BS People: Sumir Chadha

Building equity

Sequoia Capital Managing Director Sumir Chadha, 39, was elected chairman last week in the first-ever election held by the 141-member Indian Venture Capital Association (IVCA). But then, his victory was more or less a given. Chadha is known for his deal-making aggression and his firm is considered an ace player among its peers.

“We made four to five exits this year, with huge returns, irrespective of the PE or VC investment,” says Chadha. While he did not elaborate, industry estimates say Sequoia saw returns of 13 times from its exit from SKS Microfinance, 7 times from Dr Lal Pathlabs, 5 times each from Paras Pharma and Manappuram. Sequoia made 16 investments in 2010 -- the highest number in the industry.

Chadha attributes the success to his team. “For the last five years, we have not lost any employees, even junior-level staff. The team remains stable and strong,” he says. That is a creditable achievement, given attrition rates in the PE & VC space these days. Its achievements won Sequoia the best Indian private equity firm of the year award by Asian Venture Capital Journal in 2010.

As the chairman of IVCA, Chadha has two major plans for 2011-2012. First, convince the government of the growing significance of PE & VC investments in India. “In India, about 60 per cent of FDI comes in the form of PE or VC investments. We will work with Sebi and the financial ministry to ensure a better regulatory environment for the industry, which will help Indian companies raise capital easily.” Second, build a strong relationship among members.

Sequoia Capital India was formed by merging Sequoia Capital and WestBridge Capital Partners, which Chadha co-founded in 2000. Prior to that, Chadha was a member of the principal investment area at Goldman Sachs. He also worked with McKinsey in New York. Chadha has an MBA from Harvard Business School and a BSE in computer science from Princeton University.