21 Aug 2023
This deal brings Titan's stake in the online ecommerce retailer to 98.28%. It is the second biggest exit for an eCommerce founder after the Bansals exit from Flipkart in their deal with Walmart.
In the country's second largest eCommerce deal, CaratLane's founder, Mithun Sacheti, sold another 27% stake to Titan for ₹4,621 crores. This brings the online jewellery retailer's total worth to ₹17,000 crores ($2 billion) and Titan's entire stake in the company to 98.28%.
CaratLane’s relationship with Titan began in 2010 with a strategic partnership with its jewellery brand, Tanishq. In 2015, Titan’s then MD, Bhaskar Bhatt, expressed interest in investing in CaratLane. To get him onboard, CaratLane parted ways with its existing investor Tiger Global, who had just pumped $30 million into the company.
Titan then bought a 62% stake in CaratLane in 2016 for around ₹563 crores and bought more shares between 2016 and 2019. Mithun Sacheti, the heir of Jaipur Gems, was able to turn around his loss-making venture profitable under Titan’s partnership.