W to raise $100 million from PE funds

Contemporary ethnic wear company TCNS Clothing, which owns W and Aurelia brands, is in talks to raise around $100 million to fund its growth plans. The money will be used to expand its reach and increase the number of outlets in India.
According to a Livemint report, the move will also provide an exit to existing investor, Matrix Partners India, which is looking to sell its 20 per cent stake. Matrix has invested about Rs.100 crore in TCNS since 2011.
TCNS is also looking to dilute 10-15 per cent to raise capital for its expansion plans.
Currently, W is sold in around 200 exclusive outlets while Aurelia is sold through 90 stores. Brand W contributes about 70 per cent of the overall revenue, while popular brand Aurelia and premium brand Wishful contribute the rest.
TCNS Clothing’s 2014-15 revenue jumped 80 per cent to Rs.358.7 crore from Rs.199 crore in the previous year. Anant Daga, chief executive officer of TCNS, said while the company is seeing over 40 per cent annual growth in overall sales, their online sales has doubled each year.
TCNS Clothing aims to triple its sales to Rs.1, 000 crore by 2017. The company competes with brands like Biba, Fabindia, and designer Anita Dongre’s GlobalDesi. Biba, in which Future Group’s Kishore Biyani is an investor, had revenue of Rs 300 crore in fiscal 2013.