KONNECT

ADVOCACY
IVCA PRIVATE EQUITY - VENTURE
RESEARCH CAPITAL REPORT
EDUCATION

KONNECT
JAN TO JUNE 2021

NEW DELHI | MUMBAI | BANGALORE

CONTENTS

Executive Summary 03

Private Equity Investments 04

Venture Capital Investments 09

Exits 12

Fund Raising Activity 16

Angel Investments 17

Venture Debt Monitor 17

Investments involving AIFs 19

Appendix & Tables 20

150+ MEMBERS & GROWING..

Executive Summary

Private Equity(1) Investments & Exits

H1 2021 witnessed 447 Private Equity (PE) investments worth ₹2,03,696 Cr ($27.8 Billion), led by Piramal Group's $5.2
Billion takeover of the distressed housing finance firm Dewan Housing Finance Corp Ltd and the $2.8 Billion bid by
Blackstone to buy out a majority stake in IT & BPO services firm MphasiS.

Funds with AIF vehicles participated in 218 investments, representing 49% of overall investments.

163 DPIIT registered startups raised PE funding worth ₹23,968 Cr ($3.3 Billion).

Led by MphasiS, IT & ITeS topped the industry table (by value), followed by BFSI.

Bangalore topped the chart for highest investments (by value) in a city.

H1 2021 saw 119 PE exits that harvested ₹1,39,760 Cr ($19.1 Billion).

The largest PE Exit was the ₹60,306 Cr ($8.1 Billion) complete exit by investors from IT services company GlobalLogic
through its acquisition by Tokyo-based Hitachi Ltd.

India-focused funds raised ₹12,499 Cr ($1.7 Billion) across 26 funds.

Venture Capital (1) Investments & Exits

H1 2021 witnessed 246 VC investments worth ₹7,933 Cr ($1.1 Billion).

The largest VC deals were the $20 million investments in GoBolt (SaaS - Logistics Management), Slice (Fintech - Credit
Cards), and Slintel (SaaS – Analytics).

Funds with AIF vehicles participated in 129 investments.

T 123 DPIIT registered startups raised VC funding worth ₹3,920 Cr ($535 million).

IT & ITeS topped the industry table (by volume & value).

Bangalore topped the chart for highest investment (by volume & value) in a city.

H1 2021 saw 51 VC exits that harvested ₹16,195 Cr ($2.2 Billion).

The largest VC exit was the ₹2,912 Cr ($400 million) part exit by investors from gaming unicorn Dream11.

Angel Investments

Investments by Super Angels and Angel Networks increased to 219 deals in H1 2021 (compared to 165 deals in H1
2020).
Private Equity Investments

Private Equity Investments in H1 2021: 447 Deals, $27.8 Billion (₹2,03,696 Cr)

H1 2021 registered 447 Private Equity (PE) investments worth about ₹2,03,696 Cr ($27.8
Billion). The investment value increased by 36% compared to the same period in 2020 (which
registered 431 investments worth ₹1,51,221 Cr, or $20.4 Billion) and increased by 45%
compared to the immediate previous half-year (which had witnessed 438 investments worth
₹1,41,616 Cr, or $19.1 Billion).

The largest PE investment announced was the $5.2 Billion acquisition of stressed mortgage lender
Dewan Housing Finance Corp Ltd’s (DHFL) assets. The investment accounted for 19% of the total
investment value in H1’21.

The second largest investment was Blackstone’s $2.8 Billion bid to buy out a 75% stake in publicly
listed IT & BPO Services firm MphasiS. The third largest investment was the $1.2 Billion fundraise
by edtech Unicorn Byju’s from multiple investors like Footpath Ventures, GSV Ventures, ADQ, Owl
Ventures, B Capital Group, Prosus Ventures, Silver Lake, Blackstone, and others.

Funds with AIF vehicles participated in 218 PE investments worth ₹88,298 Cr ($12 Billion).

163 DPIIT registered startups raised PE funding worth ₹23,968 Cr ($3.3 Billion).

4
Private Equity Investments

IT & ITeS topped the industry chart with investments worth $14.6 Billion led by the Blackstone-
MphasiS deal, followed by the $900 million acquisition of IT services firm Infogain (by Apax
Partners) and the $800 million investment in foodtech Unicorn Swiggy by Prosus Ventures, QIA,
Falcon Edge Capital, GIC, Accel, and others.

