Sequoia India makes $200 million cash exit from Vini Cosmetics sale to KKR

Sequoia Capital India made a return of $200 million when private equity giant KKR acquired its stake in Vini Cosmetics- maker of Fogg deodorant at a valuation of $1.2 billion, said sources familiar with the matter, marking one of the Silicon Valley firm's biggest single exits in a private share sale in its 15-year history in India.

KKR said on June 20 that it has invested $625 million in Vini for a controlling stake, although it didn't specify how much. $200 million of this was to buy Sequoia's stake in the company while the rest was to buy primary shares from the company and its founders- Darshan and Dipam Patel, said two people aware of the matter, requesting anonymity.

Sequoia has earned a return of four times on its total investment of $50 million. It first invested $20 million in 2013, and $30 million in 2017, when WestBridge Capital also invested. A Sequoia spokesperson declined to comment.

The deal marks Sequoia's exit from one of its best companies from a cash exit standpoint, although many of its other internet bets such as Unacademy, Gojek, Tokopedia and others hold the prospect of even larger returns- their valuations are still rich on paper so far.

However, the deal is also a relic of an older Sequoia- when it used to invest in non-technology led consumer facing companies as well. Sequoia's investment in Vini was led by Abhay Pandey, who quit the firm in 2018 to launch his own fund- A91 Partners along with two other partners from Sequoia India- VT Bharadwaj and Gautam Mago. Sequoia's current strategy is mostly to back high growth technology-led companies, a category Vini would not fall into.