Private-equity funds in talks to invest $40-$50 million in JSM Corp: report

Several private-equity funds are in separate talks to invest about $40-$50 million in JSM Corp, operator of Indian franchises for brands like Hard Rock Cafe and California Pizza Kitchen, Reuters today reported, citing two sources with knowledge of the matter.

Carlyle Group, Sequoia Capital, Premji Invest, the venture capital arm of Indian software services exporter Wipro, and New Silk Route, an Asia-focused private-equity firm, are separately in talks to buy a "significant minority holding" in JSM, owned by restaurateurs Jay Singh and Sanjay Mahtani.

Founded in 2004, Mumbai-based JSM's portfolio includes the exclusive master franchisee for Hard Rock Café, California Pizza Kitchen and Trader Vic's. It has 12 outlets across different brands, including premium luxury Asian restaurant cum lounge brand Shiro.

In February, reports emerged that JSM was planning to raise Rs120 -150 crore from private equity firms for expanding California Pizza Kitchen to 80-100 outlets in the next five-six years, and also expanding its Fratellis, Pitstop and IndoChine brand.

Private equity firms have since the past three years invested in small hospitality ventures and up-coming fast-food chains in India.

Everstone Capital had acquired a 45-per cent stake in operator of 30 Pind Balluchi restaurants JS Hospitality Services, for $20 million, while Sequoia invested $5 million in Pune based Kebab and wraps chain, Faaso's.

India Equity Partners acquired a controlling stake in Sagar Ratna, a Delhi-based South Indian restaurant chain for $35 million, ICICI Venture invested $33 million in RJ Corp's Devyani International, which runs Pizza Hut, Costa Coffee and KFC across India and New Silk Route invested $75million in Café Coffee Day.