Venture capital fund Canaan Partners today said three of its portfolio companies -- Bharatmatrimony.Com, Iyogi and UnitedLex -- have matured for an exit and it will look for some sell-offs this year.
"Three of our portfolio companies are mature and profitable companies right now...We will be looking forward for exiting them," Cannan Partners Managing Director Alok Mittal said here today.
When asked about the route which could be taken for the exits, Mittal said an initial public offering, a strategic player acquiring it or a large buy-out fund picking it up in a secondary sale, are part of the options.
When it comes to exits, Canaan, which has been in operations for the past eight years, has so far had only one experience -- of selling three-fourths of healthcare firm e4e.
"Of the four business units we had, we have sold our stake in three of them," Mittal said.
Bharatmatrimony has gone on to become a category leader in its space and Canaan owns 20 per cent in the company, he said, adding, it was one of the earliest investments made by Canaan. Recent reports said the match-making website is looking for an IPO, which can go up to USD 125 million.
Similarly, UnitedLex, which is a legal process outsourcing firm, and the tech firm iYogi, have also achieved a good scale, he said.
Typically, the fund targets a 6-8 year investment horizon in a company, Mittal said, adding it is confident of maintaining this target within the Indian portfolio.
While he was non-committal on the exact valuations, Mittal said the fund would typically look for a return of three times the amount invested in a company while exiting.
The company typically invests up to USD 10-15 million in an investee company across the investment duration, he said, refusing to divulge the exact investment made in these three companies.
The fund, which announced a deal in the media space last month, continues to maintain its trajectory of closing two deals per year, Mittal added.
