1

THE PE & M&A QUARTERLY

OFF THE RECORD

Despite strong economic headwinds, India witnessed

continued interest of Investors in PE/VC and inbound

M&A deals in the last quarter of 2019. Although one

observes that the deals are less compared to those in

last year, the continuance of these deals is

encouraging, which also shows long term confidence of

investors. One observes from the public data that IT

and ITES, BFSI, healthcare and life sciences attracted

more interest than other sectors. Given the present

challenges of subdued interest, inflationary trends,

liquidity squeeze resulting in lesser investment, one

would expect Indian government to take focused

measures to address these issues and revive

sentiments, resulting in increased PE/VC and M&A

activity.

– Narendra Dingankar (Partner)

LEGAL CHANGES AFFECTING M&A & PE TRANSACTIONS IN INDIA

Government may raise FDI cap in insurance

companies to 74% from the current 49%

The Insurance Regulatory and Development Authority

of India (“IRDAI”) had earlier sought the views of

various stakeholders on this matter1. On September 2,

2019, the central government had also increased the

limit of permissible foreign direct investment (“FDI”) in

insurance intermediaries upto 100%.

Centre wants promoters to hold unlimited

bankruptcy liabilities in case of criminal action

Multiple news reports suggest that the central

government is considering isolating bankruptcy

liabilities with promoters instead of companies2. One

of the proposals under consideration is to make

promoters face unlimited liability in case of criminal

action. Government also intends to ensure that the

entities related to promoters under action are not

eligible to participate in resolution process.

Government plans new law and regulatory

framework for Valuers

The government is planning to implement a new law

for registered valuers similar to the law applicable to

Chartered Accountants and Company Secretaries3. The

role of registered valuers has become extremely critical

for the Insolvency and Bankruptcy Code 2016. There is

also a proposal to set up a general governing body for

registered valuers similar to the Institute of Chartered

Accountants of India or the Institute of Company

Secretaries of India. The Ministry of Corporate Affairs

(“MCA”) has set up an expert panel under the

chairmanship of M S Sahoo to conduct a detailed study

on this issue. The MCA has notified Section 247 of the

Companies Act, 2013 and introduced the Companies

(Registered Valuers and Valuation) Rules 2017.

However, the registered valuers had been provided

time till January 31, 2019 to register themselves under

the Companies Act, 2013.

M&A DEALS

ShopClues acquired by Qoo10 for USD 100 million

ShopClues is a Gurugram based online marketplace

founded in 2011 by Sanjay Sethi, Sandeep Aggarwal

and Radhika Aggarwal. It was valued at USD 1 billion at

its peak and was later sold for USD 100 million to a

Singapore based e-commerce platform Qoo10 in an all-

stock deal. ShopClues is funded by GIC, Tiger Global

Management, Helium Ventures and Nexus Venture

Partners as major investors4. Qoo10 services small and

A comprehensive guide to Private Equity and M&A deals: October to December 2019

ISSUE 2 | JANUARY 2020

ISSUE 2 | OCTOBER TO DECEMBER 2019

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medium enterprises through its regionally located

online marketplaces in Singapore, Indonesia, Malaysia,

China and Hongkong and is presently looking to expand

its presence to other Asian countries as well.

Bharti Infratel-Indus Towers merger to be completed

by 24 February 2020

The merger of Bharati Infratel and Indus Towers will

result in the creation of one of the world’s largest

telecom tower company with over 1,63,000 towers.

Bharti Infratel has extended the deadline for the

completion of its merger with Indus Towers by 24

February 2020. Bharti Airtel and Vodafone Group each

hold 42% shares in Indus Tower and are expected to

hold 37.2% and 29.4% shares respectively in the

merged entity. KKR and Canada Pension Plan

Investment Board were expected to own a combined

6% stake, stemmings from their initial stake of over

10% in Bharti Infratel. US-based asset management

firm Providence Equity Partners is also likely to join

Vodafone - Idea in selling its stake in Indus Towers for

an approximate amount of INR 2,000 crores.

PayU in talks to buy MobiKwik’s payment gateway

PayU, a Netherlands based fintech company which is

owned by Naspers Group is in talks with Gurugram

based MobiKwik to acquire its payment gateway

business5. MobiKwik, an Indian company founded in

2009, provides a mobile phone-based payment system

and digital wallet and is presently funded by Sequoia

Capital, American Express, Tree Line Asia, MediaTek,

GMO Payment Gateway, Cisco Investments among

others. MobiKwik has already raised around USD 120

million from investors including Bajaj Finance, Sequoia

Capital and Net1.

Mahindra's subsidiary acquires 100% stake in Peugeot

Motorcycles

Mahindra Two Wheelers Europe,

a Mahindra subsidiary is set to seek full control of

Peugeot Motorcycles for an undisclosed amount6. The

Mahindra Group had acquired 51% equity stake in

Peugeot Motorcycles in 2015. Mahindra Two Wheelers

Europe and the Peugeot Motors team had announced

the Performance 2020 plan in July 2018 with an aim to

grow the company’s operations and drive its growth in

core markets such as Europe and expand into new

geographies including select Asian markets.

Lupin sells Kyowa Pharmaceuticals to Plutus

Lupin Limited (“Lupin”) has announced the sale of

99.82% stake in its Japanese subsidiary Kyowa

Pharmaceutical Industry Co Ltd to Plutus Ltd (“Plutus”)

for INR 3,702 crores7. Plutus is owned by Unison Capital

Partners IV, LPS and Unison Capital Partners IV (F). L.P.

The said deal is projected to bring down the net

valuation of the company to INR 1,129 crores. Lupin

acquired Kyowa Pharmaceutical in 2007 from the

Sugiura family.

