News & Insights

VC Series | Part IV – The Investment Process!

General Corporate

Once the term sheet has been negotiated and signed by the parties, the transaction moves to the process of subscription. The investment process commences with the VC fund initiating their due diligence and proceeds further with negotiation and signing of the detailed transaction documents. Once the conditionalities are fulfilled by the founders and startup, the VC fund wires the investment amount to the startup; and closes the funding round. What processes are followed from signing of term sheet to closure of funding round? How do the founders and startup negotiate and navigate through the conditionalities imposed by the VC fund? How should the founders and VC fund deal with the issues highlighted by the due diligence teams? And what is a win-win situation for all parties involved? We have touched upon these aspects in this Part IV of the VC Series.

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VC Series: Part III – The Term Sheet Decoded!

General Corporate

When founders are offered a term sheet by a VC fund, they are in a rush to close the deal as soon as possible and start using the funds. So, should they go ahead and sign the term sheet? Of course, yes. But they should first understand the terminology used in the term sheet and how it impacts the startup, its founders and the VC fund. We have tried to explain the meaning of some important jargons stated in the term sheet, their importance and legal implications. Founders would do well to read through the term sheet carefully, understand the legal implications and negotiate to achieve a balanced position.

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Veyrah Law advises Redkenko on its pre-Series A round

Announcement

Redkenko Health Tech Private Limited, a Mumbai-based health insurtech startup, has raised funds in pre-Series A round from Beenext, Orios Venture Partners, Waveform Ventures, 9Unicorns and certain Angel Investors.

Veyrah Law advised Redkenko, led by partner Ajay Joseph; principal associate Arun Mohanty; senior associate Anshul Pandey and associate Pooja Agarwal. Veyrah Law team assisted Redkenko with the structuring of their group entities; and drafting and negotiating the transaction documents.

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Towards an Indian ‘Military-Industrial Complex’?

General Corporate

As of 2021, India has the second largest armed forces and the third largest defence budget in the world. However, historically, the defence sector in India has been a monopoly for public sector companies. In 2001, the defence sector was unlocked for domestic private businesses subject to certain licensing requirements. This was also the same time foreign investors were permitted to invest in the defence sector. Initially, foreign direct investment (FDI) was permitted up to a maximum of 26%. Over the years, the FDI cap has been substantially increased and currently stands at 100%, subject to certain conditions. More recently, due to external aggression from neighbouring states, the Government has been keen to further develop the Indian defence manufacturing sector. The thrust has been to encourage the development of indigenous solutions for its defence requirements and reduce its external dependency. In this article, we will discuss the opportunities for foreign and domestic investors in the Indian defence industry.

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VC Series | Part II – The Term Sheet!

General Corporate

Initial discussions between founders and VC funds are usually centred around the business and valuations. When commercial discussions materialise, the first step towards the investment is execution of a term sheet. But when the VC fund offers a term sheet to the founders, it comes with certain legal terms and conditions – what are those terms and conditions? In Part II of the VC Series we discuss the approach to negotiate a term sheet – the need to understand the implications of the legal terms used in the term sheet and the market standards in India

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VC Series | Part I – The First Institutional Investor!

General Corporate

Over the last few decades while India went through radical changes, so did the world of venture capital (VC) financing for start-ups. While seasoned institutional investors are well versed with the legalities of VC financing, first-time founders are often struggling to find their feet in the journey. Likewise, first-time investors in India also grapple at times with adopting some of the market standards that have been established in the Indian market. This series is an endeavor to offer guidance to first-time founders and investors in India. What should they do? How should they do it? What are the accepted VC practices in India? We have tried to answer these and other questions.

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Considering Litigation in India | Part VII – Always keep your options open!

Corporate Disputes

A recurring point that we have emphasized in each discussion around commercial litigation is to always keep the end commercial objective in mind. Litigation should always be a means to achieve the desired end objective. In an Indian context, the end objective for most commercial disputes should be to achieve a favorable settlement.

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EdTech: Digital Era of Education

General Corporate

The conventional idea of schooling has undergone a drastic change over the last century. Schooling has evolved with the integration of technology that has enhanced both learning and teaching experiences. The prevailing Covid-19 pandemic has only accelerated this trend by further embedding technology into the learning process. The result has been that tech savvy students now use engaging apps and attend online courses; seamlessly enhancing education despite the lockdown caused by the pandemic. This fast-emerging sector is better known as education technology (EdTech). The essential aim of EdTech is to make learning more fun by using interactive methods of teaching and in the bargain improving the standard and quality of education. This article analyses the regulatory regime that applies to the EdTech sector in India and the emerging opportunities in this space.

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Considering Litigation in India | Part VI – What happens outside court is just as important!

Corporate Disputes

This aspect of litigation is more critical than what a party may envisage it to be. While engaging in any kind of litigation one must be sensitive to the implication of events that occur outside court. One may not realize, but what transpires outside court could be used by either side to their advantage before

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COVID-19: Turning Point for Online Pharma

General Corporate

With the rapid advancement of the internet and movement of businesses online, it was only time before the pharmaceutical retail industry also joined the bandwagon. The pharmaceutical retail industry which has long been popular among investors also started to venture into providing online services (Online Pharma). This was due to the increased demand and tech-savvy clientele who preferred to order from the comfort of their homes. So, it was only natural that the Online Pharma sector bloomed during the Covid-19 pandemic and the ensuing lockdown. Online Pharma is high in demand due to better discounts, convenience, greater anonymity, accessibility in remote locations, easy home delivery, etc. These features have made it the preferable option over community brick and mortar pharmacies during the pandemic. This article explores the current regulatory regime surrounding Online Pharma and the opportunities in India that it presents for investors.

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