The Luthria family of Mumbai is expected to bring in Rs100 crore of venture capital funding within two weeks. This is for their renewed thrust into hospitality management and marketing. Two banks have responded to their recent request for proposal which the Luthria’s will choose from shortly.
The Rs100 crore expected infusion is targeted to match the family’s own investment of Rs100 crore, which will take the war chest to Rs200 crore. The funds will be used as bridge loans and for management and development operations of the family's other three special purpose vehicles; Tian Serrai Group for the marketing and management of Luxe Worldwide Hotels brand in India; the L&M Hotel Management Company, a JV with HA Mishra of FSA Audits and the third, an unnamed arrangement with IL&FS for project management if the properties are at the development stage. The new funding will be the fourth SPV.
IL&FS will be managing the project development at two the Luthria properties signed on for Luxe.
“We look at ourselves more as a support group, with the complete range of services. There are a lot of hotels in India which need bridge funding, especially at the last stages to complete the project. We will look at it on a case-to-case basis,” said Kishore Luthria.
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