Suumaya Industries Ltd said it has acquired a minority stake in value retail chain startup 1-India Family Mart, which is backed by private equity firm Carpediem Capital.
The investment will help Suumaya Industries to expand its presence in smaller towns and cities in India as the deal will give access to over 100 retail stores of 1-India Family Mart, the two companies said in a statement.
However, they did not disclose the deal value.
The acquisition will also strengthen Suumaya Industries' presence in the women's ethnic wear segment in the smaller towns and enable 1-India Family Mart to develop its own private label in the women's apparel category.
Suumaya Industries' routed the investment through its wholly-owned subsidiary Suumaya Retail Ltd.
The statement also added that India's retail market was valued at Rs 51 trillion in 2019, and it is growing at a compound annual growth rate (CAGR) of 9-11%.
Value retail accounts for 60% of the overall apparel retail market.
1-India Family Mart, operated by Gurugram-based Nysaa Retail Pvt. Ltd, offers fashion apparels, lifestyle products and general merchandise through its retail outlets.
In 2019, 1-India Family Mart had raised Rs 20 crore ($2.8 million) in debt funding in a transaction led by Mumbai-based APAC Financial Services Pvt. Ltd, launched by Deutsche Bank’s former Asia-Pacific chief Gunit Chadha.
In another recent deal in the value retail chain space, V-Mart Retail Ltd agreed to acquire the Unlimited retail chain from Multiples PE-backed Arvind Fashions Ltd which owns the Flying Machine brand of denim apparel in July.