According to a report by Money Control, WestBridge Capital, a private equity firm, has bought a majority stake in Tamil Nadu-based fruit and vegetable retailer Kovai Pazhamudhir Nilayam (KPN). The investor has picked up a 70% stake in an all-cash deal, worth Rs 550-600 crore, while the existing promoters will hold a 30% stake in the company, Money Control said. The total deal was reportedly valued at Rs 800 crore.

The operations at KPN are currently run by Senthil Natarajan, the managing director. But he  declined to comment on the transaction, Money Control’s report said. The report also suggested that Veda Corporate Advisors served as the consultants for this transaction, but neither WestBridge Capital nor the consulting firm responded to Money Control’s questions, their report said.

KPN purportedly earns an income of Rs 400 crore annually. The chain, which has outlets mainly across the state of Tamil Nadu, is looking to expand in the other southern states, Money Control suggested.

WestBridge Capital, which began operations 20 years ago, invested in 25 companies last year. Reports suggest that in investing in KPN, it is marking its first investment in 2023, after it reportedly slowed its pace due to deteriorating macroeconomic conditions.

KPN, which began in the 1960s as Pazhamudhir Nilayam in Coimbatore, was established formally in 2012 by Natarajan and his brother. According to media reports, 60% of the company’s stake was with the brothers while the other 40% was shared by partners at KPN outlets in Tamil Nadu.