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.
“We plan to further penetrate our core markets, such as Bihar and Uttar Pradesh, given the large number of high potential Tier II and III cities,” said Ram Chandra Agarwal, the managing director of V2 Retail.
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.