Papa John's Indian Franchisees in Talks to Mop up $25 mn

The Indian franchisee of international pizza chain Papa John's – Om Pizzas and Eats – is in talks with investors to raise around $25 million (about 142 crore) in equity funding as conveyed by reliable sources.

TVS Capital, the existing investor which owns about 80% of the company, will continue to remain invested. "Since the capital invested by TVS in Om Pizzas and Eats from its first fund is fully exhausted, the Indian franchisees are looking only at outside investors," said the source who did not wish to be identified.

Without disclosing much details about the investors, it was specified that the company is in advanced discussions with four potential investors, including private equity funds and strategic investors.

Industry estimates peg the pizza sector, which is a part of the larger quick-service industry, at around 1,200 crore. According to data from advisory firm Technopak, India's quick-service restaurant industry is expected to reach 16,785 crore by 2018, from 5,500 crore in 2013.

In that aspect, other players are also stepping up investments. Pizza Corner India raised 40 crore from its Geneva-based parent company Global Franchise Architects (GFA) in May. Domino's Pizza is the largest player in the Indian pizza market, with 552 stores across 118 cities.