It is heartening to see that Matrix Partners is finally getting back to action after a big lull in 2007. Looks like 2008 brings new mandate for Rishi / Amit and Matrix team to go aggressive on established companies instead to Start-ups or New Venture, which should be the reason for any VC activity in India. As mentioned in past, most of the big VC’s (Canaan / Matrix / Hellion) are doing more of a PE Deals rather than VC deals to get better ROI.

It is being reported in Livemint.com that Matrix has invested $10 million in the first round of funding for Brand Marketing India Pvt Ltd (BMI) a leading marketer in India of foreign brands such as Gucci, Tommy Hilfiger, Calvin Klein, French Connection, Jimmy Choo and others. This is the first investment by Matrix from its expanded $450 million corpus allocation for India Fund.

The company is founded by Mohan Murjani of the Murjani Group. They brought Tommy Hilfiger to India in 2004. Meanwhile, The Economic Times reports, BMI has plans to get into cash-and-carry trading (the wholesale trading to other retailers). There is 100 per cent FDI allowed in cash and carry. Foreign Investment Promotion Board has cleared the proposal.

Rishi Navani, co-founder and managing director, Matrix Partners India, said they see a growing market for luxury goods, and plan to invest a total of $20 to 25 million in BMI, which is headed by Vijay Murjani, over a period of time. Matrix India had recently expanded their first fund to $450 million from $150 million to include growth capital investments in its ambit. Its earlier investments in India include Moods Hospitality which runs Chinese quick food chain Yo China, local information company AskLaila and online DVD rental firm Seventymm.com.

Manish K. Jaiswal
manish@bonsaiinternational.com
Bonsai America, Inc.

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