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PE firm Carpediem Advisors-backed Nysaa Retail, which operates a retail chain under the brand name ‘1-India Family Mart’, is in talks to raise another ₹100-125 crore from a clutch of investors. The company intends to offload about 4-6 per cent stake at a valuation of about ₹700-1,000 crore.
“This is the second round of funding we are looking at and we intend to close this round by the end of this financial year. The majority of this funding, which we’ll start deploying from the first quarter of next year, will be used for expansion plans,” 1-India Family Mart Founder and Chief Executive Officer Jay Prakash Shukla told BusinessLine in an interaction.
The company has initiated discussions with retail-focused PE funds in the country.
The bootstrapped company, led by entrepreneurs Jay Prakash Shukla and Ravinder Singh, began operations in October 2013. In its first external funding, Nysaa raised ₹42.5 crore from Carpediem Advisors in December 2017.
Of the total proceeds of about ₹125 crore, ₹100 crore has been earmarked for setting up new stores and ₹25 crore for backend operations such as setting up of warehouses and for IT development among others.
Expansion plans
The company intends to add 50 stores per annum during the next two financial years.
The company, which has 80 stores as of date, plans to open another 20 stores using internal accruals and ending the financial year with about 100 stores.
“The next growth story will come from ‘B’ and ‘C’ towns, and we are looking at expanding to these locales. For the next six-eight months, we are going to focus on the north-east,” he added.
The company is also looking at increasing the total number of employees to 4,000 personnel from the present 1,900 by the end of next financial year.
The company will also be looking for an Initial Public Offering (IPO) “somewhere down the line”, Shukla said.
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