Sequoia India:  Flirting With Fropper.  Married to Minglebox.
By Bala Shah

The case of Venture Capital giant Sequoia Capital India and social networking website Minglebox.com leaves at least one question unanswered.  And potentially a few executives’ hearts broken.  Who in Sequoia is the primary contact person for Minglebox?

Let’s review the facts behind the Sequoia funding of Minglebox to the tune of $7 million dollars.

Sequoia India Managing Director, Sandeep Singhal is married to the Minglebox CEO and the driving force behind it.  No problems with that, as Sequoia would have taken all steps to prevent any conflict of interest. 

Minglebox is in direct competition with successful Indian website fropper.com.  And Sequoia is funding shaadi.com which owns fropper.com as well.  Guess who is the key Sequoia manager dealing with reputed shaadi.com which owns fropper.com?  None other than Sandeep Singhal.  No problems, here as well.  After all, husbands and wives do not necessarily need to talk about any commercial in confidence information.  Many Indian managers are professional enough to separate their professional and personal lives.  Sadly, many Indian wives accuse their husbands of not ‘communicating’ enough. Guilty as charged.

Now check this out.  Logon to http://www.sequoiacap.com/india.   Check out the ‘Companies’ financed by Sequoia.   Sequoia manager Sandeep Singhal is the ‘lead’ manager looking after the shaadi.com account which happens to include Fropper.com.  As competitors, Fropper and Minglebox are fighting for the love, commitment and attention of the same audience of young Indians.  Minglebox.com describes itself as a place to hangout with your friends, college gangs and work buddies.  Fropper.com describes itself as an Indian dating, friendship and social networking site.   Sequoia, on its part, is contracted to love them equally.  Venture capital love is intense but uncomplicated, and depends only on your assets and how you perform day and night.  No time wasted on empty promises and sweet nothings.

Now click on Minglebox.com under ‘Companies’.  NO Sequoia manager’s name is listed against it.   This is the only company financed by the venture capital firm in India which does not have details about the Sequoia manager looking after it. 

Techgoss has reliably learnt that the key players in Sequoia, USA have asked for all papers relating to Sequoia, India financing of particular websites.  This review from the American HQ may result in some changes in India.  Check this space for updates.

Aah, to be a fly on the wall when senior executives from iconic website Shaadi.com next meet Sequoia executives to update them on their investment.   It would just be like the first meeting after making contact on any matrimonial website – hesitant handshakes, nervous smiles and trying to read deep meanings in each others eyes.  And each party wondering if ‘they are the one’.

Indian has a number of reputable dating, network and marriage websites.  There are lots of good vibes in the air.   Sadly, some always get more cash and love than others.  After all, love is never having to say you are sorry.

(Techgoss thanks the senior manager who has given us leads for this snippet.  )

Techgoss ran the following story in May, 2007

$7 Million For Wife’s Company
By Bala Shah

Website ContentSutra.com first broke the story.  Their news item stated that Venture Capital Giant Sequoia Capital India had poured $7 million dollars into Indian social networking site Minglebox.  Minglebox was founded by IIT Graduates with distinguished working backgrounds – a strong pillar for any startup.  R.Ramaraj, ex-CEO and co-founder of Sify in on the Board.  Minglebox CEO, Kavita Iyer, is widely respected for her talents and skills.

ContentSutra reader ‘Vivek’ wrote to the website detailing another Sequoia Capital and Minglebox link.  Vivek wrote on the website:  “Actually,  Kavita is Sandeep Singhal’s (Sequoia India MD) wife.  But having said that,  it is not an underhand deal.  There is no harm in investing in well run family businesses . I am more concerned about how Sequoia manages the conflict with fropper.com as People Interactive, the parent company of Fropper.com has also raised $8M from Sequoia. Basically, Sequoia is keeping money in two of the most trafficked community sites in India after Orkut, so if either one wins, they win.  Smart, but also shows they have no idea whats going to work in India. So much for operational expertise from VCs.”

Techgoss was intrigued.  How does a smart wife pitch to an equally bright husband to put it a whopping 7 million dollars into her company ?  Our company ?  How did Sequoia handle the delicate matter of any potential conflict of interest?   What would have happened if Sequoia had said no?  Everyone in India knows that behind every successful man is wise wife.  What if Minglebox does not work out as a business?  When average Indian couples fight, it can get a bit silly.  Trivial incidents are brought up.  What happens if power couples like Sandeep and Kavita have a disagreement?  Will the $7 million investment be brought up?  So many questions, with not many answers.

Most of the mainstream media in India choose to ignore this story angle.  Yesterday, it was picked up by one of America’s most read techgoss website www.valleywag.com. And now a snippet in pesky website techgoss.com. Expect more such articles in the future.