR), the proposed National Company Law Tribunal (“NCLT”) have jurisdiction. This fragmented framework leads to ambiguity in determining jurisdiction. Most of the times the forum is not equipped to handle bankruptcy cases, which leads to inordinate delays.  Keeping in mind these difficulties, the Government has placed before the Parliament the Insolvency and Bankruptcy Bill, 2015 (the “Bill”) with the intent to introduce swift time bound bankruptcy resolution process which simultaneously helps in preserving economic value of the creditors. Some of the significant features of the Bill are as follows:

  • Adjudicating Authority: In case of default in payment of debt by the corporate debtor, the NCLT has the authority to adjudicate the insolvency resolution process, with the appellate authority being entrusted with the National Company Law Appellate Tribunal (NCLAT).
  • Time bound Process: The corporate debtor is provided with 10 (ten) days to make payment of undisputed debts or to provide a proof of dispute to the creditors as opposed to 21 days as presently required. Other than in exceptional circumstances like on account of complexity of the matter or pursuant to approval by the committee of creditors and shareholders, the adjudicating authority is required to complete the insolvency resolution process within 180 days of date of admission of the application.
  • Preservation of Economic Value  Once the application has been admitted and moratorium has been declared by the Adjudicating Authority, the secured creditors cannot enforce their security, the corporate debtor which is subject to insolvency cannot alienate any of the It’s assets and suspension of delivery of essential goods cannot be put into effect. However, if the Adjudicating Authority has approved a resolution plan or the committee of the creditors has resolved to liquidate the corporate debtor, the moratorium ceases to have effect. Significant powers have been given to committee of creditors to decide the best suited course of action.
  • Interim Resolution Professional: During insolvency resolution process, the management of the corporate debtors is placed in the hands of interim resolution professional and powers of the directors are suspended. Such interim resolution professional is entrusted with preserving the value of the corporate debtor. They are also given wide powers to ensure that assets are not stolen from the company and also examine check of the transactions of the company for the last two years to look for illegal diversion of assets. Such diversion of assets would induce criminal charges. The proposal would go a long way in curbing asset stripping by promoters.
  • Fast-track insolvency resolution: The fast-track insolvency resolution process envisages completion of insolvency process of eligible corporate debtors within 90 days of the commencement date. 

Private equity industry especially the start-ups and companies laden by heavy debt has often seen that the current bankruptcy regime has not proved effective to protect the investors interest nor provide effective liquidation in a time bound manner. With the changes proposed in the Bill it is expected to address these two concerns and also consolidate the bankruptcy laws.

Debt Restructuring

With the intent to strengthen the debt-restructuring framework in the country, the Reserve Bank of India, on June 8, 2015, notified the “Strategic Debt Restructuring Scheme” (“SDR Scheme”).  The SDR Scheme enables the lenders to convert the whole or part of their outstanding loan and interest into equity. The SDR Scheme requires the banks to take over control of the borrower, which gives the banks more control in recovering their debts.  The SDR Scheme stipulates the pricing formula of conversion. 

Upon conversion of debt into equity, such lenders are required to divest, as soon as practical, their shareholding in the borrower to a “new promoter” who is not a part of the existing promoter group of the borrower. Once the lenders have divested their holdings, the asset classification of the account may be upgraded to “standard” and the loan may be refinanced. However, the recent newspaper reports suggest that those lenders who have converted their debt into equity under the SDR Scheme may be staring at the possibility of significant write-offs in their effort to sell the equity to a new promoter. 

Going by the stock exchange notifications, the lenders of Gammon India Limited, IVRCL Limited, Monnet Ispat and Energy Limited, Electrosteel Steels Limited, VISA Steel Limited, and Jyoti Structures Limited appear to have decided to convert their debt to equity of the borrowing company. However it appears that not the entire amount of debt is converted into equity. In case of Gammon India Limited, the lenders have decided to convert debt worth 245 crores out of the entire outstanding debt of 3500 crore in 60.1% of equity capital of the borrower. Keeping in mind such large amount of debt still remaining outstanding, the “new promoter” acquiring the equity stake is likely ask for a haircut from the lenders. The Reserve Bank of India is presently seeking feedback from the banks and is likely to tweak the SDR Scheme to make it more viable for the banks. 

The above could potentially lead to opportunities for private equity funds looking for possibilities of investing in special situation assets. Although such a market in India is very nascent, with possibility of getting substantial control and effective management in such companies does create a new area of investment opportunities. 

FDI Reforms


With the objective of attracting more foreign direct investment in India, the government has liberalized the foreign direct investment (FDI) policy.  These reforms broadly fall in the category of (i) increase in sectoral caps, (ii) relaxation of conditions, and (iii) FDI permitted in new sectors. 

