Mumbai (Maharashtra) [India], August 18: Convergent Finance LLP has announced a strategic investment of USD 18 million in Kapsons Group through funds advised by Convergent Finance. Founded in 1989, Kapsons Group has emerged as a pioneering gateway for premium international brands to enter and expand across tier-2 and tier-3 cities in India. Over the years, the Group has established itself as the preferred partner for international brands seeking to extend their presence beyond metropolitan centers into Northern India, a region often underserved in premium fashion retail.
This significant investment aims to support Kapsons Group in developing capabilities for the design and manufacture of premium garments through brand-led manufacturing partnerships. Additionally, the funds will help expand the Group’s footprint nationwide, enhance operational efficiency, and strengthen corporate governance practices. The premium apparel segment in India is poised for substantial growth, projected to increase from approximately $26 billion in FY23 to around $57 billion by FY27, growing at a CAGR of roughly 21.2%. Notably, much of this growth is expected to occur in non-metro cities, aligning well with Kapsons Group’s strategic positioning and expertise in serving these markets.
Vipin Kapoor, Founder and Chairman of Kapsons Group, highlighted the importance of this partnership, stating, “Partnering with Convergent Finance marks a significant milestone in our journey, as it validates our ambition to build a market leader in premium fashion. We believe that Convergent’s hands-on approach and long-term vision align well with our values and will be instrumental in unlocking Kapsons Group’s full potential.” Kapoor’s statement underscores the Group’s focus on scaling operations while retaining its core philosophy of bringing high-quality international fashion to India’s emerging urban markets.
Harsha Raghavan, Managing Partner of Convergent Finance, added, “We are delighted to partner with Vipin Kapoor, who has done a fantastic job of building Kapsons Group into a leading fashion house in North India. We look forward to working with the team to take the company to the next level and build a national champion in the growing premium apparel space.” This comment reflects Convergent Finance’s commitment to identifying growth-oriented businesses with strong leadership, operational potential, and a clear strategic vision for national expansion.
Expanding Horizons with Convergent Finance
Kapsons Group, founded in 1989, has been a pioneer in bringing international brands to tier-2 and tier-3 cities of Northern India. Over the decades, the Group has built a robust portfolio of global fashion brands through partnerships with iconic names such as Tommy Hilfiger, Hugo Boss, Calvin Klein, Gant, Forever New, G-Star, Armani Exchange, Mango, Vero Moda, Jack & Jones, Superdry, U.S. POLO, and many more. By leveraging its deep understanding of the Indian consumer and their fashion preferences, Kapsons Group is now seeking to expand into designing and manufacturing garments in-house. This strategic move will allow the Group to provide a more cohesive brand experience to customers while streamlining supply chains and improving operational efficiency.
Having successfully established a strong presence across Northern India, Kapsons Group now aims to become a leading name across the entire country. The Group’s expansion plans are supported by India’s growing reputation as a competitive hub for high-quality manufacturing. By combining international brand partnerships with domestic design and production capabilities, Kapsons Group intends to create a scalable model that can serve both existing and new customers nationwide.
Convergent Finance LLP is an investment management and advisory partnership focused on bringing together ideas, capital, and passionate entrepreneurs. Its investment process emphasizes identifying proprietary platform opportunities and bolt-on acquisitions, executing deals quickly, and maintaining a relentless focus on performance improvement. Convergent Finance’s value investing approach prioritizes fair and reasonable valuations through bilaterally negotiated transactions, aiming to create long-term value for portfolio companies and investors alike.
This strategic partnership between Convergent Finance and Kapsons Group marks a significant step in the evolution of India’s premium fashion landscape, enabling the Group to capitalize on growing demand in non-metro cities while reinforcing its position as a market leader. With robust backing, an experienced leadership team, and a clear vision, Kapsons Group is well-positioned to expand nationwide and redefine premium fashion retail across India.
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