Domestic handset player, Micromax announced offloading of 10% stake in the company to private equity firms, Sequoia Capital and Sandstone Capital. The two firms now join TA Associated which acquired stake in Micromax in 2009.

Sequoia’s Mohit Bhatnagar will join Micromax’s board. Madison Capital also participated in the fund raising exercise valued at Rs.200 crore or about $ 43 million.

“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 Limited.  “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.”

Naveen Wadhera, Director, TA Associates Advisory Pvt. Ltd. and member of the Micromax Board of Directors, said, “By providing affordable feature-rich phones that address the unique needs of the Indian marketplace, we believe that Micromax has become a true innovator in the Indian mobile handset market.  We are confident that the experienced teams at Sandstone Capital and Sequoia Capital will prove valuable contributors, working with TA to provide additional support to continue the company’s growth.”

 “Micromax has used knowledge of the Indian market and business acumen to mine consumer insights and create impactful product launches,” said Mohit Bhatnagar, Managing Director, Sequoia Capital India.  “With the added backing of a strong strategic board, I am confident that the passionate and ambitious entrepreneurs will continue to grow in this category.” 

“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, Sandstone Capital LLC.  “Micromax fits our investment criteria on all fronts, and we are excited about completing this investment and working with the company.”

TA Associates Advisory Pvt. Ltd. provided advisory services to TA Associates in India.  Lexygen and Goodwin Procter provided legal counsel to TA Associates.  Grant Thornton served as financial advisor and Indus Law provided legal counsel to Micromax.  Amarchand & Mangaldas & Suresh A. Shroff & Co. provided legal counsel to Sequoia Capital and Sandstone Capital.