We have discussed below some of the key reforms which will be play a significant role in attracting FDI in the country:

  • FDI in Limited Liability Partnerships (LLPs):  Earlier FDI in LLPs was not permitted without the prior approval of the Government. With the introduction of new reforms, FDI is LLPs is permitted without the Government approval if the LLP is engaged in the sectors where 100% FDI is permitted under the automatic route and no FDI-linked performance conditions are prescribed (the “Permitted Sectors”).
  • Downstream Investment by LLPs: LLPs with FDI can also make downward investment in companies or other LLPs which are engaged in Permitted Sectors.
  • FDI in Construction Sector: Earlier, to procure FDI, the companies engaged in construction and development sector were required to comply with a number of conditions, including the minimum area of development, requirement to remain invested till completion of the project, which are now are done away with.  After the reforms, foreign investor can exit the company before the completion of the project if the lock-in period of 3 years from each tranche of investment is completed.  The companies receiving FDI can now also engage in the business of leasing properties. These positive steps by the Government will pave the way to attract investment in Real Estate Investment Trusts and Infrastructure Investment Trusts.  FDI compliant entities would now also be able to engage in property leasing business.
  • Swap of Shares: Earlier swap of shares between a resident and a non-resident entity required an approval from the Government. After the reforms the shares of two companies can be swapped without any approval, provided both companies are engaged in sectors in which FDI is permitted under the automatic route. However, for sectors under the Government approval route, investment by way of swap of shares will still need the approval of the Government. In case of a distressed sale, the foreign investor can seek to obtain shares of the purchaser with the prospect of getting an upside at a later date without seeking any Government approval.
  • Liberalised sectors: 100% FDI under the automatic route is now permitted in sectors such as non- scheduled air transport service, ground handling services, teleports, Up-linking of Non-‘News & Current Affairs’ TV Channels / Down-linking of TV Channels, credit information companies and duty free shops. 
The Government has certainly taken a number of steps in the right direction and we will hopefully get to see the positive impact of these reforms in the coming year.  The above could only get better with the “Startup India” initiative of the Government, which is expected to give investment push to start-up sector in India and potentially create more opportunities for venture and angel funds.

Darshan Upadhyay and Amruta Kelkar are Partner and Associate Manager at Economic Laws Practice (ELP), Advocates & Solicitors. They can be reached at darshanupadhyay@elp-in.com and amrutakelkar@elp-in.com  for any comment or query. 

The information provided in the article is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein.

January 24, 2017

Mint-Venture Intelligence Deal Tracker (Jan 16)

Venture Intelligence is powering the (Weekly) Deal Tracker on The Mint. The Weekly update is usually featured in the Deals Section (Page 3) 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.


Wydr raises Series A from Stellaris, Bessemer and Jungle Ventures: Forbes

A Forbes article quotes Venture Intelligence data on PE/VC investments in India:
The funding signals how risk capital investors are still betting big on the burgeoning startup ecosystem. In 2016, as many as 620 transactions were sealed in the PE/VC space, according to data available with research firm Venture Intelligence. Of this, about 65 percent comprised startup investments. In 2015, the year that created history for the highest amount of PE and VC investments both by value and volume, of the total of 775 investments sealed in the January-December period that year, as many as 512 were startup deals. 

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.

FDI outflows matches FPIs’ in volatility: Economic Times

An Et article quotes Venture Intelligence data on PE/VC Exits in 2016:
In the April-November period, PE exits were valued at $4.8 billion, according to industry data tracking firm 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.

January 23, 2017

Cyril Amarchand Mangaldas Tops League Table for Legal Advisors to M&A Transactions in 2016

J Sagar Associates, AZB & Partners claim the No.2 & No.3 slots


Cyril Amarchand Mangaldas(CAM) topped the Venture Intelligence League Tables for Legal Advisors to M&A transactions in 2016 advising deals with a value tag of $25.8 billion (across 38 qualifying transactions). CAM was followed by J Sagar Associates(JSA) which advised deals worth $15.5 billion (across 37 deals) and AZB & Partners ($13.8 billion across 50 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.

CAM advised M&A deals during the period included the merger of Max Life and HDFC Life and the $1.4 billion acquisition of cement assets of Lafarge Holcim by Nirma. Transactions advised by JSA included the $1.6 billion acquisition of a majority stake in telecom tower arm of Reliance Communications by Brookfield and the acquisition of Essar Oil by Rosneftatan enterprise value of $13 Billion. AZB advised deals included the $1.37 billion acquisition of Weslpun Renewable Energy by Tata Power and the $1.2 billion acquisition of Alliance Tire Group by Yokohama Tire Corporation.

International law firm Slaughter & May ($11.3 billion across 2 deals) and Khaitan & Co.(KCO) ($10.5 billion across 46 deals) completed the top five for 2016.

