Duroflex, a dominant mattress player in South India, has raised Rs 160 crore ($22 million) from Lighthouse Fund. The Company plans to utilize the money raised from Lighthouse to fund its expansion plans, which includes adding over 500 exclusive business outlets (EBOs) in the near future. ICICI Securities acted as the sole financial advisor to the Company for the fund raise.
According to reports, post the fundraise, Lighthouse now owns acquired a minority stake, which is roughly around 25% in Duroflex.
Alleppey, Kerala-based Duroflex has five manufacturing facilities located in Tamil Nadu, Telangana and Kerala, which manufacture a wide range of mattresses and PU foam products. Founded in 1963, it currently has three sub-brands Energise, Duropedic and Natural Living, sold across 3,000 retail outlets in South India, and is in the process of expanding its footprint in West and East India. The Company is expecting a turnover of over 450 crores in the current financial year.
“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,” Mathew Chandy, Managing Director, Duroflex said in statement.
ICICI Securities acted as the sole financial adviser to Duroflex for the fundraising.
Sachin Bhartiya, Partner at Lighthouse, added, “We are pleased to become a partner in Duroflex and help them in their journey as they grow to the next level. We really appreciate various initiatives undertaken by the management to increase the market share led by product innovations and new launches over the last few years. We are very excited by the growth opportunity ahead of the Company.”