BFSI stood second with investments worth $6.7 Billion, led by Piramal Group's $5.2 Billion takeover
of Dewan Housing Finance Corp Ltd’s assets.

The second largest investment was the $380 million acquisition of realty financier Altico Capital by
Hong Kong-based Ares SSG. The third largest investment was the $234 million investment in
Chennai-based NBFC Five Star Business Finance from TVS Capital, KKR, Norwest, and Sequoia
Capital India.

Healthcare stood third with investments worth $2.3 Billion, led by the $398 million buyout of the
animal health business Zydus AH, from listed pharma firm Cadila Healthcare, by a Multiples PE-
led consortium. This was followed by Goldman Sachs' $329 million investment in CRO firm Aragen
Life Sciences and the $283 million investment in hospitals operator, Manipal Health Enterprises,
by the Govt. of India promoted National Investment and Infrastructure Fund (NIIF).

5
Private Equity Investments

$12.6 B

6
Private Equity Investments

7
Private Equity Investments

8
Venture Capital Investments

Venture Capital Investments in H1 2021: 246 Deals, $1.1 Billion (₹7,933 Cr)

H1 2021 recorded 246 VC-type(1) investments worth $1.1 Billion (₹7,933 Cr). The investment
volume fell 11% whereas the value increased by 20% compared to the same period in 2020 (which
registered 277 investments worth ₹6,668 Cr, or $898 million). Similarly, the deal volume
decreased by 19% and value rose by 21% compared to the immediate previous half-year (which
saw 302 investments worth ₹6,627 Cr, or $894 million).

The largest VC investments were the $20 million fundraise by 3 startups viz – logistics focused
SaaS developer GoBolt from Paragon Partners and Aavishkaar; credit card provider Slice from
Gunosy Capital and Blume Ventures; and sales & marketing focused SaaS provider Slintel from
GGV Capital, Stellaris Venture Partners, Accel India, and Sequoia Capital India.

They were followed by the $18 million investment in edtech startup SplashLearn by Owl Ventures
and Accel India.

Funds with AIF vehicles participated in 129 VC investments worth $572 million (₹4,198 Cr).

123 DPIIT registered startups raised VC funding worth ₹3,920 Cr ($534 million). Top investments
among these startups were GoBolt, Slice and Slintel, followed by the $17 million fundraise by AR-
enabled educational kits provider PlayShifu from Inflexor Ventures, Inventus India, Bharat
Innovation Fund, Trifecta Capital, Chiratae Ventures, and other angel investors.

9
Venture Capital Investments

10
Venture Capital Investments

11
Private Equity Exits

Private Equity Exits in H1 2021: 119 Deals, $19.1 Billion (₹1,39,760 Cr)

H1 2021 saw 119 PE exits that harvested ₹1,39,760 Cr ($19.1 Billion). The exit value spiked by
549% compared to the same period in 2020 (which registered 61 exits worth ₹21,800 Cr, or $2.9
Billion) and by 389% compared to the immediate previous half-year (which saw 92 exits worth
₹28,871 Cr, or $3.9 Billion).

The largest PE Exit was the ₹60,306 Cr ($8.1 Billion) complete exit by Partners Group and CPPIB
from IT services company GlobalLogic through its acquisition by Tokyo-based Hitachi Ltd, giving
them 4.54x and 6.04x returns, respectively.

The second largest exit was the ₹8,934 Cr ($1.2 Billion) complete exit by Abraaj Group and
Alibaba from online grocery startup BigBasket via strategic sale to Tata Digital Ltd.

The third largest exit was the ₹5,250 Cr ($709 million) partial exit by Blackstone from auto
components manufacturer Sona BLW Precision Forgings via its initial public offering. The exit
provided Blackstone with a 9.00x return, having realized an IRR of 205.26%.

12
Private Equity Exits

PE Exits by Industry

13
Private Equity Exits

PE Exits via Strategic Sale during H1 2021 saw the highest action in terms of deal value, harvesting
$10.4 Billion (₹76,353 Cr), which is approximately a 15x rise in value compared to the same period
in 2020 ($692 million, or ₹5,139 Cr).

This was primarily driven by exits from GlobalLogic and BigBasket, followed by Blackstone’s $375
million complete exit from Aakash Educational Services through its acquisition by edtech unicorn
Byju’s. The deal provided Blackstone with 2x return.

