Image credit:businessinsider.in, economictimes.indiatimes.com
Venture capital firm Sequoia Capital has sold its entire stake in Vini Cosmetics to private equity firm KKR for a sum of $200 million. Vini Cosmetic which makes the Fogg deodorant is currently valued at $1.2 billion.
The New York-based KKR had announced earlier that it had acquired a majority stake in the deodorant maker by investing around $625 million. Sources have told moneycontrol.com that out of this, $200 million was used to purchase the stocks held by Sequoia Capital India. The remaining amount was used to purchase primary shares held by the company and the two founders- Darshan Patel and Dipam Patel, they added.
Private equity firm KKR is likely to bring an Initial Public Offering(IPO) for Vini Cosmetics within the next three years.
Sequoia’s selloff is one of its largest exit from an Indian company through a private sale. The VC firm had invested in Vini Cosmetics in two tranches – $20 million in the year 2013 and $30 million subsequently in 2017. Investing $50 million in total, it has now received a 4 times higher return at $200 million. The returns would be distributed among Sequoia’s investors with the venture capital firm likely to keep a 30% share for itself.
It has sold some small stakes in other Indian companies like Byjus and Indigo Paints but has not exited completely.
While the Ahmedabad based Vini Cosmetics is privately held, sources estimate its EBITDA at Rs 85 crore and a revenue of Rs 300 crore for Q4 of the financial year 2020-21.