Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (RIL) has acquired equity shares of Urban Ladder Home Decor Solutions Private Limited (Urban Ladder) for a cash consideration of ₹182.12 crore.
The investment represents 96 per cent holding in the equity share capital of UrbanLadder. RRVL has a further option of acquiring the balance stake, taking its shareholding to 100 per cent of the equity share capital of UrbanLadder.
RRVL proposes to make a further investment of up to ₹75 crore, which is expected to be completed by December 2023, the company informed the stock exchange on Saturday night.
Founded in July 2012, Urban Ladder operates a digital platform for home furniture and decor products. It has a chain of 10 retail stores in Mumbai, Bengaluru, Delhi, Chennai, Noida, Hyderabad and Pune.
UrbanLadder's audited turnover was ₹434 crore, ₹151.22 crore and ₹50.61 crore, and net profit/loss of ₹49.41 crore, ₹118.66 crore and ₹457.97 crore in FY 2019, FY 2018 and FY 2017 respectively, according to the stock exchange filing.
“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.
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.