Reliance Retail Ventures Limited has bought a 96% stake in online furniture retailer Urban Ladder for a cash consideration of Rs 182.12 crore, furthering its attempt to expand its presence in India's online retail market.
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (RIL) said on Sunday it has bought a 96% stake in online furniture retailer Urban Ladder for a cash consideration of Rs 182.12 crore, furthering its attempt to expand its presence in India's online retail market.
RRVL has a further option of acquiring the balance stake, taking its shareholding to 100% of the equity share capital of Urban Ladder.
RRVL proposes to make a further investment of up to Rs 75 crore. The investment is expected to be completed by December 2023.
The Indian conglomerate is expanding its so-called new commerce venture, which ties neighbourhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Walmart Inc's Flipkart and Amazon.com Inc's Indian arm.
"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 said in a filing to exchanges on Sunday.
Urban Ladder was incorporated in India on February 17, 2012. Urban Ladder is in the business of operating a digital platform for home furniture and decor products.
It also has a chain of retail stores in several cities across India. Urban Ladder'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.
Reliance Industries, controlled by Asia's richest man, Mukesh Ambani, is lining up investors in its retail unit after the conglomerate raised over USD 20 billion this year from global investors, including Facebook Inc, by selling stakes in its Jio Platforms digital business.
(With agency inputs)
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