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Deal Alert: Everstone Capital and Helion Venture Partners invest in Bangalore based salon chain R& R Salons (“YLG”)

From the Press Release:

Bangalore-based salon chain R&R Salons Private Limited (“YLG”) today concluded its second round of private equity funding. This round saw participation from Everstone Capital and its existing investor, Helion Venture Partners. Avendus Capital was the sole financial advisor to R&R Salons on this transaction.

R&RSalons runs the “YLG” brand of salons, with Twenty salons in Bangalore and Pune, along with its Beauty Academy, ISHA. The proceeds of this fund raise will be used towards YLG’s organic growth plans and expand into major cities across thecountry.

Mr.Sameer Sain, Co-founder and Managing Partner at Everstone Capital, said “The Beauty and Grooming services space is growing rapidly and is highly fragmented. YLG has built a strong regional brandand our goal is to make it a leading national player. A combination of a strong management team and Everstone's strong operational capability and growth capital give us the confidence that YLG can truly become the premier salon business in India.”

Mr.Rahul Bhalchandra, the promoter and CEO of R&R Salons said, “We have drawn up aggressive expansion plans whichinvolve opening up over 200 company owned salons over the next 6 years. We are delighted to partner with Everstone and believe that the business capital and high caliber of operational inputs provided by them would be a key enabler in the successful execution of our plans. Continued support from Helion reinforces its conviction in the company and in the mid-premium salon space in India”.

Mr.Kanwaljit Singh, Senior Managing Director, Helion Advisors, said “The Helion team were early believers in the salon business. The sector is attracting higher investor interest and the learning from the early years of the business can now be applied to build a truly long lasting pan Indian Beauty service brand. Helion Ventures, as an early investor,had virtually helped incubate the business from idea stage to reality, and continue to remain invested and excited about YLG’s growth prospects.”

Mr.Gaurav Deepak, Managing Director at Avendus Capital said, “The Hair and Beauty Salon Industry in India is poised to grow at over 30% per annum, driven by the rising affluence and increasing consumer awareness. We believe that YLG presents a strong platform driven by a high quality management team, uniquely positioned to become themarket leader in this space. The partnership with Everstone gives YLG a strong runway to execute its growth plans.”

About R&R Salons Private Limited
R&R Salons Private Limited is a Bangalore based company running the “YLG (You Look Great)” brand of women-only salons. Started in 2008, it currently operates nineteens alons in Bangalore and one salon in Pune, and is known for introducing its unique “Unlimited use” membership programs for its customers. It also operates an academy which offers hair and beauty training courses to students. The company is promoted by Mr. Rahul Bhalchandra. Helion Venture Partners had invested in the company in 2008.

For more information, please visit http://www.ylgindia.com

About Everstone
Everstone Capital is an India focused investor with dedicated private equity and real estate funds with assets under management of around USD 1.6 billion. Founded in 2006 by Atul Kapur and Sameer Sain,Everstone Capital now has more than 100 people working across five offices andhas invested over US$ 1 billion in India over the last 6 years. EverstoneCapital has an active operational, hands-on approach to its private equity andreal estate investment management businesses with a focus on companies thatbenefit from domestic consumption within India and several other sectors suchas energy and infrastructure services. Some of Everstone's investments includeSula, VLCC, Blue Foods, IndoStar Capital, Crystal Crop Protection,RegenPowertech and Asian Genco.

For more information, please visit www.everstonecapital.com

About Helion Venture Partners
Helionis a multi-stage, India-focused venture fund with over $600 million undermanagement. The fund invests in businesses that are technology-powered orcatering to the Indian consumer services space. The focus sectors of investmentinclude - internet, mobile, technology products, outsourcing, Healthcare,education, retail services and financial services. The fund's investors arewell-respected global institutions including top tier university endowmentfunds, sovereign funds, foundations, pension funds, family offices and Fund offunds. The fund and its portfolio companies are advised by an experienced andindustry renowned team of professionals based in India and includes SanjeevAggarwal, Ashish Gupta, Kanwaljit Singh, Rahul Chandra and R Natarajan.

For more information please visit www.helionvc.com

About Avendus Capital
Avendus Capital is a leading financial services firmwhich together with its group companies provides customised solutions in the areas of financial advisory, equity capital markets, alternative asset management and wealth management. Avendus Securities through its Institutional Equities practice is able to offer clients best-in-class research-driven adviceto help them take investment decisions, while Avendus PE Investment Advisorsmanages funds raised from its investors by investing in public markets. The Group relies on its extensive track record, in-depth domain understanding and knowledge of the economic and regulatory environment, to offer research based solutions to its clients that include institutional investors, corporates and high net worth families. Avendus Capital has consistently been ranked among the top-five corporate finance advisors in India and has emerged as the advisor of choice for cross-border M&A deals and has closed 40 cross-border transactions in the past 4 years. Headquartered in Mumbai, the firm has offices in New Delhi and Bangalore. Avendus Capital, Inc (US) and Avendus Capital (UK)Pvt. Ltd. located in New York and London, respectively, are wholly owned subsidiaries offering M&A and Private Equity syndication services to clients in the respective regions.
For more information, please visit www.avendus.com

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