Private equity firm CX Partners is close to buying around 30% stake in Indian women’s ethnic wear brand Soch for slightly over Rs 300 crore, as curated designer stores add more flair to India’s fashion scene.
Branded ethnic apparel segment has never had it so good with Ritu Kumar, TCNS Clothing (W and Aurelia), House of Anita Dongre (AND, Global Desi) and BIBA tweaking runway pieces for everyday dressing. These brands have raised funding from marquee investors, signalling a growing private equity (PE) appetite for a piece of the Indian ethnic wear pie.
Soch opened its first exclusive store in Bengaluru’s Forum Mall in 2005. Today, Soch has grown to retail through over 100 exclusive brand outlets across 39 cities, including Bengaluru, New Delhi, Mumbai, Chennai, Hyderabad. It retails through shop-in-shops across Shopper’s Stop and Central outlets, with a presence in over 50 large format stores.
The latest deal-making comes after Soch and Manyavar ended merger talks last year, which was to be backed by another PE investor Kedaara Capital. While Manyavar roped in Kedaara, its talks to buy Soch didn’t materialise, prompting the former to focus on developing its own women’s ethnic wear brand Mohey.
PE firm CX Partners was ahead of other suitors to bag minority ownership along with significant rights in building the brand. Soch declined to comment, while text messages and calls to top CX Partners officials went unanswered. Investment bank o3 Capital is said to be advising on the Soch transaction.
Source: Economic Times