India based Kalyan Jewellers, a leading jewelry chain, has recently acquired online jewelry retailer Candere for an undisclosed sum. According to a media report, the deal could be around INR 35 – 40 crore ( ~ USD 5 – 6 Mn). After expanding to 105 showrooms and distribution network across India and Gulf region, Kalyan Jewellers acquisition of Candere comes as a strategic foray in the online space, considering its plan of doubling its showroom footprint in the next 3 years.
Co-founded by Rupesh Jain in 2013, Candere boasts of 4,000 designs portfolio, providing wide range of gold, diamonds and precious stones jewelry. Apart from selling jewelry in India, the etailer has also forayed in US and UK markets.
Kalyan Jewellers will acquire Brijesh Chandwani and Subram Kapoor’s family office – Singularity Strategic’s stake in Candere, as a part of the deal, apart from stake of Rupesh Jain in a phased manner.
With this acquisition, Kalyan Jewellers hopes to move forward towards its ambition of becoming a global Indian brand. The company expects that online jewelry will contribute 5 – 7 % of its revenue within next 5 years, and also accelerate its global revenues.
By leveraging Kalyan’s strong presence in the gulf, Candere with this additional investment will be able to achieve its plan of expanding its geographic presence in West Asia including UAE, Kuwait and Qatar. Though Candere will retain its identity, a tag line of ‘powered by Kalyan Jewellers’ will be added. Through this acquisition, Kalyan will also get a cross-selling opportunity of selling its popular brands like ‘Antara’, ‘Anokhi’ etc. on Candere’s platform.
Kalyan Jewellers had recently raised funding of INR 500 crores ( ~ USD 77 Mn) from Warbug Pincus, taking the PE’s total investment in the company to INR 1,700 crores ( ~ USD 261 Mn).
The online jewelry market is showing signs of uptick, though not without its hurdles, with the leading online jewelry retailer BlueStone targeting INR 1,000 crores ( ~ USD 154 Mn) turnover in in 2018-19. BlueStone, which is backed by renowned businessman Ratan Tata who invested in his personal capacity, recorded INR 250 crores ( ~ USD 38 Mn) revenue in FY 2017.