Frozen food specialty firm Bakers Circle has received Rs 36 crore (approximately $6 million) from private equity firm Gaja Capital and existing investor DSG Consumer Partners (DSGCP).
This is the third round of funding for the frozen foods manufacturer. Gaja Capital has invested Rs 30 crore in the company whereas DSGCP has invested the rest. The company wants to expand its presence in the Middle East by trading India-produced confectionery products there and setting up a frozen foods plant in the Jebel Ali Free Zone in the UAE. “We have acquired the requisite real estate for the plant and work is on,” Ranjit Kamath, chief financial officer at Bakers Circle, told VCCircle.
The firm has acquired 0.6 acre land in the trade free zone, where it will build a 10,000 square feet facility which will have capacity to produce 18,000 sandwiches an hour. This will be a fully automated robotic plant.
The latest round of funding by PE firm will be followed by exits by some existing investors later this year.
“Existing investors will receive money from exit from Gaja Capital through its secondary round of funding of approximately Rs 30 crore over the next two months,” says Kamath. This will take the private equity firm's total commitment to approximately Rs 60 crore. Existing investors apart from DSGCP include Haystack, a fund founded by former Goldman Sachs' partner Hank Uberoi and a couple of individual investors.
Messages sent to Gaja Capital did not elicit a response. Bakers Circle had appointed investment bank Langham Capital to advise on its fundraise.
The Gurgaon-based company makes breads, including French baguettes, rolls, burger buns and pizza dough; flavoured cakes like chocolate & strawberry; hot & cold pies and quiches. The firm also provides laminated dough, including croissants & pastries, cookies, muffins, chocolate mousse, brownies and other confectionery products. It has clients like Subway, KFC, Pizza Hut, Starbucks, Chilis, Café Coffee Day, Dunkin Donuts and Smoke House Deli.
Bakers Circle entered international markets early 2014. In 2012, the firm had raised Rs 14 crore from DSGCP and Haystack, to enhance its infrastructure, supply chain and equipment.
(Edited by Joby Puthuparampil Johnson)