Private equity firm Tano Capital has invested Rs 7.8 crore ($1.3 million) in Pune-based Sanghvi Brands, which operates a string of international wellness brands in India. The news was first published in The Economic Times, which said the deal is worth Rs 60 crore ($10 million) to pick around 20-30 per cent stake.
This is the first time that the company has raised external funding and the money will be used for company's overseas expansion plans.
Founded in 2010, Sanghvi Brands operates international wellness brands such as Spa L’Occitane in India and has the exclusive rights to develop chains under brands like Holyfield Gyms, Warren Tricomi Salons, etc.
It’s led by Darpan Sanghvi, who has previously worked with Celanese Chemicals and Baazee.com (now Ebay).
Currently, it has 28 spas/gyms/salons either operational or under development across 15 cities in India. It plans to add 70 more centres in the country in two to three years.
It also has the licence to develop L’Occitane spas in Mauritius, Maldives, Sri Lanka and Seychelles and is in talks to launch Warren Tricomi salons in more countries.
For Tano this is the first fresh investment deal in almost a year and the first new bet in consumer space in years. In the past, it had invested in SSIPL which deals with footwear retailing.
Ambit Holdings acted as the advisor on the deal.
Note: The article has been updated to reflect the correct deal value.
(Edited by Joby Puthuparampil Johnson)