New Delhi, Realty firm <keyword id="20188868" type="General" weightage="20" keywordseo="prestige-estates" source="keywords">Prestige Estates</keyword> Projects Ltd has raised Rs 2,001 crore from <keyword id="20392245" type="General" weightage="20" keywordseo="abu-dhabi-investment-authority" source="keywords">Abu Dhabi Investment Authority</keyword> (<keyword id="20826721" type="General" weightage="20" keywordseo="adia" source="keywords">ADIA</keyword>) and <keyword id="21150454" type="General" weightage="20" keywordseo="kotak-aif" source="keywords">Kotak AIF</keyword> to develop housing projects across four major cities, as part of its expansion plan. In a regulatory filing on Monday, <keyword id="20197996" type="General" weightage="20" keywordseo="prestige-group" source="keywords">Prestige Group</keyword> said the company, through its subsidiaries, has "entered into a landmark deal with ADIA and Kotak AIF for Rs 2,001 crore (around USD 240 million) to capitalise on growth opportunities in the residential sector". The fund will be used to develop projects with an estimated revenue potential of Rs 18,000 crore, it added. "This marquee deal not only underscores the confidence of institutional investors in Prestige Group's execution and corporate governance but also reflects our shared commitment to delivering excellence in real estate development pan-India," Irfan Razack, Chairman &amp; Managing Director of Prestige Group, said. When contacted, Prestige Group CEO <keyword id="21128882" type="General" weightage="20" keywordseo="venkat-k-narayana" source="keywords">Venkat K Narayana</keyword> said the company has raised this fund in a quasi-equity form and will be used to develop four housing projects in Delhi-NCR, Mumbai, Goa and Bengaluru. ADIA and Kotak AIF will have stakes in the special purpose vehicles (SPV) to be created for the development of these four projects, he added. Bengaluru-based Prestige Group, which is one of India's leading real estate developers, termed the strategic deal as a significant milestone in its growth trajectory. "The collaboration with ADIA and Kotak AIF represents a considered move towards adopting strong and organic growth for Prestige Group," the filing said. The deal, with its substantial size, upholds the company's vision to sustain its leadership position in the industry, Prestige Estates said. "It is aimed at catalysing the development of early-stage residential projects, ensuring the company's commitment to prudent expansion and diversified growth," the company said. Given the increasing demand and consolidation in the sector, Venkat said this deal will help in accelerating growth and expansion. "These funds will fuel the development of greenfield residential projects across the cities of Bengaluru, Mumbai, Goa, and NCR with a combined Gross Development Value (GDV) of over Rs 18,000 crores, contributing significantly to the top line," he said. Prestige Group has a legacy of almost four decades in real estate development. It has a diversified business model catering to various segments, viz residential, office, retail, hospitality, property management and warehouses with operations in more than 12 major locations in India. The Group has completed 300 projects spanning a developable area of 188 million square feet.

Prestige group raises ₹2,001 cr from ADIA, Kotak AIF to fund expansion

Chennai, <keyword id="20269172" type="General" weightage="20" keywordseo="kotak-mahindra-bank-ltd" source="keywords">Kotak Mahindra Bank Ltd</keyword> on Saturday said it closed the third quarter of FY24 with an after tax profit of Rs 3,005 crore. In a regulatory filing, the bank said the net profit for the quarter ended December 31, 2023 stood at about Rs 3,005 crore up from about Rs 2,792 crore in Q3FY23. According to the bank, the Q3FY24 results include Rs 143 crore provision (post tax) on applicable Alternate Investment Fund (<keyword id="19903848" type="General" weightage="20" keywordseo="aif" source="keywords">AIF</keyword>) investments pursuant to <keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>'s circular dated December 19, 2023. Net Interest Income (<keyword id="19936363" type="General" weightage="20" keywordseo="nii" source="keywords">NII</keyword>) for Q3FY24 increased to Rs 6,554 crore, from Rs 5,653 crore in Q3FY23, up 16 per cent YoY. Net Interest Margin (<keyword id="19936365" type="General" weightage="20" keywordseo="nim" source="keywords">NIM</keyword>) was 5.22 per cent for Q3FY24. During the period under review, the bank's total interest income stood at Rs11,799.2 crore, up from Rs 8,998.61 crore earned during the corresponding period in the previous year. As on December 31, 2023 the bank's gross and net non-performing assets stood at Rs 6,301,67 crore (Rs 5,994.57 crore on December 31, 2022) and Rs 1,225.26 crore (Rs1,344.77 crore). vj/vd

