Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country
Lee Fixel sets sights on Indian startups again, may invest $1 billion
Lee Fixel, the former Tiger Global executive responsible for the firm’s most lucrative India investments, is set to return to his favourite stomping ground as early as next month; this time with his own money, Mint reported citing three people directly aware of the matter. Fixel is looking to invest around $1 billion through his new fund, Addition, as soon as a non-compete agreement with his former employer expires, the people said, requesting anonymity. He plans to actively look at startups in India and also in South-East Asia. As the head of Tiger Global’s private equity business, Fixel led the firm’s investment in Flipkart. Walmart later bought a majority stake in Flipkart, giving the US fund its biggest pay-off in India so far. Fixel was also the architect of Tiger’s other early bets on unicorns such as Ola, Delhivery and Quikr. At Tiger, Fixel was known for his speed of decision-making, often writing a fat cheque just after a brief Skype interview with founders. His aggressive investment approach took peers by surprise, but also earned him global attention.
Goldman Sachs, PremjiInvest and Munjal look to invest in PNB Housing Finance
Goldman Sachs Group, PremjiInvest and the family office of Sunil Kant Munjal are in advanced talks to invest in PNB Housing Finance Ltd, Mint reported citing two people directly aware of the discussions. PNB Housing is looking to raise as much as ₹2,000 crore through the “limited preference" route, under which a maximum of five investors can participate. Two of its existing shareholders, private equity firms General Atlantic and Carlyle, will also infuse funds into the mortgage lender. The company plans to use the funds to bolster its balance sheet and enhance lending to homebuyers and property developers. The transaction is expected to be completed by October and there is a possibility that its parent, Punjab National Bank, may also participate in the funding round, though the potential investment is still under contemplation.
Kae Capital in talks to raise third fund of up to $60 million
Early stage investor Kae Capital is in talks to raise its third venture capital fund of up to $60 million, Mint reported citing two people aware of the matter. This fund would be slightly bigger than its second fund of $53 million in 2017 as its seed stage cheque sizes have become larger and the fund is seeking more capital to be able to invest across multiple rounds. Kae Capital was founded by Sasha Mirchandani, one of India’s earliest startup investors, and founder of the Mumbai Angels network of angel investors. It raised a first fund of $25 million, and invested in firms such as online pharmacy 1mg, and omnichannel shopping startup Fynd. From its second fund, its investments include logistics startup Freightwalla and Zetwerk, a business-to-business platform for custom manufacturing.
Warburg may Buy 20.5% in IndiaFirst from Andhra Bank
Indian life insurer, IndiaFirst Life Insurance, in which Andhra Bank owns 30% equity, might see Warburg Pincus emerge as its biggest shareholder, The Economic Times reported citing industry sources. The private equity investor, which already owns 26% in the insurer, might buy an additional 20.5% stake from Andhra Bank for ₹700 crore. State-run lenders Bank of Baroda currently owns 44% and Andhra Bank 30% in the life insurer. In February, Carmel Point Investments India Private Limited, a Mauritius-based company owned by private equity funds that Warburg Pincus LLC manages, bought 26% in IndiaFirst for ₹710 crore, valuing the company at ₹2,800 crore. This is the first deal wherein a private equity fund has taken an interest in a life insurer, the company claims. Bank of Baroda has become the third largest bank after merging Dena Bank and Vijaya Bank with itself. After the merger of Andhra Bank with Union Bank of India and Corporation Bank, it will have to sell products of Star Union Daichi. All bank joint venture agreements with insurers and their bancassurance arrangements that allow insurance JVs to sell insurance from bank branches will now be subject to adjustments, reflecting the impact of the mergers. IndiaFirst Life will raise fresh capital of about ₹30 crore by selling 100 million shares to existing investors this week.
Kedaara puts $55 million in Lenskart Solutions
Kedaara Capital, one of India’s largest home-grown private equity firms, has invested a shade over $55 million (about ₹392 crore) in eyewear solutions company Lenskart Solutions, The Economic Times reported. According to documents filed by the company with the Registrar of Companies, and accessed by business intelligence platform Tofler, it has issued 6.143 million Series F compulsorily convertible cumulative preference shares at a premium of ₹636.06 per share, to two entities operated by the PE firm—Kedaara Capital Fund-II and Mauritius-registered Kedaara Norfolk Holdings. The developments come at a time when Kedaara Capital is also in talks to buy shares in the omnichannel eyewear retailer through a secondary deal, valuing the company at $1billion. Earlier this month, two of Lenskart’s existing investors PremjiInvest and early backer Chiratae Ventures were also among those likely to partially liquidate their holdings as part of the large secondary transaction that have been pegged at $100 million.