Belgian investor explores partial stake sale in Deepika Padukone, Danone backed Epigamia

Verlinvest, a Belgian investor and the largest external shareholder in Mumbai-based Epigamia, is reportedly exploring the sale of a portion of its stake in the flavoured Greek yoghurt brand. Epigamia, which was launched in 2015 and is backed by French dairy major Danone and Bollywood actress Deepika Padukone, has seen significant growth since its inception. The potential deal, said to involve a combination of primary and secondary share sales, aims to allow Verlinvest to divest part of its 30% plus stake in the company.

Sources familiar with the matter revealed that the proposed transaction includes a primary component aimed at financing the expansion of new product categories such as milkshakes and desserts. An investment bank has reportedly been engaged to facilitate the deal. While private equity funds have been approached, there is also the possibility of interest from strategic players for a minority stake.

Epigamia, which competes with prominent brands like Nestle, Mother Dairy, and Amul in India, has demonstrated improved performance, prompting interest from potential investors. Despite the ongoing discussions, there is currently no intention for a full sale of the company.

Epigamia has attracted significant investments over the years, with Danone's investment arm leading a substantial funding round in 2019. Deepika Padukone's investment firm also contributed to the brand's growth in 2019. With a diverse product range spanning yogurt, curd, beverages, milkshakes, smoothies, and kheer, Epigamia has expanded its retail presence to over 20,000 touchpoints across more than 30 towns in India.

The brand's recent strategic shift saw Rahul Jain, co-founder and COO, assuming the role of CEO, while Rohan Mirchandani, former co-founder and CEO, transitioned to Executive Chairman. Epigamia aims to achieve a 50% revenue growth, targeting $36 million in revenue for the fiscal year ending April 2024. Additionally, plans are underway to introduce products in the Middle East market by 2025-26.