M&A

M&A

Titan to acquire residual 27% stake in CaratLane for Rs.4,621-Cr

BSE Announcement  

Publicly-listed Titan Company has acquired the remaining 27.18% stake in CaratLane for INR 4,621 crore in cash from the omni-channel jewellery retail company's founder Mithun Sacheti and his family. CaratLane started as a pure online brand in 2008 focused on affordable and accessible jewellery. Titan first invested in CaratLane in 2016 and had since increased its stake to 71.09%. Post the latest acquisition of 91.90 lakh equity shares from the founder and his family, Titan will hold a 98.28% stake in CaratLane (on a fully diluted basis). The latest deal values CaratLane at INR 17,000 crore (about USD 2 Billion). In FY23, CaratLane had recorded a turnover of INR 2,177 crore, a 72% increase from the INR 1,267 crore it clocked in FY22. In FY21, CaratLane had recorded revenues of INR 723 crore.

From the Venture Intelligence PE-VC Deal Database: In May 2016, Titan Company had acquired a 66.59% stake in CaratLane, valuing the firm at INR 536 Cr. Of this, 62% stake was acquired from CaratLane's sole VC investor, Tiger Global (which exited with a flat return on its $50-M investment made between 2011 to 2015). In Aug 2019, when Titan Company last purchased a 2.84% stake from a Sacheti family member to increase its stake over 70%, CaratLane was valued at INR 1,092 Cr.