Infogain acquires Revel Consulting

Infogain India Private Limited (“Infogain”) has acquired

digital consultancy firm Revel Consulting Inc. for an

undisclosed sum. Infogain is backed by ChrysCapital

which is an India focused private equity firm with USD

4 billion of assets under management. Infogain had

earlier acquired Silicus Technologies to bolster its

expertise in Microsoft’s cloud system. ChrysCapital had

earlier acquired majority stake in Infogain for USD 63

million in August 2015.

IL&FS completes sale of wind energy assets to ORIX

for INR 4,900 crore

IL&FS Group has completed the sale of its wind energy

business to Orix Corporation8. Orix Corporation earlier

owned 49% stake in each of the seven wind power

plants of IL&FS Group and has bought out the

remaining stake in the company. Orix Corporation is a

Japanese diversified financial services group

headquartered in Tokyo.

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Total SA to buy 37.4% stake in Adani Gas for INR 5,700

crores

French oil company Total SA has signed a definitive

agreement to acquire 37.4% in Adani Gas for about INR

5,700 crores9. This is by far the biggest foreign direct

investment in the country’s gas distribution network.

Total SA will purchase the shares in Adani Gas through

a tender offer to public shareholders to acquire up to

25.2% shares and purchase the residual shares from

the Adani promoter family.

Tech Mahindra acquires BORN Group for $95 Million

Tech Mahindra Limited (“TechM”) has acquired New

York based BORN Group for USD 95 million10. BORN

Group provides consultancy, content creation,

maintenance and hosting services. It is owned by

private equity firms True North and Zodius Capital.

True North had acquired controlling stake in the

company in 2011. TechM will buy BORN’s Indian unit

and the rest of the entities would be acquired by

TechM’s Singapore arm Tech Mahindra Pte.

Manchester City acquires majority stake in Mumbai

City FC

Manchester City's parent company City Football Group

has acquired 65% stake in Indian Super League

franchise Mumbai City FC11. The remaining shares are

held by Ranbir Kapoor and Bimal Parekh. This deal

would enable Mumbai City FC to boost its standing in

the league and benefit from the expertise offered by

Manchester City.

CreditAcess Grameen acquires Madura Micro Finance

CreditAccess Grameen (“CreditAccess”) is set to

acquire 100% stake in Chennai based Madura Micro

Finance for INR 876 crores. Initially, CreditAccess

would acquire 76% from existing shareholders and in

second stage Madura Micro Finance will be merged

with the company.

Global University System acquires India business of

Laurete Education

Amsterdam based Global University has acquired the

India business of Laureate Education for INR 1,200

crores. Laurete Education is one of the world’s largest

for-profit higher education company has sold its India

business. Laureate’s business in India includes Pearl

Academy for Fashion, Media and Design, University of

Petroleum and Energy Studies in Dehradun that offers

courses across disciplines including engineering,

business and law.

Warburg Pincus and Vivtera acquires Arise Virtual

Solutions Inc.

An affiliate of global private equity fund Warburg

Pincus LLC and Vivtera Global Business Services LLP

(“Vivtera”) has acquired Arise Virtual Solutions Inc

(“Arise Virtual”)12. Arise Virtual is backed by private

equity firm Strait Lane Capital Partners. Vivtera is a

business process management firm. This is a debut

deal for Vivtera that was formed in 2018. Arise Virtual

is an on-demand customer management business

process solutions provider.

Patanjali Ayurved completes acquisition of Ruchi Soya

for INR 4,350 crores

Patanjali Ayurved Limited (“Patanjali”) has completed

acquisition of Ruchi Soya Industries Limited (“Ruchi

Soya”) for INR 4,350 crores13. The acquisition will help

Patanjali acquire edible oil plants as also soya bean oil

brands such as Mahakosh and Ruchi Gold. Patanjali

settled INR 4,350 crore of dues Ruchi Soya had towards

financial creditors by infusing INR 1,100 crore equity

and arranging another INR 3,250 crore via debt.

Indiabulls Real Estate to sell commercial assets to

Blackstone

Indiabulls Real Estate Limited (“Indiabulls”) has agreed

to sell commercial projects in Mumbai and Gurugram

to global investment firm Blackstone Group Inc

(“Blackstone”) for an enterprise value of INR 810

crores. Indiabulls has been selling its completed as well

as ongoing commercial assets to reduce its debt.

Tata Motors' JLR acquires all-terrain performance car

manufacturer Bowles

Tata Motors owned Jaguar Land Rover has acquired

Bowler Manufacturing Limited (“Bowler”), a UK-based

manufacturer of all-terrain performance cars, parts

and rally raid vehicles. Founded in 1985, Bowler

pioneered the production of dedicated off-road

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competition cars in the UK and has achieved success in

various international rallies.

PRIVATE EQUITY DEALS

YES Bank intends to raise USD 1.2 billion from

investors

YES Bank is in discussion with potential investors to

raise USD 3 billion collectively either through North

American family office which has made a binding offer

to invest USD 1.2 billion or through a combination of

investors14. Sunil Munjal, chairman of Hero Corporate

Services and Hemendra Kothari, founder of DSP Group

have also held separate talks with YES Bank for

purchase of 5-10% stake each through their respective

family offices that could possibly bring in a total of INR

3,500 crores to the cash-strapped bank. US based PE

firm Carlyle Group has also shown interest to invest

USD 400 million in YES Bank. In November billionaire

investor Rakesh Jhunjhunwala had also bought 13

million shares of Yes Bank.

Udaan raises investment of USD 585 million from

Investors

Hiveloop Technology Private Limited that runs the B2B

commerce platform Udaan has raised USD 585 million

led by Tencent, Altimeter, Footpath Ventures,

Hillhouse, GGV Capital, and Citi Ventures. Existing

investors such as Lightspeed Venture Partners and DST

Global also participated in this round15. With this round

of funding, Udaan’s valuation is about USD 3 billion and

the company has so far raised USD 870 million in

funding.

