Corporate Finance – May 2023 Alert

GIC Teams Up With Brookfield REIT for $1.4-Bn Deal To Buy Office Assets

Together with Canadian alternative investor Brookfield Asset Management Inc., Singapore sovereign wealth fund GIC and Brookfield India Real Estate Investment Trust (REIT) have agreed to pay roughly Rs 11,225 crore (almost $1.4 billion) for two commercial properties. For around Rs 150 crore (about $18 million), Brookfield India RIET will also purchase a 100% stake in Mountainstar India Office Parks Pvt. Ltd., the company in charge of managing Candour TechSpace (G1) properties. GIC has committed Rs 3,300 crore (about $400 million) to Brookfield REIT for the 50% acquisition of the commercial properties, as well as for part-repayment of debt.   

The transaction, according to a statement, will increase Brookfield India REIT’s operational area by over 40% and its gross asset value by 73%. The listed REIT’s total operating area, as of March 2023 was about 20.6 million square feet, including 6.3 million square feet of total target assets.   

 (Source: VC Circle, 19th May 2023)

Private Equity

Temasek, Steadview Co-Lead $86 Mn Round in Atomberg

An energy-saving fan manufacturer, Atomberg Technologies Pvt Ltd, has raised $86 million (about Rs 710 crore) as part of its Series C fundraising round, which was co-led by Singapore’s state investor Temasek and a major international venture capital firm, Steadview Capital.

 (Source: VC Circle, 29th May 2023)

Warburg Acquires Controlling Stake in MSME Lender Vistaar Finance

A controlling share in Vistaar Finance, an NBFC that provides loans to micro, small, and medium-sized businesses in India, has been bought by the private equity firm Warburg Pincus. For $250 million, Warburg Pincus purchased a roughly 90% equity holding using a combination of primary and secondary shares. Avijit Saha, a former executive of ICICI Bank, has been named CEO and will co-invest with Warburg Pincus.  (Source: VC Circle, 29th May 2023)

Blackstone Buys International Gemological Institute For $530 Mn

International Gemological Institute (IGI), a corporation that certifies jewellery, has been fully acquired by private equity behemoth Blackstone Inc. from China’s Fosun and the company’s founding family. IGI, whose primary source of income and profit is India, was purchased by Blackstone for roughly $530 million.

(Source: VC Circle, 21st May 2023)

Fairfax Investing $250 Mn To Lift Stake In India Portfolio Firm

To increase its stake in an Indian company that is already its biggest local bet, Fairfax India Holdings Corp., the Toronto-listed investment company founded by Indian-born Canadian billionaire Prem Watsa’s Fairfax Financial Holdings Ltd. to make investments in the South Asian country, is investing up to $250 million (roughly Rs 2,055 crore). Siemens Project Ventures GmbH, a division of Siemens Financial Services, sold Fairfax India an additional 3% share in Bangalore International Airport Ltd (BIAL) for $75 million.

(Source: VC Circle, 16th May 2023)

Venture Capital

Himadri Speciality Chemical Picks Up Stake In Australian Battery-Tech Startup

Himadri Speciality Chemical Ltd. of Kolkata has paid A$10.32 million (about $6.70 million or Rs 55.3 crore) for a 12.79% share in Australian startup Sicona Battery Technologies Pty Ltd.  The engineering of Sicona’s first commercial-scale production facility in the US as well as the commercialization of its technology will be accelerated by this investment, which will also hasten product and technology development for the company.

 (Source: VC Circle, 31st May 2023)

Aeravti Ventures Hits First Close For Maiden Early-Stage VC Fund

Aeravti Ventures, an early-stage venture capital firm, has reached the first closure on its inaugural fund, which hopes to raise up to Rs 100 crore (about $12 million). The fund will support new businesses in a variety of fields, including deep technology, deep sciences, biosciences, agritech, climate, and enterprise technology.

 (Source: VC Circle, 30th May 2023)

ZainTech Buys Cloud Firm Adfolks; Baytonia, Lifemost, Clara Get Funding

Dealmaking in the Middle East: ZainTech, the digital services division of Kuwaiti telecom giant Zain Group, has acquired the UAE-based cloud engineering services company Adfolks. 

(Source: VC Circle, 26th May 2023)

Square Peg, Moore Strategic, Others Write $10 Mn Cheque To XFlow

Pre-Series A fundraising round headed by Square Peg netted $10.2 million (Rs 84.3 crore) for fintech firm XFlow. Moore Strategic Ventures, as well as current investors Lightspeed and General Catalyst, took part in the round.

The Bengaluru-based start-up plans to use the funding for Indian market expansion and product development.

 (Source: VC Circle, 25th May 2023)

Jungle Ventures Leads $11 Mn Round In Ice Cream Brand NIC

Singapore’s Jungle Ventures, which has backed unicorns like Moglix and Livspace, has led a $11 million (Rs 91 crore) round of funding in Pune-based ice cream brand NIC. NIC, operated by Walko Food Co. Pvt. Ltd, will use the new funds to boost production, enhance product offerings, and broaden distribution reach, with an aim to capture a larger share of the ice cream market’s rapidly expanding market. (Source: VC Circle, 24th May 2023)

Mergers & Acquisitions

Sequoia-Backed Scaler Takes Over Pepcoding In Fourth Acquisition

Scaler, an upskilling platform with Sequoia Capital, Tiger Global, and Lightrock India among its backers, has made its fourth acquisition, the Delhi-based edtech company Pepcoding.  A number of business areas, including strategy, product design, B2B enterprise, operations, and instructor org, will benefit from the purchase and help Scaler develop.

(Source: VC Circle, 31st May 2023)

Capri Global Acquires Majority Stake In Car Selling Platform

In order to grow its lending business, Capri Global Holdings Pvt Ltd (CGHL), the parent company for Capri Global Capital Ltd, has purchased a 51% investment in the new-car selling platform CarLelo. For the deal, Capri Global is investing Rs 150 crore. Capri Global Capital, a non-banking financial organisation that conducts business as Capri Loans, will use the acquisition to increase its market share in the auto loan industry. In order to attract clients, it will also strive to improve its services and technologies.

(Source: VC Circle, 25th May 2023)

Sequoia-Backed Yubi Buys Credit Analytics Firm

Fintech unicorn Yubi has acquired a 100% share in FinFort Infotech LLP, a provider of digital credit analytics, marking its third acquisition in more than a year. Following the purchase of majority holdings in Corpository for Rs 100 crore and Spocto Solutions for Rs 400 crore, Yubi made its most recent wager.

(Source: VC Circle, 25th May 2023)

Delhivery Acquires Stake In Software Firm Vinculum

Software-as-a-service (SaaS) provider Vinculum has received financing from logistics operator Delhivery. Vinculum specialises in direct-to-consumer marketing. The investment is the first of what might be a two-stage transaction that would give Delhivery the opportunity to raise its stake in the company after a period of six months.    (Source: VC Circle, 22nd May 2023)

Deloitte Buys Two Assets From Websym Solutions

Deloitte India, a consulting and accounting firm, has purchased two assets from Websym Solutions Pvt Ltd, a technology startup based in Pune. The co-founders of Websym Solutions, Ashish Nene, Subramhanya Hathwar, and Shripad Shingne, would join Deloitte India following the acquisition of assets from Tezeva and FaktoryWize. (Source: VC Circle, 15th May 2023)

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