Uber gives another push to its India plans with Rs 1,767-cr investment

Source: Business Standard, Nov 13, 2019

Bengaluru: Ride-hailing major Uber has infused Rs 1,767 crore in fresh capital into its Indian entity, Uber India Systems Private Limited.20191113-10

According to the company’s regulatory filings sourced from business intelligence platform Paper.vc, Uber India has allotted 11.12 million equity shares, valuing Rs 10 each at a premium of Rs 1,578.20 to the Netherlands-based entities Uber International Holding BV and Uber International BV.

The board of directors of Uber India passed this resolution at a meeting held on October 29, 2019, the company filing says. This was around the time Uber Technologies’ Chief Executive Officer Dara Khosrowshahi was on a visit to India.

Uber has already transferred its Indian ride sharing and Uber Eats business to Indian entity Uber India System from the Netherlands entity. The capital infusion is expected to bolster its presence in the country by funding its key businesses to take on Indian rival Ola.

“This is the single-largest foreign direct investment by Uber into its Indian operations and follows the transfer of its India business from a Dutch entity to an Indian entity,” said Vivek Durai, founder of Paper.vc.

In its board meeting held on October 1, Uber India board had passed a resolution to allot close to 15.99 million shares to Uber BV with a face value of Rs 10 and premium of Rs 1578.20 each, to raise Rs 2,539 crore, according to data sourced from business intelligence platform Tofler. “We estimate that a large part of this allocation would go towards to (Uber) Eats business, therefore posing a direct challenge to other food delivery companies such as Swiggy and Zomato,” said Durai of Paper.vc.

Last month, Khosrowshahi was in Delhi to announce a partnership with Delhi Metro Rail Corporation (DMRC) under which the Uber app would get integrated with the city’s Metro and public bus service to provide commuters a seamless experience while travelling from one point to another.

The company is planning to double the headcount of its Hyderabad and Bengaluru research and development (R&D) centres to 1,000.

It has already developed key products like Uber Lite for the India market, which is now being used globally.

The mega capital infusion by Uber into its India arm comes at a time when rival Ola is coming up with a slew of new products and services.

Last month, the Bengaluru-headquartered firm unveiled ‘Ola Drive’, a self-drive car-sharing service, with a plan to host a fleet of 20,000 cars by 2020. Ola plans to invest $200 million for the new platform initially and raise the investment to up to $500 million in the next couple of years. The company is also planning to launch a portfolio of in-house food brands and take them across the country.

Xander Investment to invest Rs 1,750 crore in new industrial platform

Source: Business Standard, Oct 16, 2019

Xander Investment Management (XIM), the private equity real estate arm of global investment firm The Xander Group (TXG), on Tuesday launched an industrial real estate platform.

It will invest $250 million (Rs 1,750 crore) in logistics, warehousing, and industrial assets in the key industrial corridors.

With this, Xander joins the likes of CPPIB, Warburg Pincus, Ascendas Singbridge, which have floated such ventures in the country.

Sponsored by TXG, the platform has raised capital from European institutional investors that have been limited partners in XIM-sponsored opportunity funds. XIM Singapore will act as the investment advisor to the platform.

The platform has acquired a portfolio of 2 million square feet incubated by Xander for Rs 600 crore to seed the platform, it said.

Embassy Parks to invest $300 mn to build warehousing, logistic projects

Source: Business Standard, Oct 07, 2019

Embassy Industrial Parks will invest about $300 million (about Rs 2,100 crore) in three years to develop its logistic and warehousing projects, a top company official said.

The company, a joint venture between realty firm Embassy group and private equity firm Warburg Pincus, is developing industrial and warehousing parks in Chakan (Pune), Bilaspur and Farrukhnagar (NCR), Sriperumbudur and Hasur (Tamil Nadu), and Hyderabad in phased manner. “We have completed around 2.7 million sq ft area so far across three warehousing parks at Chakan, Bilaspur and Farrukhnagar,” the company’s spokesperson Aditya Virwani told PTI.

The company has invested around $80 million since 2016 when it started the operation. Read the rest of this entry »

Saudi Arabia to invest USD 100 billion in India

Source: The Economic Times, Sept 29, 2019

Saudi Arabia, the world’s biggest oil exporter, is looking at investing USD 100 billion in India in areas of petrochemicals, infrastructure and mining among others, considering the country’s growth potential.

Saudi Ambassador Dr Saud bin Mohammed Al Sati has said India is an an attractive investment destination for Saudi Arabia and it is eyeing long-term partnerships with New Delhi in key sectors such as oil, gas and mining.

“Saudi Arabia is looking at making investments in India potentially worth USD 100 billion in the areas of energy, refining, petrochemicals, infrastructure, agriculture, minerals and mining,” Al Sati told PTI in an interview. Read the rest of this entry »

Fairfax to invest $5 billion more in India in next 5 years

Source: The Economic Times, Sept 02, 2019

NEW DELHI: Billionaire investor Prem Watsa proposes to invest another $5 billion in India in the next five years, doubling what he’s put in thus far, and says the country offers an “unusual opportunity,” while shrugging off slowdown worries.

Hyderabad-born Watsa, often described as Canada’s Warren Buffett, said his company has invested $5 billion in the country in the past five years. He was in India for less than a day to meet Prime Minister Narendra Modi.

“I think this is the number one country in the world,” the chairman of the $70-billion Toronto-headquartered Fairfax Financial Holdings told ET in an interview on Thursday. “India contributes nearly 3% of the world’s GDP but has only a 1% share of global investment money. If this figure were to just double to 2%, that would mean nearly $3 trillion of investments flowing into India.” Read the rest of this entry »

Foreign investors pumped $1.02 bn equity in India’s clean energy space in FY19

Source: LiveMint.com, Jul 14, 2019

New Delhi: The foreign investors’ interest in India’s emerging green economy continues; with around $1.02 billion equity investment made by them in the current financial year till date, according to data compiled by consulting firm Bridge to India for Mint.

These investments have been growing. The international equity investment in the India’s clean energy sector was $283 million in 2016, $532 million in 2017 and $1.02 billion in 2018.To be sure, this excludes all offshore debt funding and investments made by foreign developers in their Indian subsidiaries.

With multilateral and bilateral agencies, as well as sovereign wealth funds, not showing interest in businesses that contribute to climate change, a significant part of the foreign direct investment coming to India is in the green energy space. These investments were spread across sectors such as solar power generation (roof-top and grid connected), wind power generation firms, electric vehicles, with the electricity storage projects gaining traction now. Read the rest of this entry »

Samsung plans 100 investments in Indian start-ups in next five years

Source: Business Standard, Jul 11, 2019

Bengaluru: Samsung, the world’s biggest producer of smartphone screens, semiconductors, and mobile phones, is planning to make 100 investments in Indian start-ups over the next three to five years, through its venture capital (VC) arm.

It is scouting in ‘deep technology’ areas such as artificial intelligence (AI), natural language processing, the Internet of Things (IoT), blockchain, augmented reality and virtual reality, and data security. And, services technologies, in areas such as health care, insurance, vernacular content, and mobility solutions. Read the rest of this entry »