Indian Clothing League raises Rs 50 crore from ASK Pravi PE Opportunities Fund

NEW DELHI: Indian Clothing League has raised Rs 50 crore in funding from mid-market private equity fund ASK Pravi PE Opportunities Fund, as it looks to expand its manufacturing capacity and widen its retail footprint. This is the first round of funding for the Chandigarh-based kids wear manufacturer.

ASK Pravi will take a significant minority stake in the venture, estimated between 26 per cent and 49 per cent.

“The growth of the Indian domestic market has resulted in a number of companies, in the Rs 30 crore to Rs 100 crore revenue range, scale faster and reach critical mass, making them attractive investment opportunities,” said Jayanta Banerjee, managing partner, ASK Pravi Capital Advisors.

Indian Clothing League retails its two major brands — 612 Ivy League and Baby League — through large format stores such as Shoppers Stop and Reliance Retail, and through online commerce majors, Flipkart and Jabong.

“The emergence of large retail formats and the advent of e-commerce in India have ensured that lifestyle ventures build a comprehensive network of distribution points,” Banerjee said.

This is the second investment made by the PE fund, which is backed by domestic family offices, in the last six months. In August last year, it invested Rs 60 crore in Hyderabad based tertiary care hospital chain OMNI Hospitals.

The nine-year, Rs 300 crore fund, which was launched in 2012, invests across four sectors — education, consumer products, healthcare and consumer services. Its average investment ticket size ranges between Rs 25 crore and Rs 75 crore.

“We will look to make between seven and eight investments up to 2016, from the fund,” said Banerjee.