India Industrial Growth Fund (IIGF), managed by Mumbai-based Frontline Strategy Ltd (FSL), has picked up a stake in Tejas Networks.
The $200 million fund, which focuses on small and medium enterprises, picked up the stake in the optical networking equipment manufacturer in a secondary deal.
FSL refrained from giving details. "It's a complete stake sale. Unfortunately, we can't disclose the seller's name or value of the transaction," a spokesperson said.
Existing investors in Tejas include Battery Ventures, Cascade Capital Management, Mayfield Funds, Intel Capital, Goldman Sachs and Sandstone Private Investments.
Industry sources said that considering the lifecycle of venture capital funding, the stake sale could have been initiated by one of the early day investors. Instituted in 2000, Tejas Networks is understood to have raised approximately $49 million across four rounds.
"Intel is a more patient investor and capable of holding on. As for Sycamore, it appears to be a strategic investment given the business synergy between both companies, and Cascade is a TNL promoter company. So, it could very likely be Battery Ventures given that one of their early investments, Travelguru, was recently acquired by Travelocity recently," a source said.
Source: DNA India