JustDial, the online and telephone business listings service, has raised Rs 327 crore from its existing private equity investors, Sequoia Capital and SAP Ventures, reports The Economic Times. Sequoia Capital led the funding round with a Rs 305 crore investment and post this investment, Sequoia holds 19% in the company. The company intends to use the funds for expansion and to upgrade technology.
IPO plans postponed
Just dial also seems to have postponed its IPO plans to 2013. In 2010, JustDial had announced an IPO to raise Rs 700 crore for setting up a new campus in India and increase its global presence. However, according to the report by The Economic Times, Just Dial pulled back from its IPO plans because of the falling Rupee and that a number of foreign investors who wanted to anchor the IPO were concerned about the Rupee fluctuation.
Founded in 1996 with initial investment of Rs. 50,000, Just Dial has so far raised Rs 580 crore from Sequoia Capital, SAP Ventures, SAIF Partners, EGCS, and Tiger Global. These PE firms together now hold close to 60% stake in the company. The company is said to be valued at Rs. 2,600 crore. For the financial year 2011-12, Just Dial reported Rs 260 crore in revenue and Rs 50 crore in profit.
Just Dial provides a local search engine for merchants ranging from restaurants, retail stores to plumbers and pest control units through Internet, phone, WAP and SMS. The company claims that its 60% of queries come from the web. Based out of Mumbai, Justdial also has offices across India in Ahmedabad, Bengaluru, Chandigarh, Chennai, Coimbatore, Delhi, Hyderabad, Jaipur, Kolkata and Pune. The company claims to have addressed over 250 million search queries from millions of users across platforms in the fiscal year 2011-12.