Mom & Me considers PE funding to raise Rs 100 cr

Thursday, 10 May 2012

Mahindra Retail, which houses Mom & Me – the speciality retail venture of the diversified Mahindra Group is expected to raise Rs 100 crores in funding from private equity investors. Mom & Me caters to the baby care segment in the organised retail market. It has about 50 stores across the country, offering baby apparels and accessories, travel and safety products, baby furniture, toys, etc. It is now raising money to expand its retail footprint and to add new product offerings. The retail chain is also looking to expand to Tier II, III cities via the franchise model.

The equity holding of the retail firm was transferred to Mahindra Partners – a private investment division of the business conglomerate. Two years ago, the Mahindra Group transferred seven of its non-core businesses – spread across logistics, retail, trading, engineering & chemicals – to Mahindra Partners.

ICICI Venture, one of the largest PE firms in the country in terms of assets under management, had invested in Mahindra Retail way back in 2008 and remains a shareholder of the company. According to a research report, India is the most preferred market for the companies involved in baby care product manufacturing and marketing. The physical as well as online shopping platforms boast of various organised baby products stores, showcasing the complete range of toys, soft toys, strollers, walkers, car seats, baby care products, feeding bottles and other feeding gear, nursery furniture, bedroom furniture, baby linen and furnishings, premium party wear, ethnic wear, casual wear, footwear and accessories.