Gaja Capital, L Catterton eye 40% stake in Zivame

MUMBAI: Home-grown private equity fund Gaja Capital and global fund L Catterton are in separate discussions to acquire about 40% stake in leading women’s lingerie retailer Zivame.

In this proposed secondary transaction, the 40% stake held by existing investors — Ronnie Screwvala-promoted Unilazer Ventures and Malaysian sovereign fund Khazanah Nasional Bhd — will be acquired by the new investor in a deal valuing the brand at $100 million (about Rs 700 crore), according to two people aware of the development. However, the discussions with Gaja Capital are in an advanced stage, he added.

Currently, technology-focused investment firm Zodius Capital is the largest shareholder in Zivame with about 60% stake. Zivame is the second largest selling women lingerie brand in India after Jockey. In India’s $3 billion women lingerie market, about 40% sales come from organised players. The market is expected to reach $6 billion by 2025.

Women’s lingerie retailer Zivame has begun initial discussions with private equity funds to raise about $50 million (Rs 350 crore), ET first reported in September.

In 2015, Zivame had raised $40 million (Rs 250 crore) in its Series C funding round from Zodius Technology Fund and Khazanah Nasional Bhd. Zodius had increased its stake by buying out early venture capital investors, Kalaari Capital and IDG Ventures India, in 2018. Both Kalaari and IDG Ventures had invested in Zivame in early 2012.


Zivame, which is run by Bengaluru based Actoserba Active Wholesale, was founded by Richa Kar in 2011. After starting out as an aggregator, Zivame had moved into a private label business in 2016. Zivame owns popular private label brands Penny, Coucou and more than 90% of its revenue comes from its in-house products.

Zivame, the most funded player in women's lingerie segment, competes with Jockey, Enamor, Clovia, Amante, Pretty Secrets, Cilory and Shyaway. The company posted a revenue of Rs 140 crore in FY19 and it expects a net revenue of Rs 230 crore in FY20.

Shilpa Kulkarni, MD and co-founder of Zodius Capital, spokespersons with Zivame and Gaja Capital declined to comment. Mails sent to Unilazer and Khazanah went unanswered, while L Catterton spokesperson declined to comment.

Rival brand Clovia, run by Delhi based Purple Panda Fashions, had raised $10 million (Rs 71 crore) in a Series B round led by AT Capital, last year. PrettySecrets.com, the Mumbai-based online lingerie platform, is also backed by RB Investments Pte and Orios Venture Partners.

Founded in 2004, Gaja Capital manages assets of about $500 million across three funds and invested in Jiggs Kalra-owned Massive Restaurants, RBL Bank, broking network Bonanza, TeamLease, Bakers Circle, Carnation, Kinara NBFC, Suryoday and Avendus. L Catterton (formerly L Capital) is one of the major investors in the US lingerie brand ThirdLove.