Opinion certainty 4/5 debate potential 2/5

Sacheti: Bombay Shirt Company and March Tee are investable D2C businesses

Mithun Sacheti · Building CaratLane to a 17000 Crore company and selling it to TATA with Founder Mithun Sacheti · Feb 27, 2023 · at 50:52

Mithun Sacheti, founder of CaratLane, evaluates apparel direct-to-consumer brands that stand out due to high-quality education and demand creation.

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“If I had to buy a shirt today, I mean, I would go to Bombay Shirt Company. I think just the basis of the advertising that I see, of what all they teach me about it, or at least it'd be my considerations that even if I didn't buy from them. If I had to buy a t-shirt, I would think about March tea. And I'd go and do things like that. And for me, all of these are investable businesses, because they're really going much deeper than what others are doing.”

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More from Mithun Sacheti

Assertion Supported
Sacheti: Titan's 2018 99-crore primary round carried a punitive valuation
“Over a period of time, Titan then did a secondary in sorry, another primary in 2018. They put 99 crores in the company, and we were really shafted on that valuation. And that cost me a lot at that point.”
Mithun Sacheti Feb 27, 2023 ▶ 26:55 Building CaratLane to a 17000 Crore company and selling it to TATA with Founder Mithun Sacheti
Disclosure
Sacheti: CaratLane resolved never to raise outside capital again after 2018
“I made it a point that we will not raise money ever again.”
Mithun Sacheti Feb 27, 2023 ▶ 29:25 Building CaratLane to a 17000 Crore company and selling it to TATA with Founder Mithun Sacheti
Prediction Open · timeframe Feb 2028
CaratLane targets ₹10,000 crore revenue and 20% EBIT margin in five years
“Oh no, I think we have set ourselves five years, 10,000 crores. I mean, I think more than a billion dollars, unless the rupee further depreciates and goes in that direction. But yeah, and a 20% EBIT business is a long-term healthy business, you know, so we wan…”
Mithun Sacheti Feb 27, 2023 ▶ 31:50 Building CaratLane to a 17000 Crore company and selling it to TATA with Founder Mithun Sacheti
Assertion Not checkable as stated
CaratLane achieves 25% annual customer repeat rate vs 4% industry average
“And that, which is the average of industries, four percent, we are now at 25% repeat rate. And so, 25% of our lifetime customers will shop again this year.”
Mithun Sacheti Feb 27, 2023 ▶ 36:51 Building CaratLane to a 17000 Crore company and selling it to TATA with Founder Mithun Sacheti
Assertion Contradicted
Sacheti: CaratLane is already India's largest D2C business
“I would love to see this become India's largest direct to consumer business. I mean, sorry, world's largest direct to consumer business. India's largest we already are.”
Mithun Sacheti Feb 27, 2023 ▶ 37:39 Building CaratLane to a 17000 Crore company and selling it to TATA with Founder Mithun Sacheti
Assertion Supported
Sacheti: India produces 90% of global diamonds but captures 8% of margins
“Nine out of 10 diamonds sold in the world are made in India. But we capture only eight percent of gross margin of the world.”
Mithun Sacheti Feb 27, 2023 ▶ 38:07 Building CaratLane to a 17000 Crore company and selling it to TATA with Founder Mithun Sacheti
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