Bengaluru: Kerala-based Kalyan Jewellers, which recently raised Rs500 crore from private equity firm Warburg Pincus, on Wednesday said it is acquiring online jewellery firm Candere to augment its presence in the e-commerce segment.
Kalyan will acquire equity held by Singularity Strategic, the family office of Brijesh Chandwani and Subram Kapoor, it said in a statement.
The company will also complete phase-wise acquisition of the equity held by founder-promoter Rupesh Jain, apart from making a significant investment into Candere to drive its next phase of business. Jain will continue in his role as founder-CEO.
“We believe that the online jewellery market offers tremendous growth potential and expect it to contribute 5-7% of our topline over the next 5 years. The acquisition will also accelerate contribution of our global revenues,” said Rajesh Kalyanaraman, executive director of Kalyan Jewellers.
This is the first step in Kalyan Jewellers’ strategy to pursue aggressive growth plans, both organically and inorganically. Earlier this month, when Warburg invested a second time in the company, taking its total investment in the firm to Rs1,700 crore, Kalyan Jewellers had said it planned to double its presence to 200-plus showrooms and was also working on a blueprint for a foray into the e-commerce segment which will complement its physical retail network.
Candere was set up in 2013 and sells jewellery online in India, the US and the UK and has a portfolio of over 4,000 designs, including a strong offering in the diamond segment, Kalyan Jewellers said.
After the acquisition, the Kerala-based firm plans to launch some of its sub-brands like Glo, Antara, Anokhi and Nimah through Candere. Through the deal, the company will also be able to expand Candere to markets such as the UAE, Kuwait and Qatar.
“Kalyan is a formidable jewellery brand and Candere will be able to scale up rapidly by using Kalyan’s strong supply chain network and physical presence. The integration will also provide up-selling and cross-selling opportunities and bolster revenues,” said Candere’s Jain in the statement.
