Sequoia Capital, a venture capital firm that commits a portion of its portfolio to microfinance, recently sold its stake in Manappuram General Finance and Leasing Ltd, an India-based non-banking financial company (NBFC) that provides loans in exchange for gold, for USD 70 million. According to Livemint, an Indian business newspaper owned by the Wall Street Journal, Sequoia invested USD 14 million in Manappuram in 2007 for a nearly 14 percent stake.

“It emphasizes that VC [venture capital] model works well in India. Also, it shows that non-tech investments in India can do well and give good returns,” said Mr Sumir Chadha, Managing Director at Sequoia.