TLDR:
- Investcorp and Bessemer Venture Partners are selling a majority stake in their legacy portfolio company in India.
- Bessemer initially planned to sell less than a quarter of its holding, but is now seeking a larger harvest.
Bahrain-based alternative investment firm Investcorp and Silicon Valley venture capital firm Bessemer Venture Partners have decided to sell a majority stake in their legacy portfolio company in India. Previously, Bessemer had planned to sell less than 25% of its holding, but the firms have now decided to go for a bigger harvest.
The identity of the portfolio company has not been disclosed, but sources suggest that it could be an Indian healthtech company. Bessemer has been investing in Indian healthtech companies in recent years, including Medi Assist and Cygnus Medicare.
This decision to sell comes after the investment firms initiated a partial sale of their stake in the portfolio company last year. It is likely that they are looking to capitalize on the current market conditions and profitability of the company.
The move by Investcorp and Bessemer reflects a broader trend of investors looking to exit their investments in the Indian healthtech sector. Some investors have become cautious about the profitability and scalability of these companies, which has led to a decline in funding and a more selective approach from investors.
Despite these challenges, the Indian healthtech sector has shown significant growth potential in recent years. The sector has been driven by increasing demand for digital healthcare solutions, rising healthcare costs, and the government’s push for digital transformation in the healthcare industry.
Investcorp and Bessemer are likely to make significant gains from the sale of their stake in the portfolio company. The Indian healthtech industry has seen a surge of IPOs and fundraising activities, with companies like Medi Assist eyeing a $1.7 billion valuation in its IPO.
Overall, the decision by Investcorp and Bessemer to sell a majority stake in their legacy portfolio company indicates their confidence in the growth prospects of the Indian healthtech sector and their desire to capitalize on the current market conditions.
