'Success doesn't happen overnight': CaratLane's Mithun Sacheti hailed by netizens for mega Titan deal

CaratLane founder Mithun Sacheti was praised on social media for "sticking around" to make a huge profit off selling his company's 98% stake to Tata-owned Titan Company Ltd. This is India's biggest deal in the D2C e-commerce space.

"Mithun Sacheti made 4600+ crores in cash by selling his startup to Titan. He was in same jewellery business for 24 years. A BCom graduate. It takes decades for overnight success," posted Abhishek Asthana, who goes by the handle @GabbbarSingh on X (formerly Twitter).

On Saturday, Titan said it has signed an agreement with Caratlane to acquire another 27.18% stake for Rs 4,621 crore.

In an exchange filing, Titan said it acquired around 9,190,327 equity shares in CaratLane from Mitun Sacheti and its family, following which its stake in the company will increase to 98.28%.

Titan first bought 62% stake in CaratLane in 2016 at a valuation of about Rs 563 crore. After that, the company spent up to Rs 450 crore mainly through the secondary purchase of shares from Tiger Global, the only venture investor in CaratLane.

The deal pushes up CaratLane’s valuation to Rs 17,000 crore from Rs 563 crore in 2016.

Many netizens hailed Sacheti for his patience to wait for such a mega deal to happen. 

"Sacheti stuck around for 7 years after a majority acquisition by a strategic investor. A rarity! Brilliant outcome for the tenacity displayed," tweeted social media influencer Ankur Warikoo.

"Titan's willingness to pay a premium suggests a high level of optimism regarding CaratLane's potential for future growth," said an X user. 

CaratLane Trading is an unlisted entity and its turnover in FY23 stood at Rs 2,177 crore. It also operates in the manufacture and sale of jewellery.

Titan expects the acquisition to be complete by October 31, 2023, subject to the timely receipt of requisite regulatory approvals from the Competition Commission of India (CCI).

CaratLane, which was incorporated in September 2007, also has presence in the United States through its subsidiary.