L Catterton picks up minority stake in South India restaurant chain Nandhana Foods for $30 million

MUMBAI: L Catterton has picked up a minority stake in Bengaluru-based restaurant chain Nandhana Foods amid rising investor appetite to back regional brands. The private equity (PE) firm did not disclose the specifics of the deal but it is understood that the company infused about $30 million into Nandhana Foods for a double-digit stake. Nandhana Foods operates only out of South India and is popular for its Andhra and Karnataka cuisine. It owns brands Nandhana Palace and RNR.Investors are increasingly putting in money in segments that are benefiting from growing disposable incomes. The food services segment is one of the big drivers of consumption as people increasingly spend on new experiences.“South Indian cuisine is one of the largest segments of India’s burgeoning food services market. Propelled by secular trends such as the rising per capita expenditure on dining out and food delivery services, as well as the increasing number of consumption occasions, the segment is expected to witness strong growth led by iconic brands like Nandhana Foods,” L Catterton said.The investment will allow the restaurant brand to leverage L Catterton’s expertise to boost its next phase of growth and gain scale. “We believe there is significant headroom for additional growth by further deepening and broadening its presence in South India and penetrating other markets,” said L Catterton partner Vikram Kumaraswamy.Get the latest Business News and Live updates. Download the TOI app.