Titan to acquire 62 percent stake in Carat Lane for Rs 357 Cr
In May Tata Group firm Titan announced their interest in Carat Lane and now they confirmed their purchase of 1,91,42,545 shares for Rs 357 Cr. Titan now owns 62 percent stake in Carat Lane.
Carat Lane generated a revenue of Rs 141 crore in 2015-16, Rs 127 crore in 2014-15 and Rs 101 crore in 2013-14.
Explaining the rationale behind the move, Titan said: “We believe the synergies with the jewellery business of Titan Co is very high.”
CaratLane is an e-commerce portal that sells jewellery. It was founded by Mithun Sacheti and Srinivasa Gopalan in 2008. Their jewelry includes gold and diamond varieties in ear rings, bangles, necklaces etc. Their website CaratLane.com has a ranking of 13,000 Alexa rank (as of 2015).
Mithun Sacheti, a jewellery retailer, collaborated with Srinivasa Gopalan, an IT entrepreneur and the founder of Lister Technologies, to form CaratLane. Their model is similar to e-commerce giant Amazon, where the company relies on several thousand vendors who supply gems on request
Tiger Global, a US-based hedge fund, has been investing in CaratLane since 2011. Till date it has invested Rs 318.31 Cr.
Tata has its onw jewellery chain called Tanishq since 1994 and addition of CaratLane into their company will give them a better market share for offline and online stores.