Mayuri Gupta

Advent International is investing INR 2475 cr (~$3bn) in Apollo Hospitals's subsidiary, Apollo HealthCo. The transaction will also see the merger of its wholesale pharma distribution unit Keimed Private Limited and online healthcare business Apollo 24|7 under Apollo HealthCo. The background: Apollo HealthCo= Keimed (B2B pharma distribution) + Apollo 24 7 (online pharma) Apollo HealthCo, the digital health and services business of Apollo Hospitals, has been pressuring the hospital operator's bottom line, hurt by its cash-guzzling pharmacy business Apollo 24/7. Apollo HealthCo posted a loss for the sixth straight quarter in February. Advent International is a global PE with 17 investments (~$5.8bn since 2009) in India (12 current, 5 exits). Its other Indian healthcare investments include Cohance Lifesciences, Suven Pharmaceuticals and Bharat Serums and Vaccines Limited. Is it a good deal? The market doesn't think so! Shares of Apollo Hospitals Enterprise dropped 8% in opening trade on Apr 29 as investors were disappointed with the valuations offered in the deal. According to the deal, it valued Apollo 24 7 at $1.7bn and Keimed at $9.6bn Nuvama Group said while the deal was long overdue, the valuation commanded by Apollo 24/7 at $1.7 bn is lower than the estimated $2.7 bn. It not only comes as a negative surprise but also a huge letdown. The brokerage also said doubling Keimed's valuation for the deal, just within a year also seemed aggressive. Jefferies also shared the same view on Apollo 24 7's valuation While Prabhudas Lilladher Private Limited also acknowledged that the stake sale of Apollo HealthCo was done at a discounted valuation, it sees the merger of Keimed with the arm as a positive step as it removes overhang of any cost leakages. That with the added management guidance of growing EBITDA gives them comfort Future Outlook: According to the management commentary, the combined entity is expected to deliver Rs 25,000 ($3bn) crore of revenue in 3 yrs with 7-8% EBITDA, up from around Rs 13,600 crore and 1.5% now. This is an EBITDA growth of about 9x in 3 years! This growth will be achieved through Apollo 24/7 breakeven in ~2 years, higher margin realization through supply chain efficiencies, and accelerated growth in the private label business Though pharmacies in India are growing at 12% YoY, Apollo believes that large players like themselves can easily grow at 20-25% YoY It seems that Apollo was a bit desperate to inject in money and was okay with taking a slightly below-par deal. That said, this deal should reduce the drag from 24/7's operating cost (and cash burn) and strengthen both its pharmacy and hospital businesses. The merged entity could also leverage Keimed’s over 70,000 store network to push private label sales and unlock synergies. #healthcare #apollo #advent #privateequity #india #apollo247 #pharma #pharmacy

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"Kya lagta hai ? Kaun power mein aa raha hai." To that my reply is what Charlie Munger once said,"There's always been a market for people who pretend to know the future." I don't claim to know the future instead I believe in preparing for any eventuality. Wrote an article for LiveMint about how to position your portfolio ahead of General Election results. Thanks Sashind and Neil for the opportunity. Read here : https://lnkd.in/g2XDdkcC

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India Elections: - Slow but steady NDA set to form government with BJP led coalition at 290 votes. While it is over the required votes of 272, it remained far lower than market expectations and exit polls. That said coalition has often been part of India politics since 1989, in fact 2014 and 2019 were rare cases of majority government since 1989. Though political stability should ensure continuation of reforms and India story, on near term basis markets will lookout for certain factors, the near-term expectations remain as follows: i)   Fiscal consolidation may stay on course but may not be on aggressive consolidation path as previously expected ii)  Capex may continue at the pace, some of the populist measures may be introduced. However, the strong pace of tax collections should keep up with these expenditures and help maintain fiscal prudence iii)  FIIs activity in markets may bring about some volatility in Equity, Debt and currency, if there is selloff by FIIs then there might be an adverse impact on BoP iv)  Certain reforms may be implemented slower than previously expected v)   Inflation may be in focus again A coalition government was likely to bring about some reaction to markets, however in longer run as the government settles and continues on the previously charted course, markets will gain comfort on the continuation of the policies. *views are personal #indiaelections #economy #fixedincome #investing