Kotak Mahindra logs Rs 3,005 crore PAT for Q3

<ul></ul><ul><li><keyword id="6358977" type="General" weightage="20" keywordseo="Swiggy" source="Orion">Swiggy</keyword> is now India’s latest decacorn after raising $700 million in its latest round.</li><li><keyword id="830092" type="General" weightage="20" keywordseo="Zomato" source="Orion">Zomato</keyword> is now valued under $10 billion as its shares dropped below the ₹100-mark earlier today.</li><li>A whole host of new investors participated in Swiggy’s latest venture capital funding round.</li></ul>Food and grocery delivery giant Swiggy has surpassed rival Zomato’s valuation as it raised $700 million. This development was aided by the plunge stock market took on Monday, January 24. Swiggy was valued at $10.7 billion in this latest round, a source close to the deal told Business Insider. The company, which was founded in 2014, has not officially announced the valuation. While Swiggy has attained the decacorn title, Zomato has lost it as its shares dropped <a href="https://www.businessinsider.in/stock-market/news/there-are-huge-discounts-on-nykaa-zomato-paytm-and-shares-of-other-listed-tech-startups/articleshow/89086759.cms">below the ₹100 mark earlier today</a>. The company’s shares hit an all-time low of ₹91 and its market cap came down to ₹71,629 ($9.6 billion). A decacorn is a company valued at or more than $10 billion. <div type="image" title="Swiggy is now valued more than Zomato" msid="89092891" hostid="261"></div> Swiggy’s latest funding round was led by US-based investment firm Invesco in a fresh round of external funding, the company has announced. New investors such as <keyword id="9554362" type="General" weightage="20" keywordseo="Baron-Capital-Group" source="Orion">Baron Capital Group</keyword>, <keyword id="13021155" type="General" weightage="20" keywordseo="Sumeru-Venture" source="Orion">Sumeru Venture</keyword>, IIFL AMC Late Stage Tech Fund, Kotak, <keyword id="13021156" type="General" weightage="20" keywordseo="Axis-Growth-Avenues-AIF-I" source="Orion">Axis Growth Avenues AIF- I</keyword>, Sixteenth Street Capital, Ghisallo, Smile Group and Segantii Capital participated in this financing round. The company’s existing investors Alpha Wave Global (formerly Falcon Edge Capital), Qatar Investment Authority, and ARK Impact, and Prosus also participated in the round, Swiggy said in a press note. “The GMV [gross merchandise value] our food delivery business achieved in 40 months, took Instamart just 17 months, demonstrating the platform benefits of Swiggy. We will double down on this to build more categories in line with our mission of offering unparalleled convenience to Indian consumers,” said Swiggy’s Chief Executive Officer (CEO) Sriharsha Majety in a statement. Instamart is Swiggy’s quick commerce arm, which delivers groceries within 15-30 minutes. In July last year, Swiggy <a href="https://www.businessinsider.in/business/startups/news/swiggy-raises-1-25-billion-in-a-mega-round-of-funding-led-by-softbank-and-prosus/articleshow/84578974.cms">had raised $1.25 billion</a> led by SoftBank and Prosus. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/ola-electric-raises-another-200-million-this-time-at-a-valuation-of-5-billion/articleshow/89088739.cms" style="">Ola Electric raises another $200 million, this time at a valuation of $5 billion</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/check-out-top-10-losers-in-share-market-that-lost-more-than-15-in-last-one-month/articleshow/89089076.cms">Wipro, L&amp;T Infotech, Zee Entertainment, Mindtree among top losers that hit investors’ portfolio in the last one month</a>