MX Player receives funding of USD 110 million

Tencent Holding Limited (“Tencent”) is leading a USD

100 million funding round in MX Player at a valuation

of about USD 500 million16. Times Internet had

acquired a majority stake in MX Player from Zenjoy

Limited in 2018. MX Player is a mobile application that

allows users to play videos in a wide range of formats.

The app is add-supported and as such does not charge

any subscription fee. The app introduced movie/show

streaming services in 2018. Newly infused funds will be

utilized to produce new TV shows by the company and

broaden its license content catalogue. The company

also plans to expand to new markets in the US, Canada,

Australia and New Zealand.

Ola in talks with Microsoft to raise INR 1400 Crore

Ride-hailing company Ola has entered into a

partnership with Microsoft Corporation India Private

Limited (“Microsoft”) for a project under which it aims

to connect its cars to Internet of Things (“IoT”). Under

this deal, Microsoft would invest INR 1,400 crores in

Ola’s parent company – ANI Technologies Pvt Ltd and

will acquire 4.5% stake in the company17. Ola’s electric

mobility unit – Ola Electric Mobility Pvt Ltd will play a

pivotal role in this project. Meanwhile, the proposed

investment of USD 300 million by Hyundai and Kia in

Ola and its electrical mobility unit has received a go-

ahead from the Competition Commission of India18.

Adani Group offers INR 10,000 crores to buy Mumbai

Airport stake

Adani Group intends to increase its stake in Mumbai

International Airport (“Mumbai Airport”) by investing

about INR 10,000 crores19. The group had signed a pact

to buy out 13.5% stake in Mumbai Airport. However,

this move is strongly resisted by GVK Group. At

present, Airports Authority of India holds 26% stake,

GVK owns a 50.5 % and the rest is held by two South

African firms Bidvest and ACSA Global Ltd that hold

13.5 % and 10 % respectively. Adani Group intends to

purchase the stake from these two firms and has

moved the Bombay High Court to extend the time to

complete the purchase of 13.5% stake from Bidvest in

Mumbai Airport by February 2020 as GVK has failed to

comply with its deadline to complete the transaction.

PremjiInvest, Warburg Pincus to buy IAG’s stake in SBI

General

Premjilnvest, the family office of Azim Premji, and

Warburg Pincus are set to acquire 16.01% and 9.9%

stake in Insurance Australia Group (“IAG”) for USD 432

million. This is a part of IAG’s strategy to focus on its

core market in Australia and New Zealand. Earlier,

PremjiInvest had bought a 6% stake in Future Retail

Limited for USD 250 Million. Warburg is consolidating

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its presence in the insurance sector. Earlier, Warburg

had bought a 26% stake in India First Life Insurance Co.

CDPQ and Piramal Enterprises strengthen partnership

CDPQ is planning to invest USD 250 million in Piramal

Enterprises Limited by subscribing to convertible

debentures. This transaction will cement the existing

partnership between the two companies that began in

2017. CDPQ is a leading Canadian fund manager that

invests globally in major financial markets, private

equity, infrastructure, real estate and private debt.

Piramal Enterprises is one of India’s largest diversified

companies with presence in financial services,

pharmaceuticals and health care.

Paytm raises USD 1 billion in its latest funding round

Fintech major Paytm has raised USD 1 billion in its

latest round of funding lead by asset management firm

T Rowe Price at a valuation of USD 16 billion20. The

present investors in the company such as SoftBank and

Jack Ma owned Ant Financial also pumped in USD 200

million and USD 400 million respectively. The company

intends to utilize the newly obtained funds to expand

its operations aggressively across India especially in

tier-III cities and smaller towns. Previously, the

company had raised USD 300 million from Berkshire

Hathaway in 2018.

Invesco Oppenheimer fund to buy 11% stake in Zee

Entertainment

US based financial investor Invesco-Oppenheimer

Developing Markets Fund is set to acquire 11% stake in

debt ridden Zee Entertainment Enterprises Ltd for INR

4,224 crores21. The newly infused funds would be used

to pay off outstanding loans.

Embassy Property sells 30% to Orix Corporation

Embassy Property Management Services (“Embassy

Services”) has sold 30% stake to Oxix Corporation

(“Orix”), a Japanese financial services firm for INR

2,300 crores. This deal marks the foray of Orix into

property management services in India. Embassy

Services manages 50 million square feet of space

across various sectors in India.

Brookfield to invest USD 800 million in ReNew Power

Brookfield Asset Management Inc (“Brookfield”) is in

talks to invest USD 800 million in ReNew Power Limited

(“ReNew Power”). This round of funding would also

provide a partial exit to Goldman Sachs. Founded in

2011 by Sumant Sinha, ReNew Power is one of India’s

largest green energy company. Some of the current

investors of the company include Abu Dhabi

Investment Authority, Asian Development Bank, Global

Environment etc. Previously, Brookfield had acquired

two wind farms from Axis Energy for USD 72 million.

Blackstone invests in test preparation firm Aakash

Private Equity firm Blackstone has invested in test

preparation platform Aakash Educational Services

Limited (“Aakash”). Aakash is one of India’s largest test

preparation companies and provides coaching for

medical, engineering as well as other competitive

exams. Market reports indicate that Blackstone is set

to acquire 36.5% stake in Aakash at a valuation of over

USD 500 million for INR 1,350 crores. Blackstone has

already received approval from Competition

Commission of India to acquire 51% stake in Aakash.

The newly used funds would be used to boost Aakash’s

digital content.

Advent set to buy controlling stake in Bharat Serums

US based private equity firm, Advent International

Corporation, is all set to acquire a controlling stake in

Bharat Serums and Vaccines Limited (“Bharat

Serums”)22. Bharat Serums is a leading maker of

injectable biological and pharmaceutical products in

India. The company operates in assisted reproductive

treatment, critical care, women’s healthcare and

emergency medicine in India and emerging markets.

