The spectacular performance of Computing Infrastructure platform E2E Networks Ltd backed by Blume Ventures earlier this week could bring significant opportunity for VC exits through the route, as forecasted by the experts.
The company’s IPO marked a close on 7 May with over a subscription of 70 times, while it’s listing on 15 May witnessed share closure at 56% above issue price of Rs. 57.
E2E is involved in the business of cloud infrastructure that includes servers, networking, virtualisation and other open source software pieces. The company’s IPO turned out to be magnificent bringing an end to the struggled journey that startup had been walking since it came out. The Cloud Infrastructure provider has reported a 37.5% jump in revenues from operations to Rs 29.3 crore for the year ended March 2017, from Rs 21.4 crore a year ago.
Karthik Reddy, Co-founder and MD at Blume Ventures said,
The company grew to this point with less than $0.5 million in total equity financing in its lifetime and a peak debt of less than $1 million. Now, with a fresh primary infusion and ability to lever that equity, the company can finally drive the growth they’ve been planning for a few years but for which they haven’t had the cushion of expansion capital.
Blume Ventures, on the other hand, is considered as one of the most prolific investors in the Indian startup ecosystem with a portfolio of more than 100 firms and 80 active startups. It sold about E2E’s 743,000 shares, or nearly one-third of its stake, through the IPO.
Anil Joshi, founder of VC fund Unicorn India Values considers that this is a great time for VCs as well as bootstrapped companies to realize their investment. Meanwhile, some stock pandits have also expressed caution stating that one needs to be patient enough to wait and watch on how the stock and the company perform going ahead.