Warburg Pincus-backed Kalyan Jewellers today announced the acquisition of online jewellery firm Candere (www.candere.com). The company did not disclose the value of the deal. The acquisition will augment Kalyan Jewellers presence in the growing online jewellery segment, said the company.
Kalyan Jewellers will acquire the equity held by Singularity Strategic, the family office of Brijesh Chandwani and Subram Kapoor.
As part of the transaction Kalyan Jewellers will complete a phase-wise acquisition of the equity held by founder promoter Rupesh Jain, apart from making a significant investment in the company, to drive its next phase of business.
This is Kalyan Jeweller's first such strategic move as it continues to pursue aggressive growth plans, both organically and inorganically.
Established in 2013, Candere sells jewellery online in India, the US and UK. It has a portfolio of over 4,000 designs including a strong offering in the high growth diamond jewellery segment. This transaction will help Kalyan establish a strong presence in the ecommerce segment to complement its vast physical retail presence.
Post Investment, Kalyan plans to launch some of its sub-brands like Glo, Antara, Anokhi, Nimah, through the Candere online store. Through this investment, Kalyan Jewellers will also be able to expand Candere's geography into the growing West Asian market including UAE, Kuwait and Qatar thus augmenting Candere's existing coverage.
Kalyan Jewellers will leverage its network of 105 showrooms and distributed supply chain across India and West Asia to enhance
Rajesh Kalyanaraman, Executive Director, Kalyan Jewellers said that Candere's recent foray into UK and USA markets will also helps Kalyan augment its ambition of becoming a global Indian brand.
Both companies have strong design and manufacturing capabilities and the synergies therein will help strengthen its offering to existing as well as new customers.
He believes that the online jewellery market offers tremendous growth potential and expect it to contribute 5-7 per cent of company's topline over the next 5 years. The acquisition will also accelerate contribution of our global revenues.'
Candere's co-founder Rupesh Jain said he will continue in his role as founder CEO and Candere will be able to scale up rapidly by using Kalyan's supply chain network and physical presence. The integration will also provide up selling and cross-selling opportunities and bolster revenues.