SKS Microfinance raises Rs 147 cr via equity sale

Vikram Akula-promoted SKS Microfinance has recently raised Rs 147 crore through a third round of equity infusion.The investors include two new US-based strategic players, Silicon Valley Bank and Columbia Pacific, apart from the existing players like Sequoia Capital, Vinod Khosla and Odyssey Capital.

Silicon Valley Bank is a financial services company which is focused on entrepreneurial technology and life sciences companies for the past 25 years.

Columbia Pacific is a company involved in the healthcare space. The transaction was completed in December 2007 and the funds will be used to financing the microfinance institution’s expansion plans in 2008, said SKS Microfinance chief operating officer MR Rao.

Read more in The Economic Times article.

Citi arm may buy Rs 400 cr PINC stake

Citigroup’s private equity arm Citigroup Venture Capital International (CVCI) is close to acquiring an equity stake in Mumbai-based brokerage house PINC (Pioneer Investcorp) for about Rs 400 crore as deals in the broking industry continue the momentum into the new year.According to sources Delhi-based Chryscapital and Sequoia are the other two private equity funds that are in the race for the stake.

If the deal goes through, this will be CVCI’s third investment in a broking outfit and the first during this calendar year. Last year, CVCI bought a majority stake in retail brokerage Sharekhan(Related Story) for $174 million and another about 20 per cent stake in Anand Rathi Securities(Related Story) for $20 million.

PINC, a stock market-listed company, is promoted by the Gaurang Gandhi family. The promoters hold about 45 per cent stake in the company, employees hold about 15 per cent and the remaining equity is held by the public.

Sources close to the development said initially CVCI would be investing about Rs 170 crore in PINC and the remaining amount would come during the second round of funding. The total valuation of the company is about Rs 800 crore.

Read more in The Business Standard article.

TutorVista to raise Capital in India

TutorVista, the firm that has pioneered online tutoring to students in the West from India, is coming home. It is now rolling out a major Indian business plan for which it will raise $15 million, virtually the same as the $15.25 million which it had raised earlier for its global rollout from the likes of Sequoia Capital.

The funds to be raised will enable three initiatives: ramp up Edurite, the learning content firm TutorVista acquired in November; launch a network of technology-led brick and mortar learning centres across the country; and offer an integrated learning platform, much like what it is delivering to students in the west.

The student will not see the tutor but speak to him and hear him through a headset, and the two will use a computer screen whiteboard, half used and written upon by the student and the other half by the teacher. The rates have not been frozen yet but Indian students are likely to be charged Rs 25,000-40,000 per year, for eight hours of coaching a week.

TutorVista which began 26 months ago now has 10,000 registered students and 850 employees who include 600 teachers operating from 23 Indian cities.About 90 per cent of the students are in the US, 500 are in Korea learning English and the rest are in the UK.

Read more in The Business Standard article.

Pvt equity firms line up cash for Nazara

Nazara Technologies, the Mumbai-based mobile entertainment provider and online gaming firm, is inching closer to get a second round of funding from two private equity firms in early January.An industry source in know of the development said that two overseas PE firms, including Sequoia Capital will invest around $7 million in Nazara.

It has been learnt that Sequoia deal has been sealed and Nazara will make an official announcement on January 7, though promoter and chief executive officer of Nazara Technologies Nitish Mittersain declined to comment anything at this stage.

“Margins in the cricket and gaming are as high as 40% compared to other space like music, ringtones where it’s around 5%. We have targeted the mobile value-added services space in a big way,” Mittersain added.

Nazara had got first funding of $1.5 million from Sequoia Capital.Sequoia Capital has investments in Mauj ($10 million), Bharti Telesoft ($12 million), Nazara ($2 million), Bubbly Motion ($10 million).

According to Associated Chambers of Commerce and Industry of India, a reduction in basic customs duty from 10% to 5% and elimination of additional customs duty could enhance India’s current share of 0.25% in the $30 billion global market to 3% by 2010.

Read more in The DNA Money article.

Manappuram receives Rs 70 crore funding

Manappuram General Finance and Leasing (MAGFIL), the flagship company of the Manappuram Group has arranged a fund infusion of Rs 70 crore from Sequoia Capital and India Equity Partners (IEP).

Sequoia Capital and IEP will invest Rs 35 crore each in two tranches to bankroll Manappuram’s expansion plans for MAGFIL and other group companies.MAGFIL, the BSE-listed non-banking finance company, which is the flagship of the Manappuram Group, had earlier this month finalised the raising of Rs 46.80 crore in working capital from Sequoia and Hudson Equity Holdings, an investment vehicle of IEP, a $300-million private equity fund.

Read more in The Business Standard article.

Sequoia, Singapore fund may invest in Excelsoft

Sequoia Capital and a Singapore-based private equity fund are learnt to be in the race to invest upwards of Rs 100 crore in Mysore-based e-learning firm Excelsoft.Excelsoft is a six-year-old firm which provides a range of customised learner-centric learning systems, test and assessment systems, and desktop tools.

According to industry information, the company, which has a topline of around Rs 50 crore is expected to be valued in the range of Rs 350-400 crore for the stake sale. A deal is expected to be sealed by early-January 2008.

Industry sources further indicate that in addition to Sequoia and the Singapore fund, ICICI Venture is also in the fray to invest in this high-margin firm.

Read more in The Business Standard article.

Sequoia Capital invests Rs 100 cr in GVK Bio

Global private equity player Sequoia Capital has invested Rs 100 crore in Hyderabad-based contract research organisation GVK Biosciences. The company plans to use the money to fund acquisitions in the CRO space and also add to its existing capacities.

The investment comes close on the heels of Sequoia picking up an 18% stake in Hyderabad-based CRO SAI Advantium, signaling the PE major’s interest in the contract research space.

Part of the funds raised will also be used to finance the company’s new campus being built at Mallapuram near Hyderabad at a cost of Rs 60 crore. The investment would be made in a phased manner. The plan is to expand capacities in chemistry and informatics on the drug discovery front.

Read more in The Economic Times article.

Srei Infrastructure Finance Acquires 76% In AP Government Venture Fund

Srei Infrastructure Finance has acquired a 76 per cent stake in an Andhra Pradesh government promoted venture fund. Srei has picked up stake in Hyderabad Information Technology Venture Enterprises Ltd (HITVEL), a venture capital fund set up in 2000 by the Andhra Pradesh Development Corporation, the Andhra Pradesh Industrial Infrastructure Corporation and the Small Industries Development Bank of India. The financial terms of the deal are not known.

HITVEL's first fund had a corpus of Rs 15 crore ($3.6 million), and has invested about Rs 12 crore in seven IT companies from this fund. Its second fund had a corpus of Rs 50 crore ($12.5 million).This is the second instance of acquisition (or merger) of a venture fund in India. In May last year, WestBridge Capital Partners merged with Sequoia Capital to form Sequoia Capital India.