India: Warbug Pincus likely to invest $77m more in Kalyan Jewellers

Blocks and pieces of gold. Photographer: Chris Ratcliffe/Bloomberg

Global  private equity giant Warburg Pincus is likely to invest Rs 500 crore ($77 million) in jewellery retailer Kalyan Jewellers, according to a report in The Economic Times citing sources.

In 2014, the US-based investor had put in $200 million in Kerala-based Kalyan Jewellers for a minority stake.

According to the sources quoted in the report,  the deal would be Warburg Pincus’ second and final round of investment in Kalyan Jewellers. This latest round of funding, which is likely to be announced shortly, comes in ahead of the company’s planned public listing next year.

Founded in 1993, the jewellery chain around 100 stores across India and the United Arab Emirates. Last year the company had said that it plans to open 20 showrooms financial year that ended on Mar 31.

It had earmarked Rs 900 crore ($140 million) for its expansion plans entry intro newer markets including Sri Lanka and Malaysia.

Last year, Delhi-based jewellery retailer PC Jeweller Ltd said it was raising $38 million from US-based Fidelity. It had planned to use the funds to set up a chain of smaller and franchised stores in India.

The company said that its board has approved the deal, which will involve allotment of compulsorily convertible preference shares to entities controlled by Fidelity. Early last year, PC Jeweller had raised $64 million from DVI Fund, which is an existing investor.

Meanwhile, US-based private equity firm Warburg, which was established in 1966,  has over $40 billion assets under management and  has invested more than $58 billion in around 750 companies across 40 countries through its 16 PE funds.

According to a media report, the PE major has deployed $3.8 billion in 51 companies in India since 1997 and is now looking to double its investment in the country to $8 billion in over a decade. Its portfolio companies include online classifieds firm Quikr, online auto classifieds platform CarTrade, e-commerce focussed logistics solution provider Ecom Express, logistics startup Rivigo, cement producing firm Ambuja Cement, pharmaceutical com

In December 2005, Warburg Pincus invested $66 million in Jaipur-based Vaibhav Gems which it exited in March 2011 at a hefty loss.

Also Read:

India digest: PC Jewellers to get Fidelity funding; Shriram Land, IStyleYou raise funds

Warburg Pincus plans to double its investments in India

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.