Bansals are driving the Indian startup scene crazy. There is no denying the fact. From launching India’s biggest start ups in the form of Flipkart by Sachin Bansal and Binny Bansal, Mayantra by Mukesh bansal and Snapdeal by Rohit Bansal, they are the ones who seem to be in the driver’s seat as far as startups’ future in India is concerned.
Now there is one more Bansal who has the eyes of the entire financial world fixated at him. Jyoti Bansal, a graduate of IIT Delhi has reportedly sold the company he founded less than a decade ago while struggling in Silicon Valley in the US to Cisco. His company, AppDynamics, has reportedly been sold to tech giant Cisco for a whopping amount of $3.7 billion.
Reports suggest that Jyoti Bansal who owned 14% of the company at the time of selling it to Cisco will get about $520 million (Rs 3,400 crore). He had sold shares to different investors in his company over the years.
The announcement came a day before AppDynamics was to launch its IPO, which valued the company at $2 billion. AppDynamics’ last round of funding had valued it at $1.9 billion. So the price that Cisco agreed to pay is almost twice of that.
The new start-up hero, Bansal, graduated from IIT Delhi in 1999 and moved to the US soon after. In an article in the run-up to the IPO, Forbes magazine wrote that Bansal’s father had given him $200 so he could go to Silicon Valley. In a blog posted just after the announcement of the acquisition, Bansal says he knew he wanted to be an entrepreneur even when he was helping his father manage his business back in India. Software was his passion, a “magic clay” that could be used “to sculpt solutions to different problems”. The Bansal community, a sub-sect of the Aggarwal community, is also known to be skilled at trade and commerce.
Some twelve years ago, Bansal joined Wily Technology as an architect. CA (Computer Associates) bought the company in 2006, and two years later, Bansal left CA to start AppDynamics. Bansal’s struggles continued during the initial days of building the venture. Many days were spent making the rounds of Sandhill Road in Silicon Valley, looking for investor interest. “The nights were spent coding on the couch in San Francisco,” he recalls in his blog.
After being rejected by more than twenty venture capitalist companies, Jyoti got his first funding of $5 million. Later his company, AppDynamics, went on to raise more than $350 million in eight funding rounds from Silicon Valley investors that included Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, Greylock Partners, Goldman Sachs and Battery Ventures. The company develops software to help companies monitor their mobile apps and websites for bugs and fix them before customers drop off. It was expected to be the first tech company in 2017 to go for an IPO.