Deals Buzz: Mediatek invests $60 million in Paytm4 min read . Updated: 30 Aug 2016, 11:27 AM IST
In other news, Foodpanda looks to raise fresh funds, may opt for sale; Zee Entertainment in talks to sell Ten Sports
Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.
Taiwan-based MediaTek invests $60 million in Paytm, values it at $4.8 billion
Taiwan-based MediaTek’s investment arm Mountain Capital has invested $60 million in Paytm’s parent One 97 Communications, valuing the digital payments and commerce firm at $4.8 billion, reported The Times of India. The round marks almost a two-fold increase in Paytm’s valuation since it last raised money from the Alibaba group in September 2015.
The latest funding round is expected to be in the range of $250-300 million. The latest fund-raise is likely to see a partial secondary sale of shares as well, but the details are being finalized. Sharma, who holds the company’s payments bank licence in his personal capacity, is likely to sell some of his shares in the entity. Paytm recently created two separate entities for its payments and e-commerce businesses. Read more.
On 29 August, Mint reported that One97 Communications is in advanced talks to raise $300-350 million from investors including MediaTek Inc., Temasek Holdings Pte and Goldman Sachs Group Inc. Taiwan’s Foxconn and Singapore’s sovereign fund GIC Pte are also likely to participate in the latest round, besides existing investors Alibaba Group and SAIF Partners. Read more.
Foodpanda looks to raise fresh funds, may opt for sale
Rocket Internet-backed Foodpanda, which last year saw allegations of internal fraud and misappropriation of funds being levelled against its top management, is learnt to be in the process of raising fresh capital, reported The Times of India. The company recently mandated Mumbai-based mid-market investment bank o3 Capital for a $40-60 million fund-raise as it initiates talks with investors.
The fund-raise process could eventually lead to the sale of Foodpanda. The Rocket-incubated company recently said it’s selling its Indonesian business and rethinking its presence across the rest of Southeast Asia as the Samwer brothers struggle to show profitability for most of their high-burn portfolio of consumer internet start-ups. Last month, fashion and lifestyle e-tailer Jabong, in which Rocket Internet was a major shareholder, was sold to Myntra in a slump sale at a valuation of $70 million. Read more.
Cadila, Torrent Pharma in race for top-selling multivitamin brand by Apex Labs
Leading pharma companies Cadila Healthcare, Torrent Pharma and GSK Pharma are in a three-way race to acquire top-selling zinc-based multivitamin brand owned by Chennai-based Apex Labs, reported ET Now. Zincovit, India’s largest-selling zinc-based multi-vitamin, and Zincofer, also a zinc-based multivitamin, are two brands that have been put on the block by Apex Labs.
All three suitors are keen on entering this niche segment. Apex Labs has an upcoming dermatology business and a contract manufacturing business and the deal proceeds will be used to drive the growth of these two verticals, which are the focus segments for the company, going ahead. It’s a strategic shift by the company and the deal value is expected to be in the range of ₹ 1,100-1,200 crore. Read more.
Home design start-up Livspace raises Rs100 crore
Online home design start-up Livspace, which is run by Home Interior Designs E-commerce Pvt. Ltd, has raised ₹ 100 crore from existing investors Bessemer Venture Partners, Jungle Ventures and Helion Venture Partners. Bessemer Venture Partners has led the round, according to Anuj Srivastava, co-founder and chief executive of Livspace.
The company was founded by Srivastava and Ramakant Sharma, former senior executives at Google (Alphabet Inc.) and Myntra Designs Pvt. Ltd, respectively, along with Shagufta Anurag, founder of architectural design consultancy Space Matrix.
Livspace has already raised about $12.6 million in two rounds between December 2014 and August 2015 from Helion Venture Partners, Bessemer Venture Partners and Jungle Ventures. The company will invest in building brick and mortar centres in Bengaluru, Delhi and Mumbai, which will serve as a hub where consumers can meet designers as well as experience centres to showcase products. Read more.
Zee Entertainment in talks to sell Ten Sports
Media firm Zee Entertainment Enterprise Ltd (ZEEL) is looking to sell its sports channel Ten Sports for an undisclosed amount, reported PTI. Without naming the prospective buyers and sharing any details about it, ZEEL informed BSE that its discussions are in advanced stage.
The company also didn’t provide any financial details about the proposed sale. “We are at an advance stage of discussions for the sale of the sports business with potential buyers," ZEEL informed BSE. Meanwhile, it added that “owing to confidentiality provisions, the company is unable to comment on specific details or timeline". Read more.
Renuka Sugars to sell Brazil plant to pare debt
In a partial exit from Brazil, India’s sugar and ethanol manufacturer Shree Renuka Sugars Ltd (SRSL) is all set to hive off the larger of the two plants of its Brazilian subsidiary Renuka do Brasil S/A (RdB), reported Business Standard. The move aims to reduce its consolidated debt burden by almost 50%. Faced with problems in servicing debt since SRSL acquired RdB in 2010 due to sharp decline in sugar price and subdued price trend for many years, SRSL had in September 2015 applied for reorganization of its Brazilian units.
An assembly of RdB creditors (except employees, sugarcane and other essential suppliers and small and medium enterprise suppliers), however, approved the reorganization plan on 26 August with 70% of haircut on overall debt. As per the approved plan, the creditors of RdB agreed to settle their debts on receiving 30% of the notified value of debt plus interest from the debt of plan approval until the date of payment. Read more.