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Tag: Warburg Pincus

  • boAt hands the helm to its chief operating officer

    boAt hands the helm to its chief operating officer

    MUMBAI: When you’ve built India’s top audio wearables brand from scratch, knowing when to step aside takes nerve. Aman Gupta and Sameer Mehta, co-founders of boAt, are doing just that.

    Imagine Marketing Ltd owner of the boAt brand, announced on Monday that Gaurav Nayyar will take over as chief executive, marking a shift from founder-led management to professional leadership. Nayyar, who has served as chief operating officer for three years, brings two decades of strategic nous, including an eight-year stint as partner at Bain & Co.

    The reshuffle sees Mehta move to executive director, where he’ll focus on long-term strategy whilst supporting Nayyar’s transition. Gupta, who built boAt’s marketing firepower and brand swagger as chief marketing officer, will remain a non-executive director, keeping a hand on the tiller without running the ship.

    “This transition reflects the natural evolution of boAt as we further professionalise and position ourselves for the opportunities ahead,” said Mehta, who led the company as chief executive through recent years of expansion into manufacturing and adjacent product categories.

    Nayyar, inheriting a company that dominates India’s audio wearables market (number one by shipments, according to IDC data), struck a modest note: “I am honoured to be entrusted with the responsibility of leading boAt into its next chapter. Sameer has done an exceptional job strengthening our core, building product adjacencies and setting up our India manufacturing footprint.”

    Gupta, whose marketing chops helped boAt disrupt India’s audio industry with boldly designed, affordably priced gear aimed at young consumers, said: “I’m proud of what we have accomplished together and equally excited to see Gaurav take the helm.”

    boAt’s portfolio spans audio gear, smartwatches, grooming gadgets and mobile accessories. Backed by Warburg Pincus, Malabar Investments and Fireside Ventures, the company partners with Qualcomm and Dolby on product innovation and operates offices in Delhi, Mumbai and Bengaluru.

    The move signals boAt’s bet on professional management to capitalise on India’s booming consumer technology market—a multi-decade opportunity that requires institutional muscle, not just founder flair.

  • Warburg Pincus promotes Hemant Mundra to MD

    Warburg Pincus promotes Hemant Mundra to MD

    MUMBAI: He’s been given a leg up at private equity firm Warburg Pincus. Hemant Mundra who was principal at the firm has been elevated to managing director as of the new year.

    Hemant has worked over a decade in private equity across varied sectors including financial services, healthcare, consumer and auto components with a primary focus on financial services. He is on the  board of several companies including Avanse Financial Services, Vistaar Finance, Shriram Housing Finance and Parksons Packaging.

    The chemical engineering B. tech from the Indian Institute of Technology Mumbai went on to qualify as a US certified financial analyst and then did his MBA in finance from IIM Ahmedabad between 2012-2014. Rothschild hired him as an analyst  between April 2011 and May 2012, following which he joined IIM-A and did his financial . MBA.

    He joined Kedaara Capital in March 2014  and rose to become a senior associate, Warburg Pincus called and he joined as vice-president in  November 2017.

    In between he had super short stints at Reliance, Essar, Deloitte, and Morgan Stanley.
     

  • boAt raises $100 million from Warburg Pincus

    boAt raises $100 million from Warburg Pincus

    NEW DELHI: Homegrown consumer electronics brand boAt has raised approximately $100 million from an affiliate of Warburg Pincus, a leading global private equity fund focused on growth investing. This investment is a landmark deal for the direct-to-consumer (D2C) industry in India as it endorses the sector’s coming of age with consumers trusting and gravitating towards brands launched online. 

    The investment by Warburg Pincus will enable the company to further fortify its leading market position, widen its R&D capabilities and product portfolio, and build on boAt’s efforts to create and support a manufacturing ecosystem under the Make-in-India initiative, enabling the manufacture of products in India.  

    boAt co-founder Aman Gupta said, “We welcome Warburg Pincus as a new investor into the company. This is a vote of confidence for our business model and growth prospects. The investment is great news for not only the company but for the entire D2C sector. The investment has come at the right time as we make efforts to ramp up our manufacturing and global supply chain.”

    boAt co-founder Sameer Mehta commented, “As boAt enters the next phase of growth and innovation, we look forward to benefitting from Warburg’s pedigree, collective experience and resources in helping us scale.  Going forward, with the government’s support, we will focus on building capabilities in domestic R&D and undertake vertical integration across both the hearable and wearable space to establish India as a global supplier.”

