Mumbai-based venture capital firm Volrado Venture Partners and the family office of Madhusudan Kela have invested in the pre-IPO round of information and communications technology products distributor, Rashi Peripherals.
The company raised Rs 150 crore (around $18 million) in this round, with Volrado investing Rs 100 crore and Madhusudan’s wife Madhuri Kela investing Rs 50 crore.
The company issued 3.2 million equity shares of Rs 311 each to Volrado Venture Partners’ Fund-III-Beta and 1.6 million equity shares to Kela.
Volrado, led by Akash Bhansali, is also an investor in travel accessories brand Acefour Accessories, Fairfax-controlled CSB Bank, and pre-owned vehicle platform Sheerdrive, among others.
Rashi Peripherals’ upcoming public issue with a face value of Rs 5 per equity share will be a complete fresh issue of shares worth Rs 750 crore and will not have any offer-for-sale component, the company said in a statement.
The firm plans to use the proceeds from the pre-IPO round and the IPO for prepayment or scheduled repayment of all or a portion of certain outstanding borrowings. It is planning to keep aside around Rs 400 crore for such payments. On the other hand, it is also allocating Rs 200 crore for funding working capital requirements and general corporate purposes.
Rashi Peripherals, which was incorporated in 1989 by Krishna Kumar Choudhary and Sureshkumar Pansari, is a distribution partner for global technology brands in India. It provides end-to-end value-added services such as pre-sale activities, solutions design, technical support, marketing services, credit solutions, and warranty management services.
The company claims that it has a pan-India distribution network comprising 50 branches that operate for sales and as service centres and 62 warehouses, covering 730 locations in India, as of September 30, 2022.