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Sixth Sense Ventures hikes stake in listed portfolio firm

December 5, 2018

Venture capital firm Sixth Sense Ventures has pumped more money into a listed company in its portfolio. The VC firm has picked up an additional 2.2% stake for Rs. 1.3 crore in AVG Logistics Ltd, taking its total holding to 14.5%. Sixth Sense Ventures purchased an additional 171,600 shares in the third-party logistics services provider at Rs. 75.19 each.

Sixth Sense founder Nikhil Vora told VCCircle that it was a “notable bulk deal”. The investment was made through the firm’s second fund — Sixth Sense India Opportunities II.

In March, Sixth Sense Ventures had come in as the sole anchor investor in AVG Logistics’ initial public offering with an investment of Rs. 9.41 crore and thereafter picked up more shares. Its initial share purchase was at Rs. 107 each for an 11% stake.

AVG Logistics is listed on NSE Emerge, the stock exchange’s platform for small and medium enterprises.

The consumer-focussed venture capital firm had increased its shareholding to 12.3% in October to average out its higher initial cost of acquisition after a market correction dragged AVG Logistics’ shares lower.

The company’s share price shot up 40-50% a few days after the listing in April, but has slid sharply over the past couple of months.

AVG shares were trading at Rs. 80 apiece in early trade on Wednesday, nearly half its share price in late-April.

AVG Logistics

Founded in 2010, Delhi-based AVG Logistics offers transportation, warehousing and value-added services. The company runs warehouses in Modinagar, Ghaziabad, Delhi and Panipat across a total area of 3.5 lakh sq ft. It has 49 branches across the country.

The company made a net profit of Rs. 12 crore on revenue of Rs. 225 crore for the financial year 2017-18.

Sixth Sense Ventures

The VC firm is looking to raise around $50 million for its second fund and plans to invest in 12-15 companies.

In March, the fund made its debut investment in Eupheus Learning. The education company develops textbooks and their digitised versions to integrate class and home learning.

In June, the fund had invested around Rs. 10-15 crore ($1.4-2 million) for a 10% stake in Fullife Healthcare Pvt. Ltd, which sells sports nutrition supplements under the brand Fast & Up.

In July, VCCircle reported that Sixth Sense Ventures had invested in micro-hospitality startup SaffronStays.

Sixth Sense Ventures had raised Rs 125 crore in its first fund. It backed 10 companies, including gaming arcade operator Smaaash Entertainment Pvt. Ltd, Hindustan Foods Ltd, JHS Svendgaard Laboratories Pvt. Ltd and hyperlocal logistics service provider Grab.