U.S. Invests the Most in India’s Startups

According to New York-based CB Insights, U.S.-based investors are the most active foreign participants in India’s start-up ecosystem over the past five years, making over 800 equity deals during the period.

In the list of top five foreign investors in India’s technology ecosystem, U.K., with 1% of deals stood at 5th place; Japan at 4th with 2% of deals; Hong Kong at 3rd with 3% of deals; Singapore at 2nd with 5% of deals; while the U.S. topped with four times the number of deals than investors from Singapore.

Planning in a startup

Business Standard reports: Of the U.S.-based investors, New York-based Tiger Global has been the most active, backing some of India’s largest start-ups, including Flipkart, Ola, and ShopClues, while also making numerous other investments in smaller companies. Hong Kong-based Saif Partners, has backed firms such as Paytm and Urban Ladder. California’s Accel Partners, which has an India unit, made its largest investment in Flipkart through its overseas unit rather than the local one.

Both Tiger Global and Japan-based Softbank have pumped billions of dollars in India’s startup ecosystem in the past few years.

August 31, 2017   No Comments

Multinationals Bullish on Warehousing in India

Due to growth in both the consumer sector and e-commerce in India, overseas investors and real estate players are increasingly investing in warehousing and logistics.

Key players such as Singapore’s Ascendas-Singbridge, Assetz Property Group, Ohio-based Logos Realty, Canada Pension Plan Investment Board and the Everstone Group, among others, have made major investments in this segment.

Some quotes from senior management:

“We are seeing extensive demand from our existing and new customers for institutional grade logistics facilities in the region,” said Trent Iliffe, joint managing director, Logos.

“We have been in India for over two decades, developing iconic business and IT Parks… Entering the industrial and logistics sector is a natural progression,” Miguel Ko, group CEO Ascendas-Singbridge said.

Srinivas N, managing director, Industrial Services, of Chicago-based JLL India, said, “Thanks to fresh investments, supply and interest in this sector, the Indian logistics industry is set to reach the next level.”

“It is a good time for developers/investors to evaluate this sector to add to quality organized warehousing infrastructure keeping in perspective the latent demand and consolidation/expansion expected post-GST roll out,” said Shyam Arumugam, associate director, Office Services, of Canada-based Colliers International India.

Amazon and DHL announced plans to expand their warehouses, reports BusinessLine.

warehouse

August 21, 2017   No Comments

Blackstone’s Strategy in India Yields Rich Dividends

Tuhin Parikh, senior managing director for real estate in Mumbai at the New York City-based PE and asset management firm Blackstone, has aggregated a 100-million-sqft portfolio in India. Parikh and Blackstone scripted a gold rush into the country’s rent-yielding office spaces, which saw Brookfield Asset Management, Qatar Investment Authority and others investing in India.

The Times of India reports: Parikh struck acquisitions, joint ventures and made strategic investments to build the India portfolio that dwarfs Goliaths such as Boston Properties and Vornado Realty in the U.S. Now, Blackstone plans to list one of its joint ventures, Embassy Office Parks, which bankers expect to fetch a $4-5 billion valuation. Later this year, Embassy REIT will list 35 million sq ft operational and pre-leased offices, with $240 million in annual rentals, to raise as much as $1 billion. This provides both Blackstone and Embassy with liquid shares in a  publicly listed trust, offering inflation-hedged returns to investors fleeing gold and residential markets.

Real Estate

Through strong local partners and outright acquisitions Parikh has 27 projects on the ground across six cities in India. Global investors Canadian Pension Plan and GIC of Singapore, among others, are looking to invest in India’s realty market.

August 12, 2017   No Comments

Templeton Buys $1.2 Billion India Government Bonds

New York City‘s Franklin Templeton Investments bought about $1.2 billion of Indian government bonds in two days end March. The purchases, made through broker JPMorgan Chase & Co, were largely for tenures maturing in 2021-2023.

Since March 11, when Prime Minister Narendra Modi’s party won an election in the state of Uttar Pradesh in the north, foreign funds have been pouring into India, driving stocks to a record high and pushing up bond prices, reports Mint.

Stock chart

“The outcome of state elections, a dovish hike by the Federal Reserve and relatively attractive valuations have been the key drivers of inflows,” said Nagaraj Kulkarni, a senior rates strategist at Standard Chartered Plc in Singapore.

 

March 30, 2017   No Comments

India’s Flipkart Raises $1.4 Billion Funding

Flipkart Private Ltd, the Singapore-based holding company of India’s e-commerce marketplace Flipkart, based in Bangalore, closed a $1.4 billion funding round with backing from Chinese Internet giant Tencent, eBay, and Microsoft. Post funding, the valuation of India’s most highly valued startup is now $11.6 billion from a previous high of $15 billion. The investments will give Flipkart a possible entry into the peer-to-peer e-commerce market.

Flipkart Logo

eBay will sell its Indian business to Flipkart in part exchange for an equity stake; however, it will continue to operate as an independent entity. Tencent, a leading provider of internet value-added services, will become a “strategic investor”, bringing experience in linking social networking, and e-commerce reports CNBC.

“This deal reaffirms our resolve to hasten the transformation of commerce in India through technology,” co-founders Sachin Bansal and Binny Bansal said in a press release.

March 23, 2017   No Comments