Reliance Industries Limited (RIL) subsidiary Reliance Retail Ventures Limited (RRVL) has acquired a majority stake in online furniture startup Urban Ladder Home Decor Solutions Pvt Ltd.
The company has bought 96% holding in Urban Ladder's equity share capital for a cash consideration of Rs 182.12 crore.
RRVL also has further option of buying the balance stake, which will take its shareholding to 100%, it informed the stock exchange on Saturday night, November 15.
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The retail unit firm of RIL has also proposed to make a further investment of up to Rs 75 crore, which is likely to be concluded by December, 2023.
Urban Ladder's buyout is expected to set off consolidation among online furniture retailers, thereby creating a few large leading brands.
The eight-year-old startup, incorporated in India on February 17, 2012, operates a digital platform for home furniture and decor products.
The company also has a chain of retail stores in several cities across the country. The online furniture retailer's audited turnover was Rs 434 crore, Rs 151.22 crore and Rs 50.61 crore, and net profit/(loss) of Rs 49.41 crore, Rs 118.66 crore and Rs 457.97 crore in FY 2019, FY 2018 and FY 2017, respectively, according to the stock exchange filing.
Urban Ladder's valuation stood at Rs 1,200 crore in 2018, which fell to around Rs 750 crore in 2019. "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 in its filing.
"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," it added.