New fund takes Sequoia Cap AUM to $1.8 billion

MUMBAI: Sequoia Capital India announced on Wednesday the closure of its second $725-million growth fund. The new Sequoia Capital India Growth Fund II, takes the Bangalore-based firm���s total assets under management (AUM) to $1.8 billion, placing it to the third position (in terms of AUM) closer to ICICI Ventures (manages excess of $2 billion) and Delhi-based ChrysCapital ($2.25 billion).

One of the early entrants into the country, the firm has invested in close to 55 companies including Firstsource, Cafe Coffee Day, Edelweiss Capital, Idea Cellular and SKS Microfinance.

���This fund allows us to offer our platform of global networks and local knowledge to growth companies and help them expand into market leaders,��� said Sumir Chadha, managing director, Sequoia Capital India. The fund has been raised from the US, Europe Middle-East and Asian investors. Last year, although it made close to six exits, interestingly, it didn���t strike a single PIPE (private investment in public equity) deal as it considered the market to be overvalued.

The share of private equity investments in listed companies amounted to $4.2 billion across 80 deals during last year.

���We are the only company which didn���t do any PIPE deals last year,��� Mr Chadha said.

In 2006, Sequoia had raised its first growth fund of $400 million. ���We believe that India has a very high number of promising companies that are poised to take their businesses to the next level and we are committed to investing and partnering with these firms to help them achieve their goals,��� said Sandeep Singhal, managing director, Sequoia Capital India.

Abhay Pandey, who joined Sequoia capital last year as executive director has been promoted to managing director. Globally Sequoia Capital organisation, maintains dedicated teams in the US, China, Israel and India and manages funds capitalised at over $10 billion.