Venture capital (VC) firm Sequoia Capital will sell up to 10.18 per cent stake which it holds in Go Fashion, the parent entity of Indian clothing brand Go Colors, via a block deal, according to CNBC-TV18.
The floor price for the stake sale will be ₹1,135 per share, which would mark a discount of 5 per cent as compared to the last closing price. The total size of the block deal will be ₹624 crore, the report added.
According to the shareholding pattern shared with the BSE, Sequoia Capital, via its India investment arm, held a total of 54,98,875 shares accounting for 10.18 per cent stake in Go Fashion as of March 31, 2023. Sequoia India is currently the largest VC firm in the country and boasts a portfolio with assets under management under $9 billion.
Some of the key players in Sequoia India’s portfolio are food delivery giant Zomato, software platform Freshworks and hospitality chain Oyo.
The development comes few days after the global VC giant announced on June 5 that it is planning to separate US, China and India- Southeast Asia businesses into independent firms.
In this regard, Sequoia had announced that the China and India and Southeast Asia businesses will become completely independent partnerships and become distinct firms with separate brands no later than March 31, 2024, according to a statement signed by the firm’s managing partners Roelof Botha, China head Neil Shen and India head Shailendra Singh.
The firm’s US and Europe venture business will be Sequoia Capital, after the separation, it added. Sequoia’s move to end its long-term partnership of local leaders in China, India and Southeast Asia comes amid macroeconomic and geopolitical challenges that have made fundraising difficult and impacting the venture funds’ returns.
The Sequoia China business will retain its existing name in Chinese and adopt the name HongShan in English. Sequoia India and Southeast Asia will become Peak XV Partners.