AZB topped the tables in terms of deal volume, while KCO and CAM rounded up the top 3 slots. JSA and Shardul Amarchand Mangaldas (SAM) ($9.3 billion across 37 deals) finished the year at fourth spot while Luthra & Luthra ($3.1 billion across 28 deals) took the fifth spot in terms of quantum of deals advised.

By Industry


Platinum Partners advised two PE deals worth $1.5 billion involving Information Technology (IT) focused companies, followed by Samvad Partners ($1.3 billion across six deals) and SAM ($1.2 billion across six deals). SAM topped the BFSI deal table advising nine deals with a value tag of $4.1 billion, followed by AZB  ($3.8 billion across 10 deals) at second spot while Majmudar & Partners and S&R Associates - who advised the MAX Life and HDFC Life merger - finished at third spot.

JSA topped the Infrastructure deals table, advising eight deals worth $15 billion. CAM (15 deals worth $14.8 billion) and Slaughter & May ($11.3 billion across 2 deals) completed the top 3 slots.

KCO led the Healthcare deals table advising 10 deals with a value tag of $1.53 billion whereas CAM (six deals worth $1.3 billion) and Simpson Thacher & Barlett (Gland Pharma – Fosun Pharma worth $1.26 billion) accounted for the second and third spots. Among Education deals, AZB (ChhayaPrakashani – S Chand & Co worth $25 million) led the table while the second spot was claimed by IndusLaw, Nishith Desai Associates and Samvad Partners (who advised the $8 million majority acquisition of Edupristine by Kaizen PE and Devry). JSA which advised the acquisition of ThinkLABS by FitKids finished at third spot.

New entrants to the Venture Intelligence League Table Legal Advisors for M&A deals during the year included Spice Route Legal, CounsePro – Formerly Menon Associates, and TRA Law.

The full league tables can be viewed online at 

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.

January 22, 2017

Arpwood Capital tops Transaction Advisor League Tables for M&A Deals in 2016

EY, Standard Chartered Bank take no.2 and no.3 slots; EY, PwC top inclusive of due diligence services



Arpwood Capital topped the Venture Intelligence League Tables for Transaction Advisor to M&A transactions for 2016 advising M&A deals worth $11 billion (across four qualifying deals) followed by Ernst & Young ($8.5 billion across 13 deals) and Standard Chartered Bank ($7.7 billion across four 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.

Arpwood Capital advised M&A deals during the year included the acquisition of Essar Oil by Rosneftat an enterprise value of $13 Billion and the merger of Max Life and HDFC Life. Ernst & Young advised deals included the merger of wireless business of Reliance Communications with Aircel and the $23 million acquisition of online poker service adda52.com by Delta Corp. Standard Chartered Bank advised the $2.4 billion acquisition of the cement capacity of Jaiprakash Associates by Ultratech Cement and the $93 million acquisition of Excel Crop Care by Sumitomo.

SBI Capital Markets ($7.6 billion across five deals) and Kotak Investment Banking ($6.7 billion across seven deals) completed the List of Top 5 for 2016.

Inclusive of its roles in due diligence and related advisory activities, EY topped the League Tables for Transaction Advisor for M&A in 2016 advising 54 deals worth $17.1 billion (13 being for pure financial advisory). PwC came in next advising M&A Deals worth $11.1 billion across 45 deals (8 of them were pure financial advisory). M&A deals advised by PwC included the $21 million acquisition of Andhra Pradesh Expressway by Cube Highways and the $24 million acquisition of foundry unit of Larsen & Toubro by Bradken. EY also topped the tables in terms of deal volume, followed by Axis Capital (8 deals worth $3.8 billion), PwC (8 financials advisory deals worth $91 million) and Technology Holdings (8 deals worth $280 million). Kotak and KPMG (7 deals worth $5.3 billion) came in third. Deloitte (6 deals worth $25 million) and JM Financial (6 deals worth $4.7 billion) came in next while Ambit Corporate Finance (5 deals worth $4.7 billion), Equirus (5 deals worth $126 million) and SBI Caps (5 deals worth $7.6 billion) rounded up the top five slots in terms of deal volume.

By Industry

Technology Holding advised 8 M&A deals worth $280 million involving Information Technology (IT) focused companies, followed by JM Financial (Geometric – HCL Technologies worth $263 million), Deloitte ($200 million across two deals). EY topped the BFSI tables advising five deals with a value tag of $3.5 billion, followed by Kotak ($3.5 billion across three deals) and Arpwood Capital ($3.1 billion across two deals).

SBI Caps topped the Infrastructure deals table, advising four deals worth $7.6 billion. Arpwood Capital (Essar Oil – Rosneft, Others) and Standard Chartered (two deals worth $5.2 billion) completed the top 3 slots.

Jefferies & Co. led the Healthcare deals table advising two deals with a value tag of $1.9 billion whereas Credit Suisse (Claris Lifesciences - Baxter International worth $630 million) and Mehta Partners (Novartis - Sun Pharma worth $300 million) accounted for the second and third spots.

