Matrix Partners India Invests $5.5 Million In Yo! China
Matrix Partners India has announced its second investment in India. The $150-million venture fund has invested Rs 25 crore ($5.5 million) in Moods Hospitality Pvt Ltd, the parent company of Chinese fast food chain Yo! China. The stake dilution is not disclosed. Yo! China currently has 20 outlets in Delhi and National Capital Region (Noida, Gurgaon and Ghaziabad), besides , Chandigarh, Dehradun, Pune, Bangalore, Mangalore and Hyderabad.
Avnish Bajaj, Founding Managing Director of Matrix Partners India, has joined the Board of Directors of Yo! China. Matrix had recently invested $7 million in online DVD rental company Seventymm.com. The Yo! China investment is part of Matrix’s focus on the consumer sector.
Bajaj said, “Yo! China is addressing a significant opportunity since Chinese food is the 2nd most popular cuisine in India and so far has not had anyone catering to the vast fast food opportunity.” Ashish Kapur, co-Founder & Managing Director, Yo! China said, “This financial backing will further accelerate our national expansion plans of opening 200 outlets in the next 3-4 years…We have recently won the bids to have our presence in Delhi and Mumbai airports and plan to extend our brand into multiple formats where we can capture anytime-anywhere availability for the customer.”
Matrix’s India focus includes internet, mobile, financial services, media & entertainment, food & beverage, hospitality, healthcare, travel & leisure sectors. Matrix is founded by Avnish Bajaj (founder of Baazee.com) and Rishi Navani.
In the past, Malaysia’s Navis Partners and UK-based GEM India Advisors were active in food service companies. Navis bought out Delhi-fast food chain Nirula’s, and also picked up 74 per cent in Sanjay Narang’s Mars Restaurants. GEM India Advisors picked up 26 per cent stake in Mark Pi chain, another Chinese food chain. They are essentially private equity deals. But VCs are also acting more like them now with investments in less riskier businesses like food retail. Sequoia had recently invested $20 million in Cafe Coffee Day, a coffee retail company.
Past deals in the same space
Navis Picks Up 74% In Sanjay Narang’s Mars Restaurants
GEM India Picks Up 26% In Mark Pi Chain
Navis Capital Partners Acquires Delhi Fast Food Chain Nirula’s
GEM India Advisors Acquires 26% In Gurgaon’s Bakers Circle
Sequoia Capital Invests $20 Million In Amalgamated Bean Coffee Trading