    Warburg Pincus India MD & head Vishal Mahadevia said, “We see a compelling growth story in boAt and believe the company is well-poised to build upon the strong leadership position it has carved out within the industry and stands to benefit from the secular tailwinds of e-commerce growth in India. Warburg Pincus is excited to partner with the management team of boAt led by Aman and Sameer in this journey and we look forward to supporting them through the next phase of the company’s growth.”

    Avendus Capital acted as the exclusive financial advisor to boAt and its shareholders on the transaction. 

  • IndiaFirst Life Launches Its Unique Campaign #YeTohCertainHai

    IndiaFirst Life Launches Its Unique Campaign #YeTohCertainHai

    Mumbai: IndiaFirst Life Insurance Company Limited (IndiaFirst Life), a joint venture between Bank of Baroda, Andhra Bank and Warburg Pincus, has launched a unique campaign titled #YeTohCertainHai, which stems from the proposition of ‘Because Life Is Full of Certainties’. The campaign was bolstered with the insight that Indians love to cover things. We have covers for our mobile phones, cars, television sets and even our fridge. When we have covers for almost everything, why do we not make it a priority to cover our lives certainties?   

    This unique life insurance awareness campaign is live pan India across several mediums which includes Billboards, Hoardings, OOH, Digital, Radio, and for internal corporate communication. These mediums are chosen to attain maximum reach and are focused on key strategic markets.

    Sonia Notani, Chief Marketing Officer, IndiaFirst Life Insurance said, “Life Insurance as an industry is inherently focused on fear of the unknown; we, at IndiaFirst Life, chose a different path of focusing on the ‘certain’ to create an impact and a positive one at that. At different stages of a customer lifecycle, few things, such as getting married, having children, retiring, etc. are almost certain. Planning and securing these stages of life is also something that should be ‘certain’. Through this interesting and clutter breaking campaign, we aim to connect with all our potential and existing customers. We are innovatively using all relevant mediums to connect with our audiences not just from different geographies but also in different languages.”

    Using the insight of Indians love for covers, IndiaFirst Life Insurance has engaged with WATConsult to create a highly innovative and targeted campaign on Amazon, launched an engaging Qawwali video that is being promoted interestingly on Jio Saavn. Our microsite (http://www.museumofcovers.com/), allows people to share all their unique covers. We are confident that not only will this campaign grab eyeballs but will also make the case for investing in insurance stronger. 

  • Bharti Airtel gets board nod to raise Rs 16,500 cr

    Bharti Airtel gets board nod to raise Rs 16,500 cr

    MUMBAI: Bharti Airtel’s board of directors has approved a plan to raise about Rs 16,500 crore through debt, including a fresh issue of $1 billion in overseas bonds, to help refinance loans and pay for spectrum. 

    The board approved the issue of foreign currency bonds of up to $1 billion (Rs 6,482 crore) and sought fresh shareholder approval for issuance of non-convertible debentures of up to Rs 10,000 crore on a private-placement basis, the company said in a release to the BSE. 

    At the meeting, the board also approved the transfer of 19 per cent equity stake in its direct-to-home (DTH) subsidiary Bharti Telemedia, which provides DTH services under the Airtel Digital TV brand, to Nettle Infrastructure Investments, a subsidiary company.

    A part of the stake will be utilised for the completion of stake sale in Bharti Telemedia to Warburg Pincus Group. In December 2017, Bharti Airtel had agreed to sell 20 per cent equity stake in Bharti Telemedia to Warburg Pincus for approximately $350 million.

    In January, the company had decided to transfer 25 per cent equity shares in Bharti Telemedia to its wholly owned subsidiary Nettle Infrastructure Investments. The company had also said that the stake transfer to Nettle does not include equity to be sold to private equity firm Warburg Pincus.

    “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board in its meeting held on March 12, 2018, has approved the transfer of 19 per cent equity shares of Bharti Telemedia Limited (‘Telemedia’), a subsidiary Company to Nettle Infrastructure Investments Limited, a wholly owned subsidiary company,” the release to the BSE stated.

    Also Read:

    Recalibrating India’s DTH sector after Airtel DTH-Warburg Pincus deal

    TDSAT tells Airtel DTH, Star to negotiate

    Airtel Digital TV disconnects Star India channels

  • Airtel to transfer 25% stake in DTH arm to Nettle

    Airtel to transfer 25% stake in DTH arm to Nettle

    According to a BSE filing, Bharti Airtel will transfer its 25 per cent stake in DTH arm Bharti Telemedia to wholly owned subsidiary Nettle Infrastructure Investments.

