CaratLane, a jewellery startup owned by Titan, witnessed a remarkable surge in its operating revenue, surpassing the INR 2,000 Cr milestone in the fiscal year 2022-23 (FY23). The new-age jewellery brand, headquartered in Tamil Nadu, experienced a significant 73% increase in operating revenue, reaching INR 2,169 Cr during FY23, compared to INR 1,255.6 Cr in the preceding fiscal year, driven by escalating demand.
Established in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane is a versatile brand with a presence in both India and the United States, specializing in the production and sale of jewellery items through various channels.
In FY23, the business revenue from the United States held steady at INR 8.68 Cr.
Taking into account additional income, the overall revenue surged by 73%, reaching INR 2,187.8 Cr in the fiscal year, compared to INR 1,264.6 Cr in the preceding year.
Despite the increase in revenue, CaratLane experienced an 8% decline in net profit, falling to INR 82 Cr in the current fiscal year from INR 89.2 Cr in the previous financial year.
Experiencing a 69% surge, the total expenditure reached INR 2,068.5 Cr in FY23, compared to INR 1,225.9 Cr in the previous fiscal year.
As a jewellery brand, CaratLane’s most significant expense was the cost of procurement, which includes the sourcing of gems. The procurement cost witnessed a 66% increase, reaching INR 1,404.5 Cr in FY23, compared to INR 845 Cr in the previous fiscal year.
Employee expenditures surged by 51%, reaching INR 135.4 Cr in the reviewed year, up from INR 89.6 Cr in FY22, signifying an expansion in the startup’s workforce.
Marketing and promotional expenditures for CaratLane experienced a 75% surge, reaching INR 172 Cr in FY23, as compared to INR 98 Cr in the preceding fiscal year.
The EBITDA margin grew to 9.75% in FY23, showing an expansion from 6.86% in the previous fiscal year.
In August this year, Titan, a Tata Group-owned company, augmented its stake in CaratLane by an additional 27.18%, bringing its total ownership in the jewellery brand to 98.28%. This strategic move, valuing CaratLane at over INR 17,000 Cr ($2 Bn), marked the startup’s entrance into the unicorn club.
Last month, the Competition Commission of India (CCI) gave its approval for Titan’s acquisition of an additional stake in CaratLane.
In 2016, Titan initially acquired a controlling stake in the jewellery brand.
In addition to contending with established jewelry brands like Senco Jewellers, Kalyan Jewellers, and Malabar, CaratLane faces competition from contemporary brands such as BlueStone and GIVA. Despite the competitive landscape, CaratLane holds a larger market share compared to its new-age counterparts, thanks to its early entry into the market.
Among its contemporary competitors, GIVA disclosed an operating revenue of INR 165 Cr in FY23, accompanied by a net loss of INR 45.2 Cr. In the same fiscal year, BlueStone reported sales amounting to INR 770 Cr, with a reduced loss of INR 167.2 Cr.