Creador, a Malaysia-based private equity group, has invested USD55 million in DALI Stores, a Swiss retailer that owns a budget grocery store network in the Philippines.
Creador and Navegar, a private equity firm based in the Philippines, worked together on the investment, which closed at the beginning of January, according to Brahmal Vasudevan, the founder of Creador.
The transaction is a second round of funding for Navegar, according to Swiss law firm Lenz & Staehelin, which advised Navegar on its investment. In August 2022, the first round was made public. The financial details of Navegar’s two investments were not made public.
Lenz & Staehelin’s spokesman declined to comment. Both Navegar and DALI have been contacted by DealStreetAsia.
Meanwhile, Creador’s investment in DALI was made from its fifth fund, which closed beyond target earlier this year with USD700 million in pledges. Vasudevan said that about 40% of the money in Creador V, which plans to invest in India and Southeast Asia, has already been spent.
DALI, which operates in the Philippines, claims to be Southeast Asia’s first neighbourhood hard discounter. Hard discounters have a small range of products that are mostly private-label. The company has 200 stores across the country where they sell food, personal care products, and stuff for the home.
Vasudevan says that the idea of discount stores in residential areas is becoming more popular among shoppers who want more convenience and accessibility than what hypermarkets offer.
DALI says on its website that the Philippines, which has 110 million people, is one of the countries in Asia with the most food spending and the most money to spend on food. Vasudevan also said that the Philippines will be one of the firm’s most active investment markets.
Creador’s investment in DALI follows its support for the motorcycle ride-hailing company Angkas, the credit bureau CIBI, and, most recently, UNOAsia, the Singapore-based incorporator of UNO Digital Bank in the Philippines, which was announced in August 2022. Creador led an investment of USD11 million in UNOAsia before it got to the Series A round.
The company, which has eight investment officials in the Philippines, had helped its Malaysian portfolio companies Mr. DIY and Tealive expand into the Philippines previously.
According to a November 2022 interview with DealStreetAsia, the private equity company plans to invest between 35% to 40% of its fifth fund to companies in India.
Since its founding in 2011, Creador has raised about USD2.2 billion through its five investment vehicles. In 2019, the USD580 million Creador IV fund began.
Creador sold some of its shares in Mr. DIY and the credit reporting firm CTOS when these companies went public in 2020 and 2021, respectively. Tealive reportedly stated in October that it may reconsider its initial public offering strategy after it reaches 1,000 locations in Malaysia by 2024.
Info source – Asia.Nikkei