Deals Buzz: 3one4 Capital raises ₹445 crore across 2 funds4 min read . Updated: 12 Dec 2019, 11:27 AM IST
In other news, Qatar Investment Authority (QIA) is investing $450 million (about ₹3,200 crore) in Adani Electricity Mumbai Ltd (AEML), the flagship power transmission asset of billionaire Gautam Adani
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3one4 Capital raises ₹445 crore across two funds
Venture capital firm 3One4 Capital, backed by former Infosys senior executive TV Mohandas Pai, has raised ₹445 crore across two funds, indicating a continued interest in early stage investing in the Indian startup ecosystem, Mint reported citing brothers Pranav and Siddarth Pai, founding partners at 3one4 Capital. It has raised Rs400 crore for an opportunity fund - Continuum I, targeted at investing selectively in the best performing companies from 3one4’s portfolio; and a ₹45 crore seed stage fund - Rising I - for fresh investments. Continuum will write cheques between $3-5 million in existing portfolio firms in their Series B rounds and beyond, while Rising could invest from $100,000 to $1 million as the first cheque (seed) in a startup. The new limited partners (LPs), or investors in the fund, include Emory Investment Management, a large US endowment that manages the assets of Emory University, Emory Healthcare and The Carter Center, Sojitz - a leading Japanese corporation, Catamaran Ventures- former Infosys CEO Narayana Murthy’s private investment arm, and Infina - a private investment company owned by the Kotak family, besides other Indian institutions and family offices. 3one4 plans to invest in automation, media and content development, fintech and health. Other new sectors it is looking at include agri-tech and logistics. Its current portfolio includes meat delivery firm Licious, Open neo bank- a digital banking firm, and Darwinbox, which helps manage employee lifecycle in an organization.
Qatar to invest $450 million in Adani’s Mumbai power business
Qatar Investment Authority (QIA) is investing $450 million (about ₹3,200 crore) in Adani Electricity Mumbai Ltd (AEML), the flagship power transmission asset of billionaire Gautam Adani, Mint reported a stock exchange filing by Adani Transmission Ltd (ATL), the parent of AEML. While the quantum of equity and debt was not disclosed, the investment is for AEML’s 25.1% stake and subordinated debt. As part of the transaction, Adani Transmission and QIA have also agreed that more than 30% of the electricity supplied by AEML will be sourced from solar and wind power plants by 2023. The transaction is expected to be completed in early 2020, subject to regulatory approvals and customary conditions. This follows the August 2018 deal of Anil Ambani, who sold his Mumbai power distribution business to ATL for ₹12,700 crore. The QIA investment values the AEML business at roughly ₹13,000 crore.
Fresh produce startup Ninjacart raises funds from Walmart, Flipkart
India’s largest online retailer Flipkart and global retail major Walmart Inc. have jointly invested an undisclosed amount in Bengaluru-based fresh produce startup Ninjacart, Mint reported. Walmart, which also owns Flipkart, said the move will ensure the Indian farmer gets more economic opportunities, while retailers and consumers get better access to high-quality fresh produce. Partnering with Ninjacart will allow Walmart and Flipkart to strengthen direct sourcing of fresh produce for Walmart India’s Best Price B2B cash-and-carry stores, and Flipkart’s online grocery business, Supermart, the companies said in a statement on Wednesday. The deal is expected to close by the end of 2019. The investment will also help Ninjacart grow its customer base and reach new cities.
KredX raises $26 million in round led by Tiger Global
Tiger Global Management Corp. has led a $26-million round in invoice discounting platform KredX, the investment firm said on Wednesday. The New York-based company is one of the most active investors in Indian startups and has backed 20 companies so far this year, Mint reported. Invoice discounting is the practice of using a company’s unpaid dues as collateral for a loan, which helps companies better manage their working capital. KredX provides a marketplace for business owners to sell and investors to purchase invoices, in which the counter-party is a blue chip company. KredX also offers capex for large enterprises that aim to raise funds by discounting their lease or rental pacts. The startup, founded by Manish Kumar and Anurag Jain in 2014, had raised a ₹40-crore Series A round in 2016 led by Sequoia, with participation from early backer Prime Venture Partners.Mint had first reported on 26 September that Tiger Global is in talks to back KredX.
Piramal, IIFL Wealth to offer ₹2000 crore last-mile funding to realty projects
Piramal Group and IIFL Wealth Management Ltd on Wednesday said that they will co-invest in an alternative investment fund (AIF), which will back projects that are at an advanced stage and need last-mile funding, Mint reported citing a press release by Piramal. The AIF with a target corpus of ₹2,000 crore, will provide capital to established developers in key cities. The market today presents many opportunities for last-mile finance in projects that require a minimum amount of funding for their completion. “The creation of this AIF is in line with Piramal Group’s strategy to build newer platforms for co-lending with liked-minded reputed institutions. We will initially seed the fund with existing loans from Piramal Group’s portfolio, while continuing to explore quality deals from the market in future," said Khushru Jijina, managing director, Piramal Capital & Housing Finance Ltd. This will see Piramal Group facilitating external capital (on a fund or co-investment basis) alongside its lending business and will enable it to continue to further grow the lending business through a new co-investment or co-origination mode.