Titan to acquire 27.18% stake in CaratLane

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Titan, the watchmaking giant owned by Tata, has recently entered into a share purchase agreement to acquire an additional 27.18% stake in the omnichannel jewellery startup CaratLane. The deal, worth INR 4,621 Crore, indicates that CaratLane’s valuation has surged past INR 17,000 Crore ($2 billion), propelling the jewellery brand into the coveted unicorn club. With this acquisition, Tata’s portfolio now includes four unicorns, including BigBasket, Tata 1mg, and Cultfit.

Titan Continuing Partnership Since 2016

This development follows nearly seven years after Titan initially acquired a majority stake in CaratLane back in 2016, valuing the omnichannel jewellery brand at approximately $69 million.

Titan Acquisition Details and Financial Plans

As per the regulatory disclosures submitted to the Bombay Stock Exchange (BSE), Titan is set to purchase 91.9 lakh equity shares from a founder of CaratLane through an all-cash transaction. This acquisition will elevate Titan’s shareholding in CaratLane from the current 71.09% to 98.28%. The funding for this deal will be a combination of cash reserves, internal accruals, and debt.

Pending Approvals and Timeline

The transaction is subject to regulatory clearance from the Competition Commission of India (CCI) and other closing conditions. Titan anticipates the deal’s completion by October 31st, contingent upon obtaining all requisite approvals. The proposed acquisition is categorized as not falling under any related party transactions.

CaratLane’s Growth Trajectory and Acquisition Landscape

In 2008, Mithun Sacheti and Srinivasa Gopalan founded CaratLane. The brand operates in India and the US, designing and selling jewelry through various channels. In the past three years, it showcased strong growth. Its total income rose from INR 723 Crore in FY21 to INR 2,177 Crore in FY23. This acquisition arrives during a tough funding phase for Indian startups. According to Inc42, startup funding dropped by 78.5% YoY to $580.18 million in June 2023. CaratLane competes in the jewellery space with homegrown startups such as GIVA, BlueStone, and Melorra. The acquisition resonates within the broader context of the burgeoning Indian direct-to-consumer (D2C) sector, projected to present a market opportunity of $400 billion by 2030, housing over 50,000 digital-first brands.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Titan to acquire 27.18% stake in CaratLane

Titan, the watchmaking giant owned by Tata, has recently entered into a share purchase agreement to acquire an additional 27.18% stake in the omnichannel jewellery startup CaratLane. The deal, worth INR 4,621 Crore, indicates that CaratLane’s valuation has surged past INR 17,000 Crore ($2 billion), propelling the jewellery brand into the coveted unicorn club. With this acquisition, Tata’s portfolio now includes four unicorns, including BigBasket, Tata 1mg, and Cultfit.

Titan Continuing Partnership Since 2016

This development follows nearly seven years after Titan initially acquired a majority stake in CaratLane back in 2016, valuing the omnichannel jewellery brand at approximately $69 million.

Titan Acquisition Details and Financial Plans

As per the regulatory disclosures submitted to the Bombay Stock Exchange (BSE), Titan is set to purchase 91.9 lakh equity shares from a founder of CaratLane through an all-cash transaction. This acquisition will elevate Titan’s shareholding in CaratLane from the current 71.09% to 98.28%. The funding for this deal will be a combination of cash reserves, internal accruals, and debt.

Pending Approvals and Timeline

The transaction is subject to regulatory clearance from the Competition Commission of India (CCI) and other closing conditions. Titan anticipates the deal’s completion by October 31st, contingent upon obtaining all requisite approvals. The proposed acquisition is categorized as not falling under any related party transactions.

CaratLane’s Growth Trajectory and Acquisition Landscape

In 2008, Mithun Sacheti and Srinivasa Gopalan founded CaratLane. The brand operates in India and the US, designing and selling jewelry through various channels. In the past three years, it showcased strong growth. Its total income rose from INR 723 Crore in FY21 to INR 2,177 Crore in FY23. This acquisition arrives during a tough funding phase for Indian startups. According to Inc42, startup funding dropped by 78.5% YoY to $580.18 million in June 2023. CaratLane competes in the jewellery space with homegrown startups such as GIVA, BlueStone, and Melorra. The acquisition resonates within the broader context of the burgeoning Indian direct-to-consumer (D2C) sector, projected to present a market opportunity of $400 billion by 2030, housing over 50,000 digital-first brands.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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