Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd (RIL), announced that it has acquired equity shares of online furniture and decor platform Urban Ladder Home Decor Solutions Pvt Ltd for ₹182.12 crore.
RRVL has bought 96% holding in the equity share capital of Urban Ladder and has a further option of acquiring the balance stake, taking its shareholding to 100%, the company said in its exchange filing.
The retail unit firm proposes to make a further investment of up to ₹75 crore, which is expected to be completed by December, 2023.
Founded in 2012 by Ashish Goel and Rajiv Srivatsa, the Bengaluru-based startup operates a digital platform for home furniture and decor products.It also has a chain of retail stores in several cities across India.
UrbanLadder`s audited turnover was ₹434 crore, ₹151.22 crore and ₹50.61 crore, and Net Profit/(Loss) of ₹49.41 crore, ₹118.66 crore and ₹457.97 crore in FY 2019, FY 2018 and FY 2017 respectively, according to the stock exchange filing.
“The aforesaid investment will further enable the group`s digital and new commerce initiatives and widen the bouquet of consumer products provided by the group, while enhancing user engagement and experience across its retail offerings.” Reliance Retail said.
No governmental or regulatory approvals were required for the said investment. The investment does not fall within related party transactions and none of RIL`s promoter/promoter group/group companies have any interest in the transaction.
Prior to this acquisition, Reliance Retail entered into a $3.4 billion deal with Future Group to buy its retail chain business. In August, Reliance acquired a 60% stake in pharma marketplace Netmeds’ parent firm Vitalic for about $83.2 million.
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