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Warburg Pincus is contemplating re-investing in the brand of Kalyan Jewellers, known as Candere.

Global private equity firm Warburg Pincus is considering a new investment in India’s jewelry sector, with talks underway to buy a 10% stake in Candere, the online brand of Kalyan Jewellers. The deal is worth an estimated Rs 800-850 crore and would be a noteworthy return for Warburg Pincus, which sold its previous stake in the Kalyan Jewellers group last year after holding it for ten years.

The investment is structured to provide both new funding and an ownership change. Warburg Pincus will buy some shares directly from Kalyan Jewellers, while Candere will issue new shares for the rest of the stake. The money raised from the new shares will support Candere’s growth, including its plan to open 80-90 new stores nationwide. The company will use a franchise model to achieve this expansion, which is a smart move that allows Kalyan Jewellers to grow without spending a lot of money and lets them use extra cash to pay down debt.

Candere’s Growth and Acquisition

Candere, which began as an online jewelry store in 2013, has been transformed since Kalyan Jewellers first acquired an 85% stake for Rs 35-40 crore in 2017. Kalyan Jewellers completed the acquisition in 2024 by purchasing the remaining 15% from founder Rupesh Jain, solidifying Candere‘s new identity as an omnichannel retailer.

According to Ramesh Kalyanaraman, an executive director at Kalyan Jewellers, the company has been focused on expanding its distribution network over the past 12 to 18 months, beyond its traditional brand. He stated that Candere was selected as a “second format” specializing in lightweight, lifestyle jewelry, and that over 70 new Candere showrooms have been opened in the last 18 months.

Financials and Market Trends

Despite its rapid expansion, Candere’s finances show the costs associated with scaling up. While its revenue for the quarter ending June 30 jumped by a significant 67% to Rs 66 crore, its net loss also grew to Rs 10 crore from Rs 2 crore a year earlier. Kalyan Jewellers‘ management, however, is optimistic, forecasting that Candere will become profitable by the end of the current fiscal year on March 31, 2026.

The article also notes that the broader jewelry market, particularly the direct-to-consumer and lifestyle segments, is attracting significant investor interest. Recent deals include a Rs 530-crore investment in Giva, a $15 million raise for Aukera, and BlueStone’s Rs 1,540-crore IPO. This trend reflects a growing investor belief in the sector’s potential, fueled by evolving consumer tastes and a shift toward organized and branded retail.

Kalyan Jewellers, Candere’s parent company, has also performed well, with its consolidated revenue for the same quarter rising 31% to Rs 7,268 crore, and its net profit increasing by 48% to Rs 264 crore.

Warburg Pincus and Kalyan Jewellers: A History of Partnership

A new investment in Candere would signal a renewed partnership between Warburg Pincus and the Kalyan Jewellers group. The private equity firm’s initial investment in Kalyan Jewellers was in 2014, with a Rs 1,200 crore infusion, followed by an additional Rs 500 crore in 2017. Before the company’s IPO in 2021, Warburg Pincus held roughly a 30% stake, which it completely sold off in August 2024. This potential new investment in Candere shows that Warburg Pincus still believes in Kalyan Jewellers‘ long-term growth and its strategy to expand into new markets.

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