PE Exits via the public market sale / IPO route saw a harvest of $4.8 Billion (₹35,172 Cr), led by
Blackstone’s partial exit from Sona BLW Precision Forgings’ IPO, followed by Carlyle’s $650 million
(₹4,811 Cr) partial exit from SBI Cards & Payment Services via public market sales, giving a Carlyle
11.12x return.

14
Venture Capital Exits

Venture Capital Exits in H1 2021: 51 Deals, $2.2 Billion (₹16,195 Cr)

H1 2021 witnessed 51 VC exits that harvested ₹16,195 Cr (about $2.2 Billion). The volume of exits
increased by 55% and value by 344% compared to the same period in 2020 (which registered 33
exits worth ₹3,692 Cr, or $497 million). Similarly, the exit volume rose by 42% and value by 218%
compared to the immediate previous half-year (which registered 36 transactions worth ₹5,152 Cr,
or $695 million).

The largest VC exit was the ₹2,912 Cr ($400 million) part exit by Kalaari Capital, Multiples PE,
Tencent and Think Investments from Gaming Unicorn Dream11, followed by the ₹2,184 Cr ($300
million) complete exit by Elevation Capital, NEA and Vertex from omnichannel baby products
retailer FirstCry via a secondary sale to TPG Capital, ChrysCapital, and PremjiInvest.

The third largest exits were two $200 million secondary sale deals: Sequoia Capital India’s
complete exit from cosmetics manufacturer Vini Cosmetics by sale to KKR, and Nadathur
Holdings’ complete exit from enterprise healthtech solutions provider Indegene by sale to Carlyle
and Brighton Park.

15
Fund Raising Activity

Fund Raising Activity in H1 2021: 24 Funds, $1.4 Billion (₹9,933 Cr) Raised

India-focused funds raised ₹9,933 Cr ($1.4 Billion) across 24 funds in H1 2021 - a 39% increase (in
value terms) compared to ₹7,229 Cr ($974 million) across 11 funds in the same period in 2020.

Sequoia Capital India made a final close of its Sequoia Capital India Seed Fund II with $195
million.

Among Venture Debt firms, Alteria Capital raised $180 million (₹1,325 Cr) with its first close of
Alteria Capital India Fund II. The fund is targeting a final close at ₹1,500-1,700 Cr by September.
Trifecta Capital closed its second venture debt fund at $141 million (₹1,025 Cr).

Among PE firms, Tata Capital made a final close of its $170 million (₹1,250 Cr) Tata Capital
Growth Fund II from a group of global and European Fund of Funds, Japanese institutions and an
Asian development financial institution. The fund looks to invest in three themes: strategic
services, urbanization, and discrete manufacturing.

TVS Capital made a final close of its TVS Shriram Growth Fund 3 with $121 million, with
contribution from family offices, development financial institutions (including SIDBI and NABARD),
insurance companies, and others.

16
Angel Investments

In H1 2021 super angels and angel networks

made 219 investments.

The largest funding deal involving angel investors

was the $50 million (₹366 Cr) investment from
Amrish Rau (CEO of Pine Labs), Kunal Shah (CEO
of CRED), Raju Reddy (Founder, Sierra Atlantic),
Deb Deep Sengupta (Former President & MD, SAP
South Asia), and others in B2B logistics
optimization SaaS startup Locus.

Venture Debt

Angel Investments

17
Annual PE-VC Investments

Private Equity in H1 2021: 447 Deals, $27.8 Billion (₹2,03,696 Cr)

With the investments in the 1st half of this year, the projected investment figures for Private
Equity Investments in 2021 would be $48.6 Billion (₹3,56,4698 Cr) across 894 deals.

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Top Investments involving AIFs in Jan - Jun 2021

*Deal value includes share of Non-AIF investors participating in the round.

