After dedicating over eight years to CaratLane, Avnish Anand has risen to the position of CEO. It was in 2015 that he originally joined the company as the head of product.
This development follows closely on the heels of the departure of his former superior and co-founder, Mithun Sacheti.
Sacheti made headlines by offloading his family’s significant 27.18% stake in CaratLane to Titan, a renowned company in the domain of watchmaking under the Tata Group.
The transaction, valued at INR 4,621 Cr, transpired just last week.
Anand’s new role as CEO takes immediate effect. It is set to mark a noteworthy transition for the e-commerce startup.
Addressing the transition, CaratLane lauds Avnish Anand’s journey from being its first employee to a pivotal member of the founding team. Anand’s role has been instrumental in shaping CaratLane’s present stature.
His tenure, spanning more than eight years, commenced as the head of product in 2015. He progressed to be the cofounder in 2016, and finally attained the position of COO in 2021.
About CaratLane
Established in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane has established itself as an omnichannel jewelry brand. Today, it operates in both the Indian and US markets. major competition includes startups in the jewelry sector, such as GIVA, BlueStone, and Melorra.
In an article published in March, Avinash noted,
“In the last few months, there has been a sudden surge in the interest people have started to take in CaratLane. In large part, it has to do with people suddenly discovering, that CaratLane was doing 2000+ crores in revenue with high profitability.”
As rightly pointed out, the direct-to-consumer (D2C) company has impressively charted growth trajectories over the past three years. Its financial performance showcases a robust trajectory, with total income surging from INR 723 Cr in the fiscal year 2020-2021 (FY21) to INR 1,267 Cr in FY22.
The latest financial year, 2023, witnessed an even more remarkable surge, with total income soaring by over 71% year-on-year (YoY) to reach INR 2,177 Cr in FY23.
Frontiers of Progress
Last week, we saw that Titan acquired a substantial 27.18% stake in CaratLane for a staggering INR 4,621 Cr.
This strategic maneuver has placed CaratLane’s valuation at a remarkable INR 17,000 Cr (approximately $2 billion). Moreover, this acquisition has propelled Titan’s stake in CaratLane to an impressive 98.28%.
Read more: Titan’s Strategic Acquisition of CaratLane: A Milestone Deal in India’s Jewelry Landscape
In the financial details provided by the involved parties, the deal’s funding will arise from a blend of cash reserves, internal earnings, and indebtedness.
However, the deal’s finalization rests on getting the green light from the Competition Commission of India (CCI) and meeting other pertinent closing conditions.
All things considered, pending the requisite approvals, the deal is anticipated to conclude by October 31st. This transaction not only underscores the evolving dynamics of the market but also highlights the growing influence of conglomerates in shaping the business landscape.
The residual 1.72% stake within the startup is currently secured in ESOPs, allocated to 75 of CaratLane’s 400 corporate employees.
As Titan moves to acquire the remaining stake in CaratLane, this development is poised to yield a substantial windfall, estimated between INR 340-380 Cr for these employees.
Departure of former CEO Mithun Sacheti
Commenting on the departure of former CEO Mithun Sacheti, Ankur Warikoo posted.
“He stuck around for 7 years after a majority acquisition by a strategic investor. A rarity! Brilliant outcome for the tenacity displayed.”
His departure has emerged as one of the most substantial, rivaling the notable Walmart-Flipkart deal. This deal, which granted over $1 billion to each of Flipkart’s cofounders, Sachin Bansal and Binny Bansal, remains the largest in the country.
Gurukeerthi Gurunathan, a co-founder, will continue to hold the position of Chief Technology Officer (CTO) at CaratLane, ensuring the stability of the technical front.
Expressing mixed sentiments, the new CEO, Anand, acknowledged Sacheti’s influential support and guidance over the years.
While acknowledging the sadness that accompanies Sacheti’s departure, Anand looks forward to an exciting new phase. He looks forward to enhancing the enterprise’s scope and significance. And as Mithun makes his exit, he adds on a delightful note,
“Every successful entrepreneur experiences fame (media) for 48 hours and then chase (wealth managers) for a lifetime. I guess mine began on Saturday.”
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