Franchise News India: Naturals salons is close to raising around Rs 60 crore to fuel its growth in the non-south markets. Naturals also has signed up with a master franchisee for the Gulf region to open 50 outlets in the first phase.
Naturals hopes to close the deal by September and will be selling a minority stake of almost 20 per cent to raise the private equity fund. The fund will be utilized to open own salons in five key markets including Delhi, NCR, Punjab, Gujarat and Pune. In these markets Naturals will open 100 salons this year to establish the brand locally and then expand further with the help of franchisees.
Naturals had scouted for private equity twice earlier. First when it was a 40-salon chain with presence in Tamil Nadu and Andhra Pradesh. Its business model to scale up to 500 salons with the help of franchisees was viewed with doubt. Further private equity players were looking for majority share in the company.
Second time, Naturals wanted funds to open 250 salons in Bharati Walmart stores. Bharti Walmart had planned to open stores in tier II and III cities and the PE firms were doubtful about operating the salons from Chennai.
By this time, Naturals scaled up its model to 376 salons covering the southern market. It also tied up with Indian Overseas Bank and Bharatiya Mahila Bank to help franchisees for their capital requirements.
“We have proved the model. We are clearer about the goal. We just have to replicate the model in the five new markets,” said C K Kumaravel, founder of Naturals.
Naturals also has signed up with SBA as the master franchisee for the West Asian region. SBA has successfully franchised southern restaurant chains like Sangeetha and Anjappar in the Gulf region.
Source: mydigitalfc
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