Among Education deals, Sprout Capital led the table advising the $40 million acquisition of the Real Estate assets of Jain Group School by Cerestra, followed by The RainMaker Group which advised the acquisition of a majority stake in EduPristine by Kaizen PE and DeVry.

New Entrants to the Venture Intelligence M&A table for Transaction Advisors during 2016 include The RainMaker Group, Lastaki Advisors, Ladderup, BDA Partners and Greenstone Energy Advisors.

The full league tables can be viewed online at 

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.

January 19, 2017

Shardul Amarchand Mangaldas tops Legal Advisor League Table for PE deals in 2016

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



Shardul Amarchand Mangaldas (SAM) topped the Venture Intelligence League Table for Legal Advisor to Private Equity Transactions during 2016. SAM advised PE deals worth $6,500 million (across 47 qualifying deals) during 2016. AZB & Partners ($5,778 million across 58 deals) and Cyril Amarchand Mangaldas ($3,243 million across 34 deals) followed next. J Sagar Associates ($2,378 million across 28 deals) and Samvad Partners ($2,082 million across 43 deals) completed the top five for 2016.

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.

SAM advised its Canadian PE firm client Brookfield on the $1,630 million acquisition of a majority stake in telecom tower arm of Reliance Infratel and the $1,000 million acquisition of office and retail space unit of the Hiranandani Group. 

Transactions advised by AZB included the $200 million investment in Snapdeal by Ontario Teachers’ Pension Plan and the $300 million investment in Sanmar Group by Fairfax Holdings. Transactions advised by CAM included the $321 million investment in Bangalore International Airport by Fairfax Holdings and the $175 million investment in Hike by Tiger Global, Tencent and Foxconn.

AZB topped the tables in terms of deal volume, while SAM and Samvad Partners came in next. Samvad Partners advised deals included the $85 million investment in Western UP Tollway by I Squared Capital and the $17 million investment in Treebo Hotels by Bertelsmann India Investments, SAIF and Matrix Partners India. BMR Legal ($867 million across 41 deals) and CAM finished the year at fourth and fifth spot in terms of quantum of deals advised. Debutant law firm VERTICES PARTNERS advised as many as 23 deals (Approx $101 million) in 2016 - in just ten months after kicking off operations - to break into the list of Top 10 law firms.

Among Early Stage investments, NovoJuris led the tables in terms of deal volume advising 22 deals while VERTICES PARTNERS took the second spot advising 21 early stage deals.

By Industry

SAM advised 14 PE deals worth $1,655 million involving Information Technology (IT) focused companies, followed by Platinum Partners ($1,520 million across two deals) and Samvad Partners ($1,325 million across 25 deals). SAM also topped BFSI tables advising nine deals with a value tag of $1,055 million, followed by AZB & Partners ($940 million across 14 deals) and CAM ($525 million across five deals).

SAM topped the Infrastructure deals table, advising six deals worth $1,892 million. J Sagar Associates (three deals worth $1,658 million) and international law firm Herbert Smith Freehills which advised the Reliance Infratel – Brookfield deal worth $1,630 million completed the top 3 slots.

Khaitan & Co. led the Healthcare deals table advising seven deals with a value tag of $385 million whereas CAM (four deals worth $174 million) and J Sagar Associates (eight deals worth $134 million) accounted for the second and third spots. Among Education deals, BMR Legal led the table advising four deals worth $91 million. Nishith Desai Associates ($67 million across two deals) and Khaitan & Co which advised NSPIRA – CX Partners worth $59 million, completed the top three slots.

Apart from VERTICES PARTNERS, other new entrants into the Venture Intelligence league table in the PE category during 2016 included CounsePro (Formerly Menon Associates), TRA, Avigna Law, Spice Route Legal and King Stubb & Kasiva.

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.

January 18, 2017

SBI Capital Markets Tops League Table for Financial Advisor to Private Equity Transactions in 2016

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


SBI Capital Markets claimed the top position in the Venture Intelligence League Table for Transaction Advisor to Private Equity deals in 2016 acting as financial advisor to three qualifying PE investments worth $2,030 million. SBI Caps which advised the $1,630 million acquisition of tower assets of Reliance Infratel by Brookfield was followed by Ambit Corporate Finance ($1,645 million across two deals) and UBS Securities ($1,630 million across one deal). All the three investment banks were advisors to the biggest PE deal of 2016: the $1,630 million acquisition of telecom tower assets of Reliance Infratel by Brookfield.

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.

Kotak Investment Banking ($825 million across eight deals) and Avendus ($811 million across 15 deals) completed the top 5 slots for 2016 by value.

