Reliance Spends Rs 182.12 Crore to Acquire 96% Stake in Urban Ladder
The Reliance Retail Ventures Limited (RRVL) has paid online furniture startup, Urban Ladder Home Decor Solutions Pvt Ltd, Rs 182.12 crore to buyout 96 percent of its stakes. On Saturday night, the RRVL informed the stock exchange that it has an option to acquire the balance stake as well.
The RRVL has proposed to make an investment of up to Rs 75 crore in the business by December 2023.
The furniture retail sector, especially online, is currently dominated by a few big brands. Small retails, both online and offline, mostly operate outside the tax system. Urban Ladder is an eight-year-old start up that somewhat revolutionised the online selling of home furniture and products of decoration.
Apart from the digital platform, Urban Ladder also has a chain of retail stores throughout India.
In 2018, the value of Urban Ladder was estimated as around Rs 1,200, which reduced to around ₹750 crore in the subsequent year. In the financial year 2019, the company’s audited turnover was Rs 434 crore, with Net Profit/(Loss) of Rs 49.41 crore.
“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.” the Reliance Retail said in a statement.
The said investment does not require any approval from the government. No company of Reliance Industries Limited or its promoter group have any interest in the transaction.
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