Sequoia Capital has reportedly concluded a $180 Mn secondary stake sale of eight of its portfolio companies to Madison Capital, as per a TOI report. This comes at time when the venture fund is looking to consolidate its holdings, as per sources close to the development.
The reports states that the VC firm has divested small stakes in Pine Labs, Star Health and India Shelter Finance Corporation, along with 1.5% ownership in Snapdeal. It has also fully exited from its investment in Micromax and legal process outsourcing firm UnitedLex.
Madison Capital is backed by Lexington Partners, an LP which specialises in secondary transactions.
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Most of the eight companies belong to Sequoia’s first three India-dedicated funds. In April 2015, the VC firm expanded its investment portfolio in India, when it raised another $210 Mn to its $530 Mn India fund at that time.
Sequoia invested in Micromax in 2010 and in UnitedLex in 2011. When Sequoia-backed FreeCharge was acquired by homegrown online marketplace Snapdeal, it picked up 3% shareholding in Snapdeal, post-acquisition. It sold part of this holding to Ontario Teachers Pension Plan last year.
Since it started operations in India back in 2006, the fund has invested in 100-plus companies across sectors such as tech, healthcare, consumer and financial services. Earlier this month, Gurugram-based travel search marketplace ixigo secured $15 Mn in its Series B round of funding led by Sequoia Capital. Chinese investment firm Fosun Kinzon Capital Pte Ltd also participated in the round. Other startups in its portfolio include Practo, Grofers, Ola, Zomato, etc.