Peak XV Partners received 15x return on its investment in Go Fashion

Peak XV Partners, formerly Sequoia Capital India and Southeast Asia, received a return of around 15 times on its investment in Go Fashion. On Monday, the venture capital company divested its entire 10.18 per cent stake in Go Fashion for Rs 625 crore through an open market transaction.

The shares were offloaded through its affiliate Sequoia Capital India Investments IV. According to data available on the National Stock Exchange (NSE), Sequoia Capital India Investments IV sold 54,98,875 shares at an average price of Rs 1,136.10 apiece, taking the transaction value to Rs 624.72 crore.

In November 2014, Peak XV Partners had acquired a 33.3 per cent stake in Go Fashion for Rs 60 crore. The company went public in November 2021. After its listing, Peak XV Partners had trimmed its share in Go Fashion.

 

Until last December, Peak XV Partners held around 13.8 per cent stake in Go Fashion. In December 2022, it launched a block deal and sold a 3.7 per cent stake for Rs 228 crore. The VC's stake was reduced to around 10.18 per cent.

On Monday, it sold its remaining stake.

In terms of dollars, the 33 per cent stake was bought for $10 million and sold at $150 million, signalling a 15x return. In terms of the Indian rupee, the return is even higher at around 20x (Rs 1,250 crore against Rs 60 crore). 

A report by Moneycontrol said that the entire money from the stake sale would go to the revamped Peak XV Team. Peak XV Partners announced its separation from Sequoia Capital in the United States earlier this month. 

Go Fashion is engaged in developing, designing, sourcing, marketing and retailing a range of women's bottom-wear products under the brand Go Colors.