KONNECT...Telecom companies topped the industry table (by value) followed by IT & ITeS companies....
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ADVOCACY RESEARCH EDUCATION KONNECT KONNECT IVCA PRIVATE EQUITY - VENTURE CAPITAL REPORT 2020 NEW DELHI | MUMBAI | BANGALORE
Transcript of KONNECT...Telecom companies topped the industry table (by value) followed by IT & ITeS companies....
ADVOCACY
RESEARCH
EDUCATION
KONNECT
KONNECT
IVCA PRIVATE EQUITY -
VENTURE CAPITAL REPORT
2020
NEW DELHI | MUMBAI | BANGALORE
CONTENTS
Executive Summary
Private Equity Investments
Venture Capital Investments
Exits
Angel Investments
Investments involving AIFs
Appendix & Tables
03
04
09
12
16
16
17
18
19
170+ MEMBERS & GROWING..
Fund Raising Activity
Venture Debt Monitor
Executive Summary
Private Equity(1) Investments & Exits
2020 registered 812 Private Equity (PE) investments worth about ₹2.9 Lakh Cr ($39.2 Billion).
The largest PE investment announced was ₹74,743 Cr ($9.9 Billion) investment in Jio Platforms, the
holding company of the Reliance Jio telecom platform from various global Private Equity Firms and
Sovereign Wealth Funds.
Funds with AIF vehicles participated in 366 investments representing 45% of all investments.
Telecom companies topped the industry table (by value) followed by IT & ITeS companies.
Mumbai topped the chart for most investments in a city (by value).
The year witnessed 147 PE exits that harvested about ₹50,382 Cr ($6.8 Billion).
The largest exit was the ₹7,039 Cr ($951 million) partial exit by Carlyle in publicly listed SBI Cards &
Payment Services via an IPO.
India-focused funds raised ₹40,365 Cr across 32 funds.
Venture Capital (1) Investments & Exits
2020 registered 538 deals worth about ₹13,068 Cr ($1.8 Billion).
The largest VC type investments were $20 million investments in Flexiloans, Freshtohome, iMerit
Technology Services, Infra.Market, InterviewBit Academy, UniOrbit and Yellow Messenger.
Funds with AIF vehicles participated in 257 investments.
IT & ITES companies topped the industry table (by volume) followed by Healthcare companies.
Bangalore topped the chart for highest investments (by volume) in a city.
The year witnessed 68 VC exits that harvested about ₹8,830 Cr ($1.2 Billion).
Angel Investments
Super Angels and Angel Networks made 341 investments (compared to 275 deals in 2019).
The largest investment involving angel investors was the $110 million (₹816 Cr) Series E
investment in Bangalore-based Education startup Unacademy led by a mix of PE and VC
investors (including General Atlantic, Nexus Venture Partners, Steadview Capital, Blume Ventures
and Sequoia Capital India) with participation from Kalyan Krishnamurthy and Sujeet Kumar.
3
Private Equity Investments
2020 registered 812 Private Equity (PE) investments worth about ₹2.9 Lakh Cr ($39.2
Billion). The investment value in 2020 is the highest of all time.
Private Equity Investments in 2020: 812 Deals, $39.2 Billion (₹2.9 Lakh Cr)
The largest PE investment announced was the ₹74,743 Cr ($9.9 Billion) investment by
global Private Equity Firms (General Atlantic, TPG Capital, Vista Equity Partners, Silver Lake,
L Capital Asia, KKR), Sovereign Wealth Funds (ADIA, Mubadala Investment, Public
Investment Fund), and strategic investors (Intel Capital and Qualcomm Ventures) in Jio
Platforms, the holding company of the Reliance Jio telecom platform. (Note: This figure
excludes the $10.2 Billion in strategic investments by Silicon Valley tech giants Google and
Facebook.)
Funds with AIF vehicles participated in 366 PE investments worth ₹1.77 Lakh Cr ($24
Billion). The largest investment by a fund with an AIF vehicle was the investment in Jio
Platforms which involved the participation of KKR.
4
$13.5 B $23.9 B $36.4 B $36.3 B $39.2 B
892 858
984 1012
812
0
200
400
600
800
100 0
120 0
$ B
$5 B
$10 B
$15 B
$20 B
$25 B
$30 B
$35 B
$40 B
$45 B
2016 2017 2018 2019 2020
Amount($B) Deals
Private Equity Investments
Telecom companies topped the industry chart with investments worth $11.2 Billion, led
by the investment in Jio Platforms followed by the 51% acquisition of Reliance Digital
Fibre Infrastructure Trust by Public Investment Fund and Abu Dhabi Investment
Authority for $1,012 million.
