AAA Emerging markets mega-deals cap an active November

Emerging markets mega-deals cap an active November

flurry of large emerging markets transactions led another busy month in November. There were 152 corporate venturing-backed investments worth $3.2bn, compared with 106 investments in October worth $6bn. There were also five exits and four initial public offerings (IPOs) worth $721m, compared with eight exits and five IPOs worth $12.2bn in October. See our deal map of November data.

The largest investment was India-based e-commerce company Flipkart reportedly closing a funding round of between $500m and $600m from investors including South Africa-based conglomerate Naspers. Naspers, and investment firms Tiger Global and DST Global each invested between $50m and $100m in the round, which valued Flipkart at $10bn, alongside other investors.

The second-largest deal was smartphone manufacturer Xiaomi and venture capital fund Shunwei Capital investing $300m in China-based online video streaming platform iQiyi. The stake to be acquired by either investor is as yet undisclosed, though the round also included an investment by internet company Baidu.

The third-largest deal was Nigeria-based e-commerce company Jumia raising €120m ($150m) in series C funding, with  parent company Africa Internet Group (AIG) contributing $135m of the total. AIG is a partnership involving mobile phone networks MTN and Millicom International Cellular, and corporate-backed venture firm and incubator Rocket Internet. Rocket increased its stake in Jumia from 26.9% to 28.7% through the round.

The fourth-largest deal was Slack Technologies, a US-based developer of a workplace communication app, reportedly raising $120m in a series D round co-led by Google Ventures. The company secured the funding at a $1.12bn valuation. Google Ventures, the corporate venturing arm of internet company Google, co-led the round with venture capital firm Kleiner Perkins Caufield & Byers.

The fifth-largest investment was AppNexus, a US-based provider of technology for internet advertising marketplaces, closing a $110m series E round.

Among IPOs was that of US-based biopharmaceutical company FibroGen, which raised $145.8m. Fibrogen was backed by pharmaceutical company Astellas, its second-largest shareholder, and AstraZeneca. US-based corporate-backed medical device developer Nevro raised $126m. Nevro was backed by pharmaceutical companies Novo and Johnson & Johnson, which invested through its Johnson & Johnson Development Corporation (JJDC) unit, medical researcher Mayo Clinic and medical device company Covidien. Coherus BioSciences, a US-based developer of pharmaceutical biosimilars that is backed by pharmaceutical firm Eli Lilly, raised $85m on Nasdaq. China-based car rental service eHiCar Rental raised $120m in the US.

The biggest exit was Change Healthcare, a US-based provider of medical consumer engagement services, being sold to healthcare payment manager Emdeon for $135m, providing exits to health insurer BlueCross BlueShield and conglomerate Mitsui. Other exits included Pluralsight, an online learning service for technology professionals, buying Smarterer, a US-based skills assessment website, in a $75m deal.

IT

The IT sector was the busiest, with 52 deals, as is typical in corporate venturing. The largest was US-based artificial-intelligence technology developer Sentient Technologies securing $103.5m in a series C round co-led by US-based conglomerate Access Industries and Tata Communications, a subsidiary of India-based conglomerate Tata. The second biggest deal was Yik Yak, a US-based anonymous messaging app developer backed by investors including social network Renren, raising $62m in series B funding.

Other deals included US-based cloud visibility and data protection software producer CipherCloud raising $50m in a series C round led by Transamerica Ventures, the venturing arm of insurance company Transamerica, and US-based e-commerce platform developer Bigcommerce securing $50m in aseries D round led by SoftBank Capital, a venture capital affiliate of telecoms firm SoftBank, including Telstra Ventures, the corporate venturing unit of telecoms company Telstra, and payment services firm American Express.

US-based mobile games developer Scopely raised $35m in a series A round featuring media and entertainment platform Chernin Group and corporate-backed joint venture Evolution Media Partners. US-based marketing technology company Gigya raised $35m in a series F round led by Intel Capital, the corporate venturing unit of the semiconductor technology company, with other investors including media company Advance Publications and software company Adobe.

Israel-based software developer Stratoscale secured $32 in a series B round led by semiconductor  Intel’s corporate venturing arm that also featured a corporate venturing subsidiary of networking equipment technology producer Cisco and flash storage company SanDisk.

US-based inventory management provider OrderWithMe raised $28m in a series C round that included  UK-based fashion and sports apparel producer Pentland Group. Media company Nikkei invested $20m in US-based workplace data technology developer Evernote as part of a partnership centred on Evernote’s new Context feature. 

Healthcare

This was the next most active sector with 23 deals. The sector led flotation activity in the month, with FibroGen Nevro and Coherus BioSciences adding to the large numbers of biotech public market exits this year.

US-based genome mapping technology developer BioNano Genomics closed a $53m series C round co-led by the corporate venturing units of conglomerate Legend Holdings and pharmaceutical company Novartis. Aileron Therapeutics, a US-based biopharmaceutical company backed by the corporate venturing units of pharmaceutical companies Roche, Novartis, GlaxoSmithKline and Eli Lilly, raised $33m in a second tranche of series E funding.

UK-based medical equipment developer Quanta Fluid Solutions raised £27m ($43m) in a series B round featuring Aliad, the venture investment vehicle of medical gases and equipment producer Air Liquide, and engineering company IMI. UK-based biotechnology company Ziarco Group raised $33.1m in series B funding with involvement from the corporate venturing units of drugs company Pfizer and biotech company Amgen.

US-based biotechnology company Imago BioSciences secured $26.5m in a series A round featuring pharmaceutical companies Merck and Amgen, which participated through respective subsdiaries Merck Research Labs Fund andAmgen Ventures.

