Samara Capital, an India-focused private equity firm and Amazon.com Inc. A local partner of the U.S., plans to raise up to $500 million for a new fund targeting companies in Asia’s third-largest economy.
Samara founder and managing director Sumeet Narang said in an interview that the Mumbai-based company is looking to invest in businesses ranging from retail and healthcare to technology and finance and plans to close the fund in the second half of 2022.
“We have started the roadshow and many of our existing investors in the US, Europe, Middle East and Asia Pacific have already signed up,” Narang said.
Samara is trying to increase investment in the consumer market of over a billion people. Around 120 companies, ranging from online grocers to food delivery and beauty startups, raised nearly $18 billion through initial public offerings last year, a record for the country.
Founded in 2007, the firm has invested more than $1 billion since inception, according to its website. Narang said the new fund will look to invest between $50 million and $400 million for a controlling stake in mid-market companies.
Samara and Amazon are partners in Witzig Advisory Services Pvt, an investment vehicle that has acquired More Retail Pvt. From Aditya Birla Group, the group of billionaire Kumar Mangalam Birla in 2019. Bloomberg News reported in December that Peacock Retail is weighing an IPO that could raise up to $500 million at a valuation of $5 billion.
rise of pe
Deals involving private equity firms are on the rise in India as highly indebted groups seek to sell businesses to help pay off debt, while succession planning prompts some tycoons to dispose of assets and set up family offices. Easy loans are also helping PE to finance the purchase.
XD Yang, Asia chairman of Carlyle Group Inc., said in November that the investment amount and momentum of US-based PEs in India are getting “closer to” than those in China.
Last year Samara listed quick service restaurant operator Sapphire Foods India Ltd – a local franchisee for Pizza Hut and KFC.
“We will have 10 active portfolio companies. Every year we invest in two to three companies and exit the same number,” Narang said.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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