This round of funding would also provide complete exit

to existing investors such as OrbiMed Advisors LLC and

Kotak PE.

PharmEasy secures USD 220 million in a funding

round lead by Temasek

Online pharmacy start-up PharmEasy has raised USD

220 million in its fresh round of funding lead by

Temasek Holdings Pte Ltd, the sovereign wealth fund

of Singapore (“Temasek”)23. Founded by Dhaval Shah

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and Dharmil Sheth in 2015, the company has attained

a valuation of USD 700 million in this round. The

company would use the newly infused funds to

improve customer experience to ensure timely delivery

of medicines in a safest way possible. Previously, the

company had raised USD 50 million in its Series C

funding round. PharmEasy connects patients to local

diagnostic centres and pharmacies through an

integrated online platform making health care

accessible and affordable to all.

Masdar Clean Energy has acquired 20% stake in Hero

Future Energies

Abu Dhabi Future Energy Company (“Masdar”) has

acquired 20% in Hero Future Energies Private

Limited for USD 150 million at a valuation of USD 750

million24. Masdar is owned by Mubadala Investment

Company, UAE government’s sovereign wealth fund.

The newly infused funds would be used to expand the

operations of the company across India and in Africa.

Previously, International Finance Corporation had

invested USD 125 million in the company.

Freshworks has raised USD 150 million in Series H

funding round

Freshworks Technologies Private Limited

(“Freshworks”), a Chennai-based software products

and services company has raised USD 150 million in its

Series H funding round from existing investors such as

Google, Sequoia and Accel at a valuation of USD 3.5

billion25. The company had previously raised funds to

the tune of USD 249 million.

Bounce raises $150 million in its Series D funding round

Bike rental start-up Bounce raises USD 150 million in its

Series D funding round led by existing investors such as

B Captial and Accel Partners at a valuation of USD 500

million. Formerly known as Metro Bikes, Bounce allows

customers to rent a bike for short durations at

competitive prices. The company has raised USD 92

million in its last financing round. The newly infused

funds would be used to expand its operations in India.

Tencent acquires 10% stake in PolicyBazaar

Tencent Holding Limited has picked up 10% stake in

online insurance aggregator PolicyBazaar by acquiring

the stake held by Tiger Global Management for USD

150 million at a valuation of USD 1.5 billion26.

PolicyBazaar is owned and operated by ETech Aces

Marketing and Consulting Private Limited. Founded in

2008 by Yashish Dahiya and Alok Bansal, the company

had previously raised USD 200 million in a funding

round led by SoftBank Vision Fund in 2018.

Snapdeal in talks to raise USD 100 million

Online marketplace Snapdeal is in talks to raise close to

USD 100 million from investors27. The company had

recently received funding from Anand Piramal of

Piramal Group and Nexus Venture respectively.

Snapdeal has raised USD 200 million in 2016.

PSA India acquires 50% stake in Ameya Logistics for

USD 93 million

PSA India Intermodal Pte Ltd has acquired a 50% stake

in Ameya Logistics Pvt. Ltd for USD 93 million from

French shipping group CMA CCGM S A. PSA

International Pte Ltd is the world’s biggest container

port operator by volume and is owned by Temasek.

CDPQ invests USD 75 million in Azure Power

Canadian pension fund Caisse de dépôt et placement

du Québec (“CDPQ”) has invested an additional USD 75

million in Azure Power Global Ltd to increase its holding

in the company28. CDPQ is the largest shareholder of

Azure. International Finance Corporation (IFC), Helion

Venture Partners, German development finance

institution DEG also own small stakes in the company.

Brookfield to buy-out Reliance Jio’s tower arm

Canada based Brookfield Infrastructure Partners L.P.

(“Brookfield”) and its affiliates will invest around USD

3.66 billion in telecom tower assets of Reliance

Industries29. Under the deal, Reliance Industrial

Investments & Holdings would issue units in the trust

to Brookfield affiliate BIF IV Jarvis India and some co-

investors. Post deal closure, Brookfield would become

the sponsors of the Tower Infrastructure Trust, holding

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100 % of India's largest telecom tower company with

170,000 towers.

Piramal Realty, Omkar to invest INR 3,000 Crore in

housing project in Mumbai’s Mahim

Piramal Realty Private Limited (“Piramal Realty”) has

entered into a joint development agreement with

Omkar Realtors & Developers Private Limited

(“Omkar”) to develop a residential project in Mumbai’s

Mahim area with a total investment of around INR

3,000 crore30. Earlier, the two companies had formed a

partnership to develop a luxury housing project in

Mahalakshmi. Omkar has also formed a joint venture

with Godrej Properties to develop a property in

Mumbai’s Bandra area.

IDBI Bank to sell stake in Arcil

IDBI Bank is in talks with Avenue Capital Group LLC

(“Avenue Capital”) to sell its entire stake of 19% in

Asset Reconstruction Co of India (“Arcil”)31. Arcil is one

of the oldest stressed asset aggregator company in

India. Avenue Capital will become the single largest

investor in Arcil holding a 27% stake if the sale is

approved by the Reserve Bank of India.

Quadria Capital invests USD 70 million in Akum Drugs

Delhi based Akam Drugs & Pharmaceuticals Limited

(“Akum Drugs”) has secured funding of USD 70 million

from Quadria Capital Investment Management Private

Limited (“Quadria Capital”)32. Akum drugs is a contract

research and manufacturing services provider.

Founded in 2004 by Sanjeev Jain and Sandeep Jain,

Akum drugs is one of the largest contract drug

producers in the country. Quadria Capital is a health

care focused private equity firm which has over USD

1.8 billion assets under its management. Quadria

Capital is sponsored by Abrar Mir and Amit Varma.

