1. Top Headlines
 HT Media to invest up to Rs 1.95Cr in
 CloudByte raises $2.1M in Series A funding led by Nexus
 OneAssist Raises $3.5M from Sequoia Capital
 PE-backed FINO buys Nokia’s prepaid mobile payment
services biz in India.
 Cairn Energy sells 3.5% more in Cairn India for $365M.
 Yatra acquiring Travelguru from Travelocity.
 ERP solutions provider Valgen raises Rs 2.25Cr angel
funding from Blume, others
 AB InBev buys out Corona maker Modelo for $20 bn
Weekly Executive Review
India’s economy may be slowing down, but imports still seem to be
pouring in. New data out on Friday showed a sharp turn towards the
negative in India’s trade balance. The country’s balance of payments
deficit for the quarter ending March was $5.7 billion. That’s compared to
a surplus of $2 billion in the same period in 2011. Meanwhile the
current account deficit for the March quarter reached $21.7 billion,
which amounts to 4.5% of GDP.
In other news, the Reserve Bank sounded a warning on Thursday with
its latest financial stability report. The report said risks had increased
because of the slowdown at home and the debt crisis abroad. It also said
the critical concern was a fall in asset quality. But the report added that
RBI’s stress tests showed a banking crisis was unlikely. RBI governor D.
Subbarao said that despite the problems, India’s financial sector
remained stable. He also stressed that banks were well capitalized and
that leverage remained at healthy levels.
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2. Moving to corporate developments, the Indian units of billionaire Anil
Agarwal’s Vedanta Resources are finally set to merge. On Monday
shareholders of Sterlite Industries and Sesa Goa agreed to create a new
company called SesaSterlite. Among shareholder votes, about 79% of
Sesa Goa’s and 92% of Sterlite’s were in favour of the merger. But the
advisory firm I-I-A-S said some portion of votes had been rejected as
invalid.
The merger also includes other subsidiaries like Cairn India and
Vedanta Aluminium. Vedanta had been counting on the new merger to
simplify its business structure in India and reduce debt from large
acquisitions like Cairn India. But some minority shareholders in Sesa
Goa had criticized the plan as being against their interests.
Coca Cola’s global chairman and CEO Muh-tar Kent announced the
company would invest $5 billion in India by 2020. He said this would
mean an extra $3 billion over what Coca Cola had committed earlier. At
present, Coca Cola India stands at the seventh position in company’s
global portfolio.
Hyundai is looking to introduce a range of new engine technologies to
gain greater market share. It plans to bring its full range of diesel
engines into the country. These will include a 1.1 litre engine that can fit
into its popular i10 vehicle. At present, Hyundai has to import all its
diesel technology into India.
And finally, search provider Just Dial may have delayed its IPO, but it
has just raised money from private investors. Sequoia Capital has put in
Rs305 crore and SAP Ventures, another Rs22 crore. Back in August, Just
Dial had filed its draft red herring prospectus. The company postponed
those plans, but will file a fresh prospectus in July and go public next
year.
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3. Inside The Story
HT Media to invest up to Rs 1.95Cr in
Hyderabad-based software development company Comp-U-Learn Tech
India Ltd (CTIL) is raising up to Rs 1.95 crore from ad-for-equity media
investor HT Media Ltd, as per a stock market disclosure.HT Media, the
publisher of the Hindustan Times newspaper among other media
brands, is picking 100 zero per cent fully convertible debentures of
Comp-U-Learn.Although the pricing of the shares on conversion has not
been disclosed, at the current market price, it could pick as much as five
per cent stake based on current equity base.The promoters, who held
only 15 per cent in Comp-U-Learn as of March 31, are also subscribing
to fresh shares of the company. So the final equity stake being picked by
HT Media could be a tad lower than 5 per cent.
