Posts Tagged ‘mGinger’

US Based VC Fund To Heavily Invest in Indian Firms

US Based VC Fund To Heavily Invest in Indian Firms

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New Enterprise Associates Inc. (NEA), an US-based venture capital (VC) fund will allocate 15%, or $375 million, for investment in Indian firms, a senior company official said.

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Earlier, it had also raised $2.5 billion (Rs 11,425 crore) in its 13th fund to focus on the emerging markets.

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Firm’s senior managing director told to media person that they will be only doing growth equity deals in India.

Moreover, they may enter early in some sectors and do follow-on funding till they reach $50 million.

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Firm does have plans of investing funds in India over a period of four years, with a deal size of $30-80 million.

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Though, their main focus will be the mid-market segment, all the way.

The new fund will also restructure its alliances in India.

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NEA – IndoUS, started in 2006 by Vinod Dham, Vani Kola and Kumar Shiralagi, when NEA had no direct presence in India.

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It raised $189 million in 2007 and has invested in firms such as mobile phone marketer mGinger, movie rental service Seventymm Services Pvt. Ltd, and online gift service Myntra Designs Pvt. Ltd.

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The services sector and the clean technology space are among sectors the company will invest in.

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The NEA fund also marks a revival of venture fund-raising.

The global financial meltdown that followed the September 2008 collapse of US investment bank Lehman Brothers Holdings Inc. dramatically affected the VC environment.

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“Even funds with a good track record have found it difficult to raise money with many trying to raise funds since the past one year,” said Jagannadham Thunuguntla, equity head at Delhi-based investment bank SMC Capitals Ltd.

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“It is not good news for first-time fund managers.

However, for the ones who have managed to raise money and invest in 2009-2010 they will get fair valuations and can at least expect modest returns” he added.

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🙂