Avendus Future Leaders Fund – I (FLF) has picked up a minority stake in ethnic snacks maker Bikaji Foods International from two existing investors —Lighthouse and Intensive Softshare —for about `40 crore.
The firm manufactures branded Indian ethnic snacks and has a product basket that includes bhujia, namkeen, sweets, papad and Western snacks.
In 2018, IIFL Special Opportunities Fund had acquired a minority stake in the company for Rs 251 crore through a mix of primary and secondary investments. Prior to that, in 2014, Lighthouse Funds had purchased a 12.5% stake in Bikaji Foods for Rs 90 crore. Ritesh Chandra, managing partner and head at FLF, said Bikaji had established itself as a leading company in the Indian ethnic snacks segment with a sizable market share, profitability and a platform geared for growth. With pan India presence and favourable macro tailwinds, Chandra believes the company is expected to grow rapidly in coming years.
Chandra indicated that the fund is positive on the ethnic snacks category and Bikaji Foods seems to fit in with the fund’s strategy. “We are very bullish on the category that Bikaji Foods is in. We had a bilateral discussion with Lighthouse and we thought it fit with the fund’s strategy very well. There was a miniscule purchase from Intensive Softshare as well,” Chandra told FE.
FLF is a Sebi-registered category-II Alternative Investment Fund (AIF) that focuses on investing in market leading, late stage private companies in the consumer and financial services segments. The fund aims to explore opportunistic investment situations in emerging market leaders. FLF plans to raise `500 crore from individual and institutional investors. The fund size may go up to `1,000 crore. The fund, in its life cycle, is targeting to invest in 8 to 10 companies with an average investment size of `40-75 crore.