    The transaction has been approved by the Bharti Airtel board. The date of sale of the transaction is subject to regulatory approvals. The company will receive cash as consideration for the sale.

    “We wish to inform you that the Board in its meeting held on January 18, 2018, has approved the transfer of 25 per cent equity shares of Bharti Telemedia Limited (Subsidiary Company) to its wholly owned subsidiary, Nettle Infrastructure Investments Limited,” Bharti Airtel said in a filing to the BSE.

    Airtel in December signed agreement to sell 20 per cent stake in Bharti Telemedia to private equity firm Warburg Pincus for about $350 million (around Rs 2,310 crore).

    A company official said that the stake transfer to Nettle does not include equity to be sold to Warbug Pincus. Upon closing of the transaction with the equity firm, Airtel was left with 80 per cent equity stake in Bharti Telemedia.

    In a separate filing, Airtel said that the company’s board on the same day also approved acquisition of 5 per cent stake in its subsidiary Indo Teleports (also known as Bharti Teleports) for Rs 2.3 crore. Bharti Airtel already holds 95 per cent stake in Indo Teleports.

  • Recalibrating India’s DTH sector after Airtel DTH-Warburg Pincus deal

    Recalibrating India’s DTH sector after Airtel DTH-Warburg Pincus deal

    MUMBAI: For long, investors have given India’s DTH sector a pass-by saying the TV distribution sector (read cable TV) is rickety and has been digitised in a hurry to meet government mandates without too much thought and planning of the back end. Often times, DTH players have been bundled with the cable TV lot and considered a not-a-very-attractive investment.

    That was until last week.  The announcement that Warburg Pincus was picking up 20 per cent stake in Airtel Digital TV (DTH) -with around 14 million subscribers – for a staggering $350 million at a valuation of $1.75 billion or Rs 11,204-odd crore should surely come as a shot in the arm for those distributing TV and running DTH platforms.

    Right now, there are six of them: Tata Sky, Dish-Videocond2h, Airtel Digital TV, Sun Direct, DD Free Dish, and the floundering-now-waiting-to-be-resuscitated Reliance Big TV.

    Most of them have been burning cash. Folks have been saying there are too many DTH operators in India. They have pointed towards the UK that has one, the US that has just two.  And questions have been asked if India has too many vanity plays in both television and distribution.

    A senior investment analyst unwilling to be identified says last week’s Warbug Pincus vote of confidence in DTH highlights how upbeat the sector looks as an investment destination and how different it is from India’s cable TV scattered majors.

    It also raises questions around whether the Videocon management could have got a better deal when it decided to merge Videocon d2h with DishTV.  Was Videocon d2h a tad undervalued? After all, the difference in EBITDA between Airtel and Videocon d2h alone runs into Rs 170-odd  crore only. For FY 2016-17, Videocon d2h had an EBITDA of Rs 1018.1 crore as against Airtel DTH’s Rs 1222 crore. For fiscal 2017-18, Videocon d2h’s half yearly EBITDA stood at Rs 529.5 crore as against Airtel’s Rs 681.7 crore. Dish TV’s EBITDA for FY 2016-17 was Rs 972.8 crore, while it’s half yearly EBITDA for fiscal 2017-18 was  Rs 417.3 million.

    At the time of the merger, the combined entity’s valuation was placed at $2.7 billion for around 27 million subscribers of Dish TV and Videocon d2h. Combined the two would account for 16 per cent of the total 175 million hoseholds in India with around 2.80 million HD household and a combined proforma  EBITDA of  Rs 1826.2 crore. Going by the Airtel-Warburg numbers, the value of Dish TV-Videocon d2h should have been closer to $4 billion.

    Another senior industry observer opines that the Airtel-Warburg Pincus deal has opened up investors’ eyes all over the world about the growth potential in India’s DTH vertical.  The deal is probably one of the first-ever major large-ticket private equity placement deals in Indian DTH.

    What has changed in the past one year? And what is exciting investors to look at the sector differently?

    FreeDish to go away

    Indications are that the DD Free Dish threat is dissipating with the implementation of the new policy that the government has put in place with no renewals of slots taking place for private players. Industry professionals point out that the government is seeking to enhance the reach of its own channels on Free Dish.