CarDekho raises USD 70 million in its Series D funding

round

Online automotive portal CarDekho, owned and

operated by Girnar Software Private Limited

(“CarDekho”) has raised USD 70 million in a Series D

round led by China based Ping An Global Voyager Fund

along with Sunley House Capital Management, a

subsidiary of Sequoia India and Hillhouse Capital at a

valuation of USD 700 million33. CarDekho sells both

new and used cars on its platform. Founded by Amit

Jain and Anurag Jain in 2008. Previously, the company

had raised USD 110 million in its Series C funding

round.

Mahindra Finance secures USD 200 million debt

financing from International Finance Corporation

Mahindra Financial Services Private Limited

(“Mahindra Finance”) secures USD 200 million debt

financing from World Bank Group’s International

Finance Corporation. The newly infused funds would

be used to create a dedicated financing pool for micro,

small and medium enterprises (“MSME”) in low-

income states. Further, USD 100 million of this fund is

specifically earmarked for MSMEs owned by women.

International Finance Corporation has also committed

USD 225 million to this MSME pool.

Curefit to raise USD 100 million from Temasek

Temasek is set to invest around USD 100 million in

health and fitness start-up Curefit Healthcare Private

Limited (“Curefit”) at a valuation of USD 800 million.

Curefit has been active in the healthcare and fitness

space and provides gym, healthy food options in

addition to other services. The newly infused funds

would be used to expand its operations across India.

The existing investors of Curefit inter alia include

Endiya Partners, Accel India, Trifecta Capital, Epiq

Capital, Unilever Ventures, Kris Gopalakrishnan,

InnoVen Capital, Accel USA, Chiratae Ventures and

Kalaari Capital.

Blackstone Group forms joint venture with

Hiranandani Group for logistics business

Blackstone has formed a joint venture with

Hiranandani group to develop warehousing and

logistics parks across the country34. The deal has been

inked between Blackstone and Greenbase Industrial

Parks Private Limited, a Hiranandani group firm. The

joint venture entity plans to invest INR 2,500 crores

into various logistics projects across India.

Lenskart raises USD 275 million from Softbank Vision

Fund

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Online eyewear retailer Lenskart Solutions Private

Limited (“Lenskart”) has raised USD 275 million from

Softbank Vision Fund at a valuation of USD 1.5 billion35.

The newly infused funds would be used to improve the

company’s technological capabilities and to strengthen

supply chain infrastructure. Previously, the company

had received investment to the tune of INR 392 crores

from two entities belonging to Kedaara Capital.

FUND MATTERS

Jungle Ventures raises USD 240 million for its third

fund

Jungle Ventures, a Singapore based venture capital

fund founded by Amit Anand and Anurag Srivastava in

2012 has raised USD 240 million for its third fund that

would invest in innovative technology and digital-

driven consumer businesses across Southeast Asia36.

This fund is backed by Cisco Investments, German

development finance institution DEG, Singapore

government-backed investment firm Temasek,

Bangkok Bank’s VC fund Bualuang Ventures, and World

Bank’s private market investment arm IFC, among

others. Jungle Ventures has already invested in Indian

start-ups such as Moglix, Tookitaki, ZipDial, Mobikon,

Livspace, Engineer.AI and Vayana.

Beenext to raise USD 100 million for its new fund

Singapore-based venture capital firm Beenext founded

by Teruhide Sato is seeking to raise USD 100 million for

a new fund- “Beenext Emerging Asia LP” that was

launched in October 2019 and has gathered USD 8

million so far37. This fund would provide early stage

funding to technology start-ups and focus on

companies operating in the healthcare and agriculture

sector. The fund has already invested in various start-

ups in India such as BharatPe, NoBroker, Shubh Loans,

Mfine, Trell, ZestIOT and Mobile Premier League.

KKR targets USD 15 billion for its new Asia-focused

buyout fund

KKR is planning to create an Asia-focused buyout fund

of USD 15 billion38. This fund would focus on consumer,

technology, and manufacturing firms across Australia,

China, Japan, and India respectively39. KKR has recently

closed European Fund V, a buyout fund focused on

companies in western Europe at EUR 5.8 billion.

Investcorp launches USD 500 million fund focused on

Asia’s food sector

Bahrain based alternative asset manager Investcorp

has partnered with China Resources and Fung Strategic

Holdings Ltd to launch a USD 500 million private equity

fund focused on food brands in Asia especially China,

Singapore, and greater Southeast Asia40. The fund aims

to tap into China’s emerging middle class and their

growing taste for foreign goods. The fund already has

USD 28.2 billion worth of assets under its management.

Kenanga Investors launches second global unicorn

fund offering

Malaysia based Kenanga Investors, the asset

management subsidiary of Malaysia’s Kenanga

Investment Bank, has launched its second global

unicorn fund offering - Kenanga Global Unicorn 2

(KGU2)41. This fund would give investors an

opportunity to back unicorns and earn mid-term

capital appreciation. This fund comes barely five

months after it launched Kenanga Global Unicorn 1

(KGU1) which surpassed its targeted fund size of USD

20 million by over 1.5 times. KGU2 will primarily invest

in securities of globally recognised technology

companies. KGU2 will be managed by Ericsenz Capital,

a Singapore based private equity firm which invests in

middle-market companies in the technology,

healthcare, consumer and energy sector.

Edelweiss Group to raise USD 425 million from Meritz

for realty financing

The Edelweiss group is planning to raise USD 1 billion

in dedicated real estate funds to be utilized in financing

housing projects stuck due to liquidity or solvency

constraints42. The company has already identified 10

housing projects that would be financed by the fund.

The company has already raised USD 425 million from

Meritz Financial Group. Seoul based Meritz Financial

Group has expertise in real estate investment and

manages around USD 46.5 billion worth of assets.