Unitus Capital topped the 2016 tables in terms of deal volume, advising a total of 16 deals ($72 million). Avendus and Spark Capital Advisors ($380 million across 12 deals) completed the top 3 slots in terms of deal volume. Unitus Capital advised deals included the $14 million fund raise by school financing NBFC firm Varthana from Kaizen PE, Zephyr Peacock, Omidyar Network, LGT Venture Philanthropy and Elevar Equity. Spark Capital advised the $68 million investment in Apollo Health and Lifestyle by IFC.

o3 Capital ($320 million across 11 deals) and Masterkey Holdings ($42 million across 10 deals) took the fourth and fifth spots in terms of deal volume.

Inclusive of its roles in due diligence and related advisory activities, PwC topped the league table for transaction advisor for PE deals in 2016 advising deals with a value tag of $4,044 million (across a total of 59 deals). PwC advised deals included the $30 million investment in Maiyas Foods by Peepul Capital. Ernst & Young came in second advising 47 deals worth $3,277 million, which included the $18 million investment in Anthea Aromatics by ICICI Venture.

Among Impact / Social Venture investments, Unitus Capital was followed by Intellecap in terms of number of deals advised - eight deals with a value tag of $38 million including the $25 million investment in Electronic Payment and Services by Apis Partners.

Among Early Stage investments, IndigoEdge topped advising eight deals worth $32 million. IndigoEdge advised deals included the $10 million investment in Shadowfax by Eight Roads Ventures. Dexter Capital which advised the $2 million investment in Sheroes by Lumis Partners, The HR Fund and others took the second spot advising six deals worth $12 million.

By Industry


Avendus advised 10 PE deals worth $494 million involving Information Technology (IT) focused companies, followed by Credit Suisse and Jefferies & Co. (who advised the Quest Global – Advent International deal worth $80 million.) Signal Hill Capital finished third advising three tech deals worth $57 million.

Kotak led the BFSI tables advising three deals with a value tag of $448 million, followed by SBI Caps ($400 million across two deals) and Ernst &Young($268 million across two deals).

Among Education deals, o3 Capital topped the tables advising deals worth $135 million across two deals. Anand Rathi which advised the NSPIRA – CX Partners deal ($59 million) and Avendus which advised the $50 million fund raise by Byjus Classes, completed the top three slots.

Morgan Stanley which led the Energy deals table advising the PE investment by GIC and ADIA in Greenko Group was followed by Ernst & Young (Hero Future Energy – IFC worth $125 million) and Deloitte (Azure Power – CDPQ worth $75 million)

Among Cleantech investments, Greenstone Energy Advisors advised the Punj Lloyd Solar Power – IDFC Alternatives deal while Encito Advisors acted on the fund raise by EcoCentric Mangement from individual seed investors.

2016 saw lot of new transaction advisors entering the Venture Intelligence League Table including TheRainMaker Group, Mazars India, Encito Advisors, Sparrow Advisory, BDA Partners and Proficio Advisors.

The full league tables can be viewed online at 

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.

PE/VC investments in auto components hits all-time low in 2016: Business Standard

A Business Standard article quotes Venture Intelligence data on PE/VC investments in the Auto components space:
According to Venture Intelligence data, PE and VC investors invested $38 million in 2016 as against $144 million in 2015 and $158 million in 2014. The value of investments stood at $58 million and $633 million in 2012 and 2013 respectively. The year 2013 was a blockbuster year for auto component industry with KKR making an investment of $460 million in Alliance Tire Group. Top deal in 2016 was $17 million, lowest since 2011.
..$1.05 billion exit of IFC and KKR from Alliance Tire Group in March 2016, when the shares were acquired by Yokohama Rubber Co. KKR reported 2.38 X in this exit.
 The other two major exits were Actis through IPO in Endurance Technologies in October 2016 and Navis Capital selling its investments to promoters in Classic Stripes in April 2016. The two investors made 2.46X and 0.42X respectively.

Related:







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.

January 17, 2017

Why are venture capitalists taking over operations of portfolio firms?: Forbes

A Forbes article quotes Venture Intelligence data on PE/VC investments:
In 2016, as many as 620 transactions were sealed in the PE/VC space, according to data available with research firm Venture Intelligence. Of this, about 65 percent comprised startup investments. In 2015, the year that created history for the highest amount of PE and VC investments both by value and volume, of the total of 775 investments sealed in the January-December period that year, 512 were startup deals.
The article also quotes Arun Natarajan, Founder - Venture Intelligence:
“Prior to 2014-15, investments in startups were never a ‘bet the farm’ phenomenon for PE/VC investors which means, no single investment in the portfolio would affect the whole fund. So, if any particular investment were to go bad, the investor could afford to write it off and move on instead of replacing the management team or running the company themselves,” said Arun Natarajan, Founder, 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.

