CHENNAI: Private equity firm Westbridge Capital has acquired 70% stakes in Kovai Pazhamudir Nilayam’s (KPN) for Rs 550 to Rs 600 crore, according to a report. The investment puts the chain’s value at Rs 800 crore and the promoters have the remaining 30% stakes and will continue to run the company, Moneycontrol has reported. The deal was concluded a few weeks ago.
KPN, a well-established vegetable retail outlet, having more than 50 outlets in Tamil Nadu, plans expansion in other southern states, according to the report. In 2012, KPN established KPN Farm Fresh with a 60% stake in the company, while the balance was distributed among partners in existing outlets.
Kovai Pazhamudhir Nilayam has a humble beginning, with two brothers from a village near Coimbatore - N Chinnasamy and N Natarajan - who dropped out of school at the age of 9 and 11 after their father’s death. They founded the Pazamudhir Nilayam in 1965 after selling fruit juice, fruits and vegetables at bus stands in a pushcart. Now Senthil Natarajan, the son of Natarajan, is the chief executive of the company. The company reportedly has Rs 450 crore turnout in 2020-21 financial year, according to The Weekend Leader.
WestBridge Capital investment firm focuses primarily on making investments in companies headquartered in India or led by Indian entrepreneurs. The firm has invested in KPN amid a tough global economic scenario and funding winter faced by Indian startups. The funds raised by Indian startups declined 75% in the January- April 2023 period, according to INC42.