Warburg Pincus invests $77m in Indian jeweler
Warburg Pincus has committed INR5 billion ($77 million) to Indian jewelry retailer Kalyan Jewellers.
The investment raises the GP’s commitment to the company to INR17 billion, following its INR12 billion investment in 2014. Kalyan will use the new capital to extend its network within India, nearly doubling its presence to more than 200 showrooms and building its presence in central and south India. It also aims to enter new markets in the Middle East and Asia.
Kalyan originally operated in textile retailing and wholesaling before opening its first jewelry showroom in Kerala in 1993. It now sells gold, silver, platinum and diamond jewelry through 106 showrooms in India, Kuwait, the United Arab Emirates and Qatar, and also operates an online shopping portal.
Indian jewelry chains have seen a number of PE investments in recent years, helped by government initiatives to improve labeling standards in the industry. The previously lax standards were considered to hold back the business, since customers were wary of large chains whose product quality they were unsure of and tended to buy in person from smaller retailers with whom they had a high level of trust.
Kalyan’s move into online sales puts it in competition with industry leaders BlueStone, whose backers include Kalaari Capital and IIFL Asset Management, and Caratlane, which received funding from Tiger Global Management before being acquired by jeweler and watchmaker Titan last year. Other players in the online jewelry space include Peepul Capital-backed Voylla and Lightbox-supported Melorra.
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