Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries (RIL) has acquired equity shares of Urban Ladder Home Décor Solutions (UrbanLadder) for a cash consideration of around Rs 182.12 crore.
The said investment represents approximately 96 percent holding in the equity share capital of UrbanLadder.
RRVL has a further option of acquiring the balance stake, taking its shareholding to 100 percent of the equity share capital of UrbanLadder. The company proposes to make a further investment of up to Rs 75 crore. The further investment is expected to