Reliance Industries’ Retail unit bought a 96% stake in Urban Ladder for ₹182.12 crore. Let’s take a look at various aspects of deal and what does it mean for both the entities.
Crux of the Matter
About Urban Ladder
In 2012, Ashish Goel and Rajiv Srivatsa founded Urban Ladder. So far, it has received total funding of ~$115 million from investors like Steadview Capital, Sequoia Capital India, etc.
India’s online furniture market size was $700 million in 2019-20, with Urban Ladder and PepperFry being the two prominent brands. This sector faces problems like infrequent purchasing by customers, high inventory cost, hard logistics, etc.
Reliance Industries’ Retail unit bought a 96% stake in Urban Ladder for ₹182.12 crores. The company also has the option to buy the remaining 4% stake, which is expected to sell at ₹75 crores by December 2023. Three months ago, Reliance Retail acquired a majority stake in online pharma firm Netmeds for around ₹620 crores.
After this deal, Urbanladder can get out of financial problems and stop worrying about funding. According to experts, “company will continue to operate as a separate brand within the Reliance ecosystem with CEO and co-founder Ashish Goel continuing to hold his post for the time being”.
What Does It Mean For Reliance?
After making strides in the retail sector by buying Future Group and getting investments for Reliance Retail, this deal will help Reliance build a stronger and diversified retail portfolio.
Acquisitions like these 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
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