Citigroup and UTI Ventures are pumping in around $12 million into value fashion retailer Primus, sources said. This probably marks Citigroup’s initial investment in India’s red hot retail sector, sources said. The Bangalore-headquartered retailer is also the master franchisee for Levi’s, Dockers and Adidas. It recently completed the acquisition of Weekender,. as reported by ET earlier.
Sources said Citigroup Venture Capital is infusing about $7.5-8 million (Rs 30 crore) while UTI Ventures is hiking exposure with Rs 13-crore second-round funding. UTI Ventures had made initial investment of Rs 22.5 crore, and with the latest round has increased the cumulative exposure to around Rs 35 crore.
The promoters of Primus Retail, apparel exporter K Mohan & Co, also pumped in Rs 52 crore in the latest round of fund raising. When contacted, Primus Retail declined to comment on the investors stating that it has raised about Rs 43 crore. Sources said Citi’s investment probably backed the buyout of Weekender as a case of FDI in single brand retailing. Another instance of a prominent global fund investing in domestic retail involves Actis acquisition of Nilgiris supermarket chain more than a year ago.
It is learnt that Primus Retail operates 200 stores and may end the financial year with 75 more. The company plans to more than double the store network in the next three years. Primus also holds the rights for MTV Clothing and accessories. Sources said Primus is in the market for more acquisitions and joint ventures with international fashion brands. It could look at the womenswear segment, especially ethnic womenswear, for a buyout in the future. Primus, which began as a retailer of out-of-fashion products, is fast evolving its business character as it partners global brands like Levi’s and Adidas.
Source: Economic Times