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Series: Advanced Techniques in VC Fund Portfolio Management Part 2: The J-Curve Effect in VC Portfolios: Navigating Early Losses & Future Gains Venture capital isn't for the faint of heart. It's a rollercoaster ride with a steep initial drop known as the J-Curve. This phenomenon is well-known to VC portfolio managers, where high early-stage investment costs often lead to temporary portfolio losses. Imagine a seed-stage SaaS startup needing heavy marketing spend to acquire users, or an early-stage hardware company investing millions in prototyping and manufacturing. These upfront costs can temporarily lower IRR, creating the downward slope of the J-Curve. But the story doesn't end there. 5-7 years later, successful IPOs, acquisitions, or secondary sales can dramatically flip the script. These liquidity events can yield returns of 3-5x the initial investment, creating the steep upward trajectory that completes the J-Curve. Technical examples: 1) Early-stage biotech fund: High R&D costs for drug development (e.g., $5M annually) cause initial negative returns. However, successful clinical trials, FDA approvals, and lucrative partnerships with pharmaceutical giants can later lead to massive exits, creating the J-Curve's upward swing. 2) Seed-stage AI startup: Heavy investment in talent acquisition, model training, and infrastructure initially burdens the portfolio. Later, securing high-profile clients, licensing the technology, or being acquired by a tech giant can create exponential returns, forming the curve's upward trajectory. 3)Series A fintech company: Significant investment in customer acquisition, regulatory compliance, and platform development leads to early losses. However, as the company scales, achieves profitability, and disrupts the financial landscape, it can become an attractive acquisition target or IPO candidate, resulting in substantial returns. Understanding the J-Curve is crucial for setting realistic expectations, managing LP relationships, and strategically deploying capital throughout the investment lifecycle. It's a reminder that in venture capital, patience and long-term vision are key to reaping the rewards of innovation. #JCurve #VC #PortfolioDynamics #VentureCapital #PortfolioManagement #VentureInvesting #alternativeinvestments

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#India 🇮🇳 is playing an increasingly significant role in #AsiaPacific #PE-#VC activity, accounting for ~20% of all PE-VC #investments in 2023, up from ~15% in 2018. #Resilience amid #turmoil: Multiple bright spots emerged in India amidst a globally challenging year for the PE-VC ecosystem. India #PrivateEquity Report 2024 | Bain & Company

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#Weekly_Indian_Startup_Funding_Update Kyro Capital Private Limited 1. Infra.Market, a construction solution company raised $50M at a valuation of $2.5 B in a funding round from Mars Unicorn Fund, a joint venture of Liquidity Group and Mitsubishi UFJ Financial Group. They will utilize the funds to cater to newer global markets and increase their presence across product verticals. 2. TechnoSport, a Bengaluru-based performance wear brand raised $25 M in a funding round from A91 Partners, an investment company across technology, consumer, and financial services. They aim to enhance their manufacturing capabilities, focusing on modernizing facilities to ensure high-quality production. 3. Euler Motors, a Delhi based EV start-up, raised $24 M in its series C funding round from Blume Venture, British International Investment, Piramal Alternatives India Access Fund. 4. Libas, an Indian ethnic wear brand raised $18 M in its first external funding round from IAF Series 5, a fund managed by ICICI Venture. They plan to strengthen their omnichannel presence, expand offline retail space, and enhance marketing and technology capabilities 5. Zypp Electric, a Gurugram-based tech-enabled D2C EV company raised $14 M at a valuation of $270 M from ENEOS Oil & Energy Pte Ltd, a subsidiary of ENEOS Corporation. The funds will be used to expand its fleet from 21,000 to 200,000 electric scooters and extend services to 15 cities by 2026. 6. Rebel Foods, an Indian online restaurant company raised $13 M in debt from Alteria Capital, India's largest venture debt fund, and InnoVen Capital, India's first venture debt and specialty lending business. They will use the funds to support their working capital requirements. 7. Dvara, a rural-focused financial services company raised $10 M in debt from BlueOrchard Microfinance Fund, a fixed-income fund focusing on MFIs. 8. SEDEMAC Mechatronics, a Pune-based technology company raised $9 M from Xponentia Capital Partners, A91 Partners, and 360 ONE Asset. The funds will go into building a new manufacturing plant. 9. MediBuddy, a digital healthcare platform raised $8.4 M in debt from Innoven Capital, India's first venture debt and specialty lending business, and Alteria Capital, India's largest venture debt fund. 10. High Street Essentials, an omnichannel women's fashion retailer raised $6 M in equity and debt at a valuation of $75 M from Sangita Jindal, SRF Group Family Offices, MD Krishna Bodanapu, and Timmy Sarna. The funds will be utilized to boost the brand’s premium occasion-wear line “Weddings By Indya”. 11. Turno, an EV distribution and financing startup raised $6 M in its Series A funding round led by British International Investment, Stellaris Venture Partners, B Capital, Quona Capital, and Accion Venture Lab. Feel free to reach out to us for fundraising solutions at aman@kyrocapital.in