    “It had deviated from its mandate–which was to reach out to all the rural areas where there are no transmitters and make the government’s voice reach those people. DD National was hurt because they gave slots to private GEC channels. The national channel’s viewership and revenue have since plummeted,” says one of them. “From Rs 1,400 crore in ad revenue, the figures came down to Rs 500-600 crore, out of which Rs 400 crore is from government enforced spending on the pubcaster. Its ad revenue is a measley Rs 200 crore and no private producer wants to produce for DD as it does not have the reach. With DD FreeDish likely to stop trading in bandwidth and not airing GECs, a window of opportunity for private DTH players to offer another option to rural and smaller town audiences will open.”

    Cord cutting – a hyped-up phenomenon

    Another senior industry researcher says that the phenomenon of cord-cutting has been hyped up by new entrants in the OTT space such as Netflix and their backers from the analyst community and investors in both the US and India.

    “Comparing the US and India is absolutely fraught with disaster. Even in cord cutting,” she says. “India has a very deep urban population and a very deep rural populace. The TV in the living room is still the centre piece of Indian homes; it is also moving into the bedroom. There will be no cord cutting; we will have both in India, the Netflixes as well as TV subscriptions.  Jio, too, has expanded the consumption of mobile bandwidth and nowhere is it posing a threat of cord cutting.”

    The impact of TRAI’s tariff order, GST and introduction of transparency

    The DTH industry has an estimated 90 million subscribers; the net figure is 65 million and the active is 52-55 million. The net sub number includes those subs who have been suspended for up to 120 days for non-payment; whereas actives are those who have subscribed and paid to for between zero and 30 days.

    Industry veterans point out that DTH operators are better placed to implement the TRAI’s new tariff regime which has been held up in courts.  One of them points out that the higher content costs that they have been paying to broadcasters will simply go away. “Our infrastructure allows us to permit millions of subscribers to unsubscribe online very easily and watch the channels and the shows they want to,,” says he. “Because of transparency our costs will go down with the execution of the tariff order.”

    Cable TV content costs, however, he points out are set to go up as under declarations of sub numbers to the tune of 50-60 per cent by LCOs to MSOs have been rampant. “After digitisation and GST, every connection is being reported to the MSO as everybody in the chain has to pay taxes. With this, the broadcaster will understand how many subscribers are actually there and he will charge transparently per sub basis. Based on that the fixed deals will happen,” he says.

    That should be good news for industry observers and naysayers who have been waiting like Godot for India’s TV content and distribution to unlock its true potential and value.

    Also Read:

    Warburg Pincus to buy 20% in Airtel’s DTH arm

    Reliance Big DTH to take FTA route under new management?

    STB import duty doubled to 20%

  • Airtel TV valuation at $1.75 bn as Warburg Pincus picks up 20% stake

    Airtel TV valuation at $1.75 bn as Warburg Pincus picks up 20% stake

    MUMBAI: Confidence in the TV distribution sector seems to be returning, the OTT euphoria notwithstanding. Bharti Airtel today announced that it has struck a deal with Warburg Pincus under which an affiliate of the global private equity firm will acquire a 20 per cent equity stake in its DTH arm which operates under Bharti Telemedia Ltd.

    The cost of the acquisition: $350 million. 15 per cent of this will be offloaded by Bharti Airtel while the remaining five per cent will come from another affiliate of India’s largest telecom operator.

    Bharti Telemedia has 14 million subscribers for its DTH service under the Airtel TV brand which places it among the top three players in India, after Dish TV-Videocon and Tata Sky. The other players in the satellite TV operating space are FTA service FreeDish – run by pubcaster Doordarshan and Sun Direct which is operated by south Indian media powerhouse Sun TV network.

    In the year ending 31 March 2017, Airtel TV had average revenues per user per month of Rs 231 and it reported overall revenues of Rs 3430.6 crore for the period. In Q2 ended 30 September 2017, it turned out a top line of Rs 936.9 crore.

    Bharti Airtel had roped in former Mondelez vet Sunil Taldar in December 2016 as CEO & director DTH and a member of the company’s board with a direct reporting line to the company’s MD & CEO-south Asia Gopal Vittal. He had then replaced Shashi Arora who had run the DTH unit for five years before being mandated to run its payments bank.

    Airtel Digital TV has 1,500 partners all over India with 158,000 recharge points in 630 districts.

    The acquisition price of $350 million values Airtel’s DTH arm at $1.75 billion, which is by no means something to sniff at in this sector. Dish TV-Videocon d2h had a valuation of $2.7 billion at the time of the merger announcement of the two operators a year and a half ago.

