In a bid to raise operating margins, jewellery e-commerce firm CaratLane is eyeing a share of the U.S. online retail market, targeting firms having revenues between $15-20 million (about Rs 100-133 crore) for acquisition.
Chennai-based CaratLane is targeting firms that have strong brand-recall and advanced technology adaptations. The company, founded by Mithun Sacheti and Srinivasa Gopalan in 2008, wants to climb higher in the jewellery supply chain, the Economic Times reports.
"If you look at the pipeline of diamonds, where is the money really made? It is made by the brand selling at the front-end in the U.S.," Sacheti was quoted as saying by the daily.
Sacheti also said if he can get a brand that is being frequented by consumers, there would be an opportunity for CaratLane to acquire it. He also believes the U.S. is home to many jewellery companies that have great brand value, but they are yet to figure out the entire model.
The deal is expected to be inked in a month. Sacheti said he would opt for a purely "online model," ET added.
According to reports, CaratLane has managed to raise more than $50 million (about Rs 300 crore) from Tiger Global Management, the same firm that had earlier invested in Ola and Flipkart. In addition, CaratLane reportedly managed to raise about $30 million (about Rs 185 crore) during a fund-raiser in January last year.
[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]
