Everstone Capital invests in Helion-backed R&R Salons

Everstone will initially invest INR600 million ($10.8 million), but this is likely to increase to INR1.09 billion, a person directly involved in the transaction told The Economic Times. Jaspal Singh Sabharwal, partner at Everstone Capital, confirmed the transaction to the press. "The growing wellness and salon market led Everstone's investment in YLG," he said.

The investment will come from Everstone Capital Partners II, a $580 million vehicle closed in March 2011. The fund - which focuses on the fast-moving consumer goods sector - had a target of $550 million but received oversubscriptions from institutional investors.

Everstone also invested in beauty & fitness chain VLCC for a little over 15% stake. Sabharwal added that there would be no conflicts between the two portfolio companies in terms of market share.

YLG runs 19 salons in Bangalore and one in Pune and has been looking for capital to build a national footprint. The company is planning to expand to around nine outlets in Pune and enter new cities like Mumbai, Kolkata and Delhi.

Helion Venture Partners also provided early stage capital of INR200 million to the company in March 2009.

 

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• Topics
• South Asia
• Consumer
• Expansion
• India
• Everstone Capital
• Helion Ventures
• Consumer