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Did you know, according to reports, India requires ~14.6 million blood units every year and faces a shortage of ~1 - 3 million units per year? This is a big gap that we can address if we take the right steps. A few years ago, we initiated '𝐓𝐡𝐞 𝐑𝐞𝐝 𝐂𝐚𝐮𝐬𝐞' to tackle this issue head-on. Our goal was to meet the growing demand for blood donations and educate people on the benefits of being a blood donor. Here’s what we did to build the initiative - 1. 𝐃𝐚𝐭𝐚-𝐃𝐫𝐢𝐯𝐞𝐧 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡: With numerous individuals getting their blood tested at our labs, we had a wealth of data. We built a tech platform to collect and organise this data, creating a repository of blood types and haemoglobin values, further segregated by age. 2. 𝐕𝐨𝐥𝐮𝐧𝐭𝐚𝐫𝐲 𝐃𝐨𝐧𝐨𝐫 𝐎𝐮𝐭𝐫𝐞𝐚𝐜𝐡: If you are between 18 and 58, you receive a message from us asking if you’d like to become a voluntary blood donor. You could easily opt-in or opt-out. 3. 𝐆𝐞𝐨-𝐓𝐚𝐠𝐠𝐢𝐧𝐠 𝐟𝐨𝐫 𝐈𝐦𝐦𝐞𝐝𝐢𝐚𝐭𝐞 𝐍𝐞𝐞𝐝: If you opted in, you are geo-tagged. When there is a local requirement for your blood type, you’ll get a message from the platform. If you agree to donate, the platform connects you with the recipient's family, facilitating the donation process. 4. 𝐀𝐜𝐤𝐧𝐨𝐰𝐥𝐞𝐝𝐠𝐞𝐦𝐞𝐧𝐭 𝐚𝐧𝐝 𝐅𝐨𝐥𝐥𝐨𝐰-𝐔𝐩: Post-donation, the recipient acknowledges the donation, and you are thanked and blocked from donating again for 4 months, ensuring a safe donation interval. This was our small way to contribute to Blood Donation and make it accessible for individuals looking for blood donors. This initiative, currently paused, is something I am keen to revive, to continue addressing this pressing need for accessible blood donors. Contrary to common myths, our bodies recover blood quickly. ✓ Blood plasma volume is replenished within 24-48 hours. ✓ Red blood cells are replenished in about 4-6 weeks. ✓ Platelets and white blood cells are replenished within a few days to a week. Therefore, we can safely donate blood every 4 months after checking our CBC. Today being World Blood Donor Day, I would like to urge all of us to come together to make a difference. Every drop counts! ❤️🩸 Are you willing to become a voluntary blood donor? #BloodDonation #Healthcare #SaveLives #DonateBlood PS: One of our voluntary donors during the Blood Donation drive.

