Frontier markets focused fund TLG Capital has closed its first deal in India by picking up to a 36% stake in Re-feel Cartridge Engineering Pvt Ltd, India’s largest and fastest growing printer cartridge refill and laptop repair services' company. The stake was picked for around $5 million.
The investment is motivated by TLG’s strategies of growth capital and transmigration of technology from India into Africa, the investment firm said in a statement.
Re-feel’s high-quality, environmentally-friendly cartridge refilling service costs a third of the original manufacturer’s price. Re-feel’s wholly-owned “Club Laptop” subsidiary will also now offer laptop repairs at half the price of the original manufacturer. Club Laptop will also offer a more personalised and quicker turnaround of repair.
Club Laptop, which started in Q1 2010 and already has 24 stores, will have set up over 300 local repair stores nationwide by 2013.
“Re-feel has expanded its network to over 130 cartridge refill stores in over 70 cities, becoming the largest refilling service provider in India. By 2013, we expect the company to double its refilling outlets. Given Re-feel’s access to India’s middle-class, we will be able to provide other related services in the future," said Zain Latif, Principal of TLG Capital.
Bangalore-based 130R Capital Group was the financial advisor on the deal.
TLG Capital was represented by international legal counsel Latham & Watkins LLP, led by Craig Stoehr from the firm’s Doha office. TLG Capital was also represented in matters of Indian law by leading Indian law firm, KSB Partners.