Grid Logic Hotels to raise $10 mn via PE firms to expand overseas business

As part of its offshore plans, company has identified locations in Singapore and the US

Hyderabad-based Grid Logic Hotels and Resorts said it would be signing a term-sheet with a Singapore-based Private Equity firm to raise $5 million for its plans of business expansion outside India. The term-sheet would be signed on June 8, said the company while adding that it is also in talks with another private equity firm to raise a similar amount that will help the resturaunt chain add a couple of international locations to its kitty. 

According to the company, negotiations with the second firm are at an advanced stage and include acquisitions in the restaurants space. As part of its offshore plans, the company has identified locations in Singapore and the US.

"The HNIs who are on board have already committed Rs 25 crore investment, which would more or less take care of our ongoing plan of opening 8 restaurants in Hyderabad and Bangalore. The money we raise from the private equity firms will be used for the plans that go beyond this immediate goal, such as opening restaurants outside India," said Pariekshit Madishetty, Managing Director at Grid Logic Group.

So far, Grid Logic has opened two multi-cusine restaurants in Hyderabad and Bengaluru in association with the Tabla franchise. With the launch of eight new resturaunts in the two cities, the company plans to build and expand its chain to comprise 10 hotels by next year. Grid Logic is also planning to open similar restaurants in Mumbai and Pune, among other cities.

According to the company's MD Madishetty, partnership with the Singapore PE Firm, which is active in the Indian real esate sector, could create greater opportunities for Grid Logic.  

Madishetty also heads the group's flagship firm Grid Logic Software Services, which provides the marketing, gaming and security software services to Casinos in UK, Hong Kong and other places.

Promoters of Grid Logic considered the restaurant and resort business to be their next logical step after watching their clients' business from close quarters.