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Lately, I have been getting more questions about election results than about the stocks in my portfolio. Elections for India, the world’s largest democracy, are underway, and there's palpable excitement across various investor communities and sectors. While some investors want to shy away from the markets, others want to go all in! But what happens to markets during elections? Like the budget, the interest rate policy, or a big earnings release, these can have big unpredictable moves and trends around the election dates. Expectations of changes in government policies, political stability, and speculation around elections' outcomes often drive fluctuations. Stock markets are always active, and although we can't know exactly how an election will turn out, we can use history as our guide. Looking at past election cycles, stock markets tend to go up in the 6 months before an election, with an average of 14% over the previous 9 cycles. This positive trend has been seen all across—in one month prior, around the results, and even six months or one year out. What is to be noted is that sometimes a change in government, like in 2004, can cause a knee-jerk reaction and then turn positive, or another time, like in 2014, it could bring on a rally. Even continuing the same policies is not guaranteed to appease the market. With unpredictability all around, a strategic approach to investing is crucial during election cycles. Investors can consider defensive investing by allocating a larger portion of their portfolio to large caps or sectors less sensitive to economic cycles, such as utilities or consumer staples. These sectors tend to perform reliably, regardless of the economic climate. Another strategy is to engage in tactical asset allocation, adjusting portfolios towards sectors that might benefit from the election outcomes based on the policies of the likely winners. For example, if a government with a strong focus on infrastructure development is expected, increasing allocations to the construction and materials sectors could be advantageous. Elections inherently bring uncertainty. Maintaining a diversified portfolio and thinking long-term are essential strategies. If you'd like assistance navigating these choices, Wright Research can help streamline the process. Savvy investors understand that with risk comes potential opportunity. Staying informed on policy proposals and market trends can help identify sectors or stocks that might benefit from the election's aftermath. Do you expect a post-election rally for the Indian markets? Are there specific sectors that have captured your interest? Let me know what you think in the comments down below! 𝐃𝐢𝐬𝐜𝐥𝐚𝐢𝐦𝐞𝐫: The picture below is from the previous elections, not the current one! #stockmarket #portfolio #investors #wrightresearch

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IL&FS hit the headlines a few years ago when a whistleblower helped uncover a ₹9900cr fraud involving misstatement of company accounts. IL&FS is back in the headlines again, this time because the government has created history with an enlarged interpretation of Section 149(12) of the Companies Act 2013 to include liabilities and penalties imposed on Independent Directors. Section 149(12) specifies that an “Independent Director shall be held liable, only in respect of such acts of omission or commission by a company which had occurred with his knowledge, attributable through Board processes, and with his consent or connivance or where he had not acted diligently.” A former independent director had said that board members like them should not be held responsible as they were not responsible for day-to-day functioning of the entities and went along with the accounts that were presented and discussed at the board meetings. But the government has now asked the Board of the company to recover ₹150cr from former Directors. While over ₹100cr is to be recovered from 4 key former Directors, Independent Directors will also have to return a part of the commission paid during their tenure. This is a a landmark ruling, and has several ramifications for the future. Read the full story here https://lnkd.in/eS4BnTSd. Comment for opinions on what this ruling means for the the big Board refresh, the evolution of the Companies Act 2013, Board processes, and corporate governance.

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Moneycontrol covered the latest report by Bain, The India Private Equity Report 2024: "The year 2023 was also significant for Indian exits with the exit value soaring 15 percent to $29 billion, alongside a rise in exit volumes from 210 to 340. This was driven primarily by public market sales (notably block trades) which comprised half of exits by value, benefitting from an increasingly deep Indian public market, which outperformed those of most major economies, with a significant increase in domestic investor participation."

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Moneycontrol covered the latest report by Bain, The India Private Equity Report 2024: "The year 2023 was also significant for Indian exits with the exit value soaring 15 percent to $29 billion, alongside a rise in exit volumes from 210 to 340. This was driven primarily by public market sales (notably block trades) which comprised half of exits by value, benefitting from an increasingly deep Indian public market, which outperformed those of most major economies, with a significant increase in domestic investor participation."

