Premji invests $25m in Fabindia

The deal comes weeks after L Capital Asia, the private equity arm of LVMH, bought Wolfensohn Capital Partners' 8% stake in the ethnic-wear business. Fabindia had previously been talking to potential investors for months, and Premji had been cited among the firms vying to invest.

The purchase price of Premji's 7% stake gives Fabindia a valuation of more than INR15 billion. L Capital was said to have paid a similar amount for its slightly higher shareholding.

Fabindia Managing Director William Bissell told the Economic Times that the latest funding will enable the company to expand its operations at home and abroad and strengthen its backend infrastructure. It will open another 40 outlets in India, and seek overseas opportunities, particularly in the UK, where it owns the East lifestyle chain.

"We chose Premji Invest because we share a similar ethos," Bissell said.

Fabindia was established by Bissell's father, John, in 1960. Today it is a national brand, selling handcrafted jewelry and kurtas, household furnishings, pottery, organic food and handicraft in almost 150 stores across India.

In winning the right to invest, Premji Invest and L Capital reportedly beat numerous private equity firms, including Bain Capital, KKR, Everstone Capital, New Silk Route, Sequoia and Temasek.

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• Topics
• Expansion
• Consumer
• South Asia
• L Capital Asia
• India
• Consumer
• Growth capital
• Sequoia Capital
• Temasek Holdings
• Everstone Capital
• NSR New Silk Route Partners
• Bain Capital Asia
• KKR