According to sources, private equity firm WestBridge Capital has acquired a majority investment in Tamil Nadu-based fruits and vegetable retailer KPN Farm Fresh in an effort to increase its bets on India’s consumption and retail themes.
One of Tamil Nadu’s most well-known store chains for fresh produce is KPN, which stands for Kovai Pazhamudhir Nilayam. Entrepreneurial legend and persistence surround this company’s ascent from a single pushcart in Coimbatore to a flourishing enterprise still run by the same family.
According to information provided to Moneycontrol, the transaction values KPN at Rs 800 crore, with WestBridge acquiring a nearly 70% interest in exchange for Rs 550–600 crore in an all-cash transaction. Senthil Natarajan, the present managing director, will continue to oversee operations while the promoters hold the remaining 30% of the stock.
The chain is reportedly lucrative and has 400 crore rupees in income. While it now has locations all around Tamil Nadu, it also plans to grow in other southern states. Several weeks ago, the sale was completed.
According to a market source, Veda Corporate consultants served as the transaction’s consultants. WestBridge and Veda did not react to questions, while Senthil Natarajan, the managing director of KPN, declined to comment.
KPN’s history began in Coimbatore in the 1960s when Senthil’s father, R. Natarajan, the second of four brothers, left school to work alongside his older brother selling fruit to support their family after their father, the only source of income, passed away.
In 1965, the two brothers invested Rs. 300 to build their first store using their savings. ‘Pazhamudhir Nilayam’ was the name of the store. It was a pioneer in the idea of fair prices and sold goods by the weight rather than the dozen.
When they noticed a decline in sales, the two brothers first sold fruit juice as well. According to a story by The News Minute that featured the two brothers and described how the juice was actually just pulp with no water added but nevertheless lured people to eventually buy fruits,
According to a different media account, they formally founded KPN Farm Fresh in 2012 with 60 percent ownership in the business; the remaining 40 percent was divided among partners in current KPN shops.
According to an article in The Weekend Leader, the company has two warehouses: one of 20,000 square feet is in Coimbatore, and the other is 1.5 lakh square feet and is situated in Vanagaram, a suburb of Chennai.
The decision by private equity company WestBridge Capital to acquire the majority of KPN Farm Fresh comes as the country’s most active startup investor has slowed down capital deployment due to the poor macroeconomic environment. The PE has only been involved in one acquisition so far this year, compared to 25 investments in 2022.
However, the private equity firm’s portfolio includes a few consumer technology startups, such as VnF and Fraazo, that operate in the food and beverage sector. WestBridge is reportedly close to investing in Milky Mist, one of the biggest producers of dairy goods.
Read More-Zepto launches app for farmers
