Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,999.1059.0
Stock Analysis, IPO, Mutual Funds, Bonds & More

Titan to acquire majority stake in online jewellery retailer Caratlane

Titan said in a filing that the exact stake and price to be paid for the stake is still under discussion, with a transaction expected to close in June 2015.

, ET Bureau|
Updated: May 23, 2016, 04.34 PM IST
0Comments
BENGALURU: Watches and jewellery maker Titan Company, part of the $108 billion conglomerate Tata Group, is picking up a majority stake in online jewellery brand and retailer Caratlane. The Chennai-based startup, founded in 2008, had raised nearly Rs 350 crore in funding from New York-based investment firm Tiger Global Management.

Titan, which owns jewellery chain Tanishq, said in a filing that the exact stake and price to be paid for the stake is still under discussion, with a transaction expected to close in June 2015.

Titan's acquisition of Caratlane will be the second major deal by a traditional brick and mortar retailer in the online space, after Kishore Biyani's Future Group acquired online furniture retailer Fabfurnish from Germany's Rocket Internet last month.

Besides selling jewellery online, Caratlane has also started an omni-channel strategy with 13 stores across the country. The startup was founded by Mithun Sancheti, whose family is also in the jewellery business and also counts Srinivasa Gopalan, CEO of Lister Technologies, as one of the shareholders.

Caratlane competes with players like BlueStone, which has interestingly raised funding from Tata Group chairman emeritus Ratan Tata in his personal capacity. Other online players in the space include Melorra, which raised Rs 33 crore from venture capital firm Lightbox earlier this year and Voylla, which raised Rs 100 crore from Peepul Capital last year.

The deal will help Titan address the online demand in its key category, the jewellery business, which generated nearly 80% of its revenues in FY15. Shares of Titan Company closed at 365.45, up 1.74% at close of trade on NSE.

"For Titan, the acquisition brings significant capabilities in the e-commerce space along with a brand, a customer segment and a business model that are very exciting," said Bhaskar Bhat, MD of Titan, in a statement

Also Read

Compulsory hallmarking to shield jewellery buyers

Paytm Gold can now be redeemed at jewellery stores

Gems, jewellery exports dip 7% in Apr-Aug

Why this Sharekhan analyst is bullish on jewellery and footwear stocks

Govt raises duty drawback rates for gold, silver jewellery exports

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service