Windrose Capital to invest USD 30 million in early

stage start-ups

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Pune-based Windrose Capital founded by Rohit Goyal

in 2014 has kept apart USD 30 million out of its ‘Next

Billion Fund’ to specifically invest in early stage start-

ups. The fund would primarily invest in about fifty

seed-stage start-ups. As of now, the “Next Billion Fund”

has already invested in healthcare and logistics

company Biddano, business intelligence start-up

Paper.vc, AI platform Precily and fintech company

Nivesh.

Ghost Kitchens launched with USD 3 million corpus

Restauranteur Karan Tanna has launched – Ghost

Kitchens Private Limited, India’s first investment and

incubation company for start-ups in the kitchen

segment. The company would invest in the food

delivery market in India, incubate and invest in

companies that focus only on home delivery. The

Company has kept apart a sum of USD 3 million for the

first tranche and will invest in 15 brands in this

segment. The company will also have a designated

portion of its funds catering to home chefs who intend

to develop their brands for home delivery and scale it

up.

IAN sets up INR 375 crore maiden venture capital fund

Indian Angel Network (“IAN”) has set up its maiden

venture capital fund at INR 375 crore. The IAF Fund is

backed by institutional investors such as Small

Industries Development Bank of India’s fund of funds,

IIFL Holdings, Yes Bank, Max India, Gray Matters Capital

and Hyundai. The fund will invest in start-ups and

provide strategic mentorship and market access to

entrepreneurs. IAF has already invested in SmartVizs, a

virtual reality platform for the building industry,

Propelld- education financing firm, PregBuddy -

pregnancy health assistant, Freshworld - fruits and

vegetables delivery startup and Coolberg - beer

company.

Warburg Pincus to raise USD 1.5 billion for its India

focussed fund

Warburg Pincus is looking to raise USD 1.5 billion for its

first fund targeting India focussing on sectors such as

financial, manufacturing and consumer43. Meanwhile,

its rival KKR is looking to raise USD 1.5 billion in 2020

for its Asia focussed buy-out fund that would include

investments in India as well. Presently, Warburg holds

stakes in IndiaFirst, Virgo Retail Ventures and Avanse

Financial Services.

Fireside Ventures to set up a USD 100 million Fireside

Fund II

Consumer retail focused Fireside Ventures has secured

USD 60 million for its second fund out of the target of

USD 100 million44. The company invests in early-stage

start-ups and helps these start-ups establish

themselves in the competitive retail market. Fireside

Venture’s first fund of USD 48 million was backed by

Unilever Ventures, Emami Ltd, ITC Ltd, PremjiInvest,

Westbridge Capital, Mariwala Family Office, Sanjiv

Goenka Family Office, and Sunil Munjal’s Hero

Enterprise Investment Office. Till date the company

has invested in 18 companies.

India Quotient to raise two funds one of USD 60

million and other of USD 40 million

India Quotient has secured funding of USD 60 million

for its third fund. The company is also raising a USD 40

million fund to invest in best performing portfolio

companies. The company had earlier invested in

ShareChat and LendingKart. The existing investors in

the company include B R Shetty, Binny Bansal, RB

Investments. The company is a seed stage investor and

generally provides seed funding to promising start-ups.

Mindtree co-founders launch 120 crore start-up fund

Mindtree co-founders Krishnakumar Natarajan, NS

Parthasarathy and Rostow Ravanan are set to launch a

start-up investment fund to invest in start-ups working

in the areas of Internet of Things, analytics and digital.

The fund is awaiting regulatory approvals and would be

structured as an alternative investment fund.

P&G to set up Environmental Sustainability Fund

Procter & Gamble to set up Environmental

Sustainability Fund to collaborate with partners

providing environmentally sustainable business

solutions. The company has already invested INR 200

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crores through its innovation sourcing fund that was

set up in 201845.

Startup Buddy launches micro venture capital fund

Fluid Ventures

Start-up advisory services provider Startup Buddy

Services Private Limited (“Startup Buddy”) has

launched Fluid Ventures, a micro venture capital

fund46. This fund would target start-ups looking to raise

seed capital to initial round of funding. The company

plans to raise INR 80 crores for this maiden fund. In

addition to infusing capital, the company would also

provide advisory services to these start-ups and

handhold them to ensure its growth.

Anthill, Rana Daggubati to launch Urban-i

Anthill Ventures Capital Advisors LLP (“Anthill

Ventures”) and actor Rana Daggubati have launched

Urban-I, an accelerator programme for consumer

brand start-ups47. The six-month programme would

have about 5 to 9 start-ups working in the area of

personal care, fashion and accessories, food and

consumer technology and e-commerce. The start-ups

may receive upfront investments to the tune of USD

100,000 and up to USD 1 million upon programme

completion.

Stride Ventures mark first close of debut venture debt

fund

Stride Ventures have raised INR 100 crores for this

maiden venture debt fund48. The company expects to

raise about INR 500 crore for this fund from current

investors and other high net worth individuals. The

fund plans to invest in 35 to 40 start-ups over the next

3 years with a loan tenure of 1 to 1.5 years.

Punjab Government to set up 100 crore fund to

support MSME

The Punjab government has announced its plan to set

up an INR 100 crore fund to support micro, small and

medium enterprises (“MSME”) sector

entrepreneurship49. This fund would be set up in

partnership with IKG Punjab Technical University. The

government is also looking out to other venture

capitalists, angel investors to contribute to the fund.

Accel raises USD 550 million for sixth fund focused on

India

US-based venture capital firm Accel has raised USD 550

million for its sixth India fund as it seeks to ramp up

its investments in India50. Previously the company had

raised USD 450 million for its fifth India fund in 2016.

Accel has previously invested in companies such as

Swiggy, Freshworks, Cure.fit and BlackBuck. Accel

generally invests in 5 broad categories such as

consumer internet, software, business-to-business,

healthcare and financial technology.

