Titan, a Tata-owned watchmaker, announced on Tuesday the acquisition of the remaining 0.36% stake in omnichannel jewellery brand CaratLane for INR 60.08 Cr.
Before this, Titan held a 99.64% stake in CaratLane. Last year, the company acquired a 27.18% shareholding in the startup for INR 4,621 Cr, valuing it at nearly INR 17,000 Cr. The proposal received approval from the Competition Commission of India (CCI) in November of the same year.
Continue Exploring: Titan gets green light from CCI to acquire additional 27.18% stake in jewellery startup CaratLane
The latest agreement has also been struck at the same valuation, maintaining CaratLane’s value at the previous assessment of INR 16,666 Cr (nearly $2 Bn).
With this acquisition, CaratLane will now become a wholly-owned subsidiary of the watchmaking company. The 0.36% stake translates into 1.19 Lakh (1,19,489) shares in the jewellery brand, acquired at a face value of INR 2 each.
“As on date, CaratLane is a subsidiary of the Company wherein the Company held 99.64% of the total paid up capital of CaratLane. The completion of the aforesaid share purchase would result in CaratLane becoming a wholly owned subsidiary of the Company,” Titan said in a filing with the bourses.
The company anticipates finalizing the transaction by March 31st.
Established in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane is an omnichannel brand specializing in the production and retail of jewellery, operating in both India and the US.
CaratLane’s revenue reached INR 2,177 Cr in the fiscal year 2022-23 (FY23), marking an increase from INR 1,267 Cr in FY22 and INR 723 Cr in FY21. Despite this growth, its net profit experienced an 8% year-on-year (YoY) decline, amounting to INR 82 Cr during the same period.
Continue Exploring: CaratLane’s operating revenue soars by 73%, crossing INR 2,000 Cr milestone in FY23
It rivals established traditional retailers like Kalyan Jewellers and Malabar Gold, along with contemporary brands such as BlueStone and GIVA.
It’s worth noting that Titan initially acquired a majority stake in the jewellery brand at a valuation close to $69 million in 2016.
The Tata Group also includes startups such as 1mg and BigBasket within its portfolio.
