Bengaluru-based data analytics startup Mu Sigma Founder and CEO Dhiraj Rajaram is now officially the major shareholder of the company. He took over his former spouse and ex-CEO Ambiga Subramanian’s 24% stake as well as employee stock holdings to gain major shareholding.
As per reports, the buyback was completed around two weeks ago.
Furthermore, for the transaction, Rajaram acquired a $400 Mn credit line against his shares from four international banks. These banks include London-headquartered Barclays, Deutsche Bank, Standard Chartered and Credit Suisse. He also used a portion of the company cash.
In an interaction with ET, Dhiraj Rajaram stated, “We have taken approximately $400 Mn loan, which was taken by the company based on cash that we have already generated… it’s not a personal loan. I now own 52% of the company. The institutional investors own the same percentage of the company as before. Ambiga does not own any equity in the company.”
This development marks the conclusion of nearly a year of speculation about the company’suncertain fate following Rajaram’s divorce from wife Ambiga. The buyout took place at an estimated valuation of $1.5 Bn.
Mu Sigma: An Overview
Founded in Bengaluru in 2004, Mu Sigma is a data science and analytics firm with clients like Microsoft Corp, Wal-Mart Stores Inc, Dell Inc and Pfizer Inc. It currently has around 4,000 employees. It acquired the coveted unicorn status back in 2013, two years after India’s first unicorn startup InMobi entered the highly-exclusive club.