Swiggy is now valued more than Zomato

<ul><li>Post the deal announcement, <keyword id="46013" type="General" weightage="20" keywordseo="kotak-mahindra-bank" source="Orion">Kotak Mahindra Bank</keyword>’s shares rose to its highest in the last 12 months.</li><li>KFin Technologies claims to be a market leader in providing registry and transfer agent services to mutual funds in India.</li><li>The transaction is expected to complete by the end of October 2021.</li></ul>Private sector lender <keyword id="39409" type="General" weightage="20" keywordseo="kotak" source="Orion">Kotak</keyword> Mahindra Bank has agreed to acquire a 9.98% stake in KFin Technologies for a cash consideration of ₹310 crore, the bank said in a stock exchange notification on Monday. KFin Technologies claims to be the market leader in providing registry and transfer agent services to mutual funds in India. Besides asset management firms, it also provides similar solutions for alternative investment funds, wealth managers and corporates. KFin serves 25 of the 44 asset management firms in India, and services 23 mutual fund and pension managers across Asia, including Malaysia, Philippines, Singapore and Hong Kong. It also serves over 300 AIFs schemes launched by over 100 fund managers, along with over 550 listed and more than 3,700 unlisted corporates with over eight crore folios in India, it said. AIFs are privately pooled investment vehicles established or incorporated in India, which collect funds from Indian and/or foreign investors. These include private equity funds, venture funds, social funds and debt funds operating in the country. Besides, the company is also one of the two central record keeping agencies under the National Pension System in India, and is expanding in insurance transaction processing and fund administration, it said. The transaction, termed as a financial investment by Kotak Mahindra bank, is expected to complete by the end of October 2021, it said. “At Kotak Mahindra Bank, this investment is in line with our stated strategy of making minority investments in businesses which are professionally managed and have deep client entrenchment. We are excited about the future growth prospects of the business and believe that an investment in KFin, with its significant franchise, will create long-term value for our stakeholders,” said Dipak Gupta, joint managing director at Kotak Mahindra Bank. The development comes as American private equity fund General Atlantic, which currently holds 83.25% stake in KFin Technologies (formerly Karvy Fintech), plans to cut down its holding to almost half, according to a February 9 <a href="https://economictimes.indiatimes.com/markets/stocks/news/general-atlantic-looks-to-cut-kfintech-stake-by-almost-50/articleshow/80755261.cms?from=mdr">report</a> by The Economic Times. As of Dec. 31, 2020, the company had cash and bank balance of about ₹105 crore, according to an April 30 rating <a href="https://www.icra.in/Rationale/ShowRationaleReport?Id=103142">note </a>by ICRA. But the company’s repayment obligations are “ballooning”, it said. “The company has ballooning repayment obligations with ₹52 crore, ₹80 crore and ₹220 crore due in FY2022, FY2023 and FY2024, respectively. KFin’s ability to generate growth while gradually expanding its margins will thus remain crucial,” the note said. ICRA, however, reaffirmed the company’s ratings at AA- (Stable). As of March-end, KFin Technologies’ consolidated revenue stood at ₹486 crore, while it made a net loss of ₹64.5 crore, as per its latest financial disclosures. The company’s net worth fell 17% year-on-year to about ₹321 crore as of fiscal 2021. Post the deal announcement, Kotak Mahindra Bank’s shares rose to its highest in the last 12 months to ₹2,024.95 by 11 a.m., on September 20, with its market capitalisation crossing ₹4 lakh crore. <div type="image" title="kotak mahindra" height="900" width="1200" msid="86360936" hostid="261"></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/ecommerce/news/amazon-lawyers-allegedly-paid-bribes-to-indian-government-officials/articleshow/86360262.cms">Amazon is investigating its lawyers for allegedly bribing Indian government officials</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/vodafone-ideas-5g-trials-achieve-speeds-in-excess-of-3-7-gbps-in-pune/articleshow/86360103.cms">Vodafone Idea's 5G trials achieve speeds in excess of 3.7 Gbps in Pune</a>

