Metro Brands announced on Friday that the firm has acquired a 5.03 per cent stake in Thaely Private Limited, a company engaged in the business of marketing and selling sustainable sneaker shoes, for Rs 2.67 crore.
"Metro Brands stated that the acquisition of compulsorily convertible preference share will be done as per the schedule agreed in definitive agreements at a pre-money equity valuation of Rs. 45 Crores," noted Metro Brands in an official statement.
The firm stated that the acquisition of the stake in Thaely will be an extension of its vision towards the promotion of sustainable footwear.
The transaction is expected to be completed by July 31, 2022. However, it is subject to completion of condition precedents and successful due diligence as per term sheet.
Start-up Thaely was developed by Ashay Bhave to produce ethically developed sneakers that use components recycled from waste materials. These materials are recycled plastic bottles, upcycled plastic bags, ThaelyTex (fabric made of upcycled plastic bags) and vegan glue.
ThaelyTex is made using 10 upcycled plastic bags in collaboration with TrioTap Technologies in Gurugram.
Thaely utilises woven RPET fabric on the toe box and tongue regions which make the shoes airy. The woven RPET fabric is made from recycling waste PET plastic bottles and is the same as virgin polyester in terms of quality. They also use an extra thick insole made of recycled rubber to add more comfort, as per the Thaely website.
Plantable recycled paper embedded with basil seeds and dyed with waste coffee grounds is used to design the Thaely Y2K Pro boxes used for delivering the shoes. These shoes are manufactured at Nitush Footwear in Punjab's Jalandhar.
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