Grapevine: Lightspeed mulls third India fund; Asia Healthcare may buy into Cloudnine
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Lightspeed Ventures is mulling its third India-focused fund expected to mop up to $300 million (about Rs 2,180 crore at current exchange rate) by the next quarter, three persons familiar with the development told The Times of India.

“They are unlikely to raise more than $300 million even though there is likely to be a demand given the portfolio and exits that it has recorded,” said one of the persons. Lightspeed completed record exits from unicorns like Oyo and Byju’s last year.

Lightspeed raised its maiden India fund in 2015 of $135 million, which was followed by a $175 million fund in 2018.

Meanwhile, TPG Growth-backed Asia Healthcare Holdings has held early discussions to acquire a significant stake in maternity and childcare hospital chain Cloudnine, multiple people in the know told The Economic Times.

Cloudnine’s early backers Sequoia Capital and Matrix Partners, which together hold an estimated 33.5% stake, may completely exit their investment through this deal.

Homegrown private equity firm True North, which owns 37% stake in the company, invested Rs 400 crore in the hospital chain in 2015.

Also, private equity fund Gaja Capital and global fund L Catterton are in separate discussions to acquire around 40% stake in women’s lingerie retailer Zivame from existing investors — Ronnie Screwvala-promoted Unilazer Ventures and Malaysian sovereign fund Khazanah Nasional Bhd -- at a valuation of $100 million (Rs 727 crore at current exchange rate), two people in the know told The Economic Times.

Zodius Capital, a technology-focused investment firm, holds about 60% stake in Zivame, run by Actoserba Active Wholesale Pvt. Ltd. In April last year, Zivame raised Rs 60 crore in a bridge round of funding led by its existing investor Zodius.

Separately, auto marketplace Droom’s CEO Sandeep Aggarwal told The Times of India that the firm is in the process of raising $150 million (Rs 1,095 crore at current exchange rate) in its pre-IPO round which will wrap up in the next 4-5 months. 

The company plans to go for an IPO towards the end of 2021.

Droom’s investors include Lightbox, Singapore-based global fund Beenext, Japanese firm Beenos, Tokyo-based VC firm Digital Garage, Toyota Tsusho Corporation, and Hong Kong-based multi-billion family office Integrated Assets Management.

Meanwhile, Bharti Infratel is likely to push for at least a 30% cut in its cash payout to Providence Equity Partners under the terms of its planned merger with Indus Towers as Providence’s minority stake in Indus has eroded sharply since the deal announcement, persons in the know told The Economic Times.

Providence is expected to net Rs 1,400 crore for 3.35% stake in Indus instead of Rs 2,000 crore, the persons added.

The Bharti Airtel-owned tower firm may “renegotiate the valuation terms of the cash consideration payable to Providence”, one of the persons said asking not to be named.

Separately, home rental company Nestaway Technologies has acquired Bengaluru-based co-living space provider StayAbode Ventures in a cash and equity deal, two people privy to the transaction told TechCircle. 

StayAbode is backed by Akatsuki Entertainment Technology Fund, Incubate Fund and Voyage Group. It last raised an undisclosed amount in funding in its pre-Series A round in July 2018.

Nestaway launched its student housing and co-working brand Hello World as a separate subsidiary in 2019, which works on a model similar to StayAbode.

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