Mattress maker Duroflex has raised around ₹160 crores ($22 million) in funding from consumer-focused private equity fund Lighthouse Fund.
The funds raised will be used to expand to new markets across India. It plans to add more than 500 exclusive business outlets (EBOs) in the near future.
As reported by Economic Times, Lighthouse has acquired around 25% stake in the mattress maker. ICICI Securities acted as the sole advisor to Duroflex for the fundraising.
Founded by PC Matthew in 1963, Duroflex manufactures a wide range of mattresses and PU foam products across five facilities in Tamil Nadu, Kerala, and Telangana. It offers products under sub-brands like Energise, Duropedic and Natural Living addressing the needs of specific consumer groups.
With a robust distribution network across South India, selling at more than 3,000 retail outlets, Duroflex is a dominant player in South India.
Talking about the investment, Mathew Chandy, Managing Director of the Duroflex, said, “We are very excited to have Lighthouse as partner in our growth journey given their impressive track record of investments in over twenty-five brands. We look forward to their support and guidance as we expand into new markets and try new business strategies. We have been able to build a strong brand in South India on the back of consistent quality and would want to multiply efforts to replicate similar success in our new markets.”
Riding on its strong growth, the mattress maker is expecting a turnover of over 450 crores in the current financial year.
Other major mattress brands in India, competing with Duroflex include Kurlon, Sheela Foam, MM Foam, King Koil, among others.
Lighthouse is a leading mid-market private equity firm focused on growth investments in India’s consumer sector.
Some of the firm’s notable investments include Nykaa, Bikaji Foods, FabIndia, Cera Sanitaryware, Capital Trust, Tynor Orthotics, Suraksha Diagnostic, Dhanuka Agritech, Indian Herbs, Kama Ayurveda, Unibic Foods, V2 Retail and XSEED Education.
(As published in https://www.theindianwire.com on Tue, October 30 2018. )