Corporate Finance
Corporate Finance – January 2023

Corporate Finance – January 2023

GEF Capital Invests Rs. 500 Cr In E-Mobility Firms

The e-mobility businesses Electra EV and Hero Motors Ltd. have received investments from the private equity fund GEF Capital Partners totaling more than 500 crore rupees.

This is a component of the investor’s plan to increase their stake in India’s climate and sustainability potential. With this, GEF has invested eight times over the previous four years. Independent EV powertrain solutions provider Electra EV is supported by businessman Ratan Tata. Its products include integrated electronics, battery packs, e-traction systems, and end-to-end powertrain solutions. For two- and three-wheelers, four-wheelers, as well as EV applications for farm and off-highway use, it offers solutions. Tata Motors’ Xpres-T and Ace EV cars utilize Electra’s powertrain technologies.

The HMC (Hero Motors Company) Group’s flagship EV-focused car parts business is called Hero Motors. Hero Motors’ goal to invest 1,500 crore over the next three years in order to expand its selection of EV components includes the fundraising. It is India’s top manufacturer of e-bike parts. Both purchases were finished using GEF’s South Asia Growth Fund II, which has a corpus of almost $200 million (SAGF II).

Here is some latest financial news on private equity, venture capital, and mergers & acquisitions:

Private Equity

Bain Capital Affiliate Sells J M Baxi Stake To Hapag-Lloyd

The German-based shipping giant Hapag-Lloyd has purchased the affiliate’s investment in logistics provider J M Baxi Ports & Logistics Ltd from global private equity firm Bain Capital for an unknown sum. J M Baxi has increased its port capacity and logistics units after a two-year investment by Bain Capital PE, boosting its financial position despite macroeconomic and supply chain challenges, the company stated in a statement.

(Source: VC Circle, 26 January 2023)

Avanse Financial Raises Rs 800 Cr From Kedaara

The non-banking lender Avanse Financial Services Ltd, which specialises in student loans, announced that it has raised primary capital from domestic private equity firm Kedaara Capital in the amount of Rs 800 crore (about $98.5 million) to support its expansion goals.

(Source: VC Circle, 19 January 2023)

TA Associates Looks To Acquire Stake In Synokem Pharma

The private equity company TA Associates has emerged as the favourite to buy a majority stake in the pharmaceutical company Synokem Pharmaceuticals. In Delhi-based Synokem, a contract manufacturer of pharmaceutical formulations such tablets, capsules, liquid orals, and ointments, the US private equity fund is set to spend roughly $100 million. Since its establishment in 1983, the company has been supplying medicines to pharmaceutical clients in 30 different countries from its two manufacturing facilities in Guwahati and Uttarakhand.

 (Source: VC Circle, 18 January 2023)

Acko To Close Up To $150 Mn Funding From CPP Investments, General Atlantic, Others

Acko General Insurance, a digital insurance provider, is on the verge of obtaining $100 to $150 million (about Rs. 820-1,200 crore) from new and existing investors. After extensive valuation negotiations, current investors General Atlantic (GA), Canada Pension Plan Investment Board (CPP Investments), and Multiples Private Equity decided to raise more funds in what is likely to be a Series E round.

 (Source: VC Circle, 25 January 2023)

Ice Cream Brand NIC To Raise Funding From Jungle Ventures

The main investor for Pune-based ice cream firm NIC has surfaced as Singapore’s Jungle Ventures, which has funded unicorns like Moglix and Livspace. A $40 million (about Rs. 325 crore) investment in NIC, which is run by Walko Food Co. Pvt. Ltd., is most likely to come from the venture capital firm.

(Source: VC Circle, 24 January 2023)

Merger & Acquisition

Happiest Minds Acquires Madurai-Based SMI For Rs.111 Crore

Bengaluru-based midcap IT services provider Happiest Minds announced the purchase of Madurai-based IT services provider Sri Mookambika Infosolutions (SMI). The total upfront and deferred equity consideration for the transaction was Rs. 111 crore.

