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Kalyan Jewellers' Candere, a fast-rising star in India's affordable jewellery segment, is set for a transformational phase as New York-based private equity giant Warburg Pincus prepares a hefty investment, reigniting its association with the Kalyan group after a recent exit from the parent company. This is one of the most significant financial developments in the Indian jewellery retail space in recent times, unfolding amid a wave of industry deals and bold expansion moves.
Key Developments
Warburg Pincus is in advanced talks to acquire a 10% stake in Candere, Kalyan Jewellers’ lifestyle brand, with a projected investment of Rs 850 crore. This will be partially achieved by purchasing existing shares from Kalyan Jewellers, with the remainder coming from newly issued shares by Candere. This move demonstrates Warburg’s renewed faith in the Kalyan ecosystem, following its exit from Kalyan Jewellers last year after a decade of partnership and gradual divestment. The deal would make Warburg Pincus a key stakeholder just as Candere shifts its gears towards aggressive retail expansion .
The capital influx is intended to turbocharge Candere’s franchise network, which currently spans over 70 outlets and is expected to add 80–90 stores within the coming months via a franchise-led model. The omnichannel strategy reflects consumer demand for branded, trendy, and affordable jewellery, especially among younger demographics. Kalyan Jewellers’ executive director Ramesh Kalyanaraman has emphasized Candere’s pivotal role in the group’s diversification, with Candere identified as a format tailored for lightweight lifestyle jewellery .
Key Highlights
Since Kalyan Jewellers acquired 85% of Candere in 2017—at a valuation of Rs 35–40 crore—the brand has evolved from a digital-only platform into a major omnichannel retailer. In 2024, Kalyan bought out the remaining 15% from founder Rupesh Jain, underlining its confidence in this fast-growing lifestyle segment .
Candere’s financials show rapid growth but ongoing challenges. For the quarter ending June 2025, it posted revenues of Rs 66 crore—a staggering 67% increase from last year—while net losses grew to Rs 10 crore. Management remains optimistic, forecasting a transition to profits by the close of the financial year ending March 2026 .
The fresh Warburg Pincus investment follows several notable deals in the sector, such as Giva’s Rs 530 crore round from multiple funds, Aukera’s $15 million for lab-grown diamonds, and BlueStone’s Rs 1,540 crore IPO, spotlighting robust investor appetite in jewellery retail .
Kalyan Jewellers itself has embarked on an aggressive expansion drive, with plans to open 170 new franchise stores and significant capital earmarked for growth and inventory. Candere’s ramp-up remains India-centric for now, with an international foray planned in Dubai soon and broader overseas pushes on the horizon for FY27–28 .
Analysis and Industry Context
The broader jewellery retail industry is undergoing rapid transformation, driven by younger customers, evolving fashion trends, and volatile gold prices .
Warburg Pincus’ re-entry into the Kalyan fold signals strong market confidence, coming at a time when foreign investors and strategic funds are keenly interested in scalable, omnichannel formats.
The investment is particularly well-timed. Candere’s performance in Q2 and Q3 will be underpinned by India's festival and wedding season, typically boosting jewellery sales and store walk-ins .
Kalyan Jewellers, with an estimated 8–9% share of India’s organised jewellery market and ambitions to expand by at least 1% annually, has positioned Candere as a spearhead for innovation and consumer outreach, especially as lightweight, trendy jewellery gains traction .
What Lies Ahead
The Warburg investment is expected to help cement Candere’s position in India’s retail landscape, establish a more pronounced foothold among digitally savvy and price-conscious buyers, and support rapid nationwide franchise growth.
Candere anticipates achieving break-even and profitability by March 2026, contingent on continued store launches and further integration into the parent group’s retail and supply chain network .
Strategic ambitions include increasing Candere’s share of Kalyan’s overall revenue, with projections for four-digit revenues in the next two to three years, driven by omnichannel footprint and proliferation of lifestyle-centric product lines .
Source: Economic Times
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