The legal team that worked on the US$72 million series C round fundraise by Bounce had a greater flexibility to structure the transaction because the two-wheeler rental company is a registered startup.
“Such registered startups enjoy benefits such as management stock options under the Companies Act, 2013, certain tax exemptions, etc. This gave us more liberty to structure the transaction in comparison to regular private equity transactions,” said Anant Mishra, a senior associate at J Sagar Associates (JSA).
Bounce is a registered startup in accordance with the Department for Promotion of Industry and Internal Trade notification number GSR 127(E), dated 19 February 2019.
The fundraise was led by B Capital Group, the venture capital firm founded by Facebook co-founder Eduardo Saverin and New York-based hedge fund Falcon Edge Capital. Mishra said the presence of 10-plus private equity investors resulted in complexity for the deal as well as protracted negotiations around governance and exit rights.
JSA advised B Capital Group, with Mishra working alongside partner Manvinder Singh on the deal. IndusLaw, led by senior partner Srinivas Katta and partner Pallavi Kanakagiri, advised Bounce. The firm also advised investors Accel Partners India, Accel Partners USA, ON Mauritius and Qualcomm Asia Pacific. Goodwin Procter advised Falcon Edge. Its team included partner Yash Rana and associate Ananth Lakshman.