Exclusive: Sequoia and Madison offload $60 Mn worth stake in Pine Labs’ secondary deal

Point-of-sale device and merchant commerce platform Pine Labs had announced raising a new round worth $285 million on Monday, which was a mix of primary and secondary capital. 

While the company had disclosed that some of its existing investors had offloaded shares in the secondary transaction, it didn’t disclose the size of the secondary or its beneficiaries.

Fintrackr has decoded the secondary transaction through regulatory filings sourced from Singapore and it shows that Sequoia Capital and Madison India have sold shares worth $60 million. 

Sequoia has offloaded 1,19,617 preference shares to four new investors for $44-45.5 million. Marshall Wace has bought shares worth $28.7 million, Duro Capital bought $14.75 million worth, Moore Strategic Ventures picked up shares worth $687.5K and Cyprus-based Lenarco Limited bought holding amounting to $458K.

It’s worth noting that Sequoia is the largest stakeholder in Pine Labs. According to Fintrackr’s estimates, it still controls more than 35% stake in the Delhi-based company. 

With the fresh secondary, the VC firm had cashed in over $226 million across several secondary deals.

Besides Sequoia, Madison India has offloaded 38,499 preference shares for $14.4-15 million. Mauritius-based Aranda Investments and Lone Pine Capital have bought shares worth $11.5 million and $2.9 million respectively from Madison.

The fresh secondary deal has been executed at Pine Labs after a gap of a year and more investors are likely to offload their shares in the coming weeks. 

Mastercard Asia Pacific had infused $30 million secondary capital in May 2020 when Sequoia and 33 individual shareholders had encashed their partial holdings. Its top rung including Executive Chairman Lokvir Kapoor had pocketed $23.5 million and its Chief Technology Officer Sanjeev Kumar had made $4.38 million.

Qwikcilver’s Co-Founder and Director Kumar Sudarsan also sold $500K worth of shares to Matercard in the secondary transaction executed last year. Pine Labs had acquired Qwikcilver in March 2019 for $110 million.