Tata Sons to acquire AirAsia’s stake in airline JV: December 2020 Financial News

Tata Sons Pvt. Ltd, the holding company of the software-to-steel conglomerate, has signed a pact with Malaysian budget carrier AirAsia Group Bhd to increase its stake in their India joint venture. AirAsia has agreed to sell a 32.67% stake in the joint venture for $37.66 million (about Rs 276.7 crore at current exchange rates). The Malaysia airline previously owned 49% of AirAsia (India) Ltd while Tata Sons controlled 51%. AirAsia will also have an option to divest its remaining 16.33% in the Indian venture to Tata Sons for $18.83 million. It can sell the stake in two stages in 2022.

Here are some latest financial news of private equity, venture capital and mergers & acquisitions:

Private Equity

Data analytics firm Tredence raises funding from Chicago Pacific Founders:
Tredence Inc., which provides data analytics services and solutions, has raised $30 million (about Rs 220 crore) from private equity firm Chicago Pacific Founders. The investment will help the company to address challenges in healthcare segments such as access to care, patient outcomes, and advance research.

(Source: VC Circle 10 December, 2020)

Gaja Capital leads Series B funding in SaaS startup LeadSquared:
Marketing automation and customer-relationship platform LeadSquared has raised $32 million (Rs 235 crore) in its Series B round of funding led by mid-market private equity firm Gaja Capital.

(Source: VC Circle 16 December, 2020)

NIIF leads $390 mn deal for CDC’s renewable energy platform:
National Investment and Infrastructure Fund (NIIF), the country’s quasi-sovereign fund that is focused on infrastructure investments, is leading a $390 million (Rs 2,870 crore) funding round in Ayana Renewable Power. This new investment will help Ayana scale up its green energy capacity and support India’s ambition to build 450 gigawatt (GW) of renewable energy by 2030.

(Source: VC Circle 17 December, 2020)

Harsha Raghavan-led Convergent Finance makes its biggest bet:
Convergent Finance LLP, the private equity has invested Rs 200 crore ($27 million) in Borosil Renewables Ltd. Borosil Renewables will use the proceeds of this investment to expand its production capacities at Bharuch in Gujarat.

 (Source: VC Circle 18 December, 2020)

Blackstone-backed Embassy REIT raises $500 mn from top pension fund, others:
Blackstone-backed Embassy Office Parks REIT Ltd has raised around $500 million (about Rs 3,700 crore) from existing as well as new investors through an institutional placement round.

(Source: VC Circle 22 December, 2020)

Fairfax moves to raise stake in Indian speciality chemicals firm:
Fairfax India Holdings Corp, a dedicated investment vehicle for the country under Canadian billionaire Prem Watsa’s Fairfax Group. Fairfax has proposed to acquire 3.377 million Farichem Organics’ shares, or a 25.94% stake, at Rs 575.53 a piece.

(Source: VC Circle 24 December, 2020)

Apax Partners to buy 3i Infotech’s software products biz for $136 mn:
Private equity firm Apax Partners has agreed to acquire the software products business of 3i Infotech Ltd for Rs 1,000 crore ($136 million). The deal will help 3i Infotech repay all its debt, strengthen its balance sheet and expand other verticals including software services.

 (Source: VC Circle 28 December, 2020)

Venture Capital

Infosys co-founder’s family office joins MobiKwik fundraise:
MobiKwik System Pvt. Ltd, has secured Rs 52 crore (approximately $7.04 million at current exchange rates) in a fresh funding round. It will use this fresh capital for growing key business segments including digital credit and cards, consumer payments, and payment gateways.

 (Source: VC Circle 04 December, 2020)

PayU leads $7 mn round in wealth management startup Fisdom:
Finwizard Technology Pvt Ltd, which operates wealth management startup Fisdom, has raised $7 million (Rs 51.7 crore) in a fresh funding round. It will use this fresh funding for new product development and customer acquisition.

 (Source: VC Circle 03 December, 2020)

Radiology platform 5C Network bags pre-Series A funding:
Radiology platform 5C Network (India) Pvt. Ltd has raised $1.2 million (Rs 8.84 crore) in its pre-Series A funding round from existing investors Unitus Ventures and Axilor Ventures. The company will use the fresh capital to boost its products and services that help doctors and patients make better decisions.