Kotak Mahindra Bank to buy about 10% in KFin Technologies for ₹310 crore

<ul><li>Domestic AIFs saw tepid activity as residential <keyword id="6354553" type="General" weightage="20" keywordseo="real-estate" source="Orion">real estate</keyword> debt witnessed lower demand.</li><li>Large deals dominated the PE investment in real estate in the first nine months of FY24.</li><li>Commercial real estate continued to attract large fund flows, and PE investors favour equity vs debt. </li></ul>A sharp rise in home sales as well rising office occupancies might be the talk of the town. Yet, private equity investments in the sector remained muted. In the first nine months of FY24, i.e. April to December 2023, <keyword id="189346" type="General" weightage="20" keywordseo="pe-investments" source="Orion">PE investments</keyword> in the sector registered a 26% decline, says a report by Anarock. Investor activity remained tepid due to geopolitical uncertainties as well as a high interest rate environment. The size of domestic investments however declined to 14% of total capital flows to $360 million as compared to $717 million in the same period last year. "Domestic alternate investment funds (AIFs) have seen lower activity levels as their favoured asset class — residential real estate debt – witnessed lower demand for high-cost funds. Strong residential pre-sales and an accommodative stance by state-owned banks have led to reduced demand for capital from the more expensive AIFs," said Shobhit Agarwal, MD &amp; CEO of Anarock Capital. The average ticket size marginally increased to $95 million from $91 million in the same time last year. This is largely due to a mega $1.4 billion deal in which Brookfield India Real Estate Trust REIT and Singapore’s GIC together acquired two commercial assets in Mumbai and Gurugram. The deal also aided the sharp rise in multi-city transactions. Otherwise, Mumbai Metropolitan Region led the transaction league tables in city-specific transactions. The region saw investments flows to the tune of $694 million. Top 5 real estate PE deals in 9MFY24 <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recipient </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Asset class </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Deal size </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brookfield RE Trust REIT &amp; GIC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brookfield AMC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$1.4 bn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CPP Investments </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">RMZ Corp </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$325 mn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Morgan Stanley </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Prakhhyat Group </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Warehousing </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$85 mn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Blackstone </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Allcargo </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Warehousing </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$76 mn </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Data Center Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sify Infinit Spaces </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Data Center </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$73 mn </td></tr></tbody></table>Source: Anarock Office spaces dominate Most of the PE investment flows for the fiscal year flew into office spaces which dominated the big ticket deals. Data centers also became an emerging new asset class for investors. Domestic debt funds also showed interest in commercial projects. Varde Partners had invested $91 million in a Hyderabad based project by Phoenix Group. “The sector’s reliance on IT/ITeS diminished, with manufacturing, BFSI, and co-working spaces contributing to resilient demand. Anticipated growth in the IT/ITES sector is expected as more employees shift to working from offices for 3-4 days weekly,” said Anarock. Residential real estate was also one of the key sectors which saw large deals in 9M FY24. HDFC Capital as well as PAG invested over $60 million in CCI Projects and Kalpataru Group respectively. In times when overall flows softened, large deals dominated the scene. Top ten deals accounted for 87% of the total value of PE investments. In the same period last year, they accounted for 76%. While debt capital also flowed in, equity investments are preferred route for PE investors, which is visibly healthy at 84% of total deals.

