Netsurf explores PE funding to fuel growth, plans for IPO by 2025

Direct selling company Netsurf Network, a part of Netsurf Communications, is exploring tapping private equity funds to raise capital for achieving growth targets, according to a top executive.

“Looking at current growth and sales projections, we will be investing majorly into increasing production capacity to fuel the growth,” said Sujit Jain, CMD, Netsurf Communications Pvt. Ltd.

“Apart from production we will be investing heavily in strengthening technological infrastructure along with marketing & long-term brand-building exercise. We are exploring private equity funds for rapid growth,” he said.

Mr. Jain, however, declined to name the PE firms and the amount the company would be raising.

The company plans to invest ₹100 crore to increase production

The company which offers 63 herbal and organic products in five FMCG categories – Health & Wellness, Personal Care, Colour Cosmetics, Home Care, and Agriculture — clocked a turnover of ₹419 crore in FY21 despite COVID-19 related challenges. “We reported a growth of 55% over FY19,” Mr. Jain added.

Moving ahead, the company is aiming to achieve a growth of 58% with turnover targets of ₹650 crore in FY22, he said.

He said the firm, which functioned as a debt-free, self-funded company till now, would also tap the capital markets with an Initial Public Offering (IPO) once it achieved a turnover of ₹2,000 crore. ‘

“We are projecting to reach this turnover milestone by year 2025. I believe that it will help us to take a giant leap and take the direct selling business to another scale. The listing will also add credibility to our brand,” he added.

The major share in of turnover amongst the five categories was by the organic farming brand ‘Biofit’ at 62%, followed by the health & wellness brand ‘Naturamore’ at 28%. About 9% was contributed by the personal care brand ‘Herbs & More’ and rest 1% by its colour cosmetics brand ‘Rang De’ and the home care brand ‘Clean & More’.

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Printable version | Jun 20, 2021 6:57:15 PM |

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