CloudByte raises $2.1M in Series A funding led by Nexus
CloudByte Inc, a one-year-old Cloud startup focusing on storage
virtualisation, has raised Series A funding of $2.1 million, led by Nexus
Venture Partners. Kae Capital also participated in the round.CloudByte
was started in 2011 by a team of five – Srivibhavan Balaram, Umasankar
Mukkara, Shailesh Bam, Felix Xavier and Sunil Navalgi.The funding
would be used to expand sales in the US and the Asian markets, and also
for ongoing product development. A part of the funding would be also
used in hiring talents for its India and US offices. CloudByte is
headquartered in California, with its engineering team based in
Bangalore, and has another office in Singapore.
OneAssist Raises $3.5M from Sequoia Capital
Mumbai-based OneAssist Consumer Solutions Pvt. Ltd has raised $3.5
million (Rs 19.93 crore) from Sequoia Capital India and Lightspeed
Venture Partners. OneAssist, a year-old company, offers personalised
mobile and financial security and management solutions via its products
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4. WalletAssist, MobileAssist, EverydayAssist and TripAssist.Started by
founder duo of Gaurav Maini and Subrat Pani, OneAssist offers an on-
call customer support under various categories from mobile phone
security to fraud assistance. All the services are subscription-based. It
also offers combo packs for joint subscription (for two users).
PE-backed FINO buys Nokia’s prepaid mobile payment
services biz in India
Mumbai-based financial inclusion services provider FINO has acquired
the prepaid mobile payment business of erstwhile Nokia Mobile
Payment Services in India for an undisclosed amount. The acquired firm
has been christened Alpha Payment Services India Pvt Ltd, to be headed
by Shweta Aprameya. It will now focus on prepaid payment service
offerings, such as money transfer, utility bill payment, mobile and DTH
recharge, etc., under the brand Takatak Money.This service would be
bank and telecom operator-agnostic, and would aim to cater to the
requirements of both urban and rural customers. FINO currently
services 50 million customers across a host of banking products and
services.
Cairn Energy sells 3.5% more in Cairn India for $365M
UK’s Cairn Energy has sold additional 3.5 per cent stake in its former
Indian arm Cairn India for Rs 2,060 crore ($365 million) through open
market on Friday. The British energy firm has been looking to encash
more from its key asset in India as it pools in resources to bankroll
other inorganic expansions around the world.Over the past three
months, the British firm has announced two deals worth over $1 billion
cumulatively. These include a deal to acquire Nautical Petroleum for
$644 million and another to acquire Agora Oil & Gas for $450
million.Cairn Energy had earlier sold around 40 per cent stake of Cairn
India to Vedanta in tranches, starting with 10 per cent holding in July
2011 for approximately $1.4 billion in cash.
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5. Last December, it sold another 30 per cent stake to Vedanta for $4.1
billion. Cairn Energy had earlier planned to distribute the bulk of stake
sale proceeds to its shareholders.
Yatra acquiring Travelguru from Travelocity
Gurgaon-based online travel agency (OTA) Yatra Online Pvt Ltd is
acquiring online hotel distribution network TravelGuru from
Travelocity in yet another high profile consolidation move in the Indian
e-commerce space. The deal value and other details of the transaction
could not be immediately ascertained, but sources said an
announcement is expected on Saturday, June 30.Travelguru is known
for its hotel and holiday bookings services even as it also offers flight
search through a partnership with other OTAs such as Goibibo.com and
Via.com. Yatra offers both hotel and airticket booking services and a
deal with Travelguru would boost its hotel and holiday booking practice
to take on its key rivals Nasdaq-listed MakeMyTrip and Cleartrip.
ERP solutions provider Valgen raises Rs 2.25Cr angel
funding from Blume, others
Chennai-based Valgen Infosystem Pvt Ltd, which provides ERP solutions
for SMEs and SMBs, has recently raised Rs 2.25 crore in angel funding
from Blume Ventures and a couple of angel investors.Blume led the
round with Rs 1.25 crore, of which Rs 75 lakh had already been
transferred and the balance would be received soon. Following this
investment, Karthik Reddy, managing partner of Blume Ventures, joined
the board of Valgen.Valgen was set up in 2010 by B Hariharan and Vijay
R Lakshmanan. The company is currently pushing growth and a
significant portion of the money raised would be used for product
development, besides marketing and hiring talents. It also plans to
expand into other cities.
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