Reliance Retail Ventures Limited has acquired equity shares of Urban Ladder Home Décor Solutions Pvt Ltd for Rs. 182.12 crores. RRVL has bought 96% of the equity share capital and has a further option of acquiring the balance stake of Urban Ladder. The company informed the stock exchange on Saturday night.
The firm intends to further invest Rs. 75 crores by December 2023. The company’s valuation dropped from Rs. 1,200 crores to Rs. 750 crores in 2019. According to the stock exchange filing, Urban Ladder’s audited turnover was Rs. 434 crores, Rs. 151.22 crores, and Rs. 50.61 crore while, Net Profit was Rs. 49.41 crores, Rs. 118.66 crores, and Rs. 457.97 crores in FY 2019. FY 2018, and FY 2017 respectively.
Reliance Retail said, “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 government or regulatory approvals will not be required for this investment. Moreover, the investment does not fall within related party transactions, and none of RIL’s promoter/ promoter group/ group companies has any interest in the transaction.
Urban Ladder was founded by Ashish Goel and Rajiv Srivastsa in 2012, and it raised more than Rs. 700 crores from top venture capital funds such as Sequoia Capital, SAIF Partners, and Kalaari Capital. However, after its Series E round two years ago, it struggled to raise capital. Last November, it raised Rs. 15 crores through its existing investors.
