India Digest: AION exits Varun Beverages; Shuttl raises $5m from US VC

Cans of Pepsi are displayed at the Roland Garros stadium in Paris, France, May 28, 2016. REUTERS/Jacky Naegelen/File Photo

Private equity fund AION has sold its existing 4.5 per cent stake in Ravi Jaipuria-promoted Varun Beverages, while bus aggregator Shuttl has raised $5 million from New Atlantic Ventures.

PE fund AION exits Varun Beverages

Private equity fund AION has sold its entire 4.5 per cent stake in Ravi Jaipuria-promoted Varun Beverages, the bottlers for beverage giant Pepsi, at Rs 850 a share on the National Stock Exchange (NSE) in a block deal, according to media reports.

The current transaction marks the PE fund’s complete exit from the company, thereby giving it a 25 per cent return on equity per year in dollar terms, a report by Business Standard stated, citing sources.

AION, a joint venture between Apollo Global Management and ICICI Ventures, had invested about $90 million in Varun Beverages in 2015. A year later, it made a partial exit in tranches when the company got listed.

Varun is one of the leading franchisees of carbonated soft drinks and non-carbonated beverages that are sold under trademarks owned by PepsiCo. AION’s other portfolio companies in India include Monett Ispat.

Shuttl raises $5 million from New Atlantic Ventures

Bus aggregator Shuttl, which is owned by Super Highway Labs, has raised $5 million from US-headquartered VC firm New Atlantic Ventures in lieu of an undisclosed stake, according to a report by VC Circle. The Gurgaon-headquartered startup is currently in talks to raise about $20 million, the report further added.

The current round of funding comes just days after Shuttl raised capital from venture capital firms Sequoia Capital and Lightspeed India Partners, along with Times Internet, in March 2019.

Shuttl, backed by Amazon India, Amazon Alexa Fund, Dentsu Ventures and Trifecta Capital in the previous rounds, currently operates an app-based office bus service in Hyderabad, Kolkata, Faridabad and Pune, apart from Delhi-NCR.

The company plans to use the capital raised to expand its operations not only in the cities it is present in but also in newer ones.