Stovekraft to raise $10.7 Million from Sequoia Capital

Bangalore: Continuing with its focus on the Indian consumption space, Sequoia Capital India, could be investing up to Rs. 50 crore ($10.7 million) in Stovekraft for around a 25 percent stake. This would value the company in excess of Rs. 200 crore, reports Boby Kurian and Madhav A Chanchani from VCCircle.com.

Bangalore-based kitchen appliances company Stovekraft, whose flagship brands are Gilma and Pigeon, 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. Set up in 1999, the over Rs. 235-crore Stovekraft is headed by Chairman and Managing Director Rajendra J Gandhi. The owner of Gilma and Pigeon brands raised its first round of funding from SIDBI Venture Capital in 2007. 

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 percent stake.