Homegrown private equity fund Motilal Oswal Private Equity (MOPE) has struck yet another consumer facing bet by committing Rs 85 crore ($11 million) in Bengaluru-based omni-channel fashion jewellery retailer Kushal’s Retail Pvt Ltd.
The company’s existing investor India SME Investments has also infused additional money in this round.
The quantum of India SME’s investment couldn’t be immediately known.
India SME Investments had first invested in 2019 and the current transaction is said to have valued multiple times as compared to the last round.
“We believe the fashion jewellery segment in India is poised to be a $6-7 billion industry in the next 4-5 years, largely driven by increasing consumption by the millennial segment. The industry currently is largely unorganized, and we believe the shift towards organized retail and online will happen at a fast pace,” said Vishal Tulsyan, MD and CEO at MOPE.
Kushal’s Retail, owned by the Gulecha family, operates 43 exclusive brand outlets in shopping malls and high streets across southern India. It sells non-precious ethnic jewellery and fashion accessories under the Kushal’s brand and has an asset-light model.
“MOPE’s experience of backing category leaders in the consumer segment will add tremendous value to Kushal’s. The funds raised will be utilized for expanding store presence, strengthening the online channel, brand investments and building a robust organization,” said Manish Gulechha, promoter at Kushal’s Retail Pvt. Ltd.
Kushal’s retail competes with the likes of GIVA and Melorra in the direct-to-consumer jewellery space. Last week, Melorra raised $16 million from Axis Growth Avenues, SRF Family Office, N+1 and existing investors, in the first leg of its Series D round.
GIVA, on the other hand, in January this year raised $10 million as a part of its Series A funding led by direct-to-consumer (D2C) focused venture capital funds Sixth Sense Ventures and A91 Partners.
MOPE has struck a few bets already since it raised Rs 4,500 crore for its fourth fund. Last week, it had invested Rs 195 crore in Pathkind Diagnostics. In February, it had backed healthy snacks company Happilo.
Some of its previous transactions included MAS Financial Services, a Gujarat-based listed non-bank lender; Mysuru-based N Ranga Rao & Sons, India's largest maker of incense sticks, Ludhiana-based Happy Forging Ltd and Molbio Diagnostics Pvt Ltd.