Corporate Finance Alert – June 2023
BPEA EQT, ChrysCapital Strike $1.3 Bn Deal For HDFC Credila
Buyout group BPEA EQT and Indian private equity firm ChrysCapital have agreed to acquire a stake of around 90% in education finance company HDFC Credila Financial Services Ltd in a deal worth a total of about INR 11,063 crore ($1.3 billion). The two PE firms will buy the stake in HDFC Credila from Housing Development Finance Corporation (HDFC) for about Rs 9,060.5 crore ($1.1 billion). They will also infuse INR 2,003 crore as fresh capital into Credila. The latest transaction will require approvals from the Reserve Bank of India, which regulates HDFC as well as HDFC Credila, and antitrust watchdog Competition Commission of India. The long stop date is March 31, 2024. As per the proposed transaction, HDFC Credila will cease to be a subsidiary of HDFC and the mortgage lender’s stake in the education loan financier will be 9.99%. Currently, HDFC owns 100% of HDFC Credila.
(Source: VC Circle, 19th June 2023)
- Private Equity
Brookfield Renewable Invests $360 Mn In CleanMax, Acquires Majority Control
Mumbai-based renewable energy firm CleanMax Enviro Energy Solutions has struck a deal with Canadian alternate asset manager Brookfield Asset Management Inc to acquire a majority stake. Brookfield is making an investment of INR 2970 crore ($360mn) through a secondary share purchase from existing investors and a primary infusion capital. These funds will allow CleanMax to pursue its growth target of 5 GW over 3-4 years.
(Source: VC Circle, 1st June 2023)
CVC Capital Bumps Up Bet On India Portfolio Company To $150 Mn
European private equity firm CVC Capital Partner has increased its stake in a portfolio company Healthcare Global Enterprise Ltd. CVC Capital bought another 2.5% stake for INR 114 crore in the Bengaluru based oncology chain. With the latest investment via the secondary market, it has shelled out over INR 1,200 crore or around $150 million, taking its stake to 60.5% in the oncology chain.
(Source: VC Circle, 2nd June 2023)
Bain Capital Acquires South India-Based Specialty Chemicals Maker
Private equity firm Bain Capital has acquired Hyderabad-based Porus Labs, a specialty chemicals company, for an estimated deal value was between INR 2,500-3,000 crore ($302-363 million). Bain Capital intends to establish a platform in the specialty chemicals contract development and manufacturing sector, leveraging Porus Labs’ position.
(Source: VC Circle, 8th June 2023)
PremjiInvest Picks Up Minority Stake In TVS Credit For $90 Mn
Family office investment arm of Wipro Ltd founder-chairman Azim Premji, PremjiInvest struck a deal to acquire a 9.7% stake in TVS Credit Services Ltd for INR 737 crore ($90 mn). Transaction involves a primary infusion into TVS Capital of INR 480 crore and a secondary share purchase in TVS Motor Ltd of INR 257 crore. TVS will use the fresh capital to expand its customer base in new markets, increase the channel partner network, and advance its digitalization journey.
(Source: VC Circle, 10th June 2023)
ChrysCapital To Invest $100 Mn In Lenskart
Indian private equity firm ChrysCapital is investing $100 mn in Lenskart in a deal that includes both primary capital infusion into the omni-channel eyewear retailer and secondary share purchases from some of its shareholders. With the transaction, Lenskart has raised nearly $850 million within the past year as it continues to widen its reach within India and expands internationally across Asia and the Middle East
(Source: VC Circle, 15th June 2023)
- Venture Capital
Capillary Technologies Pockets $45 Mn In Series D Funding
Software as a service startup Capillary Technologies secured INR 370 crore ($45 mn) in Series D funding round from a host of investors including Avataar Venture Partners along with its limited partners Pantheon, 57Stars, and Unigestion. Filter Capital and venture debt platform Innoven Capital also joined the round. The startup plans to deploy the fresh capital to expand its presence across geographies along with supporting its mergers and acquisitions plans.
(Source: VC Circle, 1st June 2023)
Course5 Gets $250 Mn Tag In New Round, Eyes Two Acquisitions
Data analytics startup Course5 Intelligence closed its first external funding round at INR 437 crore ($53 mn). In the first tranche, Course5 had raised $28 million from 360 One Asset Management Ltd (formerly IIFL Asset Management Limited) Tech Fund, in the second tranche it secured $25 million led by Nuvama Crossover Series of funds, with participation from Carnelian Asset Advisors Pvt Ltd. The company raised the capital at a pre-money valuation of $250 million.
