Grapevine: CVC, Carlyle eye stake in Shriram Capital; Steadview may bet on Vogo

By Narinder Kapur

  • 11 Sep 2019

British private equity firm CVC Capital Partners and the US-based Carlyle could make the shortlist of candidates for Piramal Enterprises Ltd’s and TPG’s 30% stake in Shriram Capital Ltd, The Economic Times reported on Wednesday.

Advent International, which was also in the running, has invested in another non-banking financial company and may not acquire the stake in the Chennai-based Shriram, a person privy to the development told VCCircle.

PEL and TPG’s stake could be worth between Rs 6,000 to Rs 7,000 crore, with a potential transaction valuing Shriram Capital between Rs 18,000-Rs 20,000 crore, people aware of the matter said.

The potential stake sale to either CVC or Carlyle would mark another investment by a foreign firm in an Indian NBFC. Earlier this week, the Singapore-based financial technology firm oCap Management Pte. Ltd picked up a minority stake in a Chennai-based NBFC. In May, the Cholamandalam Investment and Finance Company Ltd said it would raise $222 million in debt funding in a round anchored by the Washington-based International Finance Corporation.

Meanwhile, Mint reported that Steadview Capital is in discussions to lead a fresh funding round worth $50 million (approximately Rs 358.17 crore at current exchange rates) in two-wheeler rental startup Vogo, which is operated by Vogo Automotive Pvt. Ltd.

Existing investors in Vogo such as Stellaris Venture Partners, Kalaari Capital and Matrix Partners are also expected to participate in the potential funding round, people in the know said.

However, Steadview is still evaluating the “viability and scalability” of the two-wheeler rental sector, one of the people cited above said. In June, Vogo had appointed Avendus Capital to manage the fundraising process and seek out investors for the company.

The Bengaluru-based Vogo, which was founded in 2016, raised Rs 25 crore ($3.6 million) from venture debt firm Alteria Capital in June. That same month, it raised funding from a clutch of prominent investors, including former Myntra chief executive officer Ananth Narayanan, serial entrepreneurs K Ganesh and Srini Anumolu and SVG Media founder Manish Vij.

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