IT & ITeS companies stood second with investments worth $7.5 Billion led by the $603
million investment in food delivery Unicorn Zomato by Bow Wave Capital Management,
Luxor Capital, Kora Management, Mirae Asset Global Investments, Baillie Gifford, Steadview
Capital, Tiger Global, Temasek and D1 Capital Partners Master LP. This was followed by the
$507 million investment by SoftBank Corp in hotel aggregator Oyo Rooms (as part of a
round that began in 2019).
Retail companies stood third with investments worth $6.7 Billion led by the $6 Billion
investment in Reliance Retail Ventures - from Public Investment Fund, Mubadala
Investment, ADIA, Silver Lake, TPG Capital, KKR, GIC and General Atlantic.
5
$4.4 B
$12.4 B
$0.2 B
$4.9 B
$4.2 B
$2.0 B
$11.2 B
$7.5 B
$6.7 B
$2.9 B
$2.5 B
$2.5 B
Telecom
IT & ITES
Retail
Energy
BFSI
Healthcare
By Industry
2019 2020
Private Equity Investments
6
$15.0 B
$7.9 B
$5.8 B
$1.5 B
$1.6 B
$1.2 B
$0.1 B
$3.2 B
$24.4 B
$6.3 B
$5.8 B
$0.6 B
$0.5 B
$0.5 B
$0.3 B
$0.9 B
Mumbai
NCR Delhi
Bangalore
Chennai
Hyderabad
Pune
Ahmedabad
Others
By Region
2019 2020
$2.4 B
$7.6 B
$9.9 B
$2.5 B
$12.5 B
$1.8 B
$16.2 B
$11.9 B
$1.0 B
$6.8 B
VC
Growth-PE
Late
PIPE
Buyout
By Stage
2020 2019
Private Equity Investments
7
493
109
79
60
78
50
73
358
108
36
41
54
38
60
<$5 M
$5M -10M
$10M -15M
$15M-25M
$25M-50M
$50M-100M
$100M+
By Size*
2019 2020
*Deals with announced values
0
2
4
6
8
10
12
0
2,000
4,000
6,000
8,000
10,000
12,000
2016 2017 2018 2019 2020
Telecom
Amount($M) Deals
0
100
200
300
400
500
600
700
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2016 2017 2018 2019 2020
IT & ITeS
Amount($M) Deals
0
3
6
9
12
15
18
21
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2016 2017 2018 2019 2020
Retail
Amount($M) Deals
0
7
14
21
28
35
0
1,000
2,000
3,000
4,000
5,000
2016 2017 2018 2019 2020
Energy
Amount($M) Deals
Private Equity Investments
8
0
20
40
60
80
100
120
140
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2016 2017 2018 2019 2020
BFSI
Amount($M) Deals
0
15
30
45
60
75
90
0
500
1,000
1,500
2,000
2,500
3,000
2016 2017 2018 2019 2020
Healthcare & Lifesciences
Amount($M) Deals
0
9
18
27
36
45
0
100
200
300
400
500
2016 2017 2018 2019 2020
Food & Beverages
Amount($M) Deals
0
5
10
15
20
25
30
35
0
200
400
600
800
1,000
1,200
1,400
2016 2017 2018 2019 2020
Education
Amount($M) Deals
0
7
14
21
28
35
42
0
500
1,000
1,500
2,000
2,500
3,000
2016 2017 2018 2019 2020
Manufacturing
Amount($M) Deals
0
4
8
12
16
20
24
0
500
1,000
1,500
2,000
2,500
3,000
2016 2017 2018 2019 2020
Engg. & Construction Amount($M) Deals
Venture Capital Investments
In 2020, VC-type investments* recorded 538 deals worth $1.8 Billion (₹13,068 Cr) - 27%
lower than last year’s tally of $2.4 Billion (₹16,899 Cr).
The largest VC investments were the $20 million investments in Fintech lender, Flexiloans;
online meat grocer, Freshtohome; data annotation company, iMerit Technology
Services; online construction materials marketplace, Infra.Market; ed-tech start-up,
InterviewBit Academy; fintech firm, UniOrbit and conversational AI platform, Yellow
Messenger.
Venture Capital Investments in 2020: 538 Deals, $1.8 Billion (₹13,068 Cr)
Funds with AIF vehicles participated in 257 VC investments worth $858 million (₹6,366 Cr).
IT & ITeS companies topped the industry charts with 380 deals contributing to 71% of the
overall deal count.
