PremjiInvest to get 4X returns from Flipkart-Walmart deal

In February 2014, expanding the scope of investment in startup sector, Azim Premji’s investment company PremjiInvest pumped in $50 million in one of India’s online fashion platform -- Myntra.

The online platform then led by Mukesh Bansal was targeting to achieve $1 billion GMV (Gross Merchandise Value) in the next two years and emerged as the largest fashion destination in India.

Meanwhile, Flipkart, which was even then the country’s biggest e-tailer at $1.6 billion valuation, also fancied the platform and a few months later announced the acquisition of Myntra in May 2014. It was an all-stock option deal at a valuation around $300 million.

Now, four years after the acquisition, the exits for Myntra’s investors are taking place post the Flipkart-Walmart deal of worth $16 billion.

PremjiInvest is likely to make more than $130 million on its $25 million investment in 2014 in Myntra after Walmart will acquire all the entities of Flipkart, according to an ET report.

PremjiInvest has also backed many other startups across the sector. In the same year, it picked up a stake in Snapdeal for $22 million. Last year, during the acquisition talks between Flipkart and Snapdeal, Premji Invest had raised objection over preferential treatment being given to particular stakeholders. 

Besides, it has also invested in companies such as Lenskart, PolicyBazaar, iD Fresh Food, and Amagi Media Labs, among others. In June last year, PremjiInvest also invested in Fireside Ventures, a venture capital fund of former senior managing director, Helion Venture Partners, Kanwaljit Singh.

Launched in 2006, PremjiInvest manages at least $3 billion of assets — predominantly in the public markets — and is by far the largest family office in the country. The firm has a runway to increase assets under management to $6 billion, mentioned a seperate ET report.