January 10, 2017

Early stage VC advantEdge will back at least 8 companies in 2017: DealStreetAsia

Kunal Khattar, Founding Partner of advantEdge in a interview to DealStreetAsia quotes Venture Intelligence data on VC investments in 2016.
How do you see the overall environment for VC deals in India? 
For the first time in five years, VC investments saw a drop of around 30 per cent in 2016. According to Venture Intelligence data, in 2016, VC firms have invested $1,441 million across 405 deals as compared to $2,018 million across 511 deals 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.

Dr Lal PathLabs, Thyrocare could face a few hiccups: Economic Times

An Economic Times article quotes Venture Intelligence data on PE/VC investments in the diagnostics space:
Data from Venture Intelligence shows that in the past three years, the (diagnostics) sector has had 21 deals by PE and venture capitalists investing a total of $330 million.
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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.

January 06, 2017

10 venture capital dealmakers to watch in 2017: Mint

A Mint article quotes Venture Intelligence data on Venture Capital investments in India:
India’s early-stage investors struck 405 deals worth $1.4 billion in 2016, a year that marked the return of reason to the venture capital market. The overall volume and value of investments are down from the previous year by 21% and 28%, respectively, according to data compiled by Chennai-based researcher Venture Intelligence.
There’s a little bit of concern around the funding crunch at the Series A stage, the first serious institutional capital round that goes into a start-up. The number of Series A deals last year declined 45% from 2015. On the other hand, the number of seed-stage deals, which precede Series A, have more or less stayed at the 2015 levels.
Related reading:



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.

January 05, 2017

Manufacturing provides larger exits than IT in 2016; KKR enjoys bumper year

M&A deals account for 43.7% of exits, Venture Intelligence data shows

Private Equity exits in India declined by 18% to $7.86 Billion (across 215 deals) during the calendar year 2016 compared to an all-time high of $9.55 billion (across 270 deals) in 2015, according to data from Venture Intelligence, India’s longest serving data analytics firm focused on private company financials, transactions and valuations. The exit value includes $7.33 Billion of Complete Exits; the remainder being partial ones. These figures, which include exits from Venture Capital type investments and exclude exits from Real Estate investments, take the total realization by PE firms in the five year period starting in 2012 to about $33 billion (across 1,032 transactions). 


19 exits – i.e. 9% of the total deals – were over $100 million in value and accounted for 58% of the overall value harvested during the year. The largest exit during the year was the sale of KKR’s stake worth $1.05 billion in Alliance Tire Group to Japan’s Yokohama Rubber Co. The deal, which represents the single largest exit via the M&A route in India, enabled KKR to realize an about 2.8x return on its three year old investment. The next largest exit deal 2016 also belonged to KKR – in the form of its sale of its 38% stake in Gland Pharma for $550 million to Shanghai Fosun Pharmaceutical to register a 2.67x return. Including its exits from TVS Logistics Services and Dalmia Cement (Bharat), KKR harvested about $1.8 billion in returns from its India portfolio during 2016, the Venture Intelligence data showed.

The third largest exit during 2016 was the $420 million sale of the stake held by CX Partners and Capital Square Partners in Minacs BPO to US-based Synnex, fetching the investors a 1.74x return (in INR terms) in less than two years. (CX and Capital Square had acquired Minacs from the Aditya Birla Group in 2014.)

In the largest exit via the public markets, the microfinance focused Equitas Holdings pulled off a highly successful IPO that provided an exit route for its 14 PE/VC investors - 11 of whom sold shares worth $217 million as part of the IPO.

Top PE Exits by Size


Manufacturing overshadows IT

Manufacturing companies – led by the Alliance Tire Group deal – topped the exit charts during 2016, providing an all-time high harvest of $2.3 B - accounting for 29% of the value pie (12% by volume), the Venture Intelligence analysis showed. KKR’s exit from Alliance Tire Group was followed by Blackstone’s exit from International Tractors ($250 million) and Actis’ $136 million exit from auto components firm Endurance Technologies via the company’s October IPO.

IT & ITES industry came in second garnering $1.5 Billion worth of exits across 55 transactions in 2016. The stake sale by CX Partners and Capital Square Partners in Minacs BPO for $420 million to Synex was the top exit within IT.



The Healthcare & Life Sciences industry – the only major industry to show an YoY uptick in terms of both exit volume and value - came in third with $1.4 Billion worth of exits across 27 transactions led by the KKR’s $556 million exit from Gland Pharma and followed by Advent International’s selling of its majority holding in Care Hospitals for about $184 million (via a Secondary Sale to Abraaj Group). Warburg Pincus and Eight Road Ventures sold part of their stake worth $95 million in Laurus Labs as part of the company’s December IPO. Narayana Hrudayalaya‘s January IPO had provided an exit route for JP Morgan and PineBridge who sold shares worth $76.5 million (INR 511 Cr).

