Accel, a venture capital firm, is considering selling partial stakes in several of its portfolio companies, including Swiggy, Urban Company, BlackBuck, and BlueStone, as part of its strategy to generate liquidity. The transactions are expected to involve secondary sales and offer-for-sale (OFS) opportunities ahead of initial public offerings (IPOs), according to sources familiar with the matter. These moves highlight the growing availability of exit options for VC firms, even if such opportunities were previously delayed.
Accel, which has been actively raising funds in recent months, is reportedly looking to liquidate some of its holdings in these companies, particularly in the pre-IPO and IPO phases. The firm's goal is to return capital to its limited partners (LPs), who have invested in the fund. Although the ultimate goal is to exit through an IPO, the specific timelines vary.
The VC firm plans to reduce its stake in BlackBuck, the online trucking platform, as indicated in the company’s draft red herring prospectus filed earlier in July. Similarly, Swiggy, which has already listed on the National Stock Exchange (NSE), has seen Accel celebrating its successful IPO. Accel is one of the selling shareholders in this offering, marking a significant exit milestone. Accel is also considering pre-IPO exits in Urban Company, which has plans to list within the next couple of years.
In a recent round, BlueStone, the online jewellery retailer, closed a funding round at a valuation of approximately $970 million, during which Kalaari Capital sold shares worth nearly ₹300 crores. While Accel did not sell shares in this round, it may look to offload its holdings during BlueStone's upcoming IPO, scheduled for next year.
The demand for pre-IPO equity in well-established startups has been increasing, and VC firms are aiming to capitalize on this by pursuing exits through public offerings or other strategic opportunities. Accel’s approach reflects broader trends in the venture capital industry, with firms focusing on disciplined monetisation and exploring exit routes such as OFS in IPOs.
Also, Accel VC is reinvesting this money in the stars of tomorrow. The firm recently invested $2 million in Swish, a fast-growing food delivery platform that has been gaining traction in the market. This move further demonstrates Accel's commitment to backing promising startups in their growth journey, while strategically exiting from its mature portfolio companies.
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