Chinese investors Hillhouse Capital and Morningside Ventures are planning to sell their entire stake in fintech platform CRED (CRED), which includes angel investors, as well as India’s most well-known entrepreneurs along with initial investors. According to information received by sources from MoneyControl, these are plans to bring out Chinese investors for existing and new investors.
Hillhouse holds less than 10 per cent stake in CRED, a company led by Kunal Shah. Whereas, Morningside owns less than 5 percent of the steak. Both investors are selling their stake at a price of one billion dollars. These steps are being taken at a time when there is a ban on Chinese investment in India.
On the condition of anonymity, sources said that while CRED is raising primary capital at a valuation of $ 200 million. When the company first issues shares, the money it raises is called primary capital. When an investor buys shares of another investor, it is called secondary capital. Both Chinese investors are expected to triple their investment by about one-and-a-half to three times. However, the exact figure of moneycontrol is not known.
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Cred’s initial investors include Jupiter Nobank founder Jitendra Gupta, Pine Labs CEO Amrish Rau, Cure.fit CEO Mukesh Bansal, Truecaller founder Alan Mamedi and Freecharge co-founder Sandeep Tandon. These investors plan to sell their holdings entirely to new investors Falcon Edge Capital and some existing investors.
A person familiar with the transaction said, “Kunal Shah does not want to pursue his stake. So he asked some angel investors to exit and they were happy to help as well. These investors were not Is also getting 15 times the return on its investment. The ban on Chinese investment in India is also one of the reasons behind the exit of Hillhouse and Morningside. ”
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