Mithun Sacheti founded Karatlane in 2008.
Caratlane currently operates 227 stores across 88 Indian cities, generating revenue of Rs 2,200 crore and a profit of over Rs 160 crore in FY23.
Mithun Sacheti, founder of online jewelery marketplace Caretlane, hails from a family of jewellers. He studied gemology in the US and runs his family business called Jaipur Gems Brand. It was founded by his father in 1974 and served over 3,000 wealthy families in Mumbai. While doing well in the family business, Mithun, on the other hand, wanted to break out of it to do something bigger.
Everyone in his family had physical stores but never planned to start an online business. However, Mithun is determined to be the first to take his family business online. He asked his father for “75 lakh rupees and four years” to prove himself right. After much thought and discussion, the money was credited to his account and in 2008 Karatlane was born.
Karatlane: The Struggle and Growth of Mithun Sacheti
Although Mithun created the website – Karatlane, there were no sales in the first fifteen days and he was ridiculed by others. Not even an investor or venture capitalist came forward to put money into his new venture.
Caretlane suffered a loss of Rs 12 crore. While pondering his next move, Sancheti once received a message from an American investor and it changed his path forever.
Lee Fixel, a partner at American investment firm Tiger Global, was keen to meet him. Later, a term sheet worth Rs 27 crore against 33% stake in Karatlane was given to Sacheti 50 minutes into the meeting and it was a turning point for him.
After accepting the offer, Mithun Sacheti invested Rs 4 crore in marketing. The website grew in popularity but quickly crashed. He opened the first physical store at Greater Kailash-1 in Delhi. The idea was simple: offer premium diamond jewelery in a universal format with high margins.
Soon after the idea gained traction, Caratlane reported a 300 percent increase in revenue. In 2013 this company was valued at Rs 100 crore. In 2012, Tiger Global invested Rs 30 crore and in 2013, it again invested Rs 45 crore. Mithun Sacheti continued to grow using the public model because it had surplus capital.
Mithun Sacheti opened stores in Bengaluru, Mumbai and Delhi besides introducing virtual jewelery try-on, Perfect Look. Caratlane expanded to 12 locations and reached annual sales of Rs 300 crore by 2014. Tiger Global later invested Rs 180 crore.
With potential competitors like Melora and Bluestone emerging online, Mithun Sacheti thought of looking for an offline partner and Tanishk’s owner Titan was the ideal candidate.
After Titan came on board it returned Tiger Global’s Rs 357 crore investment and acquired a 62% stake in Caratlane in July 2016.
Caratlane has opened 130 stores in 36 cities across India by December 2021. That year, it earned Rs 621 crore and, for the first time in its twelve-year history, recorded a profit
In August 2023, Titan acquired the remaining 27.18% stake held by Sacheti and his family in Karatlane for Rs 4,621 crore, taking the total stake to 98% at a valuation of Rs 17,000 crore.
Caratlane currently has 227 stores across 88 cities, generating revenue of Rs 2,200 crore and a profit of over Rs 160 crore in FY23. Mithun Sacheti has truly turned this business into a shining gem.
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