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Max Ventures and Industries (MVIL) owned by serial entrepreneur Analjit Singh is venturing into the hospitality space with a binding agreement to buy a minority stake in Delhi-based Azure Hospitality, which runs a pan-Asian restaurant chain under the Mamagoto brand, said two people familiar with the development. “Azure Hospitality is raising $10 million in the second round of funding from MVIL and Goldman Sachs,” said the one of the persons.
“MVIL has committed to invest Rs 33.50 crore or $5 million for acquiring 11.2% stake in Azure Hospitality,” the person said. Earlier this January, Singh, 62, the promoter of Max India resigned as chairman of most of his holdings and group companies in a move aimed at inducting professional managers to run his sprawling business empire.
He remains the chairman of MVIL and owns 40% of it, but has made an open offer to raise his shareholding upto 74%. Singh has been pushing MVIL to become a key player in incubating and promoting new business ventures for the group. Sahil Vachani, managing director of MVIL and also Singh’s son-in-law, confirmed that the company has invested $5 million in Azure Hospital for a minority stake. He refused to divulge details of the investment.
“MVIL is looking at four verticals — packaging, education, real estate and investments (picking up minority stake in),” Vachani said. “We are looking at providing growth capital and synergy to investee companies,” he added. Rahul Khanna, co-founder Azure Hospitality did not respond to queries from ET until press time on Wednesday.
“Goldman Sachs that had invested $10 million in April 2015 has also invested additional $5 million in Azure Hospitality,” the second source said. After this round of funding, the original promoters will have between 50% and 60% stake in Azure Hospitality while Goldman Sachs will have around 35% stake, the source said.
The company launched two budget brands — Rollmaal and Speedy Chow — in 2013 to diversify the business. Both are quick service restaurant chains with Speedy Chow focusing on Chinese cuisine and Rollmaal on Indian offerings.
Currently, the firm operates in five markets — Delhi-NCR, Mumbai, Bengaluru, Hyderabad and Chennai — and has a staff strength of 750. It is also looking to expand to tier I and II towns and also overseas with a launch expected in the UAE shortly.
Azure Hospitality is likely to report a turnover of Rs 140 crore during the current fiscal and is being valued by the incoming investors at Rs 300 crore, said the first person cited above. “Azure is a zero debt company and is making reasonable operating profit consistently,” the person added.
In the past, Analjit Singh is also believed to have backed Chez Nini, an upscale French bistro in New Delhi’s tony Mehar Chand Market.
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