Delhi-based V2 Retail Ltd, formerly Vishal Retail Ltd, has raised Rs 76 crore ($12 million) from Lighthouse Advisors India Pvt. Ltd, an India-focused mid-market private equity firm.
The public listed retail chain will use the capital to accelerate its store expansion plans, the company said in a press statement. V2 Retail, which has 44 stores across 13 states, is seeking to reach a store count of 100 over the next two to three years.
Vishal Retail, which began its operations in 2001 in Kolkata as a seller of readymade apparel, had become a significant player in the manufacturing and retailing of readymade apparels and non-apparels, besides fast-moving consumer goods. It sold everything from food and farm products to furniture, primarily catering to Tier-II and Tier-III cities.
Subsequently, the company moved its headquarters to Delhi and went through a branding exercise under V2 Retail. It had posted net sales of Rs 471 crore during 2016-17, compared to Rs 319 crore during the previous fiscal year.
“We have been witnessing a structural change in the Indian retail landscape over the past few years, and are very excited to partner with V2 Retail,” said Sachin Bhartiya, a partner at Lighthouse Advisors.
Lighthouse, which is planning to float its third mid-market private equity fund, had made six investments from its second fund, including a $10-20-million infusion in Fabindia Overseas Pvt. Ltd, in a round led by PremjiInvest.
It had also invested in non-banking finance company Capital Trust Ltd in March 2016.