Matrimony.com investors bag up to eight-fold returns

Bessemer to exit from the firm completely; exit amount fixed at Rs 144 cr

PE investors who have invested in online matchmaking firm Matrimony.com, which got listed on the Bombay Stock Exchange (BSE) on Thursday, have received returns up to eight times on the investment amount. On the lower end of the range, investors bagged more than three-fold returns.  

Among the three investors, Bessemer India Capital will exit almost completely.  The investor has around seven per cent stake in the company at present.

According to Venture Intelligence (VI) data,  JP Morgan Asset Management, which holds shares in Matrimony.com through CMDB will sell around 33 per cent of its holding in the firm at an exit amount of Rs 166 crore, which is more than 8 times the initial investment made by the investor.

Similarly, Mayfield investment will dilute its existing 6.2 per cent stake in the company at an exit amount of Rs 15 crore.

Meanwhile, Bessemer has sold 99.5 per cent of its holding after six years at Rs 144 crore with an exit multiple of 3.2x.

These are based at IPO higher end price.

According to VI's data, after the Rs 500-crore IPO offer, holding of PE/VC investors in the matchmaking firm will come down to 25 per cent, from current share of 43 per cent.
 

The company which was valued at Rs 133 crore in July 2006, is now valued at Rs 2,224 crore after investments from Cannan Partners and Yahoo Draper Investment Co in September 2017.

Last week, Matrimony.com IPO was oversubscribed 4.22 times. The company had on Friday raised nearly Rs 226 crore from anchor investors. The price band was fixed at Rs 983-985 per share.
 

It comprises fresh issue aggregating up to Rs 130 crore and an offer for sale of up to 3.76 million equity shares.

Matrimony.Com, which runs an online match-making business under the BharatMatrimony brand is expected to raise over Rs 500 crore through the offer.

Net proceeds from the issue will be utilised towards advertising and business promotion activities, purchase of land for construction of office premises in Chennai, repayment of overdraft facilities and general corporate purposes.

Investor	Exit Multiple
JP Morgan (earlier Canaan Partners)	8.4
Mayfield	4.3
Bessemer	3.2

Source: Venture Intelligence