Micromax Informatics Limited, India’s largest domestic mobile handset company, announced that Sequoia Capital and Sandstone Capital LLC are taking minority stakes in the company. Sequoia Capital and Sandstone Capital will join TA Associates, which completed a US $45 million investment in Micromax in late 2009. With this investment, Mohit Bhatnagar, Managing Director, Sequoia Capital, will join the board of the company. Madison India Capital also participated in this investment round, which totalled 200 crores (approximately US $43 million).

“The investments by Sequoia Capital and Sandstone Capital are testament to the market leadership of our business model,” said Rajesh Agarwal, Managing Director, Micromax Informatics Limited. “This is a strong vote of confidence from world class investors and we look forward to working with them and TA as we continue to introduce new products and further extend our reach beyond India.”

Naveen Wadhera, Director, TA Associates Advisory Pvt. Ltd. and member of the Micromax Board of Directors, said, “By providing affordable feature-rich phones that address the unique needs of the Indian marketplace, we believe that Micromax has become a true innovator in the Indian mobile handset market. We are confident that the experienced teams at Sandstone Capital and Sequoia Capital will prove valuable contributors, working with TA to provide additional support to continue the company’s growth.”

Micromax commenced operations as a developer of embedded software and e-commerce solutions in 2002, and entered the mobile handset market in 2008. The company is the largest Indian domestic mobile handset company and third largest mobile handset company in India (Source IDC). The company is headquartered in New Delhi and has a presence in 23 states in India and has expanded its sales network internationally in Nepal, Sri Lanka and Bangladesh.

“Micromax has used knowledge of the Indian market and business acumen to mine consumer insights and create impactful product launches,” said Mohit Bhatnagar, Managing Director, Sequoia Capital India. “With the added backing of a strong strategic board, I am confident that the passionate and ambitious entrepreneurs will continue to grow in this category.”

“At Sandstone, we are always looking to invest in well run companies in India, with innovative products and growth potential,” said Paresh Patel, Managing Director, Sandstone Capital LLC. “Micromax fits our investment criteria on all fronts, and we are excited about completing this investment and working with the company.”

TA Associates Advisory Pvt. Ltd. provided advisory services to TA Associates in India. Lexygen and Goodwin Procter provided legal counsel to TA Associates. Grant Thornton served as financial advisor and Indus Law provided legal counsel to Micromax. Amarchand & Mangaldas & Suresh A. Shroff & Co. provided legal counsel to Sequoia Capital and Sandstone Capital.