The Hyderabad-based car services company is also looking to expand its operations in Gujarat and Maharashtra.
Lakhani brothers, promoters of Gini & Jony, currently hold 65% stake in the company while around 22% stake is held by Reliance Capital.
The firm also initiated plans to come up with an IPO but had to cancel it as stock markets tanked in 2008.
The company, which saw its previous PE investors write down the value of their investments after a legal spat with the promoters, was earlier looking to raise another round of PE funding.
The retail business of the Rs 15,000 crore business group is currently part of the listed power utility CESC Ltd.
On completion of the on-going demerger process, the investment will be part of Future Lifestyle Fashion Limited.
This is the PE firm’s second investment in consumer products business within a year, after backing Marico in April 2012.
Flemingo also raised $30 million from the fund run by former US Secretary of State Madeleine Albright.
The firm which once counted few PE firms as shareholders and commanded a market cap of around Rs 3,000 crore, has seen its scrip become a penny stock.
QIA has approached several large private equity houses, including CVC Capital Partners, to gauge their interest in participating, and has spoken to lenders about financing an offer.
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