RedTape Founders Explore Stake Sale, Approach Blackstone and KKR

The founders of footwear brand RedTape are exploring options to sell a majority stake or possibly their entire holding in the company. This potential deal could be valued at nearly $510 million, Reuters reported, citing internal company documents.

The Mirza family, which founded RedTape nearly three decades ago, is reportedly in early discussions with global private equity firms Blackstone and KKR to see if they are interested in acquiring a stake in the business.

According to the report, the family currently owns about 71.8% of the company and is open to selling at least a controlling stake, and potentially their full holding if the valuation is attractive.

The founders have appointed consultancy firm Ernst & Young (EY) as its exclusive financial adviser to manage the divestment process. EY has reached out to potential investors to seek non-binding, initial offers, while the discussions are at a preliminary stage and are being conducted confidentially, the report added.

Founded in 1996, RedTape started as a leather footwear brand and has since expanded into sneakers, clothing and accessories such as wallets and belts. The company operates in a highly competitive market, going up against both global and domestic players including Nike, Adidas, Bata India and Campus Activewear.

The company sells its products through more than 600 retail stores across India and operates in 14 international markets, including the UK, US, Australia, parts of Europe and West Asia.

RedTape’s shares, however, have faced pressure in recent months, falling about 43% last year. In financial year 2024-25 (FY25), the company reported revenue of $223.9 million, up nearly 10% from the previous year, while profit slipped 3.5% to $18.8 million.

Notably, India’s footwear and athleisure market is expected to grow at around 11% annually and reach $21 billion by 2028, Reuters reported citing estimates by market research firm 1Lattice. This growth has made established Indian consumer brands increasingly attractive to global investors.

Additionally, family-owned Indian companies have seen rising interest from overseas investors in recent years. For instance, last year, Singapore’s state investor Temasek acquired a 10% stake in Haldiram's, valuing the company at about $10 billion.