A private equity fund managed by JM Financial has agreed to invest Rs 35 crore in a Pune based consumer packaged food company, Walko Food to fund the company’s current expansion plans.
As part of the arrangement, JM will pick up a significant minority stake in Walco and the proceeds from the investment will support brand building activities and augmentation of the existing capacities of the Company.
The transaction marks the eighth investment by JM Financial India Fund II.
Walko Food Company owns a fast growing natural ice cream brand NIC. The company operates a manufacturing plant in Pune and retails in over 50 cities across India, via multiple sales channels like food delivery platforms, Modern Trade, Parlors, etc.
In addition to NIC, the Company has recently launched desi kulfi brand “GRAMEEN”. The company was founded by Jeetendra Bhandari, a first generation entrepreneur who brings decades of professional experience in the US with leading MNCs like Coca-Cola and Walmart.
“The domestic ice cream market is large and growing and we believe that there is a long runway of growth banking on low per capita ice cream consumption, foodtech platforms and development of multiple distribution channels and formats. Within the broader ice cream market, NIC has established a good product market fit with its differentiated, high quality natural ice cream and direct to consumer strategy. All these factors have led to a strong brand recall for NIC and a healthy customer repeat ratio. NIC is well-placed to address the changing customer preferences for relatively healthier, preservative free snacking options. The fund infusion will help the company scale-up its business and expand its market share,” said Darius Pandole, Managing Director & CEO, PE Equity AIFs at JM Financial.
“This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans and expand market share,” said Jeetendra Bhandari, Managing Director, Walko. “Walko plans to deploy funds to increase geographic penetration, open Flagship parlors (Experience Centers), manufacturing capacity expansion and marketing. Ice cream per capita consumption in India is very low when compared to G-20 economies and as such it provides long term secular growth opportunity. We see excellent growth potential for NIC and GRAMEEN in the coming years.”
Dexter Capital Advisors and Think Law were advisors to the transaction.
