The fund raise will be largely primary and the existing investors will decide on monetising part of their stake based on the incoming offer
Sapphire Foods, the company that owns more than 300 outlets of Pizza Hut and KFC in South India and Sri Lanka is looking to raise $60 million or Rs 360-400 crore from private equity investors to fund its new store expansion plans.
The company, owned by a consortium of PE investors such as Samara Capital, CX Partners, Goldman Sachs and IDI Emerging Markets Fund, is being valued at around $250-300 million.
According to sources, "The fund raise will be largely primary and the existing investors will decide on monetising part of their stake based on the incoming offers."
The company that is now EBITDA positive has seen its same store sales grow by more than 10 per cent year on year in the last three years.
The company is looking at adding 50 new stores this year and the capital raised from new investors will fund the expansion, sources revealed.
For Samara Capital that is on an exit mode for most of its investments, Sapphire could bring in some early earn out if the valuation offered by incoming investor is right.