Just Dial, an India-based search engine backed by Germany-based technology company SAP, has postponed its planned-flotation announced in August last year in favour of raising R327 crore ($70m) from its existing investors.
Venture capital firm Sequoia Capital led the round – which involved selling shares from existing investors – with an investment of R305 crore, which is its largest investment in an Indian company, while SAP Ventures provider the remainder. Post the investment, Sequoia holds about 19% of Just Dial, according to news provider Economic Times of India.
Just Dial’s planned initial public offering (IPO) had looked to raise R700 crore ($154.5m). News provider VC Circle said R360 crore was to have been raised as fresh capital in the IPO and the remainder from shares being sold by existing investors. The IPO is now expected to be relaunched next year.
In June last year, SAP Ventures invested $7.5m for a 1.5% stake in Just Dial, which valued the business search firm at $500m compared to $100m two years earlier, according to VC Circle then.
Just Dial raised its first round of institutional funding of R50 crore ($11m) from VC firm SAIF Partners in 2006, which had 23% in June, followed by another investment worth R77 crore by investment manager Tiger Global Management in 2007.