Sequoia Capital to invest Rs 50Cr in Stovekraft

The owner of Gilma and Pigeon brands raised its first round of funding from Sidbi Venture Capital in 2007.

Continuing with its focus on the Indian consumption space, Sequoia Capital India, a venture and growth capital fund, is leading a second round of funding in Bangalore-based kitchen appliances company Stovekraft Pvt Ltd, whose flagship brands are Gilma and Pigeon.

Sequoia could be investing up to Rs 50 crore ($10.7 million) in Stovekraft for around a 25% stake, a source familiar with the development said. This would value the company in excess of Rs 200 crore.

Kalozal Consultants Pvt Ltd was the advisor to the transaction.

Stovekraft, which has been eyeing fresh funding for a sometime, was earlier looking to raise Rs 125 crore from investors but decided to cut back given the weak market conditions.

Some of Sequoia’s recent investments include microfinance institutions like Equitas and Ujjivan, travel agency Via, eyecare clinic chain Vasan Health Care and local search firm Just Dial.

Stovekraft, which had earlier raised Rs 22 crore from SIDBI Venture Capital in 2007, will use the second funding round to fuel its expansion plans. SIDBI Venture Capital has also recently converted its investment into equity resulting in a 15-18% stake.

Set up in 1999, the over Rs 235-crore Stovekraft is headed by chairman and managing director Rajendra J Gandhi.

An e-mail sent to Sequoia Capital India managing director Sandeep Singhal and Stovekraft Pvt Ltd CMD Rajendra J Gandhi did not elicit any response.

Stovekraft is the largest LPG stove manufacturer and the third largest pressure cooker manufacturer in India and it exports to West Asia, Kenya, Uganda, Nigeria, Sri Lanka and Fiji.

Stovekraft’s main brand Pigeon, which is in the value category, has a range of products including LPG stoves, pressure cookers, mixer-grinders, and DVD players. Gilma, which is its premium brand, has products such as gas stoves, modular kitchen, solar water heater and microwave owens. Stovekraft also operates exclusive retail outlets for its products across South India.

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