    What attracted Warburg Pincus to invest in Airtel’s DTH business? Its India managing director and co-head Vishal Mahadevia explains, “The Indian digital TV market is expanding rapidly and we believe Airtel DTH is well positioned to capitalise on the incremental growth in digitisation in tier 3 and tier 4 towns and rural areas. We look forward to working with Sunil Bharti Mittal and Bharti group again after our successful partnership years ago and we look forward to supporting the management team in the next phase of the company’s growth.”

  • Warburg Pincus to buy 20% in Airtel’s DTH arm

    Warburg Pincus to buy 20% in Airtel’s DTH arm

    MUMBAI: Global private equity firm Warburg Pincus will acquire up to 20 per cent equity stake in Bharti Telemedia Limited (Bharati Telemedia), the DTH arm of Airtel, for around $350 million. Of this, 15 per cent stake will be sold by Bharti Airtel and the remaining by another Bharti entity, which holds 5 per cent stake, the telco said in a statement.

    The Airtel board has approved the transaction, which is subject to regulatory approvals. As part of the transaction, Viraj Sawhney, MD, Warburg Pincus India, will join the board of Bharti Telemedia.

    “Airtel has enjoyed a very successful partnership with Warburg Pincus in the past and we are excited to partner with them once again in an attractive and fast growing space. Airtel TV is very well positioned in the DTH space, and we are committed to grow our share of the market through a combination of innovation, value engineering, customer service and distribution initiatives. We look forward to working with Warburg Pincus towards achieving our vision of making Airtel TV India’s leading DTH platform,” Gopal Vittal, MD and CEO (India & South Asia), Bharti Airtel said in a joint statement.

    Upon closing of the transaction, Airtel will own an 80 per cent equity stake in Bharti Telemedia Limited.

    “The Indian Digital TV market is expanding rapidly and we believe that Airtel DTH is well positioned to capitalize on incremental growth in digitisation and new TV penetration in Tier 3 and 4 towns and rural areas. We are pleased to be working alongside Sunil Bharti Mittal and the Bharti group again following our successful partnership many years ago, and we look forward to supporting the management team during the next phase of the Company’s growth,” Vishal Mahadevia, MD and co-head, Warburg Pincus India, said.

    Bharti Telemedia offers DTH services under the Airtel TV brand. It had around 14 million subscribers and around $550 million in revenue during the 12 months ended September 30, 2017.

  • CarTrade secures Rs 950 crore funding for expansion in online auto industry

    CarTrade secures Rs 950 crore funding for expansion in online auto industry

    MUMBAI: Indian online auto classifieds platform CarTrade has raised Rs 950 crore led by Temasek, an investment company based in Singapore, and March Capital, a global venture investment firm.

    Existing investor Warburg Pincus, a private equity firm focused on growth investing, also participated in the process. This injection of capital will be utilised to diversify and strengthen CarTrade’s offerings for consumers and dealers.

    Following its recent combination with Carwale, CarTrade has also strengthen its presence in the market. “It has over 32 million visits per month and work with approximately 10,000 new and used car dealer partners. The platforms list more than 225,000 used cars for sale and auctions over 250,000 vehicles to the wholesale market every year. CarTrade and CarWale jointly contribute to a majority of all online sales for  car dealers and car manufacturers,” the company said in a statement.

    “We are extremely happy to have Temasek and March Capital on board as partners together with existing investor, Warburg Pincus. This investment is a validation of CarTrade’s business model and growth plans in the Indian online auto space. The funds raised shall be used to further expand our services organically and through acquisitions. We will continue to focus on products, services and strengthening our world class technology capabilities and platforms, to deliver a seamless online experience for auto enthusiasts across the country,” said CarTrade founder and chief executive officer Vinay Sanghi.

    CarWale CEO Mohit Dubey added, “These are exciting times for us as the e-commerce sector is at a broad confluence of multiple macro trends. We are very excited about the opportunities presented by sector in India and are well positioned to leverage these opportunities. At this stage of growth we welcome Temasek and March Capital and this new financing will provide CarTrade with a strong foundation for future growth.”

    March Capital managing director Sumant Mandal said, “At March Capital we believe that the greatest companies oftomorrow are being built now. CarTrade has developed a unique and a world class platform for transacting in new and used vehicles. A leader in its segment, it has steadily expanded its offerings across India and today has an extremely strong network dealer partners with a rapidly growing user base. We continue to be impressed by the team’s dynamism, passion, energy and vision and look forward to working closely with the team to support the company in achieving its growth ambitions.”

    Existing investors of CarTrade, which was founded by Vinay Sanghi in 2009, include Warburg Pincus, JP Morgan and Epiphany Ventures.