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Brookfield eyes stake in Leelaventure; Meesho may raise funding from Yuri Milner
Photo Credit: Manni Das/VCCircle

Canadian alternative asset manager Brookfield Asset Management is in advanced discussions with JM Financial Asset Reconstruction Company (ARC) to pick up the bulk of its debt in Hotel Leelaventure, The Economic Times reported, citing four people aware of the development. 

The debt bought could be converted into equity, because in June the board of Hotel Leelaventure had approved a plan to transfer a majority stake to JM Financial ARC by converting a part of debt to equity.

JM Financial ARC's stake in the luxury-hotel chain will rise to about 75% from 26% at the end of March when the transaction is completed.

However, the transaction was not approved at the company’s annual general meeting in August, the report said.

After the Brookfield deal, JM Financial ARC is looking to retain about 10% stake in the hotel chain, the report said.

Hotel Leelaventure has a debt of more than Rs 3,000 crore, according to the report.

Separately, Bengaluru- and California-based Meesho Inc., an online marketplace for resellers, is in advanced discussions to raise $40-50 million in a round led by DST Global’s founder Yuri Milner and other partners at the investment firm, The Economic Times reported.

Citing three people aware of the development, the report said existing investors including Sequoia India, Y Combinator and SAIF Partners may also participate in the fresh round.

The proposed transaction will value Meesho at around $250 million, the report said.

In June, Meesho had raised $11.5 million (Rs 77 crore) in a Series B round led by Sequoia Capital India. Existing investors SAIF Partners, Y Combinator and Venture Highway also participated in the round.

Meesho was founded in 2015 by Indian Institute of Technology, Delhi, graduates Vidit Aatrey and Sanjeev Barnwal.

In another development, Aye Finance is in talks with two foreign investors to raise Rs 250-300 crore in a Series D round, Mint reported.

Citing Sanjay Sharma, founder and managing director at Aye Finance, the report said the company is seeking a valuation of Rs 500 crore.

Existing investors may also participate in the proposed round.

Aye Finance last raised Rs 147 crore ($21.5 million) in a Series C round from CapitalG as well as existing investors SAIF Partners and LGT Impact Ventures in June.

Gurugram-based Aye Finance was founded in 2014 by Sanjay Sharma and Vikram Jetley, both former executives at Ujjivan Financial Services, the holding firm for Ujjivan Small Finance Bank.

As on 31 March 2018, the company’s outstanding loan portfolio stood at Rs 469.15 crore, according to a report by ICRA (formerly Investment Information and Credit Rating Agency of India Ltd).

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