Kovai Pazhamudir Nilayam sells majority stake to US fund WestBridge

WestBridge Capital, a US-based private equity (PE) firm, has acquired a majority stake in KPN Farm Fresh, a prominent fruits and vegetable retail chain based in Tamil Nadu, according to a report by Moneycontrol . KPN operates under the Kovai Pazhamudir Nilayam brand. The deal reflects WestBridge’s increased focus on the Indian consumption and retail sector.

KPN, short for Kovai Pazhamudir Nilayam, has a remarkable story, starting from a single pushcart in Coimbatore and growing into a thriving business that remains family-run, symbolising entrepreneurial legend and perseverance.

The transaction values KPN at ₹800 crore, with WestBridge purchasing nearly 70 per cent of the company in an all-cash deal worth approximately ₹550-600 crore. The remaining 30 per cent stake will be retained by the promoters, while Senthil Natarajan, the current Managing Director, will continue to lead the operations.

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With revenues of ₹400 crore and profitability, KPN presently operates stores across Tamil Nadu and has plans to expand into other southern states. The deal was finalised a few weeks ago, said MoneyControl. Veda Corporate Advisors reportedly acted as advisors for the transaction.

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KPN currently operates a 20,000 square feet warehouse in Coimbatore and a larger 1.5 lakh square feet warehouse in Vanagaram, near Chennai. The expansion of KPN Farm Fresh caught the attention of WestBridge Capital, a private equity firm that specializes in startup investments, said the report.

While WestBridge has reduced its investment pace due to the challenging macroeconomic environment, its interest in KPN Farm Fresh demonstrates its continued commitment to the Indian market and its confidence in the potential of the retail sector.