Deals Buzz: PhonePe gets ₹698 crore from Singapore parent
4 min read 30 Jul 2019, 08:54 AM ISTIn other news, Online grocer BigBasket received debt funding worth ₹100 crore from venture debt provider Trifecta Capital
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PhonePe gets ₹698 crore from Singapore parent
Flipkart's digital payments app PhonePe Pvt Ltd (India) has received ₹698 crore from its parent entity in Singapore called PhonePe Pvt Ltd (Singapore), previously known as Flipkart Payments Pvt Ltd, Mint reported citing filings sourced by business research platform, Paper.vc. PhonePe Singapore infused the funds in the India entity by subscribing to 2,022,946 shares in the latter at ₹3,440 per piece. This, however, is not the first fund infusion in PhonePe as it had received ₹763 crore from its parent in March. The capital infusion comes at a time when Flipkart had, nearly two years ago, announced a $500 million funding commitment to the digital payments app to boost its operations. PhonePe was valued at $1.5 billion valuation at the time Walmart bought 77% of the Flipkart group at a total valuation of around $21 billion. Investment advisory firm KeyBanc Capital Markets said in a 24 June note that Walmart’s stake in PhonePe alone could be worth more than $14 billion in the medium term.
BigBasket secures ₹100 crore debt investment from Trifecta Capital
Online grocer BigBasket received debt funding worth ₹100 crore from venture debt provider Trifecta Capital, Mint reported citing a statement from SuperMarket Grocery Supplies Pvt. Ltd, which owns and operates BigBasket. The money will go into working capital and capital expenditure requirements, which includes setting up of new warehouses, strengthening the cold chain, building facilities for reprocessing fruits and vegetables and scaling up its supply chain for the recently launched milk subscription business BB Daily and its speciality vending machine business BB Instant. The deal announcement comes two months after BigBasket raised $150 million in a financing round led by South Korea’s Mirae Asset-Naver Asia Growth Fund, UK’s CDC Group, and existing investor Alibaba. The company was valued just over $1 billion at that time. The latest investment into Bigbasket is one of the largest debt deals in India’s consumer internet industry this year, according to multiple investment analysts that Mint spoke to.
Pfizer to merge generics unit with Mylan
Drugmaker Pfizer Inc has agreed to spin off its generic drugs business and combine it with Mylan, a move that leaves Pfizer with more profitable innovative drugs, including cancer drug Ibrance and pneumonia vaccine Prevnar, Mint filed from a Reuters feed. The new company, to be based in the United States and incorporated in Delaware, will be led by Michael Goettler, president of Pfizer's generics unit, Upjohn. The move is part of a years-long effort by Pfizer to split into three parts - innovative medicines, lower margin generic drugs business and consumer healthcare. While the merger brings blockbuster treatments Viagra, EpiPen and Lipitor under one umbrella, Pfizer has also been beefing up its cancer treatment pipeline as some of its older treatments face competition. Besides, Pfizer and GlaxoSmithKline Plc had said in December they would combine their consumer health businesses.
Comcast-led group makes offer to buy out Zee promoters
A consortium led by US cable major Comcast, which also includes Atairos, Blackstone and James Murdoch’s Lupa Systems submitted a binding offer late Monday to buy out Subhash Chandra from Zee Entertainment, The Economic Times reported citing people aware of the development. Sources close to Zee, however, said they had not received any bid till late Monday evening. Zee’s promoters own 35.79% of the company, of which 63.98% has been pledged with mutual funds and other financial institutions. At current market price, the promoters’ stake is worth ₹13,315 crore (around $1.92 billion), which may be sold at a 15-20% control premium over the market value. The transaction, if accepted, will also likely trigger an open offer for an additional 26% stake and would need board’s approval before a deal is finalised. The deal will give a breather to Chandra, whose Essel Group is facing a severe debt crisis. Chandra had last year announced plans to sell half the promoters’ stake, then 41%, in the company.
Scooter sharing app Bounce looks to raise $30 million
Scooter sharing app Bounce plans to raise $30 million separately for its electric vehicles subsidiary, Zuink Smart Mobility Solutions, and has received in-principle board approval for the same, The Economic Times reported citing two people aware of the development. Existing investors including Accel Partners, Sequoia Capital, Chiratae Ventures and others are likely to lead the first funding round. This is in line with its plan to build a distributed infrastructure for EVs using kirana stores, and to deploy battery swapping stations across cities. Bounce, which is running a pilot with nearly 30 kirana owners in the city, plans to connect them with banks and other lenders to finance charging units and EV batteries. The cost per station works out to ₹100,000, according to Vivekananda Hallekere, CEO and co-founder, Bounce.
MindTickle raises $40 million funding Norwest Venture Partners
Sales enablement platform MindTickle raised $40 million in fresh funding, led by US-based venture capital fund Norwest Venture Partners, The Economic Times reported. The series C round also saw participation from existing investors Accel Partners, Canaan Partners, New View Capital - a spin out of New Enterprise Associates, and Qualcomm Ventures. Post the investment, Scott Beechuk, partner at Norwest Venture Partners, will also join the startup’s board as part of the deal. The software-as-a-service (SaaS) firm, based out of Silicon Valley and Pune, will utilise the funding to strengthen its products and expand outside the US into Europe and Southeast Asia in the coming months.
