New Delhi: US-based venture capital firm Sequoia Capital is likely to grab 30% stake in Chennai-based Go Fashion for Rs 45-60 crore, according to an Economic Times report.
Sequoia capital was an initial investor in companies like Google and Whatsapp. Further, Go Fashion manufactures bottom-wear for women, sells its products under the brand Go Colors.
Besides, the company has been promoted by Chennai's Saraogi family, which has been in the ready-made apparel market through its company Meridian Apparels.
Harminder Sahni of retail consulting firm Wazir Advisors told ET,"Women are now buying a top or kurti from ethnic-wear makers, while the bottom-wear is becoming a commodity that women buy in all colours and keep them in stock. Even if the product will not give too much premium, Go Colors, being branded, will be able to sell more."
Go Colors retails its products its own stores and kiosks, besides retailing at multi-brand outlets such as Central, Reliance Trends and Megamar, as per the ET report.