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Moneycontrol covered the latest report by Bain, The India Private Equity Report 2024: "The year 2023 was also significant for Indian exits with the exit value soaring 15 percent to $29 billion, alongside a rise in exit volumes from 210 to 340. This was driven primarily by public market sales (notably block trades) which comprised half of exits by value, benefitting from an increasingly deep Indian public market, which outperformed those of most major economies, with a significant increase in domestic investor participation."

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Moneycontrol covered the latest report by Bain, The India Private Equity Report 2024: "The year 2023 was also significant for Indian exits with the exit value soaring 15 percent to $29 billion, alongside a rise in exit volumes from 210 to 340. This was driven primarily by public market sales (notably block trades) which comprised half of exits by value, benefitting from an increasingly deep Indian public market, which outperformed those of most major economies, with a significant increase in domestic investor participation."

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Warning to God (Good) businessman. The capital markets are dirty as it gets… I got approached by an OTC company called Demand Brands DMAN to take over controlling interest and become CEO of their stock. I was to dedicate the brand Lucky Chief, a 17 acre 1-1 CBD campus including the real estate, patented and AOSCA certified Blue Kross hemp variety, full catalog of over 100 cannabis genetics and interest in a Type 7 lab in N. Ca. When I took over within a year I raised the share price 15x and attracted 8m from an institutional investor based on my rev and vertical integration strategies. It was at that point the main shareholder who was a very wealthy ex Hollywood movie producer decided he wanted the $$ and control back. Being he was still the admin (My big mistake) on the filings he took me out as CEO and started fraudulently filing in my name. They had the transfer agent rescind my 25m in shares. They stole all my rev and product. Then sued me… I went through the worst time of my life the next two years in court and almost gave up and just took a judgment which would have ruined me. 45 days ago I won the case and the appeal!!! Luckily I had the best judge I could have asked for. They had a team of lawyers that were trying to intimidate me and the judge. The judge stood his ground and justice prevailed. They accused the judge of conspiring with me behind closed doors (their biggest mistake. Lol) I received all my assets under my fund back and now can go after them for damages. So if anyone knows of a good SEC attorney who wants to go after damages I have an award and animosity ready to go after them. I decided to reopen my fund and keep it private. We opened a broker house under the fund so we can treat hemp as a legitimate commodity and have several agents now brokering hemp commodities world wide with a standard SOP, chain of custody and double coa for THCA products. We utilize our escrow and factoring in order to facilitate deals for agents. We have identified some great hemp projects and now really focused on THCA genetics and licensing the patented Zero THC Blue Kross. Our chain of CBD dispensaries with the hybrid model are expanding and looking for new partners. SacTown CBD Elk Grove CBD Benicia CBD You can check out www.VirideResearch.com for our latest updates. We are recapitalizing the fund for 5m to dedicate to the latest projects. If you’re interested please request our accredited investors form and we will email you a copy of our PPM. Viride Research Fund - CEO- Ian Dixon

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A series where we highlight Gemba Capital's Portfolio companies' every week. Simple post - no gyaan and no bakwaas :) This week meet Pramod Rao and Abhishek Nalin from Threado AI Kamini Shivalkar Aditya Vargante Govind Lohia Vipul Rawal ↗️ ️Anupreet Singh 📈 Sujoy Chakravarty #meetourportfolio #earlystage #venturecapital #startups #tech #india #portfolio

