Corporate Finance – December 2022
Poonawalla To Target Growth-Stage Firms With Rs. 1,000 Cr Fund;
The Poonawalla Vision Fund, with a capital of $1 billion, was established by the chief executive of Serum Institute of India with regulatory approval. An application for registration as a category-II alternative investment fund was submitted to the Securities and Exchange Board of India (SEBI) on September 29. (AIF). The application is being reviewed. AIFs in category II are those that only use borrowing or leverage to meet their day-to-day operational needs. Sector-focused, the fund will invest in growth-stage, unlisted businesses in industries like sustainability, healthcare, retail, and wellness. High net worth individuals (HNIs) and foreign portfolio investors (FPIs) pool their money through these investment vehicles in order to invest in unlisted firms. These can be acquired via loan or private equity, debt funds, real estate funds or distressed funds, among others. This will be Rs.1,000 crore of the family’s capital, to begin with, the firm might look at raising from external investors at a later stage.
(Source: VC Circle, 19 December 2022)
Private Equity
Money View Bags $75 Mn, Enters Soonicorn Club;
Money View, a fintech company with headquarters in Bengaluru and run by WhizDM Innovations Pvt Ltd, raised $75 million from UK-based asset manager Apis Partners as part of a Series E capital raise round, valuing the company at $900 million. The round also included participation from current investors Tiger Global, Evolvence, and Winter Capital. The money raised will be used to scale its core credit operations, increase hiring, and broaden the product line to include services like digital bank accounts, insurance, and asset management. According to its filing with the Registrar of Companies, Money View recorded a 4x increase in its revenue from operations in FY22, reaching Rs 253 crore, with a net profit of Rs 17.7 crore as opposed to a net loss of roughly Rs 47 crore in FY21.
(Source: VC Circle, 26 December 2022)
Suven Pharma Promoter To Sell 50.1% Stake To Advent;
The Jasti family, who is the promoter of Suven Pharmaceuticals, will sell Advent International a 50.1% stake in the company for Rs. 6,313.08 billion. Through its management Kotak Mahindra Capital Firm Ltd., Advent International has declared an open offer to buy 26% more of the company from public shareholders. If fully subscribed, the offer would cost a total of Rs. 3,276.25 crore.
(Source: VC Circle, 26 December 2022)
Ola Founder Aims IPO Launch In Second Half Of Next Year;
According to Bhavish Aggarwal, the company’s founder and group CEO, Ola Cabs, the cab aggregator platform sponsored by Ola SoftBank and operated by ANI Technologies Pvt Ltd, will likely launch its initial public offering (IPO) in the second half of the upcoming fiscal year. The ride-sharing company located in Bengaluru had originally planned to go public earlier this year, but it was delayed due to erratic equity markets and unreliable macroeconomic conditions.
(Source: VC Circle, 23 December 2022)
General Atlantic Raises $3.5 Bn to Invest In Climate Change Fight;
BeyondNetZero, a private equity division of General Atlantic, said that it has raised $3.5 billion to support businesses that will aid in the worldwide fight against climate change. In order to launch its first fund, General Atlantic gathered $2.6 billion from institutional investors, including sovereign wealth funds and international corporations. BeyondNetZero chairman John Browne told Reuters that existing General Atlantic funds will provide an extra $900 million.
(Source: VC Circle, 20 December 2022)
Investcorp To Lead $45 Mn Round In Wakefit At ₹2.5K Cr Valuation;
A nearly $45 million round of equity fundraising in the mattress manufacturer and home solutions company Wakefit Innovations Pvt. Ltd. will be led by Bahrain’s alternative investment firm Investcorp. Sequoia Capital India, one of Wakefit’s current investors, will also take part in the round. A primary infusion would be used to make the transaction, which has a post-money valuation of Rs. 2,500 crore. The money will be used by Bengaluru-based Wakefit primarily for growth and to repurchase employee stock options, though it may potentially look to buy smaller businesses.
(Source: VC Circle, 20 December 2022)
Venture Capital
WeWork India Raises Rs 550 Cr;
WeWork India, a provider of workspace, has received Rs 550 crore ($66.5 million) from private loan platform BPEA Credit to support growth aspirations. The company began operating in India in 2017 and now has 41 locations spread throughout six of the country’s largest cities, including Bengaluru, Mumbai, Gurugram, Noida, Hyderabad, and Pune. WeWork India is a joint venture between WeWork International and commercial real estate giant Embassy Group, which holds the controlling interest in the company. Currently, WeWork India has more than 62,000 members and 6 million square feet of space. 70% of the companies in its portfolio include names like 3M, Khaitan & CO, Honeywell, Dyson, and Kia. Small and medium businesses, freelancers, and startups make up about 30% of the population.
