Middle-market private equity firm Lighthouse has invested Rs760m ($11.68m) in India-based company V2 Retail in order to support the retailer’s store expansion plans.
V2 Retail offers a comprehensive shopping solution that provides a wide range of clothing at affordable prices.
The investment has been carried out by India 2020 Fund II, a fund affiliated with Lighthouse, reported India Infoline News Service.
V2 Retail chairman and managing director Ram Chandra Agarwal was quoted by PTI as saying: “We were highly impressed with Lighthouse’s track record of investing in and building leading, branded, consumer companies, and believe their assistance will be invaluable for us going forward.
“We plan to further penetrate in our core markets, such as Bihar and Uttar Pradesh, due to the large number of high-potential Tier II and III cities, which remain significantly underpenetrated in terms of organised retail.”
V2 Retail currently owns 44 stores in 13 states across India.
The company aims to have a total of 100 stores over the next two to three years.
Lighthouse Advisors partner Sachin Bhartiya was quoted by PTI as saying: “We have been witnessing a structural change in the Indian retail landscape over the past few years, and are very excited to partner with V2 Retail.”
Bhartiya further said that the country has added more than 400 million consumers into the middle-income bucket over the past 15 years.
In the consumer space, Lighthouse has made other investments on Bikaji Foods, FabIndia Overseas, Cera Sanitaryware, Dhanuka Agritech, Capital Trust, Kama Ayurveda, Suraksha Diagnostic, Unibic Foods and XSEED Education.