MUMBAI: Residence-grown personal equity fund Gaja Capital and world fund L Catterton are in independent conversations to receive about forty% stake in top women’s lingerie retailer Zivame.

In this proposed secondary transaction, the forty% stake held by present buyers — Ronnie Screwvala-promoted Unilazer Ventures and Malaysian sovereign fund Khazanah Nasional Bhd — will be obtained by the new trader in a offer valuing the brand at $a hundred million (about Rs 700 crore), in accordance to two people mindful of the growth. Nevertheless, the conversations with Gaja Capital are in an highly developed stage, he extra.

At present, know-how-concentrated investment decision organization Zodius Capital is the largest shareholder in Zivame with about sixty% stake. Zivame is the second largest marketing gals lingerie brand in India following Jockey. In India’s $three billion gals lingerie market, about forty% product sales arrive from organised players. The market is expected to attain $six billion by 2025.

Women’s lingerie retailer Zivame has begun first conversations with personal equity funds to increase about $fifty million (Rs 350 crore), ET 1st described in September.

In 2015, Zivame had raised $forty million (Rs 250 crore) in its Collection C funding round from Zodius Engineering Fund and Khazanah Nasional Bhd. Zodius had greater its stake by getting out early enterprise capital buyers, Kalaari Capital and IDG Ventures India, in 2018. Both equally Kalaari and IDG Ventures had invested in Zivame in early 2012.

Gaja Capital, L Catterton eye 40% stake in Zivame
Zivame, which is operate by Bengaluru based mostly Actoserba Energetic Wholesale, was established by Richa Kar in 2011. After setting up out as an aggregator, Zivame had moved into a personal label business in 2016. Zivame owns well-liked personal label makes Penny, Coucou and more than 90% of its earnings arrives from its in-dwelling goods.

Zivame, the most funded player in women’s lingerie segment, competes with Jockey, Enamor, Clovia, Amante, Fairly Secrets and techniques, Cilory and Shyaway. The company posted a earnings of Rs a hundred and forty crore in FY19 and it expects a internet earnings of Rs 230 crore in FY20.

Shilpa Kulkarni, MD and co-founder of Zodius Capital, spokespersons with Zivame and Gaja Capital declined to comment. Mails sent to Unilazer and Khazanah went unanswered, even though L Catterton spokesperson declined to comment.

Rival brand Clovia, operate by Delhi based mostly Purple Panda Fashions, had raised $10 million (Rs seventy one crore) in a Collection B round led by AT Capital, previous 12 months. PrettySecrets.com, the Mumbai-based mostly online lingerie platform, is also backed by RB Investments Pte and Orios Undertaking Companions.

Founded in 2004, Gaja Capital manages assets of about $500 million across 3 funds and invested in Jiggs Kalra-owned Huge Dining establishments, RBL Bank, broking network Bonanza, TeamLease, Bakers Circle, Carnation, Kinara NBFC, Suryoday and Avendus. L Catterton (previously L Capital) is a person of the major buyers in the US lingerie brand ThirdLove.