CHENNAI: Tata Group's Titan on Saturday announced that it has signed a share purchase agreement with the Founder of CaratLane Trading Private Limited to acquire all the shares held by them.
Titan agreed to acquire the entire 91,90,327 equities held by the founder of CaratLane and his family members representing 27.18% of the equity for Rs 4,621 crore.
This marks the exit of CaratLane founder and managing director Mithun Sacheti.
CaratLane started as an online-first premium jewellery retail brand in 2008. Titan first invested in CaratLane in 2016 and over the past 8 years, it continued to invest in the startup and the brand has expanded since.
With this deal, the shareholding of Titan in CaratLane has increased from 71.09% to 98.28%. This transaction is expected to be financed through a combination of cash balances, internal accruals and debt, according to market filings by the company.
C K Venkataraman, Managing Director of Titan said, "We believe that the growth journey of CaratLane has only begun and has a long way to go. We thank Mithun Sacheti, Founder and Managing Director of CaratLane for having jointly built a customer-centric brand that all of us in Tata Group can be proud of and wish him continued success in his future endeavours."
Mithun Sacheti, Founder and Managing Director of CaratLane said, "Having dreamt of making beautiful jewellery accessible and affordable to all, I am immensely proud of what we have collectively achieved at CaratLane in the past 15 years and where the business stands today."
Looking into the future, there couldn't be a more ideal destination for CaratLane than Titan and the esteemed Tata Group which will provide the perfect opportunities for CaratLane to continue to grow, he added.