Titan has acquired a majority stake in Caratlane, a Mumbai based online private label jewellery brand.
The acquisition is expected to close by mid June 2016, the company said in a filing.It also stated, “The Company is proposing to acquire majority stake with control over the target entity. However, the exact number of shares to be acquired is in discussion and not yet finalized.”
This would also be an exit for Tiger Global, which has invested several rounds of funding into Carat Lane, from the company.
Founded in 2007, the Chennai-based Caratlane currently have stores in Bengaluru, Delhi/NCR, Hyderabad, Coimbatore, Chandigarh, Chennai, Thane and Pune, according to the company website.It claims to offer the largest collection of diamonds and diamond jewellery in the country and has customers from more than 150 cities and towns across the country.
Titan will continue to focus on high-ticket jewellery through Tanishq, CK Venkataraman, CEO, jewellery division of Titan told .
Bhaskar Bhat, managing director of Titan said,
“For Titan, the acquisition brings significant capabilities in the e-commerce space along with a brand, a customer segment and a business model that are very exciting.”
“This is a dream come true for me. Coming from a family of jewelers, I have been looking at working with Titan. There is great synergy for one of the largest offline jeweller and one of the largest online jeweller to work together,” said Mithun Sacheti, founder and CEO of Carat Lane.
“This would be a successful exit for Tiger Global,” said Sacheti. However, he refused to reveal the revenue of the company, the stake Tiger Global held and the details of the acquisition by Titan.
CaratLane is involved in the business of designing, manufacturing, trading and retailing of gems and jewellery in India through its e-commerce portal as well as physical stores. The company has also developed omni-channel capabilities and has currently 13 stores across the country with plans to ramp up the retail stores significantly in the future
The exact stake that Titan will buy in the online jewellery brand will be shared on signing definitive documents, said S. Ravi Kant, Executive Vice President (Corporate Communications), Titan Company.
The company has raised four rounds of funds. The online jewellery company had raised $31 million in a Series-D round of funding from existing investor Tiger Global, early 2015. This was almost two years after it raised its Series-C round worth around $10 million from Tiger Global. It had raised $10-12 million in its first two rounds of funding, in 2011 and 2012, according earlier reports.
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