Jean Claude Biguine (JCB) Salons India has successfully raised Rs 40 crore (approximately $4.8 million) from the alternative credit platform Blacksoil. This funding is poised to bolster JCB Salons’ strategic expansion, specifically targeting the acquisition of the homegrown salon chain Spalon to extend its footprint into South India.
The infusion of capital from Blacksoil will not only facilitate the acquisition but also be allocated towards working capital and enhancing operational efficiencies across the group. With this strategic move, JCB Salons aims to solidify its presence in both the Western and Southern Indian markets.
Established in 2006 in India, JCB Salons currently operates around 18 outlets in Mumbai, Pune, and Bengaluru, catering to approximately 1,500 customers monthly. The brand is part of a global network that spans 20 countries with over 400 salons and spas. Meanwhile, Spalon, the newly acquired entity, boasts over 27 branches across Southern India, enriching the combined entity’s market penetration and customer reach.
The strategic acquisition leverages JCB’s international expertise and Spalon’s robust domestic market knowledge, setting a strong foundation for growth and expansion in the Indian beauty and wellness industry.
This latest financial milestone follows a significant leadership change in February last year when Samir Srivastav, the long-time CEO of JCB Salons, transitioned to Looks Salon as CEO. Despite this change, JCB Salons continues its upward trajectory, having raised a total of Rs 157 crore (nearly $19 million) to date, with RARE Enterprises, the investment arm of the late Rakesh Jhunjhunwala, being a notable investor.
Financially, JCB Salons India witnessed a notable improvement in FY23, with operating revenue rising to Rs 50.66 crore from Rs 34.63 crore in FY22. The company also turned profitable, reporting a profit of Rs 1 crore compared to a loss of Rs 57 lakh in the previous fiscal year. For FY24, the company has indicated a 5-6% year-on-year growth, although it has yet to file its audited annual financial statements for the last fiscal year.
The beauty and wellness sector in India is on a growth trajectory, with industry reports projecting the market to reach approximately $580 billion by 2027, growing at an estimated annual rate of 6%. This favourable market outlook is prompting several established businesses to seek strategic investments from institutional investors. For instance, TechnoSport, a performance wear brand, raised $21 million from A91 Partners, and fast fashion brand Libas secured $18 million from ICICI Venture’s fund IAF Series 5, both in their maiden external funding rounds earlier this year.
JCB Salons India’s strategic expansion, backed by substantial investment and industry growth, positions the brand for continued success and a significant presence in the Indian beauty market.