Led by the Equitas Holdings IPO, the BFSI industry came in fourth with $1.2 Billion worth of exits across 37 transactions. Investors including Kedaara Capital, Motilal Oswal PE, Warburg Pincus, IFC and ChrysCapital sold a 15% stake in AU Financiers for $112 million through a Secondary Sale (to meet a foreign holding related regulatory requirement), while the Ujjivan Financial Services IPO gave exit route for its investors including Unitus, India Financial Inclusion Fund and Lok Capital.

Strategic Sales Score

2016 saw PE investors selling shares via the public markets in 72 listed companies (across 106 deals). Strategic Acquisitions provided 63 exits; Secondary Sales, 37; and Buybacks, 8. Only exits via Strategic Sales, which accounted for 43.7% of the value harvested during 2016, displayed a rise over 2015. In fact, the share of exits via acquisitions has been climbing continuously for the last three years. 


Exits through the M&A route in the Online Services space included Quikr’s reported $120 million purchase of real estate listings focused Commonfloor (backed by Tiger Global, Accel India and Google Capital), the acquisition of payment gateway provider Citrus by rival PayUMoney for $60 million (providing an exit for Sequoia Capital India, Ascent Capital, Digital Garage and Beenos Partners) and Titan’s acquisition of Tiger Global’s stake in online jewelry firm CaratLane.com for $53.3 million.

2016 witnessed investors offloading shares worth over $2.4 billion via the public markets across 106 transactions. Out of the 16 PE Backed IPOs in 2016, 15 issues saw PE investors selling as part of the IPO. (2015 had witnessed 15 PE-Backed IPOs, of which PE investors sold as part of 11 issues.)


Among sale of shares in already listed companies, Lighthouse realized over 7x returns via sale of its shares in Agri-business firm Dhanuka Agritech, while SAIF Partners India realized over 7x returns when it part sold its shares in fruit drink manufacturing firm Manpasand Beverages. Creador Capital made a complete exit from Cholamandalam Investment and Finance Company with a 4.94x return.

Prominent among Secondary Sale deals was Goldman Sachs’ exit of its investment in metal castings maker Sigma Electric to Argand Capital Partners for a reported $200 million, fetching a 1.95x return. Advent International completely exited its investment in Care Hospitals for an estimated $184 million as part of Abraaj Group’s investment in the company. 

The above data are extracts from the Venture Intelligence 2016 PE Exits Report based on latest data from the Venture Intelligence PE Deals database. The full Report will be mailed to Venture Intelligence subscribers in the next few days.


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.

January 03, 2017

Start-up financing hits a rough patch: The Hindu

A Hindu article quotes Venture Intelligence data on VC investments in India:
Private equity (PE) and venture capital (VC) deals have fallen by 29.5 per cent in Tamil Nadu in 2016. Data collated by Venture Intelligence, a research firm focussed on the financials of private companies, show that firms invested $981 million across 31 deals this year compared with $851 million in 44 deals in 2015. During 2014, firms had invested $988 million across 45 deals.
The number of angel investment deals in the State stood at 9 in 2016 against 13 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.

Early-stage funding deals see no drop: Times of India

A Times of India article quotes Venture Intelligence data on Early stage investments in 2016:
According to data analytics firm Venture Intelligence, there were 107 funding deals this year, almost at par with last year's figure of 117 deals, for investments within $1 million. The top deals in this category were raised by Bengaluru-based self-publishing platform Pratilipi which raised $925,000 in seed funding from Nexus Venture Partners,and others, this June. The trend changed as the deal size increased. For instance, funding rounds between $1 million and $10 million saw a drop from 205 deals last year to 170 deals this year. The big ticket funding rounds of more than $10 million saw only 56 funding rounds this year, compared to last year's 93.



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.

January 02, 2017

With $323M funding, 2016 a bumper year for ed-tech cos: Economic Times

An ET article quotes Venture Intelligence data on its report on VC investments in Edtech companies:
The year 2016 has become a bonanza for the education sector, which has received investments of $323 million - surpassing the previous high of 2014 when ed-tech companies raised $223 million




Strategic investors were also quite active this year, data from Venture Intelligence shows. Text book publishing company S Chand, which had raised $26 million led by IFC in 2015, has become an active strategic investor (backing several startups including Testbook). The EduPristine deal saw US-based DeVry Education Group, while Tabtor got participation from John Katzman, founder of The Princeton Review.
Related 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.

Share of hospitality deals dip 50 per cent in 2016: Economic Times

An ET Article quotes Venture Intelligence data on VC Investments in the Hospitality sector:
According to data shared by Venture Intelligence with ET, the sector witnessed just six deals till November this year compared with 18 in the previous year. The total amount raised was also lower at $86 million against $284 million last year. The data, however, excluded investments in tech companies such as OYO. 
While last year's landmark deals included $112-million investment by IDI Emerging Markets in Sapphire Foods, $30-million infusion by India Value Fund Advisors in fine dining chain Indigo and SAIF Partners pumping $19 million into QSR chain Ammis Biryani; this year the highlight was Goldman Sachs' $66-million investment in hotel development and investment firm Samhi Hotels in January.