Bangalore saw the most number of investments (205 deals), followed by NCR Delhi (147
deals) and Mumbai (90 deals).
345 DPIIT-registered startups raised $948 million (₹7,034 Cr). Among DPIIT registered
startups, InterviewBit Academy (from Global Founders Capital, Tiger Global and Sequoia
Capital India) and Yellow Messenger (from Lightspeed Ventures) raised $20 million
funding.
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$1.9 B $1.5 B $1.9 B $2.4 B $1.8 B
628
554
597
658
538
0
100
200
300
400
500
600
700
$0. 0 B
$0. 5 B
$1. 0 B
$1. 5 B
$2. 0 B
$2. 5 B
$3. 0 B
2016 2017 2018 2019 2020
Amount($B) Deals
Venture Capital Investments
10
By Stage
448
27 35 24
124
380
33 26 18
81
IT & ITES Healthcare FMCG Education Others
By Industry
2019 2020
0%
25%
50%
75%
100%
2016 2017 2018 2019 2020
Early Growth
Venture Capital Investments
11
By Deal Size
By City
171
116
156
86
54
23
133
83
115
74
2817
<$1 M $1-2 M $2-5 M $5-10 M $10-15 M $15M+
2019 2020
218
188
123
22 26
81
205
147
90
21 19
56
Bangalore NCR Delhi Mumbai Pune Chennai Others
2019 2020
Private Equity Exits
2020 saw 147 PE-VC exits that harvested ₹50,382 Cr ($6.8 Billion).
The largest exit was the ₹7,039 Cr ($951 million) partial exit by Carlyle in publicly listed SBI
Cards & Payment Services via an IPO. This was followed by the ₹3,348 complete exit by
Everstone from ITeS platform firm Everise, via a secondary sale to Brookfield, realizing a 3x
return.
Private Equity Exits in 2020: 147 Deals, $6.8 Billion (₹50,382 Cr)
12
$8.9 B $15.0 B $26.1 B $10.5 B $6.8 B
301
347
260
197
147
0
50
100
150
200
250
300
350
400
$ B
$5 B
$10 B
$15 B
$20 B
$25 B
$30 B
2016 2017 2018 2019 2020
Private Equity & Venture Capital Exits
Amount($B) Deals
Private Equity Exits
13
PE Exits by Industry
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017 2018 2019 2020
Other
Telecom
Energy
Shipping & Logistics
Manufacturing
Healthcare & LifeSciences
IT & ITES
BFSI
12
52
1814
88
34
1215
10
<1x 1-3x 3-5x 5-10x >10x
PE Exits by Return Multiple
2019 2020
Private Equity Exits
14
$2.5 B
$4.3 B
$1.8 B $1.7 B
$0.1 B
$1.4 B
$3.6 B
$1.7 B
$0.1 B$0.0 B
Secondary Sale Public Market/IPO Strategic Sale Buyback Other
By Type
2019 2020
Venture Capital Exits
2020 witnessed 68 VC exits that harvested $1.2 Billion (about ₹8,830 Cr).
The largest VC exit was the ₹1,061 Cr ($143 million) stake sale in kids coding platform
WhiteHat Jr to Edtech unicorn Byjus Classes. The VC investors in WhiteHat – Nexus
Venture Partners, Omidyar Network and Owl Ventures - realized returns of 14.42x, 14.13x
and 10.56x respectively.
Venture Capital Exits in 2020: 68 Deals, $1.2 Billion (₹8,830 Cr)
15
$1.8 B $2.4 B $14.8 B $2.9 B$1.2 B
89 88
113
82
68
-2
18
38
58
78
98
118
138
$0. 0 B
$2. 0 B
$4. 0 B
$6. 0 B
$8. 0 B
$10 .0 B
$12 .0 B
$14 .0 B
$16 .0 B
2016 2017 2018 2019 2020
Venture Capital Exits
Amount($B) Deals
Fund Raising Activity
India-focused funds raised ₹40,365 Cr ($5.4 Billion) across 32 funds in 2020 - a 29%
decrease (in value terms) compared to ₹53,921 Cr ($7.7 Billion) across 47 funds in 2019.
Angel Investments
16
Angel Investments
Angel Investments
In 2020 super angels and angel networks
made 341 investments.
The largest investment involving angel
investors was the $110 million (₹816 Cr) Series
E investment in Bangalore-based Education
startup Unacademy led by a mix of PE and VC
investors (including General Atlantic, Nexus
Venture Partners, Steadview Capital, Blume
Ventures and Sequoia Capital India) with
participation from Kalyan Krishnamurthy
and Sujeet Kumar.
