In a significant demonstration of the Tamil Nadu startup ecosystem‘s resilience, Chennai-based CaratLane has reported impressive financial results for Q2 FY25, with total income reaching INR 829 crore, marking a robust 27.9% year-on-year growth. The Tata-owned omnichannel jewellery brand‘s performance was primarily driven by strong customer demand for its studded products, reinforcing its position as a leading player in India’s organized jewelry retail sector.
The company’s Q2 performance highlights include an EBIT (earnings before interest and tax) of INR 58 crore, maintaining a healthy 7% margin. Notably, the studded category emerged as a key growth driver, with revenue jumping 41% year-on-year and its contribution to overall revenue increasing by 7 percentage points to reach 79% during the quarter.
Avanti Krishnamurthy, retail analyst at Capital Market Partners, notes, ‘CaratLane’s continued focus on the high-margin studded jewelry segment, combined with its strategic retail expansion, demonstrates the company’s ability to capitalize on the growing preference for branded jewelry among urban consumers.’
The company’s aggressive retail expansion continued during the quarter, with 11 new store openings taking its total retail presence to 286 stores across 119 cities in India. This expansion strategy has played a crucial role in strengthening CaratLane’s omnichannel presence and improving accessibility for customers nationwide.
Marketing initiatives have also yielded significant results, with the #WearYourWins campaign launched in July 2024 driving substantial engagement. The campaign, focused on encouraging women to celebrate their achievements, contributed to a 21% YoY growth in new customer acquisition and a 30% increase in brand searches during July and August 2024.
Dr. Rajesh Kumar, Professor of Marketing at IIM Bangalore, comments, ‘CaratLane’s success demonstrates how digital-first brands can effectively combine online and offline channels while maintaining strong unit economics.’
The company’s performance is particularly noteworthy in the context of Tamil Nadu’s startup ecosystem, as CaratLane has evolved from a Chennai-based startup to a national brand valued at approximately INR 17,000 crore. Following Titan Company‘s acquisition of remaining stakes in 2023, CaratLane has become a wholly-owned subsidiary of the Tata Group, while maintaining its startup DNA and innovation-driven approach.
Despite facing competition from traditional players like Kalyan Jewellers and Malabar Gold, as well as new-age brands such as BlueStone and GIVA, CaratLane has maintained its growth trajectory. The company’s FY24 operating revenue grew 41% YoY to INR 3,080 crore, though profit saw a slight decline of 5% to INR 78.6 crore compared to the previous fiscal year.
For the Tamil Nadu startup ecosystem, CaratLane’s success story serves as a blueprint for scaling consumer brands nationally while maintaining profitability. The company’s journey from a Chennai-based startup to a significant player in India’s organized jewelry retail sector demonstrates the potential for startups to achieve national prominence and successful exits through strategic partnerships with established corporate entities.”
