Ending days of speculation, WestBridge Capital Partners, one of the most active venture capital funds in India, on Tuesday formally announced that it would buy a 2.9 per cent stake in Times Internet Ltd for $7 million.
Earlier, Mahendra Swarup, CEO and MD, TIL, had told exchange4media that it had settled for a 5.8 per cent stake with Westbridge. Another venture capital fund, Sequoia Capital, was also in the fray for a stake in TIL, which could not materialise.
The investment would be used by TIL for future acquisitions as well as towards strengthening its success in the Indian Internet and mobile sectors, Westbridge said in a release.
As part of the deal, Sumir Chadha, Senior MD, WestBridge Capital, will be joining the board of TIL, while Surendra Jain, MD, WestBridge Capital, will be an observer.
Speaking on the investment, Chadha said, “Times Internet is the undisputed market leader in the Internet and wireless value-added services space in India. We believe that the company is very well positioned to continue its rapid growth as the Indian consumer Internet and wireless industries grow.”
“We are pleased to have attracted WestBridge Capital Partners as an investor. We believe that their reputation as a value-added investor will help cement the leadership position that Times Internet enjoys in this space,” Swarup said.
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