Mumbai: Samara Capital-sponsored Sapphire Foods, the largest Yum Brands franchisee in the Indian subcontinent that operates over 435 stores, has funded through a mix of primary and secondary rounds of private equity funds led by Creador. Rs 1,150 billion, NewQuest Capital Partners and TR Capital. In addition, Sapphire Foods has also raised a direct round of growth capital from Creador and the new money is a mix of primary and secondary rounds, Sapphire said on Monday, without disclosing equity dilution.
As of March 2021, Sapphire Foods will operate 437 KFC, Pizza Hut and Taco Bell restaurants in India, Sri Lanka and the Maldives.
The investment will flow into its holding company Sapphire Foods Mauritius, a Samara Capital-sponsored company, the statement said.
“The money will be used to fund the new store expansion as we believe the business has strong foundations and is at a tipping point, aside from the partial exit option for some investors,” said Sanjay Purohit, group chief executive at Sapphire Foods said without naming the investors, some of which paid off.
Sapphire Foods, an omnichannel restaurant operator and largest Yum Brands franchisee on the Indian subcontinent, is supported by well-known investors such as Samara Capital, Goldman Sachs, CX Partners and Edelweiss.
Sumeet Narang, founder and managing director of Samara India Advisors, said the QSR chain segment, represented primarily by global brands, is the fastest growing segment within the country’s organized food service market. By leveraging customer loyalty to the KFC, Pizza Hut and Taco Bell brands, Sapphire Foods is well positioned to seize additional opportunities and expand into other product lines or markets.
Avendus Capital acted as exclusive financial advisor to Sapphire and UBS Investment Bank acted as exclusive financial advisor to Samara Capital.
Samara Capital was founded in 2007 and is a medium-sized private equity company. Its investors include high quality institutional investors and family offices from all over the world.
Creador is a private equity firm specializing in growth capital investments, typically in consumer, retail, FMCG, financial services, pharma, healthcare, business services, technology and media in India, Malaysia, Indonesia, Singapore, Vietnam, the Philippines and . invests Sri Lanka. Founded in 2011, it has assets of over $ 2 billion.
Founded in 2011, Newquest is a dedicated secondary private equity platform with offices in Singapore, Hong Kong, Beijing and Mumbai. It provides strategic liquidity solutions to private equity asset owners, including private equity funds, financial institutions, corporations, hedge funds and family offices, and currently manages four funds with capital commitments of over USD 2.4 billion.
TR Capital also engages in secondary private equity investments in the Asia Pacific region, providing liquidity to owners of technology, consumer and healthcare companies through secondary direct and fund restructuring. Founded in 2007, the company comprises four funds with a capital commitment of USD 1 billion and has offices in Hong Kong, Shanghai, Shenzhen and Mumbai.