JCB Salons India raises Rs 40Cr from Blacksoil

Salon chain JCB (Jean Claude Biguine) Salons India has raised Rs 40 crore or about $4.8 million from the alternative credit platform Blacksoil.

The company has used the raised capital for strategic expansion, including the acquisition of Spalon, a homegrown salon chain in South India. 

Additionally, The funding will support working capital needs and the creation of operational efficiencies within the group.

Acquiring Spalon

JCB Salons has acquired Spalon, a well-established premium spa and salon brand with over 27 branches across Southern India.

With this acquisition, The company aims to combine its expertise with Spalon’s deep understanding of the domestic market, allowing the joint entity to strengthen its foothold in both West and South India.

JCB Salons, which launched in India in 2006, operates around 18 salons in Mumbai, Pune, and Bengaluru and claims to serve 1,500 customers per month.

JCB Salons' financial growth

JCB Salons has 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 key investor. The company saw its operating revenue increase from Rs 34.63 crore in FY22 to Rs 50.66 crore in FY23.

During this period, the firm turned profitable, reporting a profit of Rs 1 crore, a significant improvement from the Rs 57 lakh loss in the previous fiscal year. 

The current landscape of the Indian beauty market

The Indian beauty market is projected to reach approximately $580 billion by 2027, with an estimated annual growth rate of 6%. JCB Salons' strategic expansion and acquisition align with the trend of legacy and established businesses raising strategic funds from institutional investors.

The move places JCB Salons in a competitive position within the growing Indian beauty market.