$4.8 B $4.3 B $5.8 B $7.7 B $5.4 B
40 39
5047
32
0
10
20
30
40
50
60
0
1
2
3
4
5
6
7
8
9
2016 2017 2018 2019 2020
Amount($B) No. of Funds
297
229256 275
341
2016 2017 2018 2019 2020
Venture Debt
Angel Investments
17
3431
5653
42
$ B
$10 B
$20 B
$30 B
$40 B
$50 B
$60 B
2016 2017 2018 2019 2020
Venture Debt
Deals
Appendix - Top Investments involving AIFs in 2020
*Deal value includes share of Non-AIF investors participating in the round.
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Company Sector Investors Amount(US$M)
Jio Platforms Mobile Services
Public Investment Fund, Vista Equity Partners, Mubadala
Investment, ADIA, Silver Lake, L Capital Asia, TPG Capital,
Qualcomm Ventures, KKR, Intel Capital, General Atlantic
9871
Reliance Retail Ventures Apparel & AccessoriesPublic Investment Fund, Mubadala Investment, ADIA,
Silver Lake, TPG Capital, KKR, GIC, General Atlantic6444
ZomatoOnline Services (Local Search -
Restaurants)
Bow Wave Capital Management, Luxor Capital, Kora
Management, Mirae Asset Global Investments, Baillie
Gifford, Steadview Capital, Tiger Global, Temasek, Others
603
RattanIndia Power Power Projects (Multiple Sources) Varde Partners, Goldman Sachs 567
JB Chemicals Pharmaceuticals KKR 414
ECL Finance NBFC SSG Capital, Farallon Capital 401
Ayana Renewable Power Renewable Power Projects (Solar) NIIF, CDC Group, Everstone 390
Essel Group Cruise Ships NIIF 270
RBL Bank Banking CDC Group, Gaja Capital, Baring Asia, Others 209
SP Infra (Solar Assets) Renewable Power Projects (Solar) KKR 204
UnacademyOnline Services (E-Learning & Test
Preparation)
SoftBank Corp, IIFL VC, Nexus Venture Partners, Sequoia
Capital India, General Atlantic, Others153
Biocon Biologics Biotech (Biosimilars) Goldman Sachs 150
Oxford CapsOnline Services (Aggregator - Home
Rentals)Cerestra Advisors 125
CureFit Wellness (Preventive Healthcare)
Epiq Capital, Unilever Ventures, Kris Gopalakrishnan,
InnoVen Capital, Ascent Capital, Accel India, Chiratae
Ventures, Temasek, Others
111
XpressBees Logistics Logistics Services (E-Commerce) InvestCorp Group, Norwest, Gaja Capital 110
FreshtohomeE-Commerce (Consumer Shopping -
Sea Food)OPIC, Iron Pillar, Investment Corporation of Dubai, Others 106
Company Sector Investors Amount(US$M)
Jio Platforms Mobile Services
Public Investment Fund, Vista Equity Partners,
Mubadala Investment, ADIA, Silver Lake, L Capital
Asia, TPG Capital, Qualcomm Ventures, KKR, Intel
Capital, General Atlantic
9871
Reliance Retail Ventures Apparel & Accessories
Public Investment Fund, Mubadala Investment,
ADIA, Silver Lake, TPG Capital, KKR, GIC, General
Atlantic
6444
Reliance Digital Fibre Infrastructure
TrustTelecom Infrastructure (Fibre Optics) Public Investment Fund, ADIA 1012
Piramal Glass Packaging (Glass) Blackstone 1000
ZomatoOnline Services (Local Search -
Restaurants)
Bow Wave Capital Management, Luxor Capital,
Kora Management, Mirae Asset Global
Investments, Baillie Gifford, Steadview Capital,
Tiger Global, Temasek, Others
603
RattanIndia Power Power Projects (Multiple Sources) Varde Partners, Goldman Sachs 567
Chenani Nashri Tunnelway Infrastructure (Roads) I Squared Capital, IFC 528
Oyo RoomsOnline Services (Aggregator - Budget
Hotels)SoftBank Corp 507
O2 PowerRenewable Power Projects (Solar,
Wind)EQT, Temasek 500
Piramal Pharma Pharmaceuticals Carlyle 490
SBG Cleantech Renewable Power Projects CPPIB 425
JB Chemicals Pharmaceuticals KKR 414
ECL Finance NBFC SSG Capital, Farallon Capital 401
Ayana Renewable Power Renewable Power Projects (Solar) NIIF, CDC Group, Everstone 390
Edelweiss Wealth Management Wealth Management Pacific Alliance Group 300
Byjus Classes Test Preparation Tiger Global 300
