Caratlane on the fast track

TITAN EXPANDS OMNICHANNEL PLAY

- VIVEAT SUSAN PINTO

IN A WORLD where cash burn is the norm, Caratlane is an exception. The omni-channel retailer, which specialises in diamond-studded jewellery and caters for the youth, has been profitable for the last three years now. As cofounder Mithun Sacheti puts it, the focus on cash flows by cutting overheads and opening franchisee stores, rather than running company-owned outlets, has ensured the business stays profitable.

Last year, the firm posted a net profit of ₹102 crore on revenues of  ₹ 2,155 crore, which jumped by more than 71%. Before that it reported a profit of ₹2 crore in FY21 and ₹99 crore in FY22.

Responding to a LinkedIn post on profitable B2C brands about a year ago, Sacheti described his company as being "tenacious and efficient".

"We aren't the kind that goes out there making a lot of noise. We are the team that put our heads down and focuses on getting to know our consumers better," he said. Little wonder that in mid-August, he exited the firm he built selling his residual 27.18% stake to Titan for an eye-popping ₹4,621 crore. The purchase of the stake by Titan values Caratlane at ₹17,000 crore, nearly eight times its FY23 sales of ₹2,155 crore.