Tata Group’s Titan is reportedly in advanced negotiations to invest about $30 million in online jewellery retailer CaratLane for a 15% equity stake, reports the Economic Times, citing sources. Post the deal, online jewellery company Carat-Lane will be valued at about Rs 1,200 crore.
"We are in the process of closing round D for which we are in talks with an Indian conglomerate, among others," CaratLane Founder Mithun Sacheti told the Economic Times.
CaratLane has so far raised a total of $50 million, Sacheti told the Economic Times. Apart from Tiger Global, other stakeholders in CaratLane include Srinivasa Gopalan, CEO of Lister Technologies, Mithun Sacheti and his brother. With the round D in place, all the exiting investors' stakes would also dilute and one of the angel investor is likely to exit.
Titan draws a majority of its revenue from its jewellery business Tanishq. According to the report, this strategic alliance between Titan and CaratLane would give the former an access to new-age customers and new-age brand, whereas CaratLane is likely to gain from Titan's experience in marketing, one investor said.
Titan currently has four business divisions, namely, watches & accessories, jewellery, eyewear and precision engineering. Its jewellery segment contributed Rs 8,525.77 crore, watches contributedRs 1,611.6 crore. Tata Sons' chairman emeritus, Ratan Tata in his personal capacity, has invested in online jewellery retailer BlueStone.
CaratLane offers home trials for up to five jewellery items, across more than 20 cities. As part of its offline presence, CaratLane has also set up offline showrooms in Bengaluru, Chennai, Delhi and Hyderabad.
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