Private equity houses Sequoia Capital and Sandstone Capital have purchased minority stakes in Micromax Informatics, a Delhi-based mobile handset maker. The investments were worth US$43 million in total.
Sequoia and Sandstone will work alongside TA Associates to strengthen and further develop Micromax’s operations. TA Associates invested US$45 million in the company at the end of 2009.
For six years since its inception in 2002, Micromax focused on developing embedded software and e-commerce solutions. It entered the mobile handset market in 2008 and has taken its sales network beyond India to Bangladesh, Nepal and Sri Lanka.
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”3″ ihc_mb_template=”2″ ]
“At Sandstone, we are always looking to invest in well run companies in India, with innovative products and growth potential,” said Paresh Patel, managing director at Sandstone. “Micromax fits our investment criteria on all fronts, and we are excited about completing this investment and working with the company.”
Lexygen and Goodwin Procter provided legal advice to TA Associates and TA Associates Advisory offered advisory services in India. Grant Thornton and IndusLaw provided financial and legal advice respectively to Micromax, while Amarchand Mangaldas represented Sequoia and Sandstone.
[/ihc-hide-content]
