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Philippines: Private Equity majors said to invest in DALI

Discount Retail Chain DALI Everyday Philippines get a lot of attention of the large private equity fund giants KKR, General Atlantic ABC Impact, and Hillhouse Investment, among others. They say to be in talks to invest in Philippine hard-discount grocery retailer DALI, which is potentially raising a pre-IPO round that could exceed $80 million, according to multiple sources familiar with the discussions.


The round is likely to see participation from some of the existing investors as well. UBS is advising on the transaction, and, if finalised, it could figure among the major private equity transactions in Southeast Asia’s retail sector. The final deal size is still being determined, and discussions are at a mid-stage, sources said, adding several global investors are showing interest in the company amid a positive shift in sentiment around Southeast Asia’s consumer market. UBS, DALI, KKR, General Atlantic, and Hillhouse declined to comment on the matter.


DALI Philippines is a subsidiary of Switzerland-based DALI Hard Discount and is currently backed by several prominent institutional investors, including ADB, IFC, Creador, DEG, Navegar, Pavilion Capital, and Venturi Partners.


In September last year, the IFC was considering a quasi-equity investment of up to $10.07 million in Dali, as part of the latest round. The company has raised multiple rounds of funding, and proceeds from the latest round are expected to expand its store footprint, strengthen its supply chain capabilities, and further invest in local sourcing. These efforts would support DALI’s longer-term goal of an initial public offering (IPO), the sources mentioned above added. Founded in 2020, DALI operates a hard-discount retail model, inspired by German supermarket chain Aldi, with a focus on affordable products and stripped-down store formats.


The company runs approximately 1,000 stores across Luzon, targeting price-sensitive consumers in suburban and lower-income neighbourhoods. DealStreetAsia’s DATA VANTAGE shows that DALI has not declared revenues over the past three years and posted wider losses at $8.58 million in 2023 from $3.09 million in 2022. The proposed fundraising comes when global investors are looking to Southeast Asia for scalable consumer opportunities, driven by the region’s expanding middle class and relatively low penetration of discount retail models.


Private equity majors KKR and General Atlantic have been active investors in Southeast Asia’s consumer space. KKR’s recent investments include Vietnam’s Medical Saigon Group and PHINMA Education Holdings in the Philippines. General Atlantic’s most recent investment was in Indonesia’s beauty platform Sociolla, and its past bets include dairy company Cimory and Filipino entertainment app Kumu.



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