Increasing India Presence and Seeking Additional Secondary Deals: TR Capital's Expansion Plan
In a significant move, secondary private equity firm TR Capital, based in Hong Kong, has announced the purchase of stakes in three local companies in India. The companies, customer engagement platform MoEngage, logistics tech startup Shadowfax, and an unnamed logistics tech startup, were acquired from venture capital firm Eight Roads Ventures in a secondary deal valued at approximately $50 million (Rs 427.6 crore).
The exact identities of the new investors in TPG-backed Fibe remain undisclosed. However, it is worth noting that TPG is a leading global private equity firm.
The purchases made by TR Capital were focused on the secondary markets, indicating a strategic move to strengthen its presence in India. The specific reasons for TR Capital's strategic moves in India are not provided, but the firm has expressed its intent to close more transactions in the country.
Meanwhile, TPG-backed Fibe is set to receive a new investment, and Vimal Saboo has been elevated as CEO of its NBFC arm. This development comes amidst a regulatory hurdle for other players in the market, as the Reserve Bank of India (RBI) has barred Sachin Bansal's Navi, PE-backed Arohan, and DMI Finance from issuing loans. The RBI's decision affects these companies significantly.
As part of its growth strategy, TR Capital also plans to strengthen its India team. The exact nature and details of the stakes purchased by TR Capital in the three companies are not specified, adding an element of intrigue to the deal.
This news highlights the ongoing activity in the PE/VC funding and M&A landscape in India, with firms continuing to invest in promising local companies despite the challenges posed by the regulatory environment.
Sources: [1] Livemint.com [2] Economic Times
The acquisitions carried out by TR Capital delve into the finance sector, as they involve investments in three local companies in India - MoEngage, Shadowfax, and an unnamed logistics tech startup. In a different context, another private equity firm, TPG, is planning a new investment, while contending with regulatory hurdles that have affected some players, such as Navi, Arohan, and DMI Finance.
