New Delhi: Ethnic retailer Fabindia is understood to have sold 7 per cent stake in the company to Azim Premji's Premji Invest for about Rs 125 crore to fund expansion.
About a month ago, L Capital, the private equity arm of luxury conglomerate LVMH Group had also bought 8 per cent stake in Fabindia from Wolfensohn Capital Partners.
When contacted, neither Fabindia nor Premji Invest spokesperson offer any comments.
Fabindia currently operates 141 retail stores across India and one store each in Dubai, Nepal and Italy.
According to people close to the development the funds raised by the company will be used for domestic and international expansion.
Founded in 1960 by John Bissell to market the diverse craft traditions of India, Fabindia started out as a company exporting home furnishings.
The company opened its first store in New Delhi in 1976 and currently sells a wide range of products including, garments, home furnishings, organic foods and personal care items.