AZB & Partners had to ensure their client, Hero Enterprise, received rights in hotel aggregator OYO on an equal footing with other investors in OYO’s Series D round funding, in addition to safeguarding sound exit options for the company upon maturity of its investment.
“Given that this was a Series D round in which existing investors were also investing, the firm had to ensure parity in terms of rights and privileges for Hero,” said AZB partner Nandita Govind, based in Delhi.
Hero Enterprise’s investment amount in OYO was confidential. However, the hotel company was able to raise ₹16 billion (US$250 million) from its investors, which included SoftBank Group, Sequoia Capital India, Lightspeed Venture Partners and Greenoaks Capital.
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“Our role included a detailed review of the transaction documents for the investment, viz the share subscription agreement, the shareholders agreement and certain other ancillary documents, and negotiating the terms with the company counsel, who were also representing the other investors in these negotiations,” said Govind.
Hero Enterprise sells life and health insurance, and is owned and controlled by Sunil Kant Munjal, who in July 2016 stepped down as joint managing director of Hero MotoCorp, which is the country’s largest motorcycle manufacturer.
AZB & Partners has represented various clients in transactions involving start-up funding from time to time, including investment by Warburg Pincus in Ecom Express and in Stellar Value Chain Solutions’ investment by Arun Sarin in Ola, an investment by SVF Holdings (Jersey) LP, a SoftBank Vision Fund affiliate, in Flipkart, and an investment by Tiger Global in InShorts.
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