(Source: VC Circle 08 December, 2020)

A91 Partners doubles down on smart fans maker Atomberg:
Atomberg Technology Pvt. Ltd, a consumer-technology company, has raised Rs 70 crore in its Series B funding round led by existing venture capital backer A91 Partners. The company will use the capital mainly to boost distribution networks across all metro and non-metro cities, ramp up production capacity and expand its product portfolio.

(Source: VC Circle 08 December, 2020)

Leo Capital leads seed funding in LOGIQ:
Logiqai Software India Pvt Ltd, which operates artificial intelligence (AI)-based observability platform LOGIQ, has raised $1.8 million (Rs 13.2 crore) in a seed funding exercise. It will use the capital to enhance its technological infrastructure while expanding market reach.

(Source: VC Circle 16 December, 2020)

TaxBuddy.com raises funding from UAE investor:
TaxBuddy.com has raised $1 million (about Rs 7.4 crore) in an early-stage fundraise from Zenith Global, a United Arab Emirates-based fund.  It will use the capital market outreach as well as deepening user engagement.

 (Source: VC Circle 23 December, 2020)

Google leads $145 mn funding in InMobi’s Glance and Roposo:
Glance, part of mobile-advertising company InMobi and short-video platform Roposo, has raised $145 million (about Rs 1,070 crore) from Google and Paypal. It will use the funding to deepen its artificial intelligence capability across Glance and Roposo, expand its technology team, launch services, strengthen the brand and expand in global markets.

 (Source: VC Circle 22 December, 2020)

Venture Catalysts leads seed funding in agri-tech startup Qzense:
Qzense Labs Pvt Ltd, an agri-tech startup, has raised Rs 4.5 crore ($613,953) in seed capital. The company will use the capital it has raised to invest in its expansion by scaling its team and accelerating marketing efforts.

 (Source: VC Circle 30 December, 2020)

Mergers & Acquisition

Larsen & Toubro sells British marine automation unit to Rolls-Royce Power:
Larsen & Toubro Ltd, India’s biggest engineering company, has sold its UK-based marine automation services unit Servowatch Systems Ltd to Rolls-Royce Power Systems AG at an enterprise value of Rs 88.8 crore ($12 mn). The sale is part of the company’s strategy of divesting non-core units.

 (Source: VC Circle 02 December, 2020)

Tata Consumer Products divests Australian coffee biz:
Earth Rules Pty Ltd., the Australian subsidiary of Tata Consumer, sold its MAP coffee business to Melbourne-based Buccheri Group for A$1.25 million (Rs 6.74 crore). Earth Rules had revenue of A$6.23 million and contributed 0.31% of the consolidated revenue of Tata Consumer.

(Source: VC Circle 09 December, 2020)

Kalpathi Group’s Veranda acquires coaching institute Chennai Race:
Veranda Learning Solutions Pvt. Ltd, the education and ed-tech venture of Chennai-based Kalpathi Group, has acquired Chennai Race Coaching Institute Pvt. Ltd for Rs 100 crore ($13.55 million at current exchange rates).

(Source: VC Circle 08 December, 2020)

KPO firm eClerx to acquire US-based Personiv for $34 mn:
Mumbai-listed business and knowledge process outsourcing firm eClerx Services Ltd will acquire Austin, Texas-based Personiv, operated by Eclipse Global Holdings LLC, at an enterprise value of $34 million (about Rs 250.5 crore). The acquisition will help eClerx leverage synergies in the digital and customer experience services segment, as well as help in expanding client relationships and its business.

(Source: VC Circle 15 December, 2020)

Wipro to take over Metro’s IT units for under $50 mn:
Wipro Ltd, India’s third-largest software services exporter, said Wednesday it will take over the information technology units of German wholesaler Metro AG for about €40 million ($48.7 million or Rs 359 crore).

(Source: VC Circle 23 December, 2020)

Carlyle-backed SBI Life buys 8.99% stake in microcredit firm Paisalo Digital:
SBI Life Insurance Co Ltd, India’s largest private-sector life insurer, has acquired a 8.99% stake in microcredit company Paisalo Digital Ltd for Rs 186.20 crore ($25.3 million at current exchange rates). Paisalo also counts state-run insurance behemoth Life Insurance Corporation (LIC) of India among its shareholders, LIC owns a 3.53% stake in the company.

(Source: VC Circle 24 December, 2020)