Sequoia, GA exit Mu Sigma, get 2.5-3 times return on investments

Sequoia and General Atlantic have exited data analytics pl­ayer Mu Sigma with 2.5-3 times returns on their investments.

Sequoia Capital had invested $25 million in 2011, followed by a $108-million fund infusion by General Atlantic in the same year.

Sources confirmed Dhiraj Rajaram, founder and CEO of Mu Sigma, had acquired all stakes — 35-38 per cent — from both investors. “The fund house was looking for an exit as the fund cycle was coming to an end. He has bought all investors’ stake in the company, including angel investors,” said a source aware of the development. 

“It is not just the larger investors, but the angle investors too have good good returns from this exit. A total of $100,000 were invested by early investors, which have made over $100 million,” said the same source. 

Rajaram could not be reached for comment despite multiple attempts and a message to Sequoia Capital did not elicit any response.  

Rajaram, the source said, did not want any other new investor on board and plans to focus on growing the company. “It is already a profitable company and hence they were not looking for new investors,” the source said.  

Mu Sigma was among the earliest players in the data analytics segment that was founded in 2004. Its closest competitors include Fractal Analytics and LatentView Analytics. Fractal Analytics last year was valued at $1 billion as it raised $360 million funds from private equity player TPG. 

Mu Sigma has gone through a lot of upheavals, which also included the parting of ways between Rajaram and his wife Ambiga Subramanian. “The good aspect is that Mu Sigma is profitable. While its competitors have EBIDTA in the range of $14-30 million, the company has an EBIDTA of $65-70 million,” stated the source.