Deals Buzz: Brookfield may buy controlling stake in debt-ridden Suzlon Energy
In other news, Byju’s, India’s most valued ed-tech company, raised $150 million in its latest round of funding led by Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar
Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country.
Brookfield may buy controlling stake in debt-ridden Suzlon Energy
The Toronto-based investment firm Brookfield Asset Management Inc. may buy a majority stake in the debt-ridden renewable energy firm Suzlon Energy Ltd, Bloomberg reported citing people familiar with the matter. Brookfield, the people said, was working with a financial adviser for due diligence on the Pune-based wind turbine supplier. The asset management firm may start with buying new shares issued by the company, followed by purchasing stocks from the existing holders under an open offer. As part of the proposed deal, the Canadian company is in discussions with Suzlon’s creditors to restructure the outstanding bank loans of more than ₹11,000 crore ($1.6 billion), under a so-called one-time settlement plan. Brookfield is demanding that the lenders led by State Bank of India (SBI) take a haircut of as much as 50% on the loans. Even as Suzlon talks with several investors and Brookfield’s proposal is among the various options available, a binding offer from Brookfield could come as soon as the end of this month.
Qatar wealth fund, Owl Ventures invest $150 million in Byju’s
Byju’s, India’s most valued ed-tech company, raised $150 million in its latest round of funding led by Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar, Mint reported. The round also saw investments from Owl Ventures, a Silicon Valley-based venture capital fund which invested for the first time in an Indian startup. The funds will help Byju’s expand into international markets and create learning products for students across the globe. In December, Byju’s raised $540 million in a funding round led by South African media conglomerate Naspers. Canada Pension Plan Investment Board (CPPIB) also took part in the round.
RBL Bank plans to raise $150 mn debt from IFC
International Finance Corporation (IFC), the private sector investment arm of World Bank, said it is in talks to lend $150 million to RBL Bank Ltd. The debt financing will be in the form of a five-year dollar denominated senior loan, Mint reported citing IFC’s disclosure on its website. Of the total, about $100 million would be used to support RBL’s expansion of micro, small and medium enterprises (MSME) and individual business loans portfolio up to a maximum ticket size of $100,000 in low-income states of India. The remaining $50 million would be earmarked for climate smart projects. IFC will work with RBL to support the bank in building in-house capacity to develop its climate financing business, it added. RBL will also give 1.5 times the amount IFC is investing in MSMEs, joint liability groups (JLG), individual business loans up to a maximum ticket size of $100,000 as well as climate smart projects across the country.
Moglix raises $60 million led by Tiger Global and Sequoia Capital
MogliLabs, which owns and operates B2B industrial goods marketplace Moglix, raised $60 million (about ₹412 crore) in its latest equity financing round led by Tiger Global Management and Sequoia Capital, The Economic Times reported. Hong Kong-based Composite Capital also came on board as a new investor, marking its second investment in India. Moglix, which also counts Accel Partners India and US, International Finance Corp, the private investment arm of the World Bank, former WhatsApp senior executive Neeraj Arora, and Ratan Tata among its list of backers, has now raised north of $100 million across rounds. The company will primarily use the proceeds to ramp up infrastructure. Moglix is currently present in 14 locations, and plans to be in 22-25 industrial hubs.
Yulu in talks to raise funds from Xiaomi arm, Shunwei, others
Bengaluru-based cycle sharing platform Yulu, which offers electric cycles and bicycles on hire for last-mile commute, is in advanced talks to raise a Series A round of ₹100 crore ($15 million) from Chinese investors, including Shunwei Capital, Xiaomi’s venture capital arm, and ex-InMobi chief business officer Atul Satija, Mint reported citing three people familiar with the matter. The two-year-old urban mobility startup has already received commitments from its existing investors, including Blume Ventures, and multiple high net-worth individuals for its ongoing Series A round, which may exceed ₹100 crore if new investor Shunwei commits as well. The startup was co-founded by ex-InMobi founder Amit Gupta, and veteran entrepreneur R.K. Misra who graduated from Indian Institute of Technology, Kanpur in 1989. If the deal goes through, Yulu’s valuation may be pegged between ₹350 crore and ₹400 crore.
Samsung’s VC unit invests $8.5 million across four startups
Samsung’s venture capital arm, Samsung Venture made its debut in India by investing $8.5 million across four startups, Mint reported. The venture fund made strategic investments into system applications company OSLabs (Indus OS), speech technology startup Gnani.ai, IoT solutions provider Silvan Innovation Labs and an early-stage computer vision startup, whose name it did not disclose. Samsung Venture, which invests in early-to-late stage startups that have a strategic fit with the South Korean company’s products and goals, has over $2.2 billion in assets under management. Corporate venture funds are not new to India. Several large corporates such as Alphabet Inc (CapitalG), Intel (Intel Capital), Qualcomm (Qualcomm Ventures) and Microsoft (M12) have also invested in Indian start-ups.