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I tested the various loan platforms India has to offer. Navi wins hands down. A bit more context. I'm not suddenly broke 😅 I recently moved back from Singapore to Mumbai and still have a bulk of my liquidity in SG. I wanted to make a couple of mid-ticket purchases (basic house set up) from marketplaces. Instead of transferring some cash (almost instant thanks to Wise!), I decided to test out the Indian lending ecosystem (since it would make a great LinkedIn post). High level observations: - Amazed to see the stacks built to use Aadhar login, Digilocker access to verified PAN card, using Cersai and other middleware. - Giving access to my last 3 months bank statements was fairly simple as well, not a seamless experience yet but mindblowing for me returning after 7 years, where my last memories were signed hard copies in triplicate - Banks are going to have their lunch eaten when it comes to lending Now, the contenders: Biggest loser: My bank (HDFC). Kept saying I have access to pre-approved credit in the app, when I clicked the link, took me to a webpage that kept breaking. You have ~40% of my assets sitting in your Demat and know everything about me, easy underwriting opportunity missed. First, fastest fail, Instamoney: I couldn't even create an account, tried 5 times, failed. Second, Slice: Great UI/UX, seamless account creation, linking of Aadhar, Pan and bank account. Got pre-approved for ₹60,000 ($720). Strangely low, but I'll take it. Hit a wall at disbursement. They wanted me to penny drop (send ₹1 to their account from mine to showcase I own it). This was meant to be done through UPI. Tried via Amazon, HDFC, finally created a Slice UPI, failed everywhere. Third matador, mPokket: Clunky UI/UX, slightly painful onboarding, finally linked my bank and PAN. After 5 minutes of crunching numbers, they concluded I'm eligible for the grand sum of ₹4,000 ($49) Fourth, Fifth & Sixth include Krazybee, Poonawalla Fincorp and Bajaj Finserv, which managed to get to disbursement stage but either offered a low amount, an insane interest rate (~50% APR) or long minimum tenures. Finally tried Navi, it I'd give it a 7/10 for ease of onboarding. Once onboarded, they evaluated me and offered a ₹10,00,000 limit ($12,000) up-front. I moved to use part of it (₹60,000) and they allowed me exactly what I needed, which was a friendly interest rate and a 1 month time period. They took a lien on my debit card, such that it will debit my account automatically on the date I nominated. In conclusion, I was evaluated and allotted anywhere between ₹4,000 to ₹10,00,000. There were platforms that flatly didn't work, got me halfway and then left me hanging, and one that took it all the way. Interesting developments for sure.

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SSL Research 9th May24 Five points to begin the day with 1️⃣ Result Summary *Strong set* of results by Bharat Forge (led by Defence portfolio), BSE, Kirloskar Oil, Tata Power, SKF India etc Bullish commentary post result concall by Pidilite (1Q may remain weak; full year likely to post growth), Hero Motocorp etc *Decent* set of results from Canara Bank, L&T (Margin expansion unlikely in FY25, OB of Rs 4.7 tn), TVS Motors etc *Muted* nos from Bajaj Consumer (Equity buyback at Rs 290/share may support stock price) 2️⃣ Well know cos hitting *52W Highs* in weak market are ABB, Arvind, Bharat Forge, Century Textile, Crompton, Escorts, Godrej CP, Hind Zinc, KOEL, Zydus Wellness etc Trading at *52W low* are Berger Paints, Dalmia Bharat, HDFC Life, Paytm, Ramco Cement, Syngene etc 3️⃣ Biggies like SBI, Asian Paints, PNB, BPCL, HPCL, Abbott India, Escorts, CAMS, Mahanagar Gas etc to report nos today *Global cues muted* Global cues muted US 10-year yield at 4.5% Dollar Index at 105.5 Brent Crude at $83.8/barrel 4️⃣ 2 IPOs open for subscription today - TBO & Aadhar - Detailed note available on SBI Securities Telegram Channel 5️⃣ RBI lifts curbs on BoB World App - Sentimentally +ve FII sellers since the last 5 consecutive trading sessions & DIIs have been pumping money since the last 12 consecutive sessions Thanks SBI Securities

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A series where we highlight one of Gemba Capital's Portfolio companies' every week. Simple post - no gyaan and no bakwaas :) This week meet Raghu Sankar M P and Shankara K S from HighXP Kamini Shivalkar Aditya Vargante Govind Lohia Vipul Rawal ↗️Anupreet Singh 📈 Sujoy Chakravarty #meetourportfolio #earlystage #venturecapital #startups #tech #india #portfolio

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