Moods Hospitality Ltd, which runs the Chinese fast food chain Yo China, plans to invest Rs 50 crore (Rs 500 million) by 2010-11 to open 200 more outlets across the country.
Matrix Partners India, a $150 million venture capital fund dedicated to consumer services businesses, has invested Rs 25 crore (Rs 250 million) in Moods Hospitality to part-finance the expansion plan.
The company at present has 20 outlets in north, south and western regions of the country, of which 10 run on a franchise model.
"We will put in Rs 50 crore (Rs 500 million) as capex for opening 200 outlets by 2010-11," Moods Hospitality Ltd Managing Director Ashish Kapur told reporters on Wednesday.
With Matrix investing Rs 25 crore and the balance amount coming through internal accruals and debts, he said the company would be able to fund its planned expansion.
Managing Director of Matrix Partners India, which made its first investment of Rs 32 crore (Rs 320 million) in SeventyMM.com, Avnish Bajaj refused to disclose the stake it has purchased in Moods Hospitality.
Bajaj, who also serves as chairman of eBay India, said MPI would make two-three more investments in 2006-07.
"We are looking at probably 2 to 3 more investments in the size of Rs 10-30 crore (Rs 100 to Rs 300 million) in the current fiscal," he said, adding that it would target sectors like mobile, internet and financial services.
The planned Yo China outlets, which would come up in different formats like malls, high-street, food court, take-away at airports, would be company-owned as escalating real estate cost might not support the franchisee model, Kapur said.
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