Private Equity

PE Fund Investments

Mu Sigma's founder buys out Sequoia, GA stake for over $330-M: reports

MoneyControl   Mint  

Sequoia Capital India and General Atlantic have exited US- and India-based data analytics unicorn Mu Sigma with 2.5-3 times returns on their investments. Dhiraj Rajaram, founder and CEO of Mu Sigma, has acquired the combined 38% from the two PE-VC investors, as well those of the company's angel investors, to take his stake to 85%. The balance stake is divided among the company's management team and ESOP holders. (Dhiraj had become the largest shareholder with a 52% stake in 2017 after buying out the stake held by his former wife Ambiga Subramanian.) Dhiraj is reportedly raising about USD 220 million in offshore debt (including from Bank of Montreal, Bank of the West and Spanish lender Banco Santander) at an interest rate of about 4% to fund the buyout. Previously, Dhiraj had raised a USD 400 million credit line to fund the buyout of Ambiga's stake, from Barclays, Deutsche Bank, Standard Chartered, and Credit Suisse by using his shares as collateral. The older credit line has now reportedly been repaid in full. Mu Sigma reportedly had 14 angel investors - including Ashish Gupta of Helion Ventures, as well as Accel India partners Prashanth Prakash and Subrata Mitra, and American businessman Bill Campbell - who have netted an aggregate return of over USD 100 million on an initial investment of USD 125,000.

From the Venture Intelligence PE-VC Deal Database: Sequoia Capital India had invested USD 25 million in My Sigma in June 2011. This was followed by a USD 108 million investment by General Atlantic in Dec 2011. Mastercard had made an investment in Feb-2013.