Kedaara Capital and Partners Group to acquire Vishal Mega Mart, India’s premier fashion-led hypermarket brand
Kedaara Capital Fund II (“Kedaara Capital”), an India-focused operationally oriented private equity fund, and, Partners Group, the global private markets investment manager acting on behalf of its clients, have agreed to acquire Vishal Mega Mart Private limited (“VMM” or “the Company”) from private equity firm TPG. The transaction is subject to regulatory approval and is expected to close later this year.
Headquartered in Gurgaon, VMM is the franchisor of the Vishal Mega Mart brand and wholesale supplier to over 230 hypermarket stores across India, which are operated by a network of franchisees. Vishal-branded hypermarkets target the value-focused customer segment and have an entrenched presence in North, East, Central and parts of South India. They combine a private label, fast-fashion offering with a variety of general merchandise and food & grocery products. Over 60% of Vishal-branded franchised hypermarkets are in small towns that have a population of less than 1 million inhabitants, where they serve as a destination for making aspirations affordable across household and fashion shopping categories.
Following the close of the acquisition, Kedaara Capital and Partners Group will work closely with VMM’s management team to support them in the next phase of their growth. Value creation initiatives will focus on further expanding VMM’s presence, adding to its product assortment and maximizing supply chain efficiency.
Gunender Kapur, CEO & Managing Director of Vishal Mega Mart, states: “After a period of already strong growth, VMM aims to maintain its pace and continue to build out its business in a sustainable manner. We believe we have found the ideal partners for this ambitious next phase in Partners Group and Kedaara Capital and expect to benefit from their combined track records of working with fast-growing consumer businesses, including their prior collaboration on Aavas Financiers, which services the same underserved client group in India.”
Nishant Sharma, Co-founder and Partner, Kedaara Capital, adds: “Led by a strong execution focused team and supported by secular macro drivers, VMM has developed a highly replicable and scalable model offering consumers an aspirational assortment at compelling value through its franchisee network. We are delighted that having essayed a remarkable evolution of the VMM business thus far, Gunender has chosen to join hands with Kedaara and Partners Group for the next phase of VMM’s growth to reinforce its position as a market leading business.”
Manas Tandon, Managing Director, Private Equity Asia, Partners Group, comments: “The team at VMM has executed a stellar transformation of the business. We believe the Company offers a unique value proposition to an underserved customer segment and will continue to have strong tailwinds for a long time. Having followed Gunender’s success over the last several years, we are excited that he has chosen to partner with Partners Group and Kedaara for the next stage of VMM’s journey.”
About Kedaara Capital
Kedaara is an operationally oriented private equity firm pursuing control and minority investment opportunities focused on India. It was established in 2011 by Manish Kejriwal, Sunish Sharma and Nishant Sharma. They co-founded the firm after successful investing careers at Temasek Holdings and General Atlantic.
Kedaara Capital Fund II LLP is registered with the Securities and Exchange Board of India (“SEBI”) as a Category II Alternative Investment Fund (AIF). The total funds managed / advised by the same investment team as that of Kedaara is over USD 1.5 billion. It has invested in several market leading businesses across a variety of sectors (Consumer, Financial Services, Healthcare, Industrials) by partnering with entrepreneurs, management teams, and family-owned businesses. Kedaara combines the strengths of a well-networked, highly experienced local investing and operating team, with the experience of their strategic partner, Clayton, Dubilier & Rice, a global private equity firm. Kedaara provides deep strategic and operational expertise, a consultative approach, and global connectivity to build enduring value and competitiveness in its portfolio companies. www.kedaara.com
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 62 billion (USD 74 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in Denver, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Manila, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 1,000 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a major ownership by its partners and employees. www.partnersgroup.com
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