Global private equity major Warburg Pincus has pledged its entire 9.86% shareholding in private lender IDFC First Bank Ltd, with Citigroup, Barclays and Standard Chartered to raise funds, Mint reported citing two people aware of the development. Warburg has mobilized around $150 million by pledging the entire IDFC First stake, which based on Monday’s closing price of ₹41.1 per share, is worth around ₹1,940 crore. Warburg holds 471.73 million shares in IDFC First Bank through an entity called Cloverdell Investment Ltd. As on 30 June, the bank had total assets of ₹1.12 trillion under management with retail loans comprising 40% of the asset base. The bank’s gross non-performing assets (NPA) stood at 2.66%, while capital adequacy ratio was at 14%. It had 279 branches as on 30 June.
Indifi raises funding in round led by CDC
Fintech startup Indifi has raised ₹145 crore in a Series C equity round led by CDC Group— the development finance arm of the UK government, Mintreported citing Alok Mittal, co-founder and chief executive, Indifi, in a phone interview. The fundraise comes at a time when domestic lenders have been bogged down by a severe liquidity crunch. Existing investors. including social impact funds Omidyar Network and Elevar Equity, and venture capital firm Accel Partners, also participated in the round. Founded by angel investor Mittal, along with Siddharth Mahanot and Sandeep Saini, in 2015, Indifi provides loans to small businesses in travel, e-commerce and retail. Indifi provides loans of ₹1-50 lakh, with an average ticket size of ₹5 lakh, to enterprises that have an annual turnover of ₹50 lakh to ₹10 crore. Along with lending from its own books, it also acts as a marketplace, to lend to businesses by tying up with other lenders. It currently has ₹300 crore of assets under management.
Flipkart takes on Amazon, Netflix with free video streaming service
Walmart Inc.’s Flipkart plans to start a free Indian video streaming service for members of its Flipkart Plus loyalty program by September ahead of the peak Diwali shopping season, according to a Bloomberg. Unlike its competitor’s video streaming service Amazon Prime, Flipkart Plus video-streaming— currently in beta mode, will come free just like its no-subscription fee loyalty program. Flipkart shoppers can become members by amassing 300 “super coins," at a rate of 2 for every ₹100 spent on its platform. Users can exchange those tokens for items from flight tickets and food delivery to car rentals and music streaming subscriptions. And, again unlike its rival, the Indian company doesn’t automatically offer deals on shipping, with free delivery limited to only very few products.