Indian fashion house Ritu Kumar looks to raise $20 million
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Indian apparel label Ritu Kumar is seeking a cash injection of up to US$20 million.
The firm will branch into new retail segments such as home furnishings and accessories.
“We are in the market this year looking for another injection, a larger injection than last time,” said Ritu Kumar MD Amrish Kumar. “Also, [private equity firm] Everstone is coming to the end of their cycle, so they will be looking for an exit sometime soon.”
Everstone invested $14.5 million in Ritu Kumar five years ago. The firm currently operates 90 outlets under three designer labels.
Questions & Answers
Q.What is the primary reason Ritu Kumar is seeking this new cash injection?
What is the primary reason Ritu Kumar is seeking this new cash injection?
Ritu Kumar is seeking this cash injection to expand into new retail segments, specifically home furnishings and accessories, and to fund its general growth plans.
Q.When is the private equity firm Everstone expected to exit its investment in Ritu Kumar?
When is the private equity firm Everstone expected to exit its investment in Ritu Kumar?
Everstone is nearing the end of its investment cycle with Ritu Kumar and is expected to look for an exit sometime soon, though no specific date is given.
Q.How much did Everstone initially invest in Ritu Kumar, and how long ago was this?
How much did Everstone initially invest in Ritu Kumar, and how long ago was this?
Everstone invested $14.5 million in Ritu Kumar five years ago. This initial investment preceded the current search for a larger cash injection.