PE giants line up for RedTape in deal valuing footwear maker at up to ₹5,000 crore
Private equity firms Apax Funds and Advent International are pursuing a majority stake in Indian footwear company RedTape, valuing it at ₹4,500 crore-5,000 crore. The promoters, who hold 71.79%, may sell a significant portion of their shares.
MUMBAI : Global private equity firms including Apax Funds and Advent International have joined the race to acquire a majority stake in RedTape, in a transaction that could value the Indian footwear maker at ₹4,500–5,000 crore (about $500 million), three people familiar with the matter said on condition of anonymity.
The proposed deal marks one of the largest private equity plays in India’s branded footwear space, and comes amid rising investor interest in the country’s consumer-facing family-owned businesses.
Talks are at an early stage, and the promoters have mandated EY to advise them on the process, one of the people cited above said, adding that the consultancy has sought non-binding bids.
The second person said that the Noida-headquartered company’s promoters may sell all or a substantial part of their holdings. The promoters held 71.79% of the company, according to the shareholding pattern on the NSE as of December.
“Warburg Pincus may also join the fray and compete for the majority stake," the third person cited above said.
Earlier this month, Reuters first reported on the promoters’ plan to divest their stake, with KKR and Blackstone expressing interest in the asset.
RedTape’s shares rose 4.05% to close at ₹123.83 on Friday on the National Stock Exchange, compared to the benchmark Nifty 50’s fall of 0.39%. Over the past year, the company’s stock has declined 29.57%. Its market capitalization on Friday was ₹6,845.42 crore.
KKR, EY, Advent, Warburg and Apax Funds declined to comment on the matter. RedTape and Blackstone did not respond to Mint’s requests for comment till press time.
The development comes on the back of increasing interest from investors in India’s footwear market, which is expected to more than double in eight years to $47.53 billion from $20.67 billion in 2025, according to a report by the IMARC Group.
Earlier this month, Neeman’s raised ₹35 crore from SNAM Solutions and existing investors Anicut Capital, Enam Investments and Harsh Mariwala-backed Sharrp Ventures. RARA Barefoot, a D2C footwear startup co-founded by Sachin Tendulkar, raised $500,000 from Peak XV Partners in October 2025.
Mint reported in July 2024 that Aqualite Industries was exploring a private transaction to facilitate an exit for its investor Lighthouse Funds.
The development also comes as family-owned businesses increasingly turn to external capital to fuel growth, professionalize the organization and scale up operations.
Over the past year, companies including Haldiram, Iscon Balaji, Balaji Wafers, Theobroma and VIP Industries have seen similar moves while HyFun Foods and Ratnadeep Retail are in various stages of their fundraising process, Mint reported.
Store footprint
Established in 1996 by Rashid Ahmed Mirza and Shuja Mirza, RedTape has over 600 stores across India and caters to footwear and clothing for men, women and children. It also has a footprint in 17 countries including the UK, US, Australia and the UAE. It operates four brands – RedTape, Mode, Ozark and Bond Street.
The company’s revenue climbed to ₹2,052.93 crore in FY25 from ₹1,855.97 crore in the previous year. Profit narrowed to ₹170 crore from ₹176.24 crore, according to its annual report.
“The business is dependent on heavy discounting, and the margins have been thinning over the years," a senior private equity executive said on condition of anonymity. Though the total addressable market is huge and the growth potential seems steady, given the large demography of our country, it makes more sense for global funds looking to take the brand to markets outside India, the executive added.
RedTape competes with Bata India, Metro Brands, Relaxo Footwears, and Campus Activewear, as well as Nike and Adidas.
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