Mid-market private equity firm Lighthouse Advisors has invested Rs 160 crore ($22 million) in mattress manufacturer Duroflex.
The south India-focused company plans to use this latest funding to expand its operations including adding over 500 exclusive business outlets in the near future, as per an official statement.
The company has five manufacturing facilities located in Tamil Nadu, Telangana and Kerala through which it produces a wide range of mattresses and PU foam products. Duroflex’s current reach extends to 3,000 retailers in south India and the company is in the process of expanding its footprint in West and East India. The company is targeting a turnover of Rs 450 crore in the current financial year.
“We have been able to build a strong brand in South India on the back of consistent quality and would want to multiply efforts to replicate similar success in our new markets,” said Duroflex’s managing director Mathew Chandy.
The last time such a significant funding took place in the mattress space was when Motilal Oswal Private Equity Advisors Pvt Ltd (MOPE), the private equity arm of Motilal Oswal Financial Services Ltd invested Rs 90 crore (about $13.5 million) in Bangalore-based mattress maker Kurlon in 2015.
Another significant development in this area was the listing of Sheela Foams-manufacturer of Sleepwell mattresses a couple of years ago.
This latest investment follows Lighthouse Advisors investment of Rs 113 crore ($15.8 million) for a minority stake in beauty and wellness startup Nykaa through a secondary share sale. Prior to that, the investment firm participated in a $21 million funding round by Tynor Orthotics.
In March, DEALSTREETASIA had reported that Lighthouse had achieved the first institutional close of its third fund at $150 million. The firm’s current and past investments include Bikaji Foods, FabIndia Overseas, Cera Sanitaryware, Capital Trust, Tynor Orthotics, Suraksha Diagnostic, Dhanuka Agritech, Indian Herbs, Kama Ayurveda, Unibic Foods, V2 Retail and XSEED Education.
(As published in https://www.dealstreetasia.com on Mon, October 29 2018. )