CPPIB to launch private debt platform in India

Canada’s largest pension fund manager Canada

Pension Plan Investment Board (“CPPIB”) is planning to

launch a private debt platform in India along with an

Indian partner51. CPPIB will make investment in

stressed assets. Till date, CPPIB has invested USD 8

billion in India across sectors such as renewable,

infrastructure, real estate and technology. It is also a

limited partner in funds promoted by PE firms

TrueNorth and Multiples Private Equity.

Rajasthan Venture Capital Fund raises INR 121 crores

Rajasthan Venture Capital Fund (“RCVF”) as raised INR

121 crore to provide growth capital to innovative

ventures in Rajasthan. RCVF is backed by Rajasthan

State Industrial Development and Investment

Corporation (“RIICO”), UK’s Department for

International Development, SIDBI, and New India

Insurance etc. RVCF has so far invested in companies

such as Synergistic Financials Networks Private Limited,

International Oncology Services, Chatha Foods,

Softtech Engineers Limited. The fund has also recently

exited from cyber security company Aujas Networks.

Multiples raises USD 560 million for Fund III from NIIF,

CPPIB, IFC, others

National Investment and Infrastructure Fund (“NIIF”) is

considering an investment of USD 100 million in the

third fund of private equity firm Multiples Alternate

Asset Management Private Limited (“Multiples PE”)

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11

called Multiples PE Fund III52. This fund will invest in

mid-market companies across sectors such as

consumer goods, financial services, healthcare, IT

services, logistics, and agriculture-related product and

services opportunities. Founded by Renuka Ramnath,

Multiples PE has so far invested in companies such as

Delhivery, RBL Bank and PVR Cinemas. Multiples PE

Fund III is backed by Canadian pension fund manager

CPPIB for USD 200 million. International Finance

Corporation would invest USD 70 million in Multiples

PE Fund III. Asian Development Bank would also invest

USD 35 million in the fund.

3one4 Capital marks final close of 2 funds

3one4 Capital has announced the closure of their two

funds, namely 3one4 Capital Continuum (“Continuum

I”) and 3one4 Capital Rising I (“Rising I”)53. Continuum

I has already received commitments of INR 400 crores

from various investors such as Catmaran Infina, a

private investment company owned by Kotak family,

Sojitz – a diversified Japanese corporation among

others. The second fund, Risiing I has received

confirmed commitments of INR 45 crore. This fund

would invest at the seed stage in technological start-

ups. Founded in 2015 by Pranav Pai and Siddharath Pai,

3one4 Capital predominantly invests in machine

intelligence services for automation, fin-tech, ed-tech,

media and content development. The company has so

far invested in Darwinbox, Yourstory, Licious,

Bugworks and Faircent.

Piramal Group, IIFL Wealth Management to create

INR 2000 crore fund for realty projects

Piramal Group and IIFL Wealth Management have set

up INR 2,000 crore fund to finance real estate projects

across major cities in India54. This fund would be set up

as an Category I Alternative Investment Fund. Piramal

Group is engaged in real estate development and IIFL

Wealth is one of the leading wealth managers in India.

UTI AMC to raise second private debt fund

UTI Asset Management Company Limited (“UTI AMC”)

is planning to raise a second private debt fund to

augment its alternative investment funds business. The

second fund is called UTI Structured Debt

Opportunities Fund II and aims to cater to the credit

requirements that are not adequately serviced by

banks and non-bank lenders. UTI AMC has committed

around INR 180 crores for this fund.

Adam Street Partners raises USD 740 million

US-based investment manager Adams Street Partners

LLC (“Adam Street Partners”) has mobilised USD 740

million for the Adams Street 2019 Partnership Fund

Program55. This fund provides investors exposure to

investment strategies. Previously, the company had

closed the Adams Street’s global secondary fund at

USD 1.05 billion.

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1https://economictimes.indiatimes.com/industry/banking/finance/insure/fdi-limit-in-insurance- companies-may-rise-to-74/articleshow/72449619.cms 2https://www.moneycontrol.com/news/business/companies/centre-wants-promoters-to-hold-unlimited-bankruptcy-liabilities-in-case-of-criminal-action-report-4718911.html 3 https://www.financialexpress.com/economy/govt-plans-new-law-cadre-for-valuers/1804097/ 4https://www.business-standard.com/article/companies/valued-at-1-billion-in-heyday-shopclues-sold-for-just-about-100-million-119110100054_1.html 5https://timesofindia.indiatimes.com/business/india-business/payu-others-in-talks-to-buy-mobikwik-payment-gateway/articleshow/71696323.cms 6https://economictimes.indiatimes.com/articleshow/71771530.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst 7https://www.livemint.com/companies/news/lupin-announces-sale-of-japanese-arm-kyowa-pharmaceutical-11573477703652.html

