India’s largest maker of branded watches and jewellery, Titan Co Ltd, will acquire a majority stake in Chennai-based Carat Lane Trading Pvt Ltd. The companies did not disclose the deal amount as the exact number of shares and the pricing are still being discussed.
“The exact stake that Titan Company Ltd will take in Carat Lane and the valuation are currently under discussion and details will be shared on signing of definitive documents. The transaction is expected to be consummated by the middle of June 2016,” Titan said in a filing to the stock exchanges.
“The financial details of the target shall be furnished to the exchange post the conclusion of the accounting due diligence of the target,” it added.
The company said the acquisition of a leading brand in the jewellery online industry — catering to a different segment of customers with significant internal capabilities in design, manufacturing technology and e-commerce — would be synergetic with Titan’s jewellery business.
Titan gets a majority of its revenue from its jewellery business Tanishq, which is primarily a brick-and-mortar chain.
Titan Managing Director Bhaskar Bhat said: “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.”
Carat Lane, led by co-founder and Chief Executive Officer Mithun Sacheti, had initially started as an online jewellery store.
The company has also developed omni-channel capabilities and currently has 13 stores across the country with plans to ramp up the segment significantly in the future.
The start-up has raised nearly $60 million since starting out in 2008. Last year, it raised about $30 million from a clutch of investors including Tiger Global Management.
Before that it had raised $10 million from Tiger Global and another $10-12 million in its first two rounds of funding, in 2011 and 2012. Tiger will exit Carat Lane post the deal with Titan.