Exclusive: Leading venture capital fund Sequoia Capital India will invest $2 million for a 26% stake in a wealth management company floated by six former executives of ICICI Prudential Life Insurance, VCCircle has learnt.
The Mauritius-based Sequoia Capital Investments III has sought the Foreign Investment Promotion Board approval to invest in Mumbai-based Platinum Power Wealth Advisors Pvt Ltd, which is a holding company that will hold three subsidiaries to undertake a) corporate insurance agency business b) wealth advisory and portfolio management c) and learning, training and financial and technical consultancy solutions to corporates and firms.
The holding company Platinum Power Wealth was incorporated in June this year. One of the subsidiaries, PlatinumOne Wealth Managers Ltd, which plans to undertake insurance agency business, has an upper limit of 26% for foreign direct investment. However, the other two subsidiaries, undertaking investment advisory and financial consultancy services business, can draw 100% FDI.
Platinum is founded by six former ICICI Pru execs. Its CEO and co-founder is Amey Saxena, who was earlier a senior vice president with ICICI Prudential Life Insurance and was part of the start-up team of the life insurer. Its other co-founders include Jitesh Kothari (COO), who was a VP in charge of Gulf market at ICICI Prudential, Ratul Lahiri, Vivek Kumar, Ajit Sanap, and Vinod Sudhindra, all formerly with ICICI Prudential Life Insurance.
Sequoia Capital India manages assets worth a little under $1.8 billion. It recently closed its second growth fund of $725 million. Platinum will be the fifth investment of Sequoia in financial intermediary segment.
Its past investments include $11 million in SKS Microfinance, co-investment of Rs 120 crore in Unicon Financial Intermediary (founded by former Indiabulls executives), PIPE investment in Kerala-based Manappuram Group and a pre-IPO deal in Edelweiss Capital. Sequoia has also funded online financial intermediary ApnaLoan.com