Over 400 SMI workers who work remotely will also be accommodated by Happiest Minds as part of the agreement. The former had 4,611 total employees as of the December quarter, according to its quarterly financial report.

 (Source: VC Circle, 25 January 2023)

Easy Trip Acquires 55% Stake In CheQin Through Primary Route

Easy Trip Planners Ltd, which runs EaseMyTrip.com, has purchased a 55% share in hotel booking platform cheQin through the primary channel for an unknown sum.

“CheQin maintains a method that enables travellers to stay at affordable hotels and encourages them to pay directly at the establishment. On the other hand, according to a filing with the stock exchange by Easy Trip, the company employs the cheQin application to give hoteliers access to real-time booking requests and the capacity to manage their own bookings.

 (Source: VC Circle, 24 January 2023)

Fintech Unicorn Pine Labs Acquires Saluto Wellness

Fintech unicorn headed for an IPO Enterprise platform Saluto Wellness Pvt. Ltd has been purchased by Pine Labs for an unknown sum. Sequoia-backed Pine Labs provides solutions to businesses in a variety of industries, including electronics, food and beverage, apparel, fashion, pharmacies, communications, and airlines.

(Source: VC Circle, 23 January 2023)

ITC To Buy Yoga Bar Maker

ITC Ltd. announced on Tuesday that it plans to purchase a 100% stake in Sprout-life Foods Private Limited, which sells health bars and cereals under the Yoga Bar brand, over a three- to four-year period. This investment fits with the “ITC Next” strategy put forth by Chairman Sanjiv Puri, which emphasizes creating a product portfolio that is prepared for the future. ITC is making yet another effort with this move to capitalize on recent consumer trends. In addition to Mother Sparsh, it has invested in the direct-to-consumer infant care brand Mylo.

 (Source: VC Circle, 17 January 2023)

NCLT Approves PVR-Inox Merger

The merger of the top two multiplex chains in the nation, PVR Limited and INOX Leisure, was allowed on Thursday by the Bombay Bench of the National Company Law Tribunal (NCLT). According to an earlier merger announcement, the combined firm, to be known as PVR-INOX, will operate 1,546 screens across 341 facilities in 109 cities, making it the largest cinema exhibition company in India.

 (Source: VC Circle, 12 January 2023)

 

Venture Capital

SoftBank Deals Hit Record Low, Sapping Funding For Startups

As values continued to decline, SoftBank Group Corp.’s new startup bets hit a record low, further chilling an already chilly startup winter. The largest tech investor in the world, who once invested $30 billion in more than 90 businesses in a single quarter, took part in just eight investment rounds totaling $2.1 billion in the three months that ended in December.

 (Source: VC Circle, 27 January 2023)

EaseMyTrip Keen To Take More Inorganic Bets

EaseMyTrip, an online travel agency, will add more travel-related businesses to its portfolio in order to increase its footprint. “We are talking to players in the travel industry. We know that the engagements we work on will revolve on travel, whether they are on the technology, supply, or fulfilment side. Our emphasis will be on the travel ecology. Easy Trip Planners Ltd, which runs EaseMyTrip.com, claimed to have bought a 55% share in cheQin via the primary channel for an unknown fee. Travelers and hoteliers can haggle in real time on cheQin.

(Source: VC Circle, 26 January 2023)

Velocity Invests In D2C Fashion Brand D’chica

Direct-to-consumer (D2C) apparel business D’chica said on Wednesday that revenue-based financier Velocity had contributed Rs 1.62 crore to its funding. The business, which is based in Delhi-NCR, will use the new funds for marketing and hiring. In 2019, Vani Chugh Kabra and Richa Kapila created D’chica, a brand that specialises in innerwear as well as sportswear, loungewear, and footwear.

(Source: VC Circle, 25 January 2023)