Four Fountains Spa eyes another round of PE funding
Fulcrum Ventures-backed The Four Fountains Spa (TFFS) will be raising another round of PE funding to expand its existing business including the new formats in spa business, Anurag Kedia, founder of the company told VCCircle.
“We have opened new formats like ‘Spa on wheels’ , power spas, spas for events and conferences. We need an external investment to expand these new formats and even expand our salon business. We would be raising $2-3 million six months down the line,” said Kedia.
The salon business of the company is run under the brand Jazz Up and the firm has five such outlets out of which three are company owned and two are franchised. “We are looking at reaching 200 outlets four years from now,” said Kedia.
He noted that the company has 20 spas at present of which 13 are franchised and 7 are company owned. The firm has 8 more in pipeline and expects to hit a total of 50 spas in another 12 months.
Since the business model includes a mix of franchised outlets, it does not require huge sum of money. The funds raised would be primarily used for expanding the new formats and the salon business.
TFFS was set up in 2007 by three young entrepreneurs – Saurabh Garg, Sunil Rao and Anurag Kedia.
Fulcrum Ventures invested around $5 million in the venture back in 2007 and currently holds over 26 per cent stake with two board representative in the company. Fulcrum’s primary investment focus areas are pharma, niche retail, consumer durables, education, IT & technology.
Some other players in day spa business in the country are Aura Thai, Aroma Thai, 02 Spa and Mystic Spa. The specialised spa business has not attracted much PE investment as yet and TFFS, which has both salon and spa operations, is an exception. However there have been various other salon firms who have raised private funding.