Mu Sigma founder Dhiraj Rajaram takes control of firm

Rajaram has bought his ex-wife's shares to take his total stake to majority 51.6 per cent

Dhiraj Rajaram, the founder of data analytics firm Mu Sigma, has reclaimed the top job at the firm from his ex-wife Ambiga Subramanian after he bought her shares to take his total stake to majority 51.6 per cent.

In February, Subramanian had become the chief executive of Mu Sigma after the company said Rajaram moved to the US to handle clients. In May, the couple split, ending a two-decade marriage and Rajaram claiming back his stake in the company. Subramanian will continue to be an independent director on the board.

On Tuesday, Rajaram said that he was in India all along.

Rajaram and Subramanian had jointly built India’s largest independent analytics company helping firms such as Microsoft, Walmart Stores and Dell Inc to get more customers. They also built an in-house classroom to train young graduates to look at analytics as a career option that help spawn an industry focused on analytics.

Yet, the uncertainty in the company’s ownership that began this year cost the firm dear as many professionals quit and joined rivals. Rajaram, however, claimed Mu Sigma did not lose customers. Rajaram has the backing of its investors General Atlantic, MasterCard, Fidelity Investments and Sequoia Capital, which have collectively put close $200 million in Mu Sigma, which was valued at $1.5 billion in 2013. At the same time, Rajaram is looking for fresh investments and to help its investors make reasonable exit from the company. “When another investor comes on board, we will talk about it (valuation). We have been talking to investors for 10 years now. We want to be active in the investor space,” said Rajaram.

He, however, declined to comment on a lawsuit in US courts by a former investor against him, saying the matter is sub-judice.

In March, Aon Corp founder Patrick G Ryan filed a lawsuit against Rajaram saying he was cheated of hundreds of millions of dollars after Mu Sigma bought back shares citing dull growth prospects. Ryan had invested $1.5 million in Mu Sigma in 2006 and was paid $9.3 million to sell his shares in 2010.