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Swedish investment firm Kinnevik acquires additional $20 mn stake in Quikr

Kinnevik has
acquired an additional $20 million stake in online classifieds website Quikr through
a secondary share purchase that values the company at $900 million, reports
NDTV Gadgets

Kinnevik has
acquired an additional $20 million stake in online classifieds website Quikr through
a secondary share purchase that values the company at $900 million, reports
NDTV Gadgets

Earlier this year, Quikr was valued at $1 billion in an index of
venture-backed private companies that includes tech unicorns like Flipkart, Ola
Cabs, InMobi, Snapdeal, One97 Communications and Zomato Media. 

“The size of the transactions, approximately 6 percent
of the company’s diluted share capital, is considered sufficiently large to be
applied to Kinnevik’s entire shareholding in Quikr. The  valuation 
of  Quikr  has  been  based  on  the  value
implied  by  transactions  made  in  secondary 
Quikr  shares with  various  preferential  rights 
in  July  2015 at $900 million,” Kinnevik’s Q2 2015 regulatory
filing states. 

“In July 2015, Kinnevik acquired an additional $20 million interest in
Quikr through a secondary share purchase which resulted in Kinnevik becoming
the largest shareholder in Quikr. The purchase is consistent with Kinnevik’s
goal of owning more of its highest potential companies and reflects the
continued progress of Quikr in what remains an exciting market,” the
filing added. 

The online classifieds company told NDTV Gadgets, “It shows the depth and
maturity of not just our business but also of the Indian internet industry. A
secondary deal of this nature demonstrates that there are multiple shareholders
– outsiders as well as insiders – who want to buy shares of the company even
when the company itself doesn’t need more capital. Hence it shows the capital
efficiency as well as attractiveness of a business. Further, this deal also
enabled us to bring to India some investors that have never invested in the
country before.”

Launched in 2008, Quikr launched as an online classifieds website and was
previously a subsidiary of eBay. According to Kinnevik’s website, the platform
has over 30 million unique users from 940 Indian cities. The firm was in
the news earlier this month when rumours of a buyout
of Housing.com did the rounds, a deal which would have catapulted the startup
to the billion dollar unicorn club. 

Earlier this year, Quikr launched a text messaging service called Quikr Nxt,
which lets users chat using the website or mobile app. Last month, the company
launched Quikr
Dvlpr
. As a part of this initiative, Quikr is making its Application
Programming Interfaces (APIs) available publicly.

In April this
year, Quikr’s $150
million
Series H funding round was led by Tiger Global, Steadview Capital,
and Kinnevik. The company recently launched its new brand identity
and new logo. 

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