Sabharwal and Reddy decided to raise Rs. 100 crore to start with. But since both labour and education are highly regulated, Sabharwal was cautious about finding the right financier. “We wanted a domestic investor because they understand India. We didn’t want a tourist investor from the US who would give us a high valuation but freak out every time an article appeared in the newspaper,” he says.
Sabharwal spoke to 5-10 investors. “I did my due diligence, about the personalities in the investing firm, talked to people at their investee companies, and other companies that they had dealings with. I tried to get a match of how long we think it’s going to take and how long they are going to give us.”
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