Helion Venture Partners, a $350 million India-focused venture capital fund, has invested Rs 20 crore in Bangalore-based YLG Salon & Spa. The venture capital fund has closed its first round of funding in the company that aims to have national presence by 2011.

“In health and beauty services industry, investment in YLG is our first play. We are very bullish about the consumer services sector and in this sector our bias is toward services and not a products-oriented company. Services give higher margins,” said Kanwaljit Singh, managing director of Helion Venture Partners.

YLG Salon & Spa for women, the new enterprise, is entering the Rs 5,000 crore salon business in India, which is growing at 25 per cent a year, according to a L’Oreal study in 2008. Organised chains such as Lakme, Kaya Skin Care, Cavin Care’s Limelite and Green Trend account for only about 5 per cent of the total salon business in India. YLG is looking to opening 100 salon & spa nationally by 2011.

Rahul Bhalchandra, CEO of YLG Salon &Spa, said, “We have opened six centres in Banglaore in 60 days and are poised to open one store every 15 days in Bangalore now. We are only looking at company-owned stores. By the year-end, we should be able to enter other cities in India.”

Each centre spanning 1,500 sq ft, sees an investment of approximately Rs 30 lakh.

Helion Ventures has so far invested in sectors such as outsourcing, mobile and technology products.