Fashion brand Spykar Lifestyle announced its first PE funding, with New Delhi-based Avigo Capital Partners. The latter has invested Rs 21 crore in Spykar, with the final percentage stake to be worked out on the milestone-based method in 2009. The stake is expected to be in the region of 10-15 per cent.
Prasad Pabrekar, chairman and managing director, Spykar Lifestyle, commented thus: “Spykar has sustained growth of over 60 per cent per annum, compounded purely on own resources through the last four years. Spykar is looking at an exciting growth of about 100 per cent, compounded annually for next few years, and will cross the Rs 500 crore mark in a span of about 36 months. To sustain this growth, infusion of capital is a must. The funds mobilised through this private equity stake are sufficient for Spykar to finance projected growth for the next three years.”
From a turnover of about Rs 90 crore in 2006-07, Spykar is looking to touch Rs 160 crore in 07-08, Rs 330 crore in 08-09, and Rs 500 crore in 09-10. “In case the targets are surpassed, a second round of infusion is not ruled out. Further, Spykar will plan towards its IPO by September 2009,” Pabrekar revealed.
Siaf Dohrajiwala, vice president, Investment, Avigo Capital Partners, said, “The deal is about non-intrusive partnership. Avigo has full faith in the management ability of Spykar.”