Ever since the marital split of the two founding executives of the company, Mu Sigma has been in an utter state of turmoil. There has been a looming uncertainity about the future of the company, alongside the rumored sale of a majority of the stock. But, the speculations surrounding one of the earliest tech unicorns have finally been put to rest.
Mu Sigma has today announced that founder Dhiraj Rajaram is taking over the chief executive role from her former estranged spouse Ambiga Subramanian. And further proving the rumors partially correct, Rajaram has bought back all shares held by her ex-wife as per mutually decided financial terms. Both Subramanian and Rajaram held a firm 24 per cent stake in the company.
This transaction will hand-over controlling powers to Rajaram, as he’ll now own a combined 51.6 per cent stake in the company. And Ambiga might have stepped down of the executive role but will still continue to be a board member in a non-executive capacity.
Commenting on Ambiga being an integral part of the advisory board, Rajaram commented,
Ambiga has made a tremendous contribution to Mu Sigma. She has agreed to support me in continuing to build my dream and will continue to be on our board
For those unaware, Mu Sigma had to arrive to such a glum(and exciting) situation post the decision of making the news of their divorce public back in May. This portrayed instability in the core of the unicorn and rumors of massive global traction from investors looking to acquire a significant stake in the company started floating about the web. This was followed by the news of Rajaram joining the race to acquire the shares and establishing a firm stance for the company — which ultimately is taking shape.
The company has reported that Ambiga will be transferring her entire shareholding to Rajaram, and the terms haven’t been disclosed citing the same as ‘their personal family matter’. Rajaram has approached IFC and Apollo for a structured financial facility to help him in the acquisition of her ex-wife’s stake in the company.
In addition, Ambiga has also kicked rumors of her going forth with the idea of starting a rival venture to the curb. Her immediate future plans are still unclear but talking about aforementioned developments, she says,
We have built a great company over the last 11 years. Due to personal circumstances, it is time for me to move on from the management team of the company and do something different.
All rumors about me starting a competitive firm are untrue. While there is a lot of interest in the market to invest into a promising and profitable company like Mu Sigma, I have agreed to support Dhiraj’s interest to purchase my shares and get a controlling stake that will allow him to fulfil his vision.
Key investors General Atlantic and Sequoia Capital, however, have said that they will continue to stay invested in the future prospects of the company. Debunking any and all speculations of their participation in the stake sale, Mark Dzialga, MD of General Atlantic says,
There has been a lot of needless and inaccurate speculation around our involvement in Mu Sigma. We are extremely excited about being a partner and shareholder with Dhiraj and his management team and look forward to continuing to help build the company for many years to come.
Though the dark cloud surrounding Mu Sigma still haven’t settled as Dhiraj Rajaram now has to work harder to make up for the time lost in all this hullaballo. We’d, however, congratulate him for his accession to the executive role in his own company. Congrats, mate!