Professional Documents
Culture Documents
Q3
FY2016
Modern retail currently constitutes only about 20% of the current retail market in
India - estimated to reach US$1.3 trillion by 2020
Indias retail and consumer goods sector is likely to see continuing deal-making activity
for the next six months, as it expects investments to flow in from the US and China
Consumer Goods
& Services
According to a report by BCG and CII, Indias robust economic growth and rising
household incomes would increase consumer spending to US$ 3.6 trillion by 2020 and
India's share of global consumption would expand more than twice to 5.8% by 2020
More than 60% of the brick and mortar retailers have developed their e-commerce
capabilities and the trend is definitely redefining the shopping experience
Indian e-commerce market is set to touch US$128 billion by 2017 from current level of
US$42 billion. Also estimated that by 2020, more that 150 million consumers would be
digitally influenced in FMCG, spending more than US$ 45 billion in that category
E-Commerce
The government allowed single-brand retailers to directly enter the online retail
segment, while also creating a platform for "Indian manufacturers to boost their ecommerce business in India
Foreign investment in Indias financial services sector rose sharply in 2015, led by
interest in retail service providers and a higher cap for foreign investment in the
insurance sector. Deals worth US$3.8 billion were closed in the financial services
sector in 2015, up from US$1.6 billion in 2014
Finance
Healthcare
India is home to at least 140 start-ups in the doctor-booking and practice management
software segment, according to Tracxn. Indias home healthcare industry, which
consists of home-based medical devices and home services, is worth $2 billion and
growing 20% annually
The education sector has seen some fairly slow but motivating trends emerging over
the last year. Ed tech, the poorer cousin to the e-commerce and the food-tech
startups, struggled with much lower levels of funding throughout the year barely
gathering 1% of the $7.2-billion kitty invested in India
Education
The Ministry of Human Resources and Development initiated the New Education
Policy (NEP) at the beginning of 2015.
733
923
10%
154
648
52%
675
23%
Information Technology
Industrials
1,268
Consumer Services
Health Care
Financials
Utilities/Materials
4%
791
13%
739
74%
344
55
Consumer Goods & Services
Financials
E-Commerce
Health Care
Education
Private Equity
3%
2%
1%
9%
2,360
24%
178
16%
62
24%
19%
226
347
1,379
404
Information Technology
Financials
Utilities/Materials
Telecommunication Services
Consumer Services
Industrials
Health Care
Energy
4%
1%
47%
39%
E-Commerce
Financials
Health Care
54 62
523
924
Premji
Invest
USD 297 million
A small part of the fund will be used to purchase some shares from an existing
investor, Clearstone Venture Partners, while the rest of it will be used for the
companys overall growth
It values IndiaIdeas.com (Bill Desk) at US$ 1 billion
Yuri
Milner
USD 120 million
Grofers will use the proceeds to invest in building this ecosystem further, to
expand its network, to continue growing its supply-chain management
development, and to continue building out its last-mile infrastructure
It values Grofers at USD 400 million
Payment Business
Notable PE Transaction
Company Overview
Locodel owns and operates the e-commerce mobile platform Grofers. Its app
enables users to order on-demand grocery and veggies from their mobile
phones which are available at local market and delivered at the doorstep.
It was founded by Saurabh Kumar and Albinder Dhindsa in 2013
The Gurgaon, Haryana based start-up has expanded to 17 cities and works
with 10,000 merchants doing about 30,000 orders in a day with an order value
of ~INR 400-500
Angel Round
(Sept 2014)
Series A
(Feb 2015)
Series B
(April 2015)
Series C
(Nov 2015)
$0.5 million
$10 million
$36 million
$120 million
Sequoia Capital
India Advisors and
Deepinder Goyal
Sequoia Capital
India Advisors,
Tiger Global
Management LLC
Sequoia Capital
India Advisors,
Tiger Global
Management LLC
Softbank Corp,
Yuri Milner,
Sequoia India,
Tiger Global
Management LLC
Business Model
Grofers is an m-commerce marketplace for daily shopping. It allows shoppers to shop from their favourite store in their
neighbourhood and get the delivery within 90 minutes
Shoppers can shop for Grocery, Fruits & Vegetables, Bakery items, Flowers, Meats, Pet Care, Baby Care and Cosmetics
products with just a tap of a button and get everything delivered instantly or schedule it for a convenient time later
Grofers is replacing the trip to local shops for consumers by bringing merchants (and their inventory) online
Grofers makes its revenue via commission from retailers. It receives 6-7% margin on groceries while bakery products
gives them higher margins of around 20%
Competition
Company
Merisis Opinion
Amt Raised
USD 46 Mn
USD 46 Mn
USD 12 Mn
USD 7.2 Mn
Investors
Sequoia, SAIF,
Snapdeal, ru-Net,
Jafco, Beenext
Zodius, Bessemer,
Ascent, Helion,
Avezo
Accel, Qualcomm,
Times Internet,
Dragoneer
Spencers (M&A),
Brand Capital
Payment Business
Deal Value*
EV/Revenue
EV/EBITDA
340 Million
7.5 x
48.6 x
Deal Rationale
GI provides hundreds of thousands of Indians without bank accounts the ability to use cash for online payments or
money remittance. Its cash cards can be topped up at banks, local stores or by mobile phone
The acquisition secures Wirecard a stake in one of India's fastest growing licensed Prepaid Payment Instrument (PPI)
issuers as well as a Full Fledged Money Changers (FFMC) license in India, enabling the operation of multi-currency
transaction and remittance services
Merisis Opinion
Domestic remittance options are improving against the backdrop of Indias thriving e-commerce industry, with the
advent of cost-effective alternatives to traditional informal channels. Changing industry dynamics has made India a
attractive market to foreign investors
* The Deal Value of 340 million includes 230 million in cash & 110 million linked to the future performances
Amt Raised
Investors
USD 46 Mn
Qualcomm,Venture
East, IFC, Accel
USD 10 Mn
USD 1 Mn
USD 0.35
Mn
Anil Khandelwal,
Krishan Gupta, Sandeep
Parwal, Arun Purohit
India Quotient Fund,
SAIF Partners
Foreign
Investment
Joint
Venture
Undisclosed
Merisis Transactions
10
On-Going Transactions
Education Platform
India's largest online marketplace for supplementary education connecting students with industry partners
for field visits, workshops and hands on practical experiences.
Food Logistics
Indias leading a Food logistics company providing last mile delivery using technology to ensure operational
execution is seamless
Home Shopping
One of Indias biggest Television shopping e-commerce company, is seeking to raise funds
11
M&A
Equity Syndication
USD 15 Mn
Undisclosed
USD 4 Mn
PE Investment
By
Acquires
Series A
Investment by
October 2015
January 2015
April 2012
About Merisis
Merisis Advisors, a leading independent advisory company, helps growing companies raise capital
from institutional investors as well as advises owners and funds exists from their investments and
maximizes the value of their portfolio. Merisis Advisors focus areas are Technology, Consumers and
Industrials and its experienced team provides deep domain expertise in these verticals as well as a
strong commitment to client. With offices in Mumbai and Bangalore, Merisis Advisors helps its
clients through the complex process of fund raise and M&A, and deliver on its promise of Growth
Simplified. Merisis is the Indian representative of AICA, a global alliance of independent advisors
with presence in 25 countries.
For more information visit
www.merisisadvisors.com
Sumir Verma
Fazal Ahad
Managing Director
Director
Email: sumir@merisis.in
Email: fazal@merisis.in
Mumbai
Bangalore
www.merisisadvisors.com