(Source: VC Circle, 6th June 2023)
Dubai’s Al Futtaim Group Makes Debut India Bet With EV Maker River
Homegrown electric vehicle manufacturer River on Wednesday said it has raised $15 million (Rs 123 crore) in a funding round led by Dubai-based multinational powerhouse Al Futtaim Group, Existing investors Lowercarbon Capital, Toyota Ventures, Maniv Mobility, and Trucks VC also participated in the round. The company has cumulatively raised $28 million to date.
(Source: VC Circle, 7th June 2023)
Basic Home Loan Snags $4.7 Mn In Pre-Series B Round
Fintech startup Basic Home Loan has raised INR 38.5 crore ($4.7 mn) in a pre-Series B funding round led by stock market investor Ashish Kacholia. Existing investors Gruhas Proptech and Venture Catalysts along with new investors Dexter Angels, IIM Indore Alumni Angel Fund, and CommsCredible Venture Fund also participated in the round. The Gurugram-based company will use the fresh funds for expanding to new geographies and to develop its lending vertical.
(Source: VC Circle, 14th June 2023)
Avatar Life Raise Early-Stage Funding
Metaverse-based gaming company Avatar Life has secured INR 12.3 crore ($1.5 mn) in a seed funding round from Info Edge Ventures. The startup, operated by Gamingverse Pvt Ltd, will use the funding for product development, community building and hiring talent. Founded in 2022 by Sushant Chandrasekar and Gaurav Gupta, Avatar Life is a metaverse-first gaming platform. It offers single-player, multiplayer and play-to-earn skill-based games in its virtual world
(Source: VC Circle, 26th June 2023)
- Mergers & Acquisitions
Aurum PropTech Takes Over Home Rental Startup NestAway
Aurum PropTech Ltd (erstwhile Majesco Ltd has completed acquisition of Bengaluru-based online home rental startup NestAway Technologies Pvt Ltd for INR 90 crore ($11 mn). Aurum bought HelloWorld, the co-living unit of NestAway, for around $6.8 million in May last year, will infuse another INR 30 crore ($3.6 mn) to stabilise NetsAway’s operations.
(Source: VC Circle, 2nd June 2023)
UBS Completes Credit Suisse Takeover To Become Wealth Management Behemoth
UBS completed its emergency takeover of embattled local rival Credit Suisse, creating a giant Swiss bank with a balance sheet of $1.6 trillion and greater muscle in wealth management. The group will oversee $5 trillion of assets giving UBS a leading position in key markets it would otherwise have needed years to grow in size and reach. UBS struck an agreement with the Swiss government on the conditions of a 9 billion Swiss franc ($10 billion) public backstop for losses from winding down parts of Credit Suisse’s business.
(Source: VC Circle, 2nd June 2023)
WestBridge-Backed Physics Wallah Buys Into Xylem To Boost South India Presence
Edtech unicorn Physics Wallah has acquired a 50% stake in Kerala-based Xylem Learning for an undisclosed sum, in a bid to expand its presence in the southern parts of the country. The unicorn will also invest Rs 500 crore over three years to scale Xylem’s business in south India
(Source: VC Circle, 19th June 2023)
Zendesk Snaps Up Workforce Management Platform Tymeshift
Bengaluru and California-based software-as-a-service (SaaS) company Zendesk has acquired Connecticut-based modern workforce management solution Tymeshift for an undisclosed amount. The acquisition furthers Zendesk’s commitment to offer innovative omnichannel and AI capabilities powering exceptional customer experiences.
(Source: VC Circle, 22nd June 2023)
Indian-Origin Founders’ Analytics Firm ThoughtSpot Inks $200-Mn Takeover Deal
ThoughtSpot Inc, a US-based data analytics startup started by Indian-origin entrepreneurs, is set to acquire business intelligence platform Mode Analytics for about INR 1,600 crore ($200 mn) in a cash and equity deal. ThoughtSpot has signed a definitive pact to snap up Mode. ThoughtSpot, which counts Lightspeed Ventures, Future Fund, Khosla Ventures, General Catalyst and Sapphire Ventures as among its investors.
(Source: VC Circle, 27th June 2023)
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