Sequoia buys 6% in eClerx for Rs 40 crore

MUMBAI: Leading private equity firm Sequoia Capital has bought 6% stake in BPO firm eClerx Services from Burwood Ventures for nearly Rs 40 crore. Burwood Ventures continues to hold around 11% in eClerx.

Sequoia bought shares of eClerx on Wednesday for Rs 330 each through open market operations. The eClerx stock zoomed to its 52-week high on Wednesday, but lost some of the gains on Thursday to close 2.8% lower at Rs 323.25 on BSE.

Unlike most BPOs, which cater to multiple sectors, eClerx caters to two main industries ��� banking and capital markets and retailers and hi-tech manufacturing. Shares of eClerx had hit a low of Rs 72 on BSE in October last year after Lehman Brothers, which contributed 13% to its revenues, filed for bankruptcy. eClerx had accepted a cure amount of nearly 56% of its receivables of around $1 million as part of the bankruptcy settlement.

However, the firm���s CFO Sachin Rastogi said the banking and capital markets sectors have stablilised and are expected to increase their contribution to overall revenues compared to last year. ���In the past few years, both sectors (banking & capital markets and retail & high-tech) have been contributing equally to revenues. But I suspect, by the end of this year, banking and capital markets will be over 50% of our revenues,��� he added.

���Whatever churn had to happen has already happened. Banking and capital market players are now taking steps to re-invest in their business. But in retail and high-tech manufacturing, the pain is still being felt,��� he added. The firm is evaluating acquisitions of small captive units of multinatonals that are around $15-20 million in revenues to diversify its client base and grow business.