Online bus ticketing company redBus may have delivered one of India’s most successful venture capital exits last year, but if 68-year old Kanwal Rekhi had had his way, the company may not have been sold. In a characteristically candid interview with The Economic Times today, Rekhi, founder of early stage venture capital firm Inventus Capital Partners, said that personally he did not feel that the company was ready to be sold. “I was very disappointed. redBus was doing very well, it had a huge market share. It could have been built into a larger company. But I don’t want to say we as a firm opposed the exit. Especially when we are raising money, it was something to show the world. But personally I felt it was not ready to be sold, it had not even started its national campaign, there was no viable competition. (But) the entrepreneur wanted out, the other investor Seedfund had been in for long time, they invested in 2006. They wanted to cash out as well.” The Economic Times, January 10, 2014 That said, Inventus, adds Rekhi, has done well from the exit. The firm earned a 10-10.4 times multiple on its original investment when South African media conglomerate Naspers bought redBus in June last year for a reported $100-120 million. Inventus entered the company in 2009, leading its Series B round of funding (the amount was undisclosed) and later also participated in the company’s $6.5 million Series C round. At the time of the exit, its stake in the company reportedly stood…
