IL&FS arm invests Rs 18 cr in Digital Shoppy

Digital Shoppy, a Hyderabad-based consumer durable retailing chain, today announced that the company concluded a private equity placement of Rs 17.50 crore with Leverage Indian Fund, managed by IL&FS Investment Managers Limited (IIML).

This is the first private equity transaction in the consumer electronics retailing space in India, a Digital Shoppy release said.

"The support of IIML will help us open more outlets and become a leading player in consumer durable retailing," said Mahesh Raju, chairman & managing director of the company, in the press release.

Digital Shoppy will utilise the private equity infusion to strengthen its presence by expanding the number of outlets to 120. At present, Digital Shoppy operates a chain of 22 retail outlets in Andhra Pradesh and Karnataka.

Commenting on the development, Shahzaad Dalal, vice-chairman and managing director of IIML, said: "We believe that the consumer durable retailing in India is at an inflection point and is expected to grow with rising income levels resulting in a consumption boom. Digital Shoppy is well positioned to ride on this growth."

He also said that consumers are exhibiting a preference for a one-stop shop enabling them to ship for consumer electrocnics and durables under one roof.