Sequoia Capital invests in Genesis Colors ahead of IPO

Genesis Colors, the owner of luxury fashion labels such as Satya Paul, is looking to launch an IPO to fund its expansion plans and provide an exit route to its investors. It filed a draft IPO in September and got market regulator Securities and Exchange Board of India’s approval in February. Media reports suggest, Sequoia Capital invested around $3 million (Rs 21 crores) in Genesis ahead of the company’s planned IPO. The fund is expected to be used for ongoing capex and working capital requirements.

Genesis founded in 1998 by Sanjay Kapoor, Jyoti Narula and Puneet Nanda, Satya Paul’s son. The company, Luxury Fashion, is a subsidiary of Genesis Colors, also distributes premium international brands such as Paul Smith, Bottega Veneta, Jimmy Choo and Armani. Its joint ventures are with British brand Burberry, Italian menswear brand Canali and Villeroy and Boch of Germany for tableware that are sold in 98 exclusive outlets across India and through large format retail stores and other distribution channels.

The firm plans to raise around Rs 600-650 crores through its IPO, including primary capital of Rs 380 crores, which it plans to utilize for buying shares of the company’s subsidiary. As per Genesis’s draft IPO prospectus, Sequoia Capital is the biggest investor in Genesis Colors, with a stake of about 20 per cent. Henderson Private Equity holds about 13.1 per cent and Mayfield owns 8.5 per cent.