Byjus Classes Test Preparation Bond Capital, DST Global, Silver Lake 300
Essel Group Cruise Ships NIIF 270
Ecom Express Logistics Services (E-Commerce) Partners Group 250
Nxtra Data Data Centers Carlyle 235
Appendix - Top PE Investments in 2020
19
Appendix - Top VC Investments in 2020
20
Company Sector Investors Amount(US$M)
Flexiloans NBFCThe Falguni and Sanjay Nayar Family Office,
Sanjay Nayar, Falguni Nayar20
FreshtohomeE-Commerce (Consumer Shopping - Sea
Food)OPIC 20
iMerit Technology Services IT Services (Artificial Intelligence, NLP)Khosla Impact, Michael & Susan Dell
Foundation, Omidyar Network, CDC Group20
Infra.MarketOnline Services (Marketplace - Construction
Materials)
Foundamental, Sistema Asia Fund, Evolvence
India, Accel India, Nexus Venture Partners,
Tiger Global
20
InterviewBit Academy Online Services (Education - Vocational)Global Founders Capital, Tiger Global,
Sequoia Capital India, Others20
UniOrbit Online Services (Lending - SME Loans) Accel India, Lightspeed Ventures 20
Yellow MessengerEnterprise Software (Artificial Intelligence -
Bots)Lightspeed Ventures, Others 20
OnsiteGo After Sales Services (Electronics) Accel USA, Avendus PE, Accel India, Others 19
Mamaearth Personal CareSharrp Ventures, Fireside Ventures, Stellaris
Venture Partners, Sequoia Capital India18
Jiffy.aiEnterprise Software (Programming Tools -
Robotic Process Automation)
Rebright Partners, Nexus Venture Partners,
Others18
Appendix – Top PE-VC Exits in 2020
21
Company Sector Exiting Investor Acquirer Deal Amount (US$M)
SBI Cards & Payment Services Payment Services Carlyle NA 951
Everise BPO (CRM) Everstone Brookfield 450
Bharti InfratelTelecom Infrastructure
(Towers) Providence NA 255
Essel PropackPackaging (Tubes &
Laminates) Blackstone NA 253
Crompton Greaves Consumer
Electricals
Consumer Durables
(Household Electrical
Appliances)
Temasek, Advent International NA 220
AU Small Finance BankBanking (Small Finance
Bank) Warburg Pincus NA 173
WhiteHat JrOnline Services (E-Learning -
Coding for Kids)
Nexus Venture Partners, Omidyar
Network, Owl VenturesByjus Classes 143
Intas Pharmaceuticals Pharmaceuticals Capital International ChrysCapital 132
AU Small Finance BankBanking (Small Finance
Bank) IFC, ChrysCapital NA 124
NIIT Technologies IT Services (GIS) Baring Asia NA 119
Appendix - Top DPIIT Startups 2020
22
Company Sector Investor Amount (US$M)
Oyo RoomsOnline Services (Aggregator -
Budget Hotels)SoftBank Corp 507
UnacademyOnline Services (E-Learning & Test
Preparation)
SoftBank Corp, IIFL VC, Nexus Venture
Partners, Sequoia Capital India, General
Atlantic, Others
153
Oxford CapsOnline Services (Aggregator -
Home Rentals)Cerestra Advisors 125
UnacademyOnline Services (E-Learning & Test
Preparation)
Steadview Capital, Blume Ventures, Nexus
Venture Partners, Sequoia Capital India,
General Atlantic, Others
104
Vedantu Online Services (Remote Tutoring)
GGV Capital, Coatue Management,
WestBridge, Omidyar Network, Tiger Global,
Others
100
Bounce Scooter Rentals
B Capital Group, Falcon Edge Capital,
Omidyar Network, Maverick Capital,
Qualcomm Ventures, Accel India, Chiratae
Ventures, Sequoia Capital India, Others
99
BharatPe Online Services (Payments - UPI)
Coatue Management, Ribbit Capital,
Steadview Capital, Insight Venture Partners,
Others
74
Acko Insurance - GeneralIntact Ventures, RPS Ventures, Amazon,
Others60
RupeekOnline Services (Lending - Gold
Loans)
GGV Capital, KB Investment, Tanglin Venture
Partners, Bertelsmann India Investments,
Others
60
Zolo Aggregator (Home Rentals)
Mirae Asset Global Investments, Trifecta
Capital, InvestCorp Group, Nexus Venture
Partners
56
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
23
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