Real estate hit its highs in 2023 but slipping PE investments a worry

<ul><li>HNIs from tier 2 towns of industrial belts are now placing their bets on new-age companies, say VC and PE fund managers. </li><li>Wealth advisers of Indian HNIs and family offices have played a part in popularising select investment in AIFs. </li><li>Second-generation family members are more clued in to the startup opportunity as they lead the charter to diversify family holdings. </li><li>Small businessmen from rich industrial belts and tier 2 towns with core businesses that generate free cash flows are actively deploying funds in startups via AIFs.</li></ul> The Indian startup story has not just gone global, it’s going deep into the hinterlands too. And it’s the high networth individual (HNIs) investors in tier 2 towns of industrial belts who are driving this rush of investments in new-age companies. A number of <keyword id="34499" type="General" weightage="20" keywordseo="private-equity" source="Orion">private equity</keyword> (PE) and <keyword id="6357097" type="General" weightage="20" keywordseo="venture-capital" source="Orion">venture capital</keyword> (VC) firms Business Insider <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> spoke to said that these HNIs, especially from the second generation, had discovered the value of the alternate investment ecosystem and were steadily deploying funds into these investments. “With continuous exposure, the startup ecosystem has got evangelised among potential investors across India. We are seeing investors coming from cities like Nagpur, Vadodara, Surat, Bhubaneshwar, Cochin, Coimbatore to name a few. The list is long,” says Anil Joshi, managing partner at Unicorn India Ventures, an early stage-focused tech fund. In the last two years, domestic HNIs have been investing more into the PE and VC ecosystem due to the growing popularity of the alternate ecosystem. The initial rush of domestic HNIs was from metros like Mumbai, Delhi and Bangalore. However, tier 2 cities and towns too have caught on, very fast. Small towns have a lot of depth in terms of investments to be deployed, VCs say. For instance, the rich industrial belts of Ludhiana, Kanpur or Surat have family offices that are keen on alternate investment funds or AIFs. “The core businesses of these family offices are generating free cash flows of a couple of ₹100 crores a year and they are actively deploying that in startups via AIFs,” said Rahul <keyword id="796" type="General" weightage="80" keywordseo="chandra" source="Orion">Chandra</keyword>, MD of Arkam Ventures, an early-stage tech fund. A vibrant alternate ecosystem Srini Sriniwasan, managing director of Kotak Investment Advisors, said in early August that the many marquee fund managers have been inaccessible to domestic investors as they had either raised only offshore capital or had high minimum ticket requirements. That is no longer the case. “Indian alternate ecosystem has become vibrant with PE/VC fund managers delivering consistent returns and outperformance over public benchmarks,” said Sriniwasan in early August. Wealth advisers of Indian HNIs and family offices too have played a part in popularising select investments in AIF. Moreso, the growth in digitalization has made them ‘buy into’ the tech startup story and many of them have become IPO investors, said Chandra. “The question in their mind is why not participate financially in this growth story. Their public market investments have grown over the last two years and they find it prudent to diversify their capital to AIFs. The second-generation family members are more clued in to the startup opportunity and they are leading the charter to diversify family holdings to AIFs,” adds Chandra. The trend has become even more pronounced in the last two years, as per VCs. Second-generation businessmen Ankur Mittal, partner of Delhi-based VC Physis Capital, said that the youngest members of large family businesses in small towns are leading their families towards these investments. Physis claims to have never gone looking for domestic investors – most of their investors had found them online, filled a form on the website and became investors. Many of these investors have a similar profile – most own multi-million dollar family businesses in small cities. “They are those who can spot an opportunity and realise that something is happening in this asset class and want to take a plunge in it,” he told Business Insider India. Mittal said that one of their investors was an IIM graduate who went back home to run his family businesses – and convinced the family to invest in AIFs. “The idea of investing in AIFs also spreads word of mouth. Once initial investors see consistent returns, they bring in friends and families, as these successful businessmen are opinion leaders of that region,” Mittal said. No funding winter yet Venture capitalists say that the interest of these investors has remained intact in spite of the current economic pain points — high inflation, slowing growth and worries of recession globally that may have a cascading effect on India too. They believe that India offers good opportunities for wealth creation. Since most of these investments are long term, the economic turmoil has had less impact on investment decisions. The natural correction in valuations has not affected early-stage investments as much as growth-stage companies, as per VCs. “Overall both domestic and foreign investors seem confident, just that we are seeing some corrections on valuation, which is fair, considering the nature of economy and cycle of the business,” said Unicorn India Ventures’ Joshi. A lot of VCs are bullish on the Indian startup growth story and say that there has been a steady supply of foreign capital in spite of the talk of funding winter. “The funding winter, so to speak, is not visible so far although the sources (of funding) are certainly fewer. There is a reduction in fundraise size and valuation but the rounds for quality startups will continue to close,” said Chandra. “Domestics investors will continue to supplement this foreign capital flow and diversify their exposure to venture by investing in early as well as growth VC funds,” he added. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rating-agencies-revise-gdp-growth-estimates-yet-again-most-now-peg-it-below-7/articleshow/93944018.cms">Rating agencies revise GDP growth estimates yet again, most now peg it below 7%</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/canada-approves-bivalent-moderna-spikevax-booster-that-acts-against-covid-19-and-omicron/articleshow/93943902.cms">Canada approves bivalent Moderna Spikevax booster that acts against Covid-19 and Omicron</a>

