All you need to know about Warburg, Faering Capital's Rs 300 cr Biba investment

Private equity firms Warburg Pincus and Faering Capital have invested about Rs 300 crore in Biba Apparels, a firm engaged in women and girls’ ethnic wear.

The investment includes a primary fund raise and provides an exit to the existing investor, Future Lifestyle Fashions Ltd.

The transaction is the largest private equity investment in the Indian ethnic wear market.

On November 12 this year, Future Lifestyle Fashion Ltd (FLFL), part of Kishore Biyani-led Future Group, had divested its minority stakes in Biba Apparels.

[caption id=“attachment_1270321” align=“alignleft” width=“380”] “The investment includes a primary fund raise and provides an exit to the existing investor, Future Lifestyle Fashions. The transaction is the largest private equity investment in the Indian ethnic wear market,” Biba said[/caption]

This investment will enable the company to evolve into a ‘fashion house’ catering to all ethnic wear requirements of women and girls across income levels, in India and abroad.

It plans to expand its distribution network and strengthen its presence in the higher-end fashion category through new product launches and JVs with acclaimed designers. It also plans to launch a value brand to enhance its presence at lower price points, the company said in a statement.

Commenting on the development, BIBA Managing Director Siddharath Bindra said: “I am very happy to be able to provide a healthy exit to Future Lifestyle Fashions Limited, who has been an excellent partner to the company so far. I am also very excited to now have as partners Warburg Pincus and Faering Capital, as we scale up BIBA to the next level.”

Warburg Pincus Managing Director and Co-head India Vishal Mahadevia said: “Warburg Pincus’ investment in BIBA reflects its recognition of the company’s high-quality management team led by Siddharath Bindra. We are excited to partner with BIBA’s management team as they continue to grow the business going forward.” BIBA Apparels, which was established in 1986, has over 330 sales points across the country.

In October this year, Future Group’s lifestyle business housed under a new firm Future Lifestyle Fashions Ltd (FLF) got listed on the stock exchange.

The firm, which was created through the demerger of the lifestyle fashion businesses of Future Retail Ltd and Future Ventures India Ltd, also during the same period, had signed a deal to exit its investment in fashion apparel firm BIBA.