(Source: VC Circle, 26 December 2022)
Shikhar Dhawan’s New Venture Scouts For Sports Tech Firms To Make Early-Stage Bets;
In order to make early-stage investments, cricketer Shikhar Dhawan’s new venture capital firm, Da One Global Ventures, is looking for sports tech startups around the world. It will begin allocating cash in the first quarter of the upcoming fiscal year. According to Shikhar Dhawan, the investments made by the Abu Dhabi-based fund would be between $500,000 and $5 million. The worldwide fund was established this month during the Abu Dhabi Finance Week. It aims to raise $50 million from investors with the option of keeping additional pledges of up to $25 million. Da One Global Venture seeks to make investments in both seed and series A rounds. In essence, 80% of investments in startups will take the form of syndication, with 20% of deals going solo.
(Source: VC Circle, 27 December 2022)
Xpedeon Raises Up To $10 Million;
Private equity company Norwest Venture Partners has invested up to $10 million in construction software supplier Xpedeon. Vakharia and his wife Seema Vakhaira established the Mumbai-based company Xpedeon in 1994. Xpedeon is currently run by Algorithms Software. The business offers an entirely integrated enterprise resource planning solution to the global engineering and construction sector. Beyond the markets in India, the United Arab Emirates, Oman, Saudi Arabia, and the United Kingdom, Xpedeon plans to use the funding to expand geographically in the USA and Asia Pacific.
(Source: VC Circle, 16 December 2022)
Chargebee’s Backers Eye Exit At $1.5 Bn Valuation;
Chargebee, a software as a service (SaaS) provider with a fintech focus, has early-stage investors who are looking to sell a portion of their share and are in talks with potential and current institutional buyers. The share is being offered by the early investors for as little as $1.5 billion at a severe discount. The subscription management platform Chargebee, valued at $3.5 billion, raised $250 million in a funding round headed by Tiger Global and Sequoia Capital in February. Chargebee’s worth increased by a factor of two in just nine months after it turned into a unicorn in April 2021. The business has so far received $468 million in equity capital from investors.
(Source: VC Circle, 15 December 2022)
Waterfield Advisors’ Fund Of Funds Fetches Rs 540 Cr;
The first fund of funds (FoF) from family offices, ultra-high net worth individuals, and institutional investors reached its ultimate closure at Rs. 540 crore, according to Waterfield Advisors, a wealth consulting firm with offices in Mumbai and Goa. Waterfield intends to start its second fund-raising round with a $250 million corpus and anticipates closing the first round in the first half of 2023. The inaugural Fund of Funds intends to invest 70% of its resources in VC and PE funds; the remaining 30% will be used to make direct investments in startups in the financial services, consumer goods, healthcare, and technology industries.
(Source: VC Circle, 07 December 2022)
Mergers & Acquisition
Aditya Birla Fashion And Retail Leads Race For TCNS Stake;
Reliance Retail, Nykaa, Aditya Birla Fashion and Retail Ltd. (ABFRL), Trent, and private equity investors TPG Capital have all expressed interest in acquiring a majority stake in TCNS Clothing Ltd., the owner of the well-known womenswear brands W and Aurelia. ABFRL has emerged as the front-runner to do so. Aditya Birla is in advanced discussions to purchase a 51% ownership in TCNS Clothing, which comprises the 29% investment held by private equity investor TA Associates, a portion of the promoter stake, and the stock held by the general public in a subsequent open offer. The business will continue to be run by the current professional management, and the promoters will also continue to own a portion of the company.
(Source: VC Circle, 26 December 2022)
JK Cement’s Pains Arm To Acquire Acro Paints;
For Rs 153 crore, JK Paints and Coatings Ltd, a wholly owned subsidiary of JK Cement Ltd., would purchase a 60% interest in Acro Paints Ltd. Over the course of a year, the remaining 40% stake will be purchased. With the acquisition, JK Cement will be able to extend its product line, enter new markets, and enter the paints industry. It will bring product formulations and manufacturing capabilities that can be scaled up to fulfil the business plan goals for JK Paints & Coatings over the next years. Additionally, the acquisition would present a chance to enter the expanding market for construction chemicals and waterproofing goods.
(Source: VC Circle, 22 December 2022)
Tata Communications Arm To Acquire US-Based CDN For $59 Mn;
Switch Enterprises, a US-based media service provider, has agreed to be entirely acquired by telco player Tata Communications for a cash payment of $58.8 million (around Rs 486.3 crore). As part of the transaction, through its wholly-owned subsidiaries, Tata Communications (Netherlands) B.V., a wholly-owned indirect subsidiary of Tata Communications Limited, will acquire assets of the subsidiaries of Switch Enterprises, LLC based in Canada, the United States of America, and the Unit. Tata Communications (Netherlands) B.V. has entered into a membership investment purchase agreement to acquire 100% equity stake in Switch Enterprises, LLC, a target company in the United States of America. Regulations must approve the acquisition.
(Source: VC Circle, 22 December 2022)
V-Guard To Acquire Sunflame Ent For Rs 660 Cr;
Major manufacturer of consumer electronics and electrical products V-Guard Industries (V-Guard) stated that it will pay Rs. 660 crore to acquire a 100% share in Sunflame Enterprises Private Ltd. The acquisition is consistent with V-plan Guard’s to become a prominent player in the domestic kitchen appliances category and is anticipated to close by mid-January 2023. SEPL’s sunflame brand is active throughout all of India.
(Source: VC Circle, 09 December 2022)
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