Cash-rich family offices of small towns are buying into the India startup story

<ul><li><keyword id="3088950" type="General" weightage="20" keywordseo="licious" source="Orion">Licious</keyword> — which sells meat and seafood online — on Tuesday announced that it has raised $150 million.</li><li>Though the company has not revealed its valuation, it claims to be the most valued direct-to-consumer (D2C) startup in India.</li><li>A direct-to-consumer brand is a company that sells its products directly to customers without relying on third parties in a big way.</li></ul>Licious — which sells meat and seafood online — on Tuesday announced that it has raised $150 million. The Series F2 round was led by Singapore-based Amansa Capital, along with Kotak PE and Axis Growth Avenues AIF - I. Zerodha’s founders Nithin and <keyword id="968035" type="General" weightage="20" keywordseo="nikhil-kamath" source="Orion">Nikhil Kamath</keyword>, BoAt’s cofounder Aman Gupta and True North’s partner Haresh Chawla also participated in the round. Avendus acted as the exclusive financial advisor to Licious for the transaction. Though the company has not revealed its valuation, it claims to be the most valued direct-to-consumer (D2C) startup in India. There are currently only two D2C unicorns in India — Mamaearth and Licious. Mensa Brands made it to the club too but it is a house of D2C brands, meaning they will acquire smaller D2C brands and scale them further. “This valuation is a direct outcome of the value that we have created for our stakeholders – investments made towards building the category have borne us rich dividends and have propelled growth for the company and its people. The growing interest of investors – from India and abroad alike is an added assurance that obsession with customers, quality and service standards are the pillars of the best businesses,” Vivek Gupta and Abhay Hanjura, cofounders of Licious, said in a statement. A direct-to-consumer brand is a company that sells its products directly to customers without relying on third parties in a big way. A more traditional retailer follows a longer chain to provide a product to customers — manufacturer/producer&gt; to a wholesaler&gt; to a distributor&gt; to a retailer &gt; to customer. The development comes only six months after Licious made its <a href="https://www.businessinsider.in/business/startups/news/meat-and-seafood-brand-licious-is-now-worth-over-a-billion-dollars/articleshow/86775398.cms">entry into the unicorn club</a> with a billion dollar valuation. The company had raised $52 million in October 2021 in a round led by IIFL AMC’s Late Stage Tech Fund. Licious was founded by Abhay Hanjura and Vivek Gupta about six years ago. The company works on a <a href="https://www.businessinsider.in/advertising/brands/news/licious-ropes-in-bollywood-actors-anil-kapoor-and-arjun-kapoor-for-its-mass-media-campaign/articleshow/83198002.cms">farm-to-folk business model</a>, which means that it owns the entire supply chain from sourcing to selling. The company has created a robust cold chain control system to maintain the quality of its products from procurement, processing to storage. The company specialises in chicken, goat, lamb and pork meat, among others. It also offers fish and seafood products, along with exotic meat varieties like turkey, blue crab and more. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/ashneer-grover-claims-bharatpes-gold-loan-vertical-was-his-project/articleshow/90217735.cms" data-type="tilCustomLink">Ashneer Grover claims Bharatpe's gold loan vertical was his project, calls out CEO for ‘selling lies’</a> <a class="tout-title-link" href="https://www.businessinsider.in/home/facebook-wants-to-bring-back-young-adults-on-its-platform-but-they-say-theres-nothing-much-it-can-do-to-win-them/articleshow/90206539.cms">Facebook wants to bring back young adults on its platform but they say there’s nothing much it can do to win them</a> <a href="https://www.businessinsider.in/tech/mobile/news/apple-supplier-foxconn-halts-production-at-its-shenzhen-plants-after-sudden-covid-19-outbreak/articleshow/90215795.cms" data-type="tilCustomLink">Apple supplier Foxconn halts production at its Shenzhen plants after sudden COVID-19 outbreak</a>

