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We are uncomfortable when founders want to do secondaries prematurely: Sanjeev Bikhchandani reacts to an epilogue from Ashneer Grover's book

Bikhchandani's comments were in response to a passage from Grover's book, where Grover said how a founder should not shy away from liquidating their stock at every secondary sale opportunity.

November 30, 2022 / 08:07 PM IST
Sanjeev Bikhchandani, Founder of Info Edge

Sanjeev Bikhchandani, Founder of Info Edge

Sanjeev Bikhchandani, founder of one of India's oldest internet companies, InfoEdge, which runs job portal Naukri.com and has invested in tech companies like Zomato and Policybazaar, said that long-term investors typically seek entrepreneurs "who want to run the company for the rest of their lives if needed," reacting to an epilogue from former BharatPe founder Ashneer Grover's book Doglapan that talked about secondary share sales by founders.

"We don’t want founders who want to sell secondary early. Truly great companies are the result of a group of people (including founders) devoting a lifetime - Google, Microsoft, Facebook are testimony to this," said Bikhchandani in a tweet on November 30.

"We are long-term investors - our balance sheet capital is evergreen. Our fund has a life of twelve plus two years. We are therefore uncomfortable when founders want to do secondaries prematurely," he added.

Bikhchandani said that when InfoEdge raised its first and only round from ICICI Ventures in 2000 the founders and management were told that they could not sell a single share in the company without permission from the investor. He said the reason behind the condition was to "align the interests of all the shareholders and ensure value maximisation."