Peak XV Partners (formerly known as Sequoia Capital) concluded its investment in Go Fashion on June 12, 2023, by divesting its remaining 10.18% stake in the company for ₹625 crore. This exit represents an exceptional 15x return on Sequoia’s initial investment of ₹60 crore made in 2014.
Several factors likely influenced Sequoia’s decision to exit Go Fashion at this juncture. First and foremost, Go Fashion has experienced rapid growth in recent years. Since 2014, the company’s revenues have more than doubled, and it currently boasts a market capitalization exceeding ₹10,000 crore. This impressive growth has likely attracted the attention of other investors, making Go Fashion an appealing target.
Secondly, Sequoia may have aimed to reallocate capital to invest in other promising ventures. As an active investor, Sequoia has a substantial portfolio of successful Indian companies, including Flipkart, Byju’s, and Ola. By divesting its stake in Go Fashion, Sequoia can unlock capital to further invest in these ventures and seize other compelling opportunities in the market.
Lastly, Sequoia may have simply determined that it was an appropriate time to exit its investment in Go Fashion. While Sequoia is known for its long-term investment approach, typically spanning five to seven years, Go Fashion has been a part of its portfolio for nine years. As such, it may have been a strategic decision for Sequoia to transition its focus to new prospects and ventures.
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Overall, Sequoia Capital’s exit from Go Fashion signifies the company’s exceptional performance in the market. Go Fashion has demonstrated significant growth and emerged as a prominent player in the Indian fashion industry. Sequoia’s decision to divest its stake also reflects the strength of the Indian startup ecosystem.
Sequoia Capital’s exit from Go Fashion showcases the company’s shrewd investment strategy and the promising growth prospects of the Indian fashion industry.
