Lenders of Coffee Day Global Limited (Café Coffee Day) (CCD) have initiated talks with several private-equity funds, including Samara Capital, PremjiInvest and Multiples Alternate Asset Management Private Limited (Multiples) for the sale of the retailer's office-vending business after a failed attempt to strike a deal with Tata Sons Private Limited (Tata Group), executives aware of the talks told ET. The three funds are said to be independently evaluating the CCD business. The Tata Group, which had emerged as a frontrunner for the business, has not been able to offer terms that were acceptable to all the lenders, industry executives ET spoke with said.

The lenders led by Yes Bank expect a valuation of INR 20 billion for the business. Tata's offer is said to be below that threshold. The office vending business is housed in Coffee Day Global (CDGL), an unlisted arm of Coffee Day Enterprises Limited (BSE:539436).

Yes Bank and Samara Capital declined to comment. Queries to Coffee Day Enterprises, Tata, PremjiInvest and Multiples equity remained unanswered. Tata could still re-enter the fray and strategic investors like Hindustan Unilever Limited (BSE:500696) are also believed to be interested in the vending business, according to some of the sources ET spoke with.