Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country
SoftBank fund leads $200 mn round in C2FO
Financial technology (fintech) firm C2FO, which helps businesses manage their working capital cycle, has raised a $200 million round led by SoftBank Vision Fund 1, Mint reported citing a senior company executive. C2FO is an online marketplace connecting suppliers with buyers for early payments on approved invoices. The business funding platform uses its proprietary algorithm to price the discount value for early payments and match accounts receivable and accounts payable in real time. Its existing investors, Singapore’s state investment arm Temasek and New York-based venture capital firm Union Square Ventures, also participated in the funding round. The firm plans to use the funds for developing newer markets, including India where it started operations four years ago.
India Quotient looks to raise ₹300 crore to invest in startups
Venture capital (VC) firm India Quotient, an early backer of startups is raising a ₹300 crore add-on fund to invest in its best-performing portfolio companies, Mint reported citing a senior executive at the VC firm. The firm plans to close the fundraising for the add-on fund along with the final close of its $60 million third venture capital fund, by September. The venture investor has appointed Kotak Wealth Management to market the fund. The add-on fund is targeting a base size of ₹150 crore, along with a greenshoe option to raise another ₹150 crore. India Quotient will use the add-on fund to invest in companies such as ShareChat, Lendingkart, LoanTap and Sugar Cosmetics, among others. The venture capital firm started with its first fund of $5 million in 2012, followed by an $18 million fund in 2015. The third fund and the new add-on fund will take its assets under management to $125 million. Out of its 70 portfolio companies, the new fund will invest in 15-20, over the next three years.
Tiger Global to lead funding round in tutoring startup Vedantu
Online tutoring startup Vedantu is in the process of raising $30 million in a round led by Tiger Global Management, with participation from WestBridge Capital, Mint reported citing two people familiar with the matter. The round will see Vedantu having a pre-money valuation of $100-110 million. The investment marks a departure for the New York-based fund’s strategy, considering that it has mostly been backing new firms in the business-to-business (B2B) space in the last 8-10 months. It is also one of the first instances this year where Tiger Global is leading a round in one of its portfolio companies. Tiger Global had previously invested in Vedantu in 2015. At that time, Lee Fixel from Tiger Global was handling the India investments. However, after Fixel’s departure from Tiger Global was announced in March, investments in India are now being looked after by Scott Shleifer.
PEs line up for Piramal and TPG’s stake in Shriram Capital
PE funds Advent International, Blackstone Group, CVC Capital, Carlyle Group and Brookfield have placed initial bids to buy around 30% in Shriram Capital as existing investors Piramal Enterprises and TPG Capital seek to exit the Chennai-based financial services firm, The Economic Times reported citing three people familiar with the development. The deal, if successful, will likely value the unlisted firm at ₹18,000-20,000 crore, the people said, pegging TPG and Piramal’s combined holding at around ₹6,000 crore. The bids came in last week and a deal is likely in a few months. Read more
Singtel to raise holding in Bharti Telecom beyond 50%
Singtel is likely to raise its stake in Bharti Telecom, the single largest shareholder in Bharti Airtel to beyond 50% to reduce debt in the firm, The Economic Times reported citing a Bharti Group spokesperson. The move will convert the holding company into a foreign-owned entity and, consequently, take overseas ownership in the mobile operator to over 85%. At present, Bharti Telecom’s 41% equity stake in Bharti Airtel is classified as ‘domestic’ shareholding as it is majority-owned by the Sunil Mittal family (52% stake). Even a small rise in the shareholding of Singtel, which currently owns 48% in Bharti Telecom, will result in a reclassification of Bharti Telecom as a ‘foreign’ investor since it will then be majority-owned by the Singapore company. Existing rules allow 49% foreign investment under the automatic route, and anything between 50% and 100% needs to be cleared by the government. The company had a debt of about ₹4,500 crore as of March 31, 2019. Since then, it has raised over ₹3,000 crore through bond sales to invest in Bharti Airtel’s ₹25,000-crore rights issue. Read more