Kerala-based Kalyan Jewellers has acquired online jewellery firm Candere for Rs 35-40 crore as it looks to augment presence in the fast expanding online market space.
"Kalyan Jewellers will acquire the equity held by Singularity Strategic, the family office of Brijesh Chandwani and Subram Kapoor," in Candere, which sells jewellery online in India, USA and UK, the company said in a statement here.
The buyout will augment Kalyan's presence in the growing online jewellery segment in India, the company said without giving a value of the deal.
Sources said however that the deal was valued at Rs 35-40 crore.
"As part of the transaction Kalyan Jewellers will complete a phased wise acquisition of the equity held by founder promoter Rupesh Jain, apart from making a significant investment into the company, to drive its next phase of business," the statement said.
Established in 2013, Candere has a portfolio of over 4,000 designs including 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," the statement said.
Kalyan Jewellers will boost Candere's customer offerings with its merchandise.
"Post investment, Kalyan plans to launch some of its established and well received sub-brands like Glo, Antara, Anokhi, Nimah, through the Candere online store," it said.
This will expand Candere's geography into the growing West Asian market including UAE, Kuwait and Qatar.
Also, Kalyan Jewellers will leverage its vast network of 105 showrooms and distributed supply chain across India and West Asia to enhance Candere's fulfilment layer.
The company had recently raised Rs 500 crore capital from global private equity major Warburg Pincus. Warburg now has a total of Rs 1,700 crore investment in the company.
"The funds will be used to double Kalyan's retail presence over the next three years from the present base of showrooms," the statement said.
Kalyan Jewellers Executive Director Rajesh Kalyanaraman said the online jewellery market offers tremendous is expected to contribute 5-7 per cent of the company's topline over the next 5 years.
Post acquisition, Rupesh Jain will continue in his role as founder CEO.