Private equity firm Lighthouse, which has backed consumer brands such as Bikaji Foods, Wow Momos and Nykaa, has invested Rs 284 crore (around $34 million) in fashion and silver jewellery brand Kushal’s. The investment round also included a secondary buyout, giving a partial exit to Kushal’s first institutional investor, India SME Investments.
The funds will be used for brand building and to expand retail footprint. The company aims to open more than 300 stores in the next three to four years. Currently, Kushal’s has over 75 stores in more than 25 cities including Bengaluru, Hyderabad, Chennai, Pune, Indore and Chandigarh.
The company plans to expand its presence in north India, including Delhi-NCR, and Maharashtra, building on its strong presence in south India. “We have around 25 stores in Bengaluru alone,” cofounder Manish Gulechha told ET.
The funds will also be used to build technology. “We are investing in technology to build a strong omnichannel brand and significantly enhance our digital presence. There will also be investment in hiring; there are many technology teams that will be built. Finally, we will be increasing our merchandise design capabilities,” Gulechha said.
Founded in 2006, the Bengaluru-based company offers a range of jewellery for various occasions, including party wear, bridal attire, festive events, office wear, and casual attire.
According to Gulechha, the fastest-growing category currently is daily wear and sterling silver jewellery. Sterling silver is an alloy of silver composed of 92.5% pure silver and 7.5% other metals, usually copper.
The company’s online platforms, including its website, app, and marketplaces, comprise about 20% of overall sales. It is also set to launch a dedicated website targeting the global market. “We see demand coming from the UAE, the US, Australia and Europe,” he added.
Market dynamics
The fashion and silver jewellery market in India is worth Rs 30,000 crore, growing at a rate of 20% annually.
On January 12, direct-to-consumer (D2C) fashion jewellery brand Salty raised Rs 5 crore in a funding round led by All in Capital and Anicut Capital.
Kushal’s marks Lighthouse’s first investment from its recently-raised fourth private equity fund.
Anshul Jain, managing director at Lighthouse, said, “The company (Kushal’s) is uniquely placed to grow with strong macro tailwinds in the category and changing consumers’ preference for fashion jewellery that is becoming an integral part of their lifestyle.”
The sector has also recently seen large deals involving omnichannel retailers such as CaratLane and BlueStone.On August 19 last year, ET had reported that Tata group company Titan acquired another 27.18% stake in its subsidiary CaratLane Trading from founder Mithun Sacheti and his family for Rs 4,621 crore. Titan had first bought a 62% stake in CaratLane in 2016.
In September 2023, ET reported that Bluestone raised $65 million in a funding round. The investment included around $12 million from Zerodha cofounder Nikhil Kamath, along with participation from Zomato founder and chief executive Deepinder Goyal, CarDekho founder and CEO Amit Jain, and financial service firm IIFL.
