Global growth investor General Atlantic (GA) has bought a minority stake in Indian freight and logistics company Fourcee Infrastructure Equipments for around $125m, reflecting a profitable exit for US-based Mayfield Fund which reportedly made ten-times on its initial investment.
The capital injection represents the third round of funding for the Mumbai-based company, and will be made through a combination of equity and a secondary buy-out from existing investors, which include India Equity Partners and Mayfield Fund, according to news reports.
Mayfield Fund invested around $5m in Fourcee, which provides logistic services for the Indian metals, manufacturing and specialty chemicals industries, in 2010. This was followed by a $25m financing round led by India Equity Partners in 2011, which also saw additional investment from Mayfield.
GA has a strong presence in India. Since 2002 the firm has invested about $900m in the country, and currently owns $1.7bn in holdings in Indian companies. In October last year Bloomberg confirmed the firm is also eyeing an additional four potential acquisitions in the country valued at up to $200m each.
The companies, which operate in the infrastructure, financial, internet and industrial sectors, will cost the firm between $100m and $200m, despite typically investing between $50m and $75m.
GA has recently suffered disappointing stock market valuations, and is subsequently looking to diversify into India, with fewer deals struck than usual but larger in value. The firm may even consider transactions valued at as much as $400m in the country, the report said.
In March 2010 GA backed Asian Genco, an Indian infrastructure company with investments in power generation assets and engineering services businesses, for $425m. Current investments in the country also include IndusInd, Infotech, and Jubilant.
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