US-based private equity firms TPG Inc and Bain Capital LLC are to buy a minority stake in India's Lilliput Kidswear Ltd for $86m, the company said today (20 April).

Lilliput, which makes children's wear for retailers including Gap, Next, Carter's and Old Navy, intends to use the financing to expand its operations.

The firm also sells its own Lilliput Kidswear brand across India where it has 240 stores, as well as in the Middle East, China and Ukraine.

The deal will see Bain Capital invest $60m and TPG $26m, and also includes Everstone Capital exiting its early-stage growth investment in the company.

Sanjeev Narula, founder and MD of Lilliput, described the investment as "a strong vote of confidence in Lilliput's potential."