Titan, which had announced that it would be acquiring a majority stake in online jewelry store CaratLane, said that it has bought 62% in the company for Rs 357.24 crore, in a stock exchange notification. Titan also said that it has acquired over 19 million shares in the all cash deal. The deal is expected to be completed within 14 days.
It also disclosed CaratLane’s revenues for the financial years 2013-14, 2014-15 and 2015-16 were Rs 101 crore, Rs 127 crore and Rs 141 crore respectively.
CaratLane raised around $58 million (about Rs 350 crore) in all: much of it from Tiger Global.
Tiger Global’s investments in CaratLane
- $31 million in January 2016, following which Tiger Global became the majority stakeholder.
- $15 million in a Series C funding round from Tiger Global in May 2013.
- $6 million from the same investor in June 2011 and Rs 30 crore in March 2012.
Founded in 2008, CaratLane currently offers its own brand of products: jewellery items like rings, earrings, chains, pendants, necklaces, nose pins and bracelets etc. and gold coins, categorized by weight, design and purity. The platform also offers loose diamonds, and a design your own option for rings, earrings and pendants, which lets users customize the shape, design, metal type and diamond type of various jewelry.
Myntra and Tanishq partnership: In May, fashion e-tailer Myntra tied up with Titan-owned Tanishq to sell jewelry online.As part of the deal, Myntra will be selling Tanishq’s Mia collection of jewelry which is priced in the range of Rs 3,000 to Rs 50,000 targeted at working women.
– In January, Melorra, a new online jewellery retailer, raised seed funding worth $5 million from Lightbox Venture’s second fund.
– Ratan Tata had made an undisclosed amount of personal investment in the online jewellery store Bluestone in September last year. The startup had earlier secured $10 million in funding from Kalaari Capital and other existing investors in March, in addition to the $5 million it raised in January 2012.
– Online jewellery store Voylla.com had raised $15 million from Peepul Capital in October last year. In October 2014, the company had announced its plans to open 10 brick and mortar stores across the country by the end of the year.
– Others competitors include Gitanjali Group’s Gitanjalishop.com (opened in partnership with Times Internet’s Indiatimes Shopping), Berlin-based online fashion jewellery companyJuvalia & You which launched its Indian operations in June 2012, and several other offline jewellery brands like Tata Group’s Tanishq, Bhima Jewellers, Josco Jewellers and Abharan Jewellers, etc. that also offer their jewellery for sale online.