Zerodha founders, BoAt’s Aman Gupta and others invest $150 million in Licious

<ul><li>India’s leading banks saw their shares price jump by as much as 15% after the <keyword id="10279586" type="UNKNOWN" weightage="20" keywordseo="Budget-2021-22">Budget 2021-22</keyword> announcements on February 1.</li><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> announced the creation of a ‘bad bank’ and an increase of Foreign Direct Investment (FDI) to 74% in the insurance sector.</li><li>However, experts believe the rally may be short-lived due to the lack of clarity around how the sale of bad assets will work and cost of funding likely to increase. </li></ul>In a splash of good news for the banking sector, Finance Minister Nirmala Sitharaman announced the formation of a ‘bad bank’ for India during the Budget 2021-22 — even though she never did use those words. “An Asset Reconstruction Company (ARC) and Asset Management Company (AMC) would be set up to consolidate and take over the existing stressed debt and the manage and dispose of assets to Alternative Investment Funds (AIF) and other potential investors for eventual value realisation,” said the Finance Minister in Parliament. After the announcement, the share prices of Indian <keyword id="87658" type="PERSON" weightage="20" keywordseo="banking-stocks">banking stocks</keyword> went into a frenzy. IndusInd Bank was leading the pack as it went up by 15% to ₹981.40 per share, at its peak. ICICI Bank was a close runner up with a jump of more than 13%. Increase in the share price of leading Indian banks after budget announcements: <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Increase in share price* </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndusInd Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.14% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.36% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">RBL Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.37% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SBI </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.95% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of Baroda </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.89% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.71% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Punjab National Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.20% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.44% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.55% </td></tr></tbody></table>Source: NSE *Closing prices on February 1 While the uptake in banks looks like it was due to the budget, they’ve also benefited from a rally in the Asian markets. Furthermore, setting up a bad bank to get rid of non-performing assets (NPAs) is only one part of the story. Sitharaman also raised the cap on the percentage of Foreign Direct Investment (FDI) in <a href="https://www.businessinsider.in/policy/news/government-proposes-higher-foreign-direct-investment-in-insurance/slidelist/80627894.cms">insurance companies from 49% to 74%</a>. Since most banks have stakes in insurance companies, they are due for a possible windfall to a foreign investor. What is a bad bank? An ARC and AMC combination will address the threat of another cycle of bad loans that are sure to come as an after-effect of the COVID-19 crisis, according to Sitharaman. The ARC will be responsible for resolution under which an independent AMC is likely to focus on asset turnaround, job creation and protection. However, the structure of how this will function isn’t clear. Experts worry that with an option of selling assets, banks will be more lax on asset recovery. Borrowers too could get bolder about lapsing payments. The question of a moral hazard “We are waiting for a lot of clarity there on that particular step. We need to see whether there can be better private participation and to what extent. If it’s a purely government organisation, the question of moral hazard remains really significant in the context of an ARC or a bad bank,” Siddharth Sanyal from Bandhan Bank told Business Insider. <div type="twitter" handle="BiIndia" handlename="Business Insider India🇮🇳" image="http://pbs.twimg.com/profile_images/1232926719016718336/sfffJHNV_normal.jpg" favoritecount="11" retweetcount="3" status="#BudgetInsider | The first cut of Finance Minister Nirmala Sitharaman's #UnionBudget2021 with industry insiders. https://t.co/uzumnPUXIt" createdat="1612176527000" id="1356192766733152257"></div> If there isn’t too much private sector participation, the question remains opaque on how the formulas are arrived at, how these ‘bad assets’ will be sold, especially in the case of large loans. The government hasn’t clarified as to who will fund the creation of the AIF. It’s possible that the banks will have to come together and will chip in money for its inception. “Unfortunately, when you create this kind of structure, the moral hazard is even good debt can then become bad debt. There could be arguments like ...my competitor mismanaged his finances but you’re letting him get away clean by selling his loans to some bad bank. And, you’re allowing him to prosper, then why should I not go through the same route and you give me the same sort of forbearance...,” explained Deepak Shenoy from CapitalMind. According to Shenoy, this kind of moral hazard — at least in corporate India — has played out negatively more often than not. Funding is going to get more expensive The good news around banking stocks however could only be temporary as the cost of funds may rise in 2021-22. “Banks will have to put a lot more money into government securities where they need ₹12 lakh crore of borrowing next year which is substantially higher. This year they had a lot of help from the RBI, next year we may not,” said Shenoy. According to him the cost of funding may increase by 15-20 basis points in the coming year that may come as a big blow to banks.