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8https://economictimes.indiatimes.com/industry/energy/power/ilfs-completes-sale-of-wind-energy-assets-toorix/articleshow/71631430.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst 9https://www.business-standard.com/article/companies/total-sa-to-buy-37-4-stake-in-adani-gas-for-nearly-rs-5-700-crore-119101400196_1.html 10https://economictimes.indiatimes.com/tech/ites/tech-mahindra-buys-us-based-media-group-born/articleshow/71924771.cms 11https://timesofindia.indiatimes.com/sports/football/top-stories/manchester-city-owners-to-acquire-mumbai-isl-team-source/articleshow/72273822.cms 12https://www.vccircle.com/warburg-pincus-backed-vivtera-acquires-business-process-platform-in-debut-deal/ 13https://www.businessinsider.in/business/news/patanjali-ayurved-completes-acquisition-of-bankrupt-ruchi-soya-for-rs-4350-cr/articleshow/72873511.cms 14https://www.livemint.com/industry/banking/yes-bank-to-raise-1-2-bn-by-dec-give-board-representation-to-new-investors-11572775205199.html 15https://yourstory.com/2019/10/funding-udaan-tencent-altimeter-citi-ventures-ggv-capital-startup 16https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/tencent-leads-110-million-round-in-mx-player/articleshow/71812874.cms 17https://www.thehindubusinessline.com/companies/ola-in-talks-with-microsoft-for-200-million-funding/article29820282.ece 18https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/hyundai-kias-300-million-funding-in-ola-and-its-electric-arm-gets-cci-nod/articleshow/71829585.cms 19https://www.timesnownews.com/business-economy/companies/article/adani-group-offers-rs-10000-crore-to-buy-mumbai-airport-stake-set-to-invest-rs-18000-cr-in-airport-business/506218 20https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/paytm-gets-1-billion-topup-in-latest-financing-round/articleshow/72216174.cms 21https://www.livemint.com/companies/news/invesco-oppenheimer-fund-to-buy-11-in-zeel-for-rs-4-224-crore-1564577772129.html 22https://www.livemint.com/news/india/advent-international-acquires-controlling-stake-in-bharat-serums-and-vaccines-11574078871223.html 23https://www.bloombergquint.com/technology/temasek-leads-220-million-round-in-indias-largest-fundraise-by-an-e-pharmacy-startup 24https://www.business-standard.com/article/companies/masdar-eyes-expansion-invests-150-million-in-hero-future-energies-119111100958_1.html 25 https://techcrunch.com/2019/11/13/freshworks-raises-150m-series-h-on-3-5b-valuation/ 26https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/tencent-buys-10-of-policybazaar-enters-india-insurance-market/articleshow/71979972.cms?from=mdr 27https://timesofindia.indiatimes.com/business/india-business/snapdeal-in-talks-for-100m-at-valuation-of-800m-1-2bn/articleshow/72014388.cms 28 https://www.vccircle.com/cdpq-to-invest-75-mn-more-in-azure-power 29https://www.businesstoday.in/current/corporate/brookfield-led-team-inks-37billion-deal-to-buy-out-reliance-jios-tower-arm/story/366140.html 30https://www.business-standard.com/article/pti-stories/piramal-realty-forms-jv-with-omkar-realtors-for-project-in-mumbai-to-invest-rs-3-000-cr-119121200806_1.html 31https://economictimes.indiatimes.com/markets/stocks/news/idbi-bank-in-talks-with-avenue-capital-to-sell-stake-in-asset-aggregator-arcil/articleshow/72499964.cms 32https://www.livemint.com/industry/manufacturing/quadria-capital-invests-70-million-in-new-delhi-based-akums-drugs-11575824503509.html 33https://www.livemint.com/companies/start-ups/cardekho-raises-70-million-from-china-s-pingan-others-11575542897976.html 34https://economictimes.indiatimes.com/industry/auto/auto-news/blackstone-lines-up-logistics-push-in-talks-with-hiranandanis-for-deal/articleshow/71774081.cms?from=mdr 35https://www.livemint.com/companies/start-ups/lenskart-to-raise-more-than-275-million-from-softbank-vision-fund-11576836810095.html 36https://www.livemint.com/companies/news/jungle-ventures-raises-240-mn-for-third-fund-11572368879748.html

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37 https://www.dealstreetasia.com/stories/beenext-asia-fund-162025/ 38https://in.reuters.com/article/uk-kkr-asia-fundraising-exclusive/exclusive-kkrs-new-asia-focused-fund-targets-record-15-billion-in-2020-sources-idINKBN1XH1RD 39https://www.business-standard.com/article/companies/kkr-targets-record-15-billion-for-new-asia-focused-buyout-fund-in-2020-119110701750_1.html 40 https://www.dealstreetasia.com/stories/investcorp-asia-food-fund-161388/ 41 https://www.dealstreetasia.com/stories/kenanga-unit-global-unicorn-2-161271/ 42https://economictimes.indiatimes.com/markets/stocks/news/edelweiss-set-to-close-last-mile-realty-financing-fund-with-s-koreas-meritz/articleshow/72000751.cms?from=mdr 43https://www.livemint.com/companies/news/warburg-pincus-to-raise-up-to-1-5-billion-for-first-india-focused-fund-11574927308025.html 44 https://yourstory.com/2019/11/ghost-kitchens-india-cloud-kitchen-incubator 45 https://indiacsr.in/procter-gamble-announces-rs-200-cr-environmental-sustainability-fund/ 46https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/micro-venture-fund-fluid-eyes-rs-80-crore/articleshow/72152466.cms?from=mdr 47https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/anthill-ventures-rana-daggubati-launch-urban-i-programme-to-scale-consumer-brand-startups/articleshow/72437599.cms 48 https://www.vccircle.com/stride-ventures-set-to-mark-first-close-of-debut-venture-debt-fund/ 49https://inc42.com/buzz/punjab-govt-to-set-up-inr-100-cr-startup-fund-to-boost-msmes-entrepreneurship/ 50https://www.livemint.com/companies/news/accel-partners-raises-550-million-for-its-sixth-india-fund-11575299542323.html 51https://www.livemint.com/companies/start-ups/canadian-pension-funds-eye-private-debt-space-in-india-11575825087674.html 52https://economictimes.indiatimes.com/markets/stocks/news/multiples-raises-560-million-for-third-india-focused-fund/articleshow/72324586.cms?from=mdr 53 https://www.vccircle.com/tech-venture-firm-3one4-capital-marks-final-close-of-two-funds 54https://www.business-standard.com/article/pti-stories/piramal-grp-iifl-wealth-management-create-rs-2- 000-cr-fund-for-realty-projects-119121100622_1.html 55 https://www.vccircle.com/adams-street-partners-raises-740-mn-for-new-global-fund/

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