Sequoia, Sandstone invest Rs. 200 crores in Micromax
Micromax Informatics,a domestic mobile handset company, announced that Sequoia Capital and Sandstone Capital are taking minority stakes in the company. The former two companies will join TA Associates, which completed a US $45 million investment in Micromax in late 2009.
With this investment, Mohit Bhatnagar, MD, Sequoia Capital, will join the board of the company. Madison Capital also participated in this investment round, which totaled Rs.200 crores (approximately US $43 million).
“This is a strong vote of confidence from world class investors and we look forward to working with them and TA as we continue to introduce new products and further extend our reach beyond India,” remarked Rajesh Agarwal, MD, Micromax Informatics.
Sandstone Capital is an investment fund focused on long-term investments in public and private companies in India. They have invested in companies like SKS Microfinance and Micromax. While Sequoia Capital has invested in more than 50 Indian companies, including Comviva, Edelweiss, Idea Cellular, Google (NASDAQ:GOOG), Cisco (NASDAQ:CSCO), Yahoo (NASDAQ:YHOO), YouTube, Oracle and Apple Computers (NASDAQ:AAPL).
“With the added backing of a strong strategic board, I am confident that the passionate and ambitious entrepreneurs will continue to grow in this category,” affirmed said Mohit Bhatnagar, MD, Sequoia Capital India.
“At Sandstone, we are always looking to invest in well run companies in India, with innovative products and growth potential,” said Paresh Patel, MD, Sandstone Capital. “Micromax fits our investment criteria on all fronts, and we are excited about completing this investment and working with the company.”
“We are confident that the experienced teams at Sandstone Capital and Sequoia Capital will prove valuable contributors, working with TA to provide additional support to continue the company’s growth,” commented Naveen Wadhera, Director, TA Associates Advisory and member of the Micromax Board of Directors.
TA Associates is a middle market private equity firms and has invested into GlobeOp Financial Services (LON:GO), MetroPCS Communications (NYSE:PCS), SBA Communications (NASDAQ:SBAC), to name a few.
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