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Follow UsSequoia Capital India, recently announced an investment of Rs. 60 crore
in Quick Heal Technologies. With this investment, Sequoia would
get a minority stake in Quick Heal Technologies and would also enable
the latter to expand its overseas business, develop new
products for enterprises and corporates, and make future
acquisitions. This would also result in the in Sumir Chadha, Managing
Director, Sequoia Capital India joining the board of Quick Heal. The
investment transaction was facilitated by RippleWave Equity, the sole
financial advisor to this transaction who helped bring Sequoia Capital
and Quick Heal together.
Chalking Plans
Quick Heal Technologies has been growing at a CAGR of almost 100% for
the last three years. And we hope that this tie-up with Sequoia Capital
will help us to expand to new markets in India as well as globally.
While we will continue to focus on consumers and the SME market in
India, we are also developing antivirus products for large
enterprises, said Kailash Katkar, CEO and managing director, Quick
Heal Technologies.
According to Katkar, the antivirus market in India is estimated at
around Rs 350 crore and Quick Heal recorded revenues of Rs 103 crore
last year. He further added that in comparison to the large antivirus
and security companies, Quick Heal has 30-35% market share in Indias
antivirus market.
Emphasizing on the requirement for
Katkar says, Theres a need of antivirus products for corporates at
the gateway and for the development of such products there is a need
for investment. Even the development of antivirus products for
mobile phones requires a lot of research and development entailing the
requirement of investments.
This investment is important for Quick Heal Technologies as 80 out of
its staff of 350 are in the
function. And with a 20-25% total revenue being annually spent in
R&D activities, this investment is right in place to give it a
further thrust.
Explaining Sequoia's decision to invest in Quick Heal
Technologies, Chadha, says, Theres a shift from services to
products among the IT companies in India and today companies are
focusing on products. Quick Heal has been growing strongly in the
Indian domestic market over that last three years and is expected to
continue to strengthen its dominant position in India and replicate
this success in the overseas markets too. He further added that
Sequoia Capital will be looking for other such product companies in
India for further investments.
Talking about some of the future plans of the company, Katkar equips,
While we continue to build on the strong platform in the domestic
market, we will also look to expand our global network through organic
and inorganic growth.
On a final note
Over the last nine years, Sequoia Capital has made investments in more
than 50 Indian companies such as Comviva, Firstsource, Idea Cellular,
Just Dial, Shaadi.com, GVK Biosciences, etc. Globally, the venture fund
company has been an early investor in companies such as Google, Cisco,
Yahoo, YouTube, Oracle and Apple Computers. Going by this strong
portfolio, that Sequoia Capital has been a part of, Quick Heal
Technologies also seems all set to touch the skies with this
investment.
Sequoia Capital gives Quick Heal a Shot in the Arm
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