Sri Lanka PE investor marks up Findmyfareâ€™s valuation after funding round
ECONOMYNEXT – Guardian Capital Partners, part of Sri Lanka’s Carson Cumberbatch group, has marked up the valuation of its stake in findmyfare.com by 55 percent after the online travel company’s second funding round.
The company, the private equity investment arm of Carson’s Ceylon Guardian Investment Trust Group, has valued its 276,074 shares in findmyfare.com at 69.8 million rupees, compared to its cost of 45 million rupees.
Guardian Capital’s stake in the online travel firm makes up 10 percent of its portfolio of equity investments, the third largest after LVL Energy Fund Limited and Hsenid Business Solutions (Pvt) Ltd.
The invested value of the portfolio of Guardian Capital Partners’ as at 31st March 2019 stood at 261.4 million rupees.
“During the financial year the portfolio declined by 36.7 million rupees,” Guardian Capital Partners told shareholders in its annual report. “As Findmyfare’s second fund raise was
concluded at a higher valuation than the first raise, the position was marked up to 69.8 million rupees from 45 million rupees.”
In September, 2018 Ironwood Investment Holdings (Pvt) Ltd, a Colombo-based private investment company, invested two million US dollars in findmyfare.com.
The money is to be used to further enhance its travel mobile app, improve the flight search algorithm, increase the number of airline partners including low cost flight carriers and invest in further hotel booking options.
The funds were raised in the Series B financing, the second round of funding for a new firm that usually happens when the business has grown and reached certain milestones, resulting in a higher valuation.
“We would like to stress that gains recorded on unlisted investments are strictly book profits, and could vary sometimes quite significantly based on valuations at future fund raises and the end valuation realized at exit,” Guardian Capital Partners said.
(COLOMBO 17 May 2019)