Company Sector Investors Amount (US$M)

Dewan Housing Finance NBFC (Home Loans) Piramal Enterprises 5240

Vini Cosmetics Personal Care (Cosmetics) WestBridge, KKR 625

India Quotient, Lightspeed Ventures, Tiger Global,

Sharechat Consumer App (Social Media) 502
Others

Zydus AHL Pharmaceuticals CPPIB, Multiples PE, Rare Enterprises 398

Aragen Life Sciences CRO Goldman Sachs 329

FirstCry Online Services (E-Commerce - Baby Care Products) TPG Capital, PremjiInvest, ChrysCapital 315

Lenskart.com Online Services (Shopping - Eyewear & Accesories) Falcon Edge Capital, KKR, Temasek 300

Manipal Health
Hospitals NIIF 283
Enterprises

Five Star Business

NBFC TVS Capital, KKR, Norwest, Sequoia Capital India 234
Finance

3ONE4 Capital, Bertelsmann India Investments,

Licious M-Commerce (Meat Ordering) 192
Multiples PE, Vertex, Temasek, Others

Ribbit Capital, Matrix Partners India, GIC, Sequoia

RazorPay Online Services (B2B - Payment Gateway) 160
Capital India

Uniphore Software Enterprise Software (Speech Recognition, Regional National Grid Partners, Iron Pillar, Sistema Asia Fund,
140
Systems Language, Field Force Management) March Capital, Chiratae Ventures, Cisco, Others

Byju’s Classes Test Preparation IIFL VC, Others 117

Online Services (Marketplace - B2B - Manufacturing Greenoaks Capital, Kae Capital, Lightspeed Ventures,
Zetwerk 117
Services) Sequoia Capital India, Others

Falcon Edge Capital, Creation Investments, Matrix

OfBusiness NBFC (SME Loans) 110
Partners India, Norwest

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Appendix - Top PE Investments in Jan - Jun 2021

Company Sector Investors Amount (US$M)

Dewan Housing Finance NBFC (Home Loans) Piramal Enterprises 5240

MphasiS IT Services, BPO Blackstone 2800

Footpath Ventures, GSV Ventures, ADQ, Owl Ventures, B

Byju’s Classes Test Preparation Capital Group, Prosus Ventures, Silver Lake, Blackstone, 1229
Others

Infogain IT Services Apax Partners 900

Think Investments, Wellington Management, Prosus

Swiggy.com Consumer App (Food Delivery Services) Ventures, Qatar Investment Authority, Falcon Edge 800
Capital, Amansa Capital, Accel India, GIC, Others

Vini Cosmetics Personal Care (Cosmetics) WestBridge, KKR 625

Bow Wave Capital Management, Kora Management, Vy

Zomato Consumer App (Food Delivery Services) Capital, Steadview Capital, Dragoneer Investment Group, 576
Fidelity India, Tiger Global, Others

Sharechat Consumer App (Social Media) India Quotient, Lightspeed Ventures, Tiger Global, Others 502

Footpath Ventures, D1 Capital Partners, Falcon Edge

Dream11.com Online Services (Gaming - Fantasy Sports) Capital, Steadview Capital, TPG Capital, TCV, Tiger Global, 400
ChrysCapital, Others

Zydus AHL Pharmaceuticals CPPIB, Multiples PE, Rare Enterprises 398

Altico Capital NBFC Ares SSG 380

Think Investments, Prosus Ventures, LGT Lightstone

E-Commerce (Marketplace - Pharmacy,
PharmEasy Aspada, TPG Capital, CDPQ, Eight Roads Ventures, 350
Diagnostic Tests)
Temasek

Fortum India Renewable Power Projects Actis 334

Aragen Life Sciences CRO Goldman Sachs 329

Online Services (E-Commerce - Consumer

FirstCry TPG Capital, PremjiInvest, ChrysCapital 315
Shopping - Baby Care Products)

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Appendix - Top PE Exits in Jan - Jun 2021

Company Sector Exiting Investor Acquirer Amount (US$M)

IT Services (Outsourced Product

GlobalLogic Partners Group, CPPIB Hitachi 8100
Development)

BigBasket E-Commerce (Consumer Shopping - Groceries) Abraaj Group, Alibaba Tata Digital Ltd 1200

Sona BLW Precision

Auto Components Blackstone Public Market Sale 709
Forgings

SBI Cards & Payment

Payment Services Carlyle Public Market Sale 650
Services

Goldman Sachs, Global Environment Fund, RMG Acquisition

ReNew Power Renewable Power Projects (Wind, Solar) 590
CPPIB, ADIA, JERA Corporation II

