Blacksoil led Rs 40 Cr raised by JCB Salons India for strategic expansion
Blacksoil, an alternative lending platform, has contributed Rs 40 crore ($4.8 million) to salon chain JCB (Jean Claude Biguine) Salons India.
In order to expand into South India, JCB Salons used the money to buy the locally owned salon chain Spalon, the company announced in a press release. The funds will also be utilized to improve the group’s operational efficiency and provide working capital.
JCB Salons was established in India in 2006 and now has about eighteen salons in Bengaluru, Mumbai, and Pune. The business says it serves 1,500 clients a month. With 400 salons and spas, it operates in 20 countries worldwide. Spalon is a brand of spa and salon that has more than 27 locations in Southern India.
The joint company seeks to establish a presence in West and South India markets by fusing JCB’s experience with Spalon’s grasp of the local market.
Longtime CEO of JCB Salon Samir Srivastav left the company in February of last year to become CEO of Looks Salon.
To date, JCB Salons has raised approximately $19 million, or Rs 157 crore, with the support of RARE Enterprises, the late Rakesh Jhunjhunwala’s investment company.
Operating revenue for JCB Salon India increased from Rs 34.63 crore in FY22 to Rs 50.66 crore in FY23. The company made a profit of Rs 1 crore during that time, up from a loss of Rs 57 lakh in the prior fiscal year.
The company claims that in FY24, it grew by 5-6% on an annual basis. For the most recent fiscal year, the company has not yet submitted audited annual financial statements.
The Indian beauty market is expected to grow at an estimated rate of 6% per year to reach $580 billion by 2027, according to industry reports.
Recently, institutional investors have provided strategic funding to a number of well-established and legacy businesses. TechnoSport, a 17-year-old performance wear company, raised $21 million in May from A91 Partners during its inaugural external fundraising campaign. In its first external funding round, fast fashion omnichannel ethnic wear brand Libas also raised $18 million in the same month through ICICI Venture’s fund IAF Series 5.
