ICICI Venture, the private equity arm of India’s largest private-sector lender ICICI Bank, is set to invest Rs 100 crore ($15.67 million) in Chennai-based Go Fashion India Pvt. Ltd for a minority stake.
Go Fashion India sells legwear for women under the brand Go Colors.
ICICI Venture will make the investment from its fourth private equity fund – India Advantage Fund Series 4, the firm said in a statement.
This marks the fifth investment by the new sector agnostic fund of ICICI Venture.
In April 2016, the fund had raised $190 million (Rs 1,263 crore) to mark the first close.
The fund had made the final close at $350 million in September 2017.
ICICI Venture is partnering with Go Colors to capture the huge market potential by ramping up store expansion and build a successful women legwear brand, it said.
“Go Colors operates in a highly unorganised market of women’s legwear with increasing consumer preference for organised retail and secular movement towards branded offerings. With a first-mover advantage in this category, Go Colors is well positioned to scale up its business,” said Prashant Purker, managing director and chief executive officer of ICICI Venture.
“With two respected partners - ICICI Venture and Sequoia India - we are poised to achieve our vision of becoming the brand of choice for women’s legwear in India. We are also implementing technology to enhance our customer experience and take the brand to its next level of growth,” said Gautam Saraogi, chief executive officer at Go Fashion.
Sequoia Capital acquired a 33.33% stake in Go Fashion for Rs 60 crore in November 2014, as per VCCEdge, the data research platform of News Corp VCCircle.
Last year, VCCircle had reported that Go Fashion was in talks with a clutch of private equity firms for its Series B round of funding.
Incorporated in 2010, Go Fashion India has a pan-India network of more than 200 exclusive branded outlets and presence in over 500 large format stores.
The company’s consolidated net sales stood at Rs 119 crore and profit after tax was Rs 5 crore in the year through 31 March 2017.
The companies in the women’s apparel segment have managed to attract considerable interest from investors in the recent past.
In August 2016, TA Associates invested $140 million in women’s apparel maker TCNS Clothing Ltd, which sells products under the ‘W’ brand, in the biggest private equity in the apparel sector.
Everstone Capital-backed Ritu Kumar, Warburg Pincus and Faering Capital-backed BIBA Apparels Pvt. Ltd and General Atlantic-backed AND Designs are among other players in the segments.
Earlier investments by India Advantage Fund Series 4
In November 2017, ICICI Venture had agreed to enter as an investor in the merger between UFO Moviez and Qube Cinema
In 2017, it invested an undisclosed amount in Mumbai-based bakery chain Theobroma Foods Pvt Ltd.
In August 2016, it acquired 4.68% stake in Star Health and Allied Insurance Company for $15 million.
In April 2016, it acquired 23% stake in specialty chemicals firm Anthea Aromatics Pvt. Ltd for $16.29 million.