Infogain IT Services ChrysCapital Apax Partners 570

SBI Cards & Payment

Payment Services Carlyle Public Market Sale 546
Services

SBI Life Insurance

Insurance (Life) Carlyle Public Market Sale 537
Company

ChrysCapital, Tiger
Global, TPG Capital,
Kalaari Capital, Multiples PE, Tencent, Think Steadview Capital,
Dream11.com Online Services (Gaming - Fantasy Sports) 400
Investments Falcon Edge Capital,
TCV Partners, D1
Capital Partners

Aakash Educational
Test Preparation Blackstone Byjus Classes 375
Services

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Appendix - Top Investments in DPIIT Registered Start-ups in Jan - Jun 2021

Company Sector Investors Amount (US$M)

Sharechat Consumer App (Social Media) India Quotient, Lightspeed Ventures, Tiger Global, Others 502

Think Investments, Prosus Ventures, LGT Lightstone

E-Commerce (Marketplace - Pharmacy,
PharmEasy Aspada, TPG Capital, CDPQ, Eight Roads Ventures, 350
Diagnostic Tests)
Temasek

Wellington Management, Prosus Ventures, Vy Capital,

Mobile VAS (Marketplace - Handyman
Urban Company Steadview Capital, Dragoneer Investment Group, Tiger 255
Services)
Global, Others

M-Commerce (Consumer Shopping - 3ONE4 Capital, Bertelsmann India Investments, Multiples

Licious 192
Meat Ordering) PE, Vertex, Temasek, Others

Online Services (Marketplace - B2B - Greenoaks Capital, Kae Capital, Lightspeed Ventures,
Zetwerk 117
Manufacturing Services) Sequoia Capital India, Others

Beenext, Coatue Management, Ribbit Capital, Steadview

BharatPe Online Services (Payments - UPI) Capital, Insight Venture Partners, Sequoia Capital India, 108
Others

Falcon Edge Capital, Matrix Partners India, Sequoia Capital

Stanza Living Online Services (Aggregator - Hostels) 102
India

Online Services (Personal Finance - Y Combinator Continuity Fund, Propel Venture Partners,
Groww 83
Mutual Funds) Ribbit Capital, Tiger Global, Sequoia Capital India

Consumer App (Classifields - Jobs - Blue rocketship.vc, Greenoaks Capital, Insight Venture Partners,
Apna.co 70
Collar) Lightspeed Ventures, Tiger Global, Sequoia Capital India

Enterprise Software (SaaS - Coaching GSV Ventures, Falcon Edge Capital, RTP Global, Blume
Classplus 65
Institutes) Ventures, Tiger Global

Online Services (Marketplace - Pre Think Investments, Fundamentum, General Catalyst

Spinny 65
Owned Cars) Partners, Elevation Capital, Others

E-Commerce - Marketplace - B2B -

Bizongo CDC Group, Accel India, Chiratae Ventures, IFC, Others 51
Packaging

Online Services (E-Learning & Test Steadview Capital, Dragoneer Investment Group, Tiger
Unacademy 50
Preparation) Global, General Atlantic

Rapido Mobile VAS (Taxi Booking - Bikes) WestBridge, Nexus Venture Partners, Others 43

Online Services (Aggregator - Car Orios VP, Chiratae Ventures, Tiger Global, Sequoia Capital
GoMechanic 42
Servicing) India

22
Appendix - Definitions of Stages Used

Venture Capital:

Early Stage

First / Second Round of institutional investments into companies that are:

Less than five years old, AND
Not part of a larger business group, AND
Investment amount is less than $20 M

Growth Stage:

Third / Fourth Round funding of institutional investments OR

First/Second Round of institutional investments for companies that are >5 years old and
<10 years old OR spin-outs from larger businesses, AND
Investment amount is less than $20 M

Private Equity:

PE investment figures in this report include Venture Capital (VC) type investments, but exclude
PE investments in Real Estate.

Growth-PE:

First-to-Fourth Round Investments >$20 M into companies <10 years old, OR

Fifth / Sixth rounds of institutional investments into companies <10 years old

Late Stage:

Investment into companies that are over 10 years old, OR

Seventh or later rounds of institutional investments

PIPEs:

PE investments in publicly-listed companies via preferential allotments / private

placements,
Acquisition of shares by PE firms via the secondary market

Buyout:

Acquisition of controlling stake via purchase of stakes of existing shareholders

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