Sivasankaran Scouting For Strategic Investors For Barista
If Cafe Coffee Day saw a blue chip investor like Seqouia Capital putting in money into their parent Amalgamated Bean Coffee Trading, its rival chain Barista cannot sit back and relax. Barista’s owner C Sivasankaran’s Sterling Group is looking to raise some money by roping in a strategic investor, reports Business Standard. Siva, as he is called in the industry circles, is believed to have appointed Standard Chartered Bank to scout for investors.
Siva hopes to dilute a 15-20 per cent stake in Barista. Siva is now the 100 per cent owner of Barista, which he acquired in two tranches - 65 per cent from Amit Judge’s Turner Morrison which founded the cafe, and 35 per cent from Tata Coffee who was an investor. The report, quoting sources says, Barista closed last year with sales of Rs 45 crore ($10 million).
Barista, which has some 140 outlets currently, would need money if it has to compete with Cafe Coffee Day, Costa Coffee and other chains who have been aggressively expanding. Starbucks is also planning an India entry.
