Everstone plans to acquire majority stake in Sri Kailash Logistics, while 500 Startups has put its Kulfi fund on hold. Also, Myntra has revived its incubation programme.
Everstone to pick up majority stake in Sri Kailash Logistics for $30m
Sri Kailash Logistics operates an integrated logistics park in Oragadam near Chennai.
According to the new report, the deal entails Everstone controlling interest in Kailash Logistics through its logistics and warehousing unit IndoSpace. The private equity player will also take over debt of the company.The founder promoters will keep a minority stake and partner with Everstone in developing the business in southern India.
A formal announcement is expected next week.
500 Startups puts India-focused Kulfi fund on hold
Deterred by taxation and regulatory hurdles venture capital fund and accelerator 500 Startups has put its plans on hold to raise a $25 million India-focused fund called ‘Kulfi’ Fund, as per a report in The Economic Times.
The US-based investor has recently seen the exit of key executives such as Pankaj Jain, who was leading the Kulfi fund and Soaib Grewal, who managed its India investments. Jain has moved to an advisory role while Grewal completed his contract at the end of year 2016.
“Due to recent moves by the India government regarding tax and regulatory environment, our India fund is on hold temporarily, until we have more clarity,” a 500 Startups spokesperson told the news paper.
The investment firm maintains that it will continue to invest in India for which it has been evaluating two-three Indian startups for funding that it will announce in the first quarter of 2017.
Myntra revives incubation programme
Fashion e-tailer Myntra is reviving its incubation programme that is looking to provide 10 small brands with technical, design and financial support, according to a report in The Economic Times.
Through this initiative, Myntra is targeting about $500 million worth of business from the smaller firms in the next five years.
In 2014, Myntra had guided about a dozen startups as part of its programme then known as the Myntra Fashion Incubator.
“We had never shelved it but it sort of tapered off,” Ananth Narayanan, chief executive officer of Myntra, said about the company’s effort to back small brands. “We are happy to partner with them like we did for HRX. We are happy to buy into them, handhold them, give them ideas on designs.”