Sequoia Capital sells stake in 8 portfolio companies to Madison Capital for $180m


Leading venture capital firm Sequoia Capital has sold stake in eight of its portfolio companies to Madison Capital for $180 million in secondary transactions, said a Times of India report, quoting sources. A secondary transaction refers to the buying and selling of an investor’s ownership in a privately held firm that is often backed by venture capital or private equity firms. Madison Capital is backed by US-based Lexington Partners, which specialises in secondary transactions. According to the sources quoted in the report, Sequoia has sold its 1.5 per cent stake in Snapdeal along with small stakes in payments platform Pine Labs, health insurer Star Health and India Shelter Finance Corporation. It has also fully exited mobile phone manufacturer Micromax and legal process outsourcing UnitedLex.

This sale comes as a part of Sequoia’s attempts to consolidate is Indian investments and to bring in more cash into its operations. Among the eight companies that were a part secondary sale basket, a majority of them were from Sequoia’s first three India-dedicated funds.

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