Belgium-based drug developer Promethera Biosciences raised €20.3m in a series C round that included the corporate venturing units of construction firm SMS Group and pharmaceutical company Boehringer Ingelheim. 

LifeBond, an Israel-based developer of surgical glue, is reportedly raising $25m for its series D round that will include pharmaceutical company Johnson & Johnson, and Xcovery, a US-based developer of cancer therapeutics, raised $20m in series C funding from China-based peer Betta Pharmaceuticals Company in its first deal with a US company.
 
Services

AppNexus, a US-based provider of technology for internet advertising marketplaces, closed a $110m series E round. The round included a $25m investment by marketing firm WPP, which paid $25m earlier in September reportedly increasing its stake from 1% to 15%. The deal also included the transfer of advertising service platform OAS, formerly known as Xavisfor Publishers, to AppNexus.

Internet and telecoms firm SoftBank led a $100m round for India-based real estate portal Housing.com at a $250m valuation, Economic Times reported. SoftBank contributed $70m of the $100m, acquiring a 30% stake in the process. The round included Qualcomm Ventures, the corporate venturing unit of the telecoms technology producer.

Pluralsight, an online learning service for technology professionals, bought Smarterer, a US-based skills assessment website, in a $75m deal, which had been backed by Google Ventures.

Media conglomerate News Corp paid $30m for a 25% stake in India-based online real estate platform PropTiger, investing in its Singapore-based parent company Elara Technologies.

China-based online recruitment platform HunterOn raised $20m in series B funding from investors including  media and events management company IDG.
 
Media

Smartphone manufacturer Xiaomi and venture capital fund Shunwei Capital invested in a $300m round for China-based online video streaming platform iQiyi. The stake to be acquired by either investor has not been disclosed, though the round included an investment by internet company Baidu.

Slack Technologies, the US-based developer of a workplace communications app, has raised $120m in a series D round co-led by Google Ventures. The company secured the funding at a $1.12bn valuation.

A consortium formed by internet company Tencent and instant messaging service Line has paid W1.2bn ($110m) to invest in Korea-based mobile game developer 4:33 Creative Lab.
 
Consumer

India-based e-commerce company Flipkart reportedly closing a funding round of between $500m and $600m from investors including South Africa-based conglomerate Naspers.

Nigeria-based e-commerce company Jumia raising €120m ($150m) in series C funding, with parent company AIG contributing $135m of the total.

China-based peer-to-peer car lending platform PPzuche.com reportedly raised $60m in a series B round co-led by IDG Capital Partners, a corporate venturing unit of media and data firm IDG. IDG Ventures-backed art and design marketplace Minted received $38m in a series D round led by Wells Fargo-backed venture capital firm Norwest Ventures Partners.

India-based online restaurant listings platform Zomato raised $60m at a $600m valuation in a series E round co-led by online classified listings service Info Edge and investment firm Vy Capital.

Codoon, a China-based producer of smart wearable products, raised $30m in series B funding from investors including SBCVC, the Chinese corporate venturing subsidiary of SoftBank.

 

France-based online men’s fashion retailer Menlook.com secured $29m in funding on Tuesday from investors including IDinvest Partners, the venture firm backed by insurance company Allianz.

Fashionandyou.com, an India-based online lifestyle retailer backed by semiconductor company Intel and communications equipment maker Nokia, reportedly raised $20m of a planned $50m series E round.

US-based skincare company La Lumiere received $20m in series B funding on Tuesday from JJDC, and venture capital firm Swan & Legend Venture Partners.

Edaixi, the China-based on-demand laundry app backed by internet portal Tencent, has raised $20m in its series A round, QQ Tech reported.

US-based local discovery website Gogobot raised $20m in a series C round led by HomeAway, an online marketplace 
for holiday home rentals.

Financial


China-based financial data provider Shanghai Gildata has reportedly agreed a RMB390m ($63.5m) funding deal with three investors, two of which are corporates. The funding will come from Shanghai China Business Network, a subsidiary of media company Shanghai Media Group, which will invest together with e-commerce company Alibaba’s financial services subsidiary Ant Financial Services Group, and Hundsun-controlled investment firm Ningbo Yunhan Investment Management.

One97 Communications, the Intel and Silicon Valley Banked-backed India-based operator of mobile payment service Paytm, has raised $60m in new funding from venture capital firm SAIF Partners.
 
Industrial

US-based LED lighting system developer Digital Lumens secured $23m in a series C round led by Nokia Growth Partners, the corporate venturing unit of the communications equipment maker. US-based electronic components producer Amibq Micro secured $15m in a series C round featuring semiconductor and software producer ARM Holdings.
 
Transport

China-based car rental service eHi Car Rental raised $120m from its IPO in the US. Online travel search engine Ctrip, which led a $100m round for eHi in December 2013, bought $20m worth of shares in the IPO and will remain eHi’s largest shareholder with a 22.1% stake. US-based car sharing app developer Getaround closed a $24m series B round led by automotive company Cox Automotive.

Energy and natural resources

Vestaron, a US-based agricultural company commercialising biopesticides developed from spider venom, extended its series C round by $4m to $14m, securing the funding from venture capital firm Anterra Capital. Anterra, formerly known as Rabo Ventures, was spun out from Netherlands-based bank Rabobank in October 2013. It is jointly funded by Moonray Investors, a subsidiary of FIL, the parent company of mutual fund manager Fidelity Worldwide Investment, and Rabo Private Equity, Rabobank’s proprietary private equity arm.

BluWrap, a US-based company working on technology to extend the shelf life of proteins, raised $12.6m in an equity round featuring two funds backed by Rabobank. Rabo Ventures and Anterra Capital, a fund backed by Rabobank and fund manager Fidelity Worldwide Investment, backed the company. 

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