Bakers Circle hires Langham Capital to advise on fundraise worth up to $10M

Delhi-based food services company Bakers Circle has appointed investment bank Langham Capital to advise it for raising Rs 30 crore in growth capital and another Rs 30 crore in secondary.

The new funds will be used to scale up operations in India and set up a new plant in the UAE to enter the overseas markets, a source close to the development told VCCircle.

When contacted, founder and CEO Dev Lall did not give details but confirmed Langham’s appointment. “I am very focused on operations in India and expansion into the Middle East market. Our CFO Ranjit Kamath and investor Deepak Shahdadpuri are looking after the fundraising,” Lall said.

The company had previously raised $6 million from GEM India Advisors, DSG Consumer Partners, Yukti and Haystack Investments.

Lall had earlier told VCCircle that the company would be eyeing a new round of funding this year.

When contacted, Deepak Shahdadpuri, managing director of DSG Consumer Partners, an existing investor in the business and a board member, said. “We have interest from both strategic and financial investors. We are committed to finding the best long-term partner for the business as we plan our next stage of growth.”

Shahdadpuri did not disclose the names of the parties who have expressed interest. When asked if DSG Consumer Partners would invest in the round, he said, “We are committed 

long-term investors and would love to participate. However, some of the interested parties have expressed a desire to do the whole round; so it will very much depend on which investor or investors the board decides to work with.”

“There may also be a secondary element to the transaction and some of the early stage investors who first backed the company in 2005 are looking for an exit; so the total potential size of the transaction could be Rs 50-60 crore”, added Shahdadpuri.

The company had made three senior hires in the last few months like Vinay Daniel from TRW Automotive as GM - operations, Ranjit Kamath from PepsiCo India as CFO and Vineeta D’Souza from Oberoi Flight Services as group executive chef.

According to VCCEdge, the financial research platform of VCCircle, there has been an uptake in investments in the food processing sector. In 2013, the food sector, which includes packaged foods, dairy companies, bakery and confectionery, witnessed 20 private equity deals worth $105 million. In the first seven months of 2014, there have been 10 deals with a total value of $145 million.

In June this year, Future Consumer Enterprise Ltd, the food and FMCG arm of Kishore Biyani-led Future Group, previously known as Future Ventures, acquired 35 per cent stake in Mumbai-based Sarjena Foods Private Limited, which manufactures bakery products under the brand Baker Street. Fine dining restaurant chain Speciality Restaurants, backed by multi-stage PE investor SAIF Partners, acquired majority stake in Mumbai-based bakery chain Love Sugar Dough.

(Edited by Joby Puthuparampil Johnson)

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