Exhilway to invest in garments start-up Sconto Retail

At a time, when many established apparel retailers are

struggling to raise funds from private equity investors, Exhilway, a US-based private equity investor plans to fund Sconto Retail, a Kolkata-based garments start-up.

As per sources, the company would make an initial investment in equity of around Rs 6 crore in a month’s time, the graded funding, both in equity and debt may go up to Rs 24 crores over the first 18 months. Based on Sconto’s business model, the project has been valued by an US credit rating agency Newman Assets at Rs 120 crores. The deal would also involve periodic performance reviews, additional investments and final exit by the end of three years apart from listing of the entity at the London Stock Exchange’s AIM segment after a year.

Sconto Retail on the other hand would seek RBI’s advance approval for foreign direct investment (FDI). It plans to attarct initial equity of Rs 12 crores, and as per the current FDI norms, Exhilway can invest up to 49 percent of this sum.