Here's why India's biggest banking stocks went nuts today — and what they missed

<ul><li>The ₹2,244 crore <keyword id="8546323" type="UNKNOWN" weightage="20" keywordseo="CAMS-IPO">CAMS IPO</keyword> was subscribed 82% on the first day. </li><li>The company has fixed the price band for its public offer at ₹1,229-1,230 per share.</li><li>Business Insider caught up with the CAMS President and the CEO Anuj Kumar and the CFO M Somasundaram in an exclusive chat to understand their business and growth plans going ahead. </li></ul>There has been a rush in the primary market this month. The successful IPOs last week — Happiest Minds Tech and Route Mobile IPO have already set the trend for the forthcoming IPO <keyword id="416894" type="ORGANIZATION" weightage="20" keywordseo="Computer-Age-Management-Services">Computer Age Management Services</keyword> (CAMS). This technology-driven financial services and infrastructure provider to the Indian asset management companies (AMC), is off to a good start. The ₹2,244 crore CAMS IPO was subscribed 82% on the first day. The IPO received bids for 10.5 million shares against an offer size of over 12.8 million shares. The IPO will remain open for subscription until tomorrow (September 23). Here are the <keyword id="9963419" type="UNKNOWN" weightage="20" keywordseo="CAMS-IPO-details">CAMS IPO details</keyword>: <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IPO </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Specifics </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Opening date </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 21 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Closing date </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">September 23 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IPO target </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,240 -₹2,242 crore </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Price Band </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,229-1,230 per share </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Minimum bid </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> 12 equity shares </td></tr></tbody></table> CAMS is looking to raise ₹2,242 crore from its initial public offering. And this journey to an IPO has taken 30 years. Business Insider caught up with the CAMS President and the CEO Anuj Kumar and the CFO M Somasundaram, in an exclusive chat, to understand their business and growth plans going ahead. <div type="image" title="Anuj" msid="78198916" hostid="261" caption="&amp;lt;p&amp;gt;Anuj Kumar, CAMS CEO&amp;lt;/p&amp;gt;"></div> <keyword id="9963417" type="UNKNOWN" weightage="20" keywordseo="What-does-CAMS-do">What does CAMS do</keyword>? CAMS is India’s largest mutual fund transfer agency that provides MF services and statements to asset management companies. The CEO explained since mutual funds in India are “completely outsourced on the liability operation side.” Their job is to maintain KYC for MF investors, record keeping, risk management, compliance, distributor service, commissioning among others to name a few. The company holds nearly 70% of the market share in the mutual funds RTA segment. “We have other businesses as well, but this is the core franchise that we have created over the last two and a half decades,” CAMS CEO Anuj Kumar added. The company also has other businesses as well, but mutual funds registrar and transfer agent offering forms the core of its business. “Apart from MF, we do work for the banks and non-banking institutions for insurance companies, as insurance depository participants. And, then we have a payment portal CAMS pay, and we support AIF’s and PMS in the servicing onboarding that kind of work,” he said. <div type="image" title="CAMS" msid="78198669" hostid="261"></div> Growth plans: The company is looking to diversify its revenue According to the company’s <a href="http://www.investmentbank.kotak.com/downloads/computer-age-management-services-limited-RHP.pdf">red herring prospectus</a> nearly 87% of company’s revenue comes from Mutual Funds, out of which nearly 70% comes from the top 5 clients of the company, the CFO M Somasundaram revealed during the interview. “Think of the largest mutual funds in the country— SBI Mutual Funds, HDFC, ICICI, Birla and Kotak— these five will form top clients for us,” Kumar said. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CAMS </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2018 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2019 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mutual funds contribution to overall revenue </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">86.60% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">86.80% </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">86.90% </td></tr></tbody></table> “We are trying to diversify our revenues from other streams, largely in the FSS arena, the financial service, largely derived from B2B businesses,” Kumar added. The company is eyeing the insurance repository business where they have almost 40% market share. They expect that business to go through inflexion points over the coming years to register growth. Kumar also added that insurance repository business, CAMS pay and other small businesses contributed 12-13% of the overall revenue pie, traditionally. And, the management is focused on improving the state of that. However, they still believe that over the coming years “Mutual Funds will continue to remain the mainstay of the company as far as revenue contribution is concerned”. The lockdown impact Despite being a “completely technologically driven company,” the CAMS business wasn’t immune to the coronavirus induced lockdown either. Kumar told Business Insider that during the lockdown period April-May, all branches of CAMS were shut and the physical selling activity which largely happens in branches of banks and happens in people’s houses was not possible due to the spread of the virus. Another factor that impacted its business was the downfall in the overall market. “Valuation losses were there overall for the industry; that phase lasted about two months for April and May.” However, in June, July and August, the company saw a significant reversal and the business started to come back as the equity market recovered, Kumar said. “They are probably still about 6% below the peak, but they have come back a long way; they were down almost 30%.” However, the impact can still be seen as “at the peak, we were servicing just short of 20 lakh crore of assets now we support about 19 lakh crore. So there was some change that happened during the COVID phase.” SEE ALSO: <a href="https://www.businessinsider.in/retail/news/amazon-pumps-in-money-into-more-to-take-on-the-heavyweights-reliance-retail-and-dmart/articleshow/78190570.cms" data-type="tilCustomLink">Amazon pumps in money into MORE to take on the heavyweights Reliance Retail and DMart</a> <a href="https://www.businessinsider.in/tech/apps/news/paytm-trains-its-guns-on-google-while-the-payments-app-is-back-in-play-store/articleshow/78190088.cms" data-type="tilCustomLink">INTERVIEW: Paytm trains its guns on Google while the payments app is back in Play Store</a> <a href="https://www.businessinsider.in/business/news/sebi-asks-nse-to-divest-entire-37-stake-in-cams/articleshow/74104658.cms" data-type="tilCustomLink">Sebi asks NSE to divest entire 37% stake in CAMS</a>

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