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.

Selectivity is the keyword as Venture Capital investments dip 21% in 2016

At 405 deals worth $1.4 Billion, 2016 is 2nd Biggest Year for VC investments after 2015, Venture Intelligence data shows


Venture Capital firms made 405 investments in India worth $1.4 Billion during 2016 compared to 512 deals worth $2 Billion in 2015 according to data from Venture Intelligence, India’s longest provider of data on private company financials, transactions and their valuations. These figures - 21% lower in volume terms and 28% lower in value compared to the all-time highs of 2015 - make 2016 the second largest for VC investments in country. (Venture Capital is defined by Venture Intelligence as Seed Round to Series D round of investments less than $20 million in size by intuitional investors in companies less than 10 years old.)

Top VC Investments in 2016

Company
Investors
Amount
Knowlarity
(Cloud Telephony)
Sequoia Capital, Delta Partners, Others
$20 M
Lendingkart
(SME Lending)
Mayfield, Bertelsmann India, Others
$20 M
ScaleArc
(Enterprise Software)
Nexus Ventures, Accel India, Others
$20 M
PharmEasy
(e-Pharmacy)
Bessemer, Aarin Capital, Orios VP
$18 M
FreshMenu
(Food Ordering)
Lightspeed, Zodius Capital, Others
$17 M



With 304 investments worth about $1 Billion, the Information Technology and IT-Enabled Services (IT & ITES) industry retained its status as the favorite among VC investors during 2016, accounting for 75% of the investments (69% by value). Investment activity in IT companies were down 17% compared to 2015. Among the top IT investments, cloud telephony company Knowlarity, online SME loans provider LendingKart and database software firm ScaleArc raised $20 million each, while online pharmacy Pharmeasy raised $18 M and foodtech company FreshMenu raised $17 million. Within IT, while Consumer Internet & Mobile companies continued to be the main area of focus (grabbing 77% of the investments), VCs also invested substantially into Enterprise Technology companies (especially SaaS startups like Helpshift, Betaout and Zarget) and B2B marketplaces (like Power2sme, ofBusiness and Just Buy Live).

Healthcare & Life Sciences were the distant second favorite destination for VCs (attracting less than a tenth of investments attracted by IT companies) raising 23 investments worth $129 million (against 38 deals worth $236 million in 2015). Preventive healthcare company Curefit, founded by former Flipkart executives, raised $15 million from IDG Ventures India, Accel India and Kalaari Capital, while dialysis service provider Nephroplus raised $15 million from Sealink Capital and IFC.

Food & Beverages companies attracted 14 investments worth $57 million in 2016 compared to 18 investments worth $81 million in the previous year. Cremica Food Industries, which split from the family business of Bector Food Specialties, raised $15 million from Rabo Equity, while restaurant chain firm Azure Hospitality raised $10 million from Max Ventures and Morgan Stanley. Beverage companies attracted specific investor attention during 2016 with beer maker Bira 91 and fruit juice makers Raw Pressery and Good Juicery attracting capital.


“Series A” rounds (which refer to the First Round of institutional investment into start-up companies) saw a 45% fall in 2016 to 125 transactions compared to the 229 deals in 2015, the Venture Intelligence analysis showed. The action in the other stages were largely flat compared to 2015. 


While Bangalore based startups continued to top the funding charts (attracting 130 investments) during 2016, NCR based companies (at 111 investments) firmed their lead over Mumbai-based companies (which attracted only 90 investments). With its mix of logistics tech and enterprise tech companies, Pune-based companies (which attracted 15 investments) pipped Chennai-based companies (which attracted 13 investments predominantly into Enterprise Tech companies) for the fourth place.

Most Active VC Investors in 2016

Investor
2016
2015
Accel India
26
39
Sequoia Capital India
24
41
Blume Ventures
23
17
Kalaari Capital
18
21
Aarin Capital
16
9
Ratan Tata
16
11

If there was one word that described VC investments in 2016 it was Selectivity,” remarked Arun Natarajan, Founder of Venture Intelligence. “Whether it was in terms of new sectors or even which companies to provide follow-on funding to within their existing portfolios, VC investors were very selective in their approach during 2016. With the weaning out of companies with weak business models having already taken place substantially and with many of the VC firms like Accel India, Sequoia Capital, Blume Ventures, etc. sitting on substantial amounts of capital raised in recent months, there is scope for cautious optimism as we enter the New Year.”

The above data are extracts from the Venture Intelligence 2016 PE Roundup Report based on latest data from the Venture Intelligence PE Deals database. The full Report will be mailed to Venture Intelligence subscribers in the next few days.

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.