Zivame, one of India’s biggest exclusive lingerie and innerwear retailers, is in initial talks with private equity funds to raise US $ 50 million or Rs. 350 crore to further its expansion plans and reach a total of 60 stores from the current 35 by next year.
Investment firm Zodius Capital is currently the largest shareholder in Zivame with 60 per cent. Last year, Zodius increased its stake by buying out early venture capital investors Kalaari Capital and IDG Ventures India.
Other shareholders that hold 40 per cent stake in Zivame are Ronnie Screwvala-promoted Unilazer Ventures and Malaysian sovereign fund Khazanah Nasional Bhd.
This round of funding will call for Khazanah and Unilazer to sell their stake to the new investor, who will also make primary capital infusion.
Avendus Capital advises Zivame on the fund-raising.
Zivame has captured a large market share of about 26 per cent of the lingerie market which was valued at Rs. 430 crore last fiscal. The company declared a revenue of Rs. 140 crore last year, but is expected to reach a whopping Rs. 250 crore in FY20.
On the scope of the brand in this market, Amisha Jain, CEO, Zivame, said“Significant upswing is also expected from the base of online shoppers itself increasing from 40 million to 130 million by 2025. This under-penetrated market poses an opportunity to expand and thrive.”
