Private Equity Firms See Gold In Mid-Size Indian IT Firms

Indian IT firms, especially in the mid-tier segment, have seen a rise of private equity firms placing stakes on them. While faster technology at mid-size IT services companies have attracted PE firms such as Blackstone, Carlyle, ChrysCap, Bain Capital, The Baring Asia and others to invest in the sector; PE-backed companies have seen faster growth at a time when their large listed peers slowed down due to uncertain market.

Is This Flipkart’s Last Fundraise On Road To IPO?

India’s largest e-commerce company Flipkart’s recent fundraise of $1.4 billion (around Rs 9,000 crore), the biggest-ever in the country’s burgeoning consumer internet sector, has undoubtedly filled its coffers for now, but it also begs some important questions. Will this be the company’s last round of external funding as it looks to turn profitable? Is a stock-exchange listing by 2019 Flipkart’s next destination?

How Change In Technology Landscape Is Impacting M&A In IT Industry

The year 2016 witnessed a major rise and impact of new technologies like social, mobile, analytics and cloud (SMAC) across businesses and organisations, not just in terms of the adoption, usage and investments but also it gained the status of new mainstream technologies.

Change At Flipkart To Set Precedence For Global Investors In India

Below are some of the latest tweets on this topic. Read a more updated thread by clicking on any of the tweets from below.

Impact Of Flipkart’s Devaluation On Indian Startups: Insights By Greyhound Research On CNBC TV18

5 Reasons Why Symantec’s Acquisition Of Blue Coat Matters To The CIO’s Office

On 12 June, 2016 Symantec announced its agreement to acquire Blue Coat for USD 4.65 billion.

As a result of this acquisition, the company will now have 385,000 customers, a vast repository of data sources and over 3,000 researchers and engineers worldwide. Post this acquisition, Symantec will have USD 4.4 billion in combined revenue (on pro-forma, non-GAAP basis) in FY16. By the end of FY18, Symantec expects to realise USD 550 million in run-rate cost savings. In addition, the combined entity will have access to vast Security and Threat Intelligence data sources including Telemetry gathered from 175 million protected endpoints; more than 2 billion emails scanned per day; 1.2 billion web requests monitored per day across 55 languages; 12,000 Cloud applications monitored and controlled.

“Snapdeal is well-positioned to turn profitable in the next 2-3 years”- Kunal Bahl, CEO

Snapdeal recently expanded their e-commerce marketplace to include more service offerings through a ‘one-of-a-kind partnership’ with Zomato, Cleartrip, UrbanClap, and redBus. Now in a recent interview with Livemint, Kunal Bahl, CEO, Snapdeal, said that the company is now focusing on net revenue instead of gross merchandise value (GMV) and the new focus is part of another big change at the e-commerce marketplace.

Snapdeal May Die A Slow And Painful Death

On June 8, American e-commerce major Amazon announced an additional $3-billion investment in India, making clear its intention to win in the country. This throws up a massive challenge for all homegrown e-commerce companies, among which Snapdeal could be hurt the most.

Investors Keep A Close Watch As Mu Sigma Founder-couple Splits

Even as investors at Mu Sigma keep a close watch on the recent developments within the company, there is a possibility of bringing in professional mangers at the helm of affairs.

The Life Of A Startup After A Devaluation

India’s biggest technology startups are finally getting a taste of devaluation.

For the last couple of years, India was flooded with venture capital money, which helped several tech companies become unicorns—startups valued at over $1 billion. But now, some of the biggest players in the sector seem to be coming apart at the seams.

The Real Reasons Behind Indian Startups Shutting Down

In April, on-demand grocery delivery service PepperTap shut shop. Recently, online beauty services provider Amber Wellness, which was operating in Bangalore, New Delhi and Mumbai, closed down.

But these are not isolated cases. In 2015, around 13 startups closed operations. And others, such as food technology startups TinyOwl and Zomato, scaled down last year. Between the two companies, more than 400 people lost their jobs last year.

Blackstone India takes Mphasis off HP’s hands for ₹7,100 crore

Private equity player Blackstone India announced that it will buy Bengaluru-based Mphasis for ₹7,100 crore, making it the largest deal in India and bringing to a close speculation over the future of Mphasis.

The PE major will acquire Hewlett-Packard’s 60.5 per cent stake in the company at ₹430 per share, which will trigger an open offer for acquiring 26 per cent from Mphasis’ other shareholders. The open offer is priced at ₹457.50 per share.

Blackstone buys Serco BPO operations for £250 million

Private equity firm Blackstone has acquired a majority stake in Serco’s BPO operations for £250 million (₹2,558 crore). This is the largest such deal for Blackstone in India. The sale does not include the UK business of Serco Global Services, which will be divested later.

The deal is expected to bring back some action in the Indian BPO market, which has not seen any major consolidation in the recent past. According to Nasscom, revenue from the Indian IT-BPM industry stood at $146 billion last year, growing 13 per cent last year and commanding a 55 per cent global sourcing share. The domestic market itself is rapidly growing with business coming from e-commerce companies and start-ups.

The Startups caravan

India is in the throes of an entrepreneurship revolution, with online start-ups getting the support of both consumers and venture capitalists. In fact, over the years, a large number of online travel start-ups have entered the fray to cash in on the e-commerce boom that has, to a large extent, been driven by the travel segment in the country.

#GreyhoundCorridors: Why We Matter To The IT Analyst Landscape – An Update From Greyhound Research

Recently, Greyhound Research has been recognised by a senior Analyst Relations professional, Dave Noble, as one of the upcoming Analyst firms.  While this recognition is surely a feather in our cap and we are humbled on Dave’s decision to include us in the list, we are not letting this and other accolades go to our head. We remain committed to being a new-age IT Analyst firm with innovative offerings and robust processes.

Funds In The Driver’s Seat

Garnering funds is not difficult for Indian companies. Retaining ownership of companies is. Private equity (PE) and venture capital (VC) funds are only too happy to come on board, but they like to secure their exit route as they invest. As a result, they are increasingly getting involved in the operations of their portfolio companies, especially e-commerce companies and startups. Some are even taking control of the management of investee companies in order to prepare them for exits as in today’s environment investing is easy but cashing out profitably is not.

Funds In The Driver’s Seat

Garnering funds is not difficult for Indian companies. Retaining ownership of companies is. Private equity (PE) and venture capital (VC) funds are only too happy to come on board, but they like to secure their exit route as they invest. As a result, they are increasingly getting involved in the operations of their portfolio companies, especially e-commerce companies and startups. Some are even taking control of the management of investee companies in order to prepare them for exits as in today’s environment investing is easy but cashing out profitably is not.

Funds In The Driver’s Seat @BWorldOnline

Garnering funds is not difficult for Indian companies. Retaining ownership of companies is. Private equity (PE) and venture capital (VC) funds are only too happy to come on board, but they like to secure their exit route as they invest. As a result, they are increasingly getting involved in the operations of their portfolio companies, especially e-commerce companies and startups. Some are even taking control of the management of investee companies in order to prepare them for exits as in today’s environment investing is easy but cashing out profitably is not.

Topsgrup To Raise $100 Million From International PE Firms

Security firm Topsgrup, run by Tops Security Ltd, is planning to raise $100 million from international private equity (PE) firms to fund acquisitions and provide existing investors a profitable exit. The Rs.1,200 crore company would conclude the private equity deal in four months to facilitate an exit for existing investors, Diwan Rahul Nanda, global chairman at Topsgrup, said in an interview. ICICI Venture Funds Management Co. Ltd and Everstone Capital hold 19% in Topsgrup while ace investor Rakesh Jhunjhunwala holds 12%.

Topsgrup To Raise $100 Million From International PE Firms

Security firm Topsgrup, run by Tops Security Ltd, is planning to raise $100 million from international private equity (PE) firms to fund acquisitions and provide existing investors a profitable exit.

Budget 2015: Start-Ups Get A Tech Boost

If the big idea of Budget 2014, announced on 10 July, was clearly start-ups, the Bharatiya Janata Party-led National Democratic Alliance government took it a step further by announcing on Saturday an allocation of Rs.1,000 crore to enable information technology (IT) start-ups, create additional funding avenues for small companies to raise money and, in turn, generate more employment.

Blackstone In Race To Acquire Serco’s BPO Unit

Private equity giant Blackstone is in the race to buy the Indian BPO unit of Serco as the London-listed group scouts for a new owner for the outsourcing firm it acquired four years ago. According to sources, Serco is in discussions with the PE major to sell the unit (formerly Intelenet) for about USD 400-450 million.

“Blackstone’s entry in the bidding is significant as it will help Intelenet to further strengthen its client portfolio through Blackstone invested companies,”Greyhound Research Chief Analyst and Group CEO Sanchit Vir Gogia said.

Gogia said: “Greyhound Research believes that in recent years profits of BPOs have considerably gone down owing to the small sizes of the deals and shift of business to the Philippines and other offshore locations. We believe that this has severely affected Serco’s business, hence this decision to sell Intelenet.”

To read the Full Article, click here: Business Standard

Blackstone In Race For Serco’s Bpo Arm

Private equity giant Blackstone is in the race to buy the Indian BPO unit of Serco as the London-listed group scouts for a new owner for the outsourcing firm it acquired four years ago.

Blackstone In Race To Acquire Serco’s BPO Unit

Private equity giant Blackstone is in the race to buy the Indian BPO unit of Serco as the London-listed group scouts for a new owner for the outsourcing firm it acquired four years ago. According to sources, Serco is in discussions with the PE major to sell the unit (formerly Intelenet) for about USD 400-450 million.

PE Firm Blackstone May Buy Back Intelenet

Private equity giant Blackstone has made an offer to buy back the Indian BPO unit of the London-listed Serco, as formal bids were fired last week for the asset put on the block, people familiar with the matter said, according to this report. The bids have valued the Serco unit (formerly Intelenet) at $450-500 million, sources added.

How to sail through complex Due Diligence process

Setting up systems, adhering to all financial and legal requirements and transparency will help a venture sail through an increasingly complex due diligence process. Tight-fisted investors are taking longer to close deals at startups as they become more alive to the lurking risks. Where even a couple of years ago, they were content at evaluating just the audited book of accounts, they now insist on sifting through minute details of a business.