New Delhi, June 18 -- Sixth Sense Ventures, a consumer sector-oriented venture capital firm led by founder Nikhil Vora, has joined the cap table of a company again as it is hoping to be second-time lucky with its bet.
The VC firm, which has been on the road to raise its fourth fund, has reinvested in third-party logistics services provider AVG Logistics, two years after exiting the company with a multi-bagger.
Sixth Sense has picked over a 16% stake in the company, bulk of it via a renounced rights issue by its promoters. The VC firm is estimated to have spent around Rs 40-50 crore.
Related parties including fund chief Vora himself, own around 2% separately.
This comes two years after Sixth Sense signed off from the company.
Sixth Sense generated a total of around Rs 75 crore by selling its stake in the company in multiple stages. It sold shares worth nearly Rs 20 crore in early 2024 via open market transactions. It previously offloaded three-fourths of its total 24% stake in October 2023 for Rs 50 crore.
Overall, it had clocked a multiple on invested capital of about 4x from AVG Logistics. The VC firm had originally invested in AVG Logistics from its second fund.
Delhi-based AVG Logistics, founded in 2010 by Sanjay Gupta, offers transportation, warehousing and value-added services. The company went public in March 2018, listing on the NSE Emerge, the National Stock Exchange's platform for small and medium-sized enterprises.
At the time, Sixth Sense came in as the sole anchor investor in AVG Logistics, picking up an about 11% stake in the company. It invested Rs 9.41 crore ($1.45 million) at the price of Rs 107 per share.
In December 2018, the VC firm upped its stake by 2.2%s in the company, putting in additional capital of Rs 1.3 crore. It invested more over the next two years, taking the total to Rs 17-20 crore.
AVG Logistics moved from NSE Emerge and listed on the main board in May 2023. The company's shares began trading on the main board at a level of around Rs 194 apiece. The shares tripled over the following few months, touching a high of Rs 600 in March 2024. Sixth Sense had exited a couple of months prior. The stock has lost nearly three-fourths of its value from its peak.
For Sixth Sense, the investment comes soon after it acquired a minority stake in sports presentation technology company InFieldSports. Last year, it had sold part of its stake in jewellery brand Giva as part of the company's Series C funding round.
Published by HT Digital Content Services with permission from VC Circle.