Micromax sells minority stake to VC firms

NEW DELHI, INDIA: Indian mobile handsets maker Micromax said on Monday that it has sold a minority stake amounting to Rs.2 billion to venture capital players Sequoia Capital and Sandstone Capital LLC.

"Sequoia Capital and Sandstone Capital will join TA Associates, a private equity firm, which completed a $45 million investment in Micromax in late 2009," said a statement released by the company.

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Madison Capital, a real estate investment firm, also participated in the investment round.

"The investments by Sequoia Capital and Sandstone Capital are testament to the market leadership of our business model," said Rajesh Agarwal, managing director, Micromax Informatics Ltd.

"This is a strong vote of confidence from world class investors and we look forward to working with them and TA as we continue to introduce new products and further extend our reach beyond India."

With this investment, Mohit Bhatnagar, managing director, Sequoia Capital, will join the board of the company.

The New Delhi-based company has expanded its sales network in Nepal, Sri Lanka and Bangladesh and is eyeing European, Middle East and African markets.