BENGALURU: Bengaluru-headquartered Titan Company Ltd is said to be in the process of acquiring a majority stake in the Chennai-based online jewellery shopping store Carat Lane Trading Pvt Ltd for an undisclosed amount, subject to due diligence. This would give an exit for Tiger Global from Caratlane, in which it had invested in four rounds of funding.
In all, Tiger Global had invested $50 million in the four rounds. In the latest round, in January, 2015, Caratlane raised $30 million or Rs 185 crore at a valuation of Rs 710 crore for a 26 per cent stake, according to data from Venture Intelligence. Titan may pay a premium for the stake or could be at the same valuation at which Tiger Global invested in Caratlane, sources said.
Titan, in an announcement to the stock exchanges said it could acquire a majority stake in Carat Lane, which is into the business of designing, manufacturing, trading and retailing of gems and jewellery. It added that the financial details will be furnished once the due diligence is completed.
Titan Company and Caratlane are said to be in active discussions on the valuation and the exact stake that Titan would take in the company. The details, the company said, would be shared on signing of definitive documents, it said. The transaction is expected to be completed by mid-June 2016.
Titan has said in the statement that this is an acquisition of a leading brand in the online jewellery industry catering to a different segment of customers with significant internal capabilities in design, manufacturing technology and e-commerce.
The deal comes at a time when rivals like Bluestone are raising funds and when e-commerce firms are aggressively entering the jewellery space.
"Synergies with the jewellery business of the company is very high," the statement on the exchanges added.