Private equity investor TA Associates Management Lp is in talks to acquire a minority stake of about 30-35% in TCNS Clothing Co. Pvt. Ltd, which owns the ‘W’ brand of clothing for women. Existing investor Matrix Partners India selling its almost 20% stake and promoters 10-15% to raise fresh capital for funding expansion as well as four-five other private equity investors are also in the running to purchase the stake, as per LiveMint report.

TCNS is seeking a valuation of Rs.3,000 crore. The company is in talks to raise around $100 million to fund its growth plans and provide an exit to Matrix. Matrix has invested about Rs.100 crore in TCNS since 2011.

Besides W, sold by around 200 exclusive brand outlets, TCNS Clothing sells other brands such as Aurelia, through 90 stores, and Wishful, across the country. W contributes about 70% of the company’s revenue while ethnic brand Aurelia and premium brand Wishful contribute the rest. W competes with brands such as Chemistry and Biba.

The new funding will be used by the company to expand into new markets and increase the number of outlets in India, said the first person.

Founded in 1968, TA Associates has invested about $17 billion in 460 companies across the globe. In India, it has invested in payment platform BillDesk, diagnostic chain Dr Lal PathLabs Ltd, mobile handset-maker Micromax Informatics Ltd and RateGain IT Solutions Pvt. Ltd, a price recommendation engine for hotels.

TCNS Clothing was founded by Onkar Singh Pasricha and Arvinder Singh Pasricha, who have been in the textiles and clothing business since 1972. As per a report published by consulting firm Technopak Advisors, the size of the Indian apparel market stood at $41 billion in 2014 and is expected to grow at an annual rate of 9% over the coming decade. Womenswear is a $15.5 billion category and accounts for 38% of the overall apparel and textile market in India.

Image Source: ShutterStock

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