The Rs 450-crore initial public offer (IPO) of Infibeam Incorporation has received 115 crore investment from Next Orbit Ventures, a Mumbai based venture capital firm. With the investment the VC firm owns around 5% of the e-commerce company. The amount has been invested from the first $140 million (Rs. 700 crore) fund of the venture capital firm.
Showcasing confidence on the minority stake picked by the company, Mr. Ajay Jalan, Founder and managing Partner of Next orbit Ventures said, "When other online-retail companies in the market are making losses, we are very confident about our investment on a company which is ready to IPO and will be making profits in next 6 months."
Infibeam Incorporation, the first e-commerce company to raise capital through an IPO, had set Rs 360-432 per share price band for the IPO. The proceeds of the IPO will be utilised for expansion of business, which includes setting up a cloud data center, setting up 75 additional logistics centres, purchase of software and purchase of property for shifting of the registered and corporate offices of the company.
Next Orbit Ventures is a Mumbai-based venture capital firm founded by Ajay Jalan. Launched in 2013, from its first $ 140 Mn (Rs. 700 crore) Fund, Next Orbit Ventures has been making investments in MSME companies in Consumer products & Services and Internet & Technology support services that will create the demand for the chips in India. The company has recently launched their second fund of USD 750 million (Rs. 5000 crore), which will be invested in the ESDM sector, including Electronic Components (Semiconductor & Active), Electronic Products (IOT / Solar / LED / Health Care), Semiconductor Design Services and Electronic Manufacturing Services.
Next Orbit lists its investments on SEBI promoted Institutional trading platform (ITP) of BSE/NSE for improving visibility, governance standards, liquidity & exits of its portfolio companies, which is the biggest challenge for the VC/PE investments in India. Also there has been robust growth of NOV's fund AUM on the ITP platform i.e. 3.56X in two years.