Kimaya Fashions has got Rs 60-crore funding from Franklin Templeton Private Equity Strategy after diluting about 20 per cent stake. The company said the funds would be deployed for expansion both in the domestic and overseas market, besides launching a new prêt line targeting the upper middle class.

Started in 2002 by Mr Pradeep Hirani and Ms Neha Hirani, Kimaya operates high-end designer stores. It retails fashion labels from over 173 designers, including Tarun Tahiliani and Raghavendra Rathore.

Indian designer wear

Mr Pradeep Hirani, Chairman, Kimaya Fashions, said the new prêt label would be committed towards making Indian designer wear accessible to a much wider consumer base across the country. Also on cards is an e-commerce site.

The company manages over 35,000 sq.ft of premium retail space. Kimaya has 16 stores (15 in India and one in Dubai). Having consolidated its position in major metros of the country, Kimaya is now set to expand its footprint to tier-i/ii cities such as Chandigarh and Ludhiana.

He said the company would set up 60 stores in the next two years.

These would be largely company-owned, company-operated in the domestic market and franchisee in London, New York, Abu Dhabi and South Africa.

Mr Harshendu Bindal, President, Franklin Templeton, said, “The strong economic growth over the last decade and the rise in disposable incomes has led to increased demand for luxury goods amongst affluent Indians. Despite the growth, penetration of luxury goods remains low and Kimaya, with an established presence in the Indian designer wear space, is well-positioned to benefit from the growing demand for these products.”

Darby Asia Investors (India) was advisors to the deal. The transaction details were not disclosed.

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