After Raising $88 Mn, Melorra May Sell For Pennies On The Dollar

Listed jewellery retailer Senco Gold is reportedly in talks to acquire “struggling” online jewellery brand Melorra for INR 40 Cr to INR 50 Cr. 

Sources told Livemint that the valuation has yet to be finalised and the deal size could also change. Another source reportedly said that due diligence is currently underway and the transaction would materialise upon “satisfactory completion of the process”. 

As per the report, Melorra has held talks with multiple buyers in recent months for a potential acquisition. 

Meanwhile, the acquisition will help the Kolkata-based jewellery retailer shore up its presence in the ecommerce space. 

Founded in 2016 by Saroja Yeramilli, Melorra sells lightweight and fashionable gold and diamond jewellery via its online platform. The company claims to deliver products in India as well as the US, the UK, Europe and the UAE. 

Backed by the likes of Lightbox, Norwest Ventures, 100Unicorns and Value Quest, Melorra has raised more than $88 Mn to date. Despite raising big funds, the company continues to be a loss-making venture. 

The Bengaluru-based startup saw its losses surge 73% to INR 106.7 Cr in FY22 against INR 61.4 Cr in FY21. Meanwhile, sales grew 363.6% to INR 364.4 Cr in FY22 from INR 78.6 Cr in FY21. 

The company is yet to file its financial statements for FY23 and FY24. Such has been the funding crunch at the company that it reportedly raised a bridge round of $1.1 Mn from existing investors in June this year at a tenth of its erstwhile valuation. 

The company was estimated to be pegged at $120 Mn during its last funding round in 2021. There have also been reports that the company has stopped paying salaries to its employees.

It competes with Tata-owned CaratLane and BlueStone in the Indian online jewellery landscape. The report of a likely funding has come at a time when many of Melorra’s rivals have raced ahead of it. Tata-owned Titan acquired an additional 27.18% stake in CaratLane for INR 4,621 Cr at a nearly INR 17,000 Cr valuation in August 2023, giving hefty exits to its cofounder. 

Meanwhile, BlueStone is lining up plans to list on the bourses and raised INR 920 Cr as part of its pre-IPO round from the likes of Peak XV and Prosus earlier this year. Last month, Giva raised INR 100 Cr in an extended Series B round from Premji Invest. 

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