This acquisition comes as Titan’s stake in CaratLane highlights a trend towards e-commerce and also due to Melorra’s financial difficulties, mounting losses, funding challenges, and delayed employee salaries, despite rising sales.
Mumbai: Kolkata-based Senco Gold is reportedly negotiating to acquire the struggling online jewellery brand Melorra for Rs. 40 to 50 crores. According to sources, the valuation is not yet finalized, and the deal size may vary. Due diligence is currently underway, with the transaction contingent on the satisfactory completion of this process.
Melorra, founded in 2016 by Saroja Yeramilli, specializes in lightweight, fashionable gold and diamond jewellery, selling products through its online platform. The brand claims to deliver to customers in India as well as in the US, UK, Europe, and UAE.
Despite raising over $88 million from investors like Lightbox, Norwest Ventures, and Value Quest, Melorra has struggled financially, posting a 73% increase in losses to Rs. 106.7 crore in FY22, compared to Rs 61.4 crore in FY21. However, sales surged by 363.6% to Rs. 364.4 crore during the same period.
The company is yet to file its financial statements for FY23 and FY24, and has reportedly faced funding challenges, raising a bridge round of $1.1 million in June at a valuation significantly lower than its previous estimates of $120 million from 2021. Reports have also surfaced indicating that Melorra has delayed employee salaries.
Melorra competes with Tata-owned CaratLane and BlueStone in the Indian online jewellery market. This acquisition talk comes as Melorra’s rivals continue to gain momentum, with Titan recently acquiring a 27.18% stake in CaratLane for Rs. 4,621 crores, and BlueStone preparing for a public listing after raising INR 920 crore in a pre-IPO round.
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