Foreign fund house, JP Morgan Asset Management is expected to be frontrunner to buy Canaan Partners’ India portfolio for over $200 million. At least three other investment firms including Delhi-based Madison India Capital have also submitted bids to buy Canaan’s India portfolio.
“The deal is in advanced stages of discussion. It is being done by one of their (Canaan’s) US-based limited partners,” a person familiar with the matter told ET.
The deal will see the buyer take over Canaan’s stakes in multiple portfolio companies and “Details with respect to whether the sale will involve all 13 companies are still being worked out,” said a second person with direct knowledge of developments.
Silicon Valley-based Canaan had invested $160-170 million in more than 15 companies in India since 2005, including in Matrimony.com, CarTrade, Naaptol, Happiest Minds Technologies, Iyogi and Equitas Holdings, but the venture firm had ceased its operations in the country late last year.
In October 2014, Canaan’s new global venture capital fund had received $675 million. California-based firm, had started investing in India in 2006 and mainly invests in visionary entrepreneurs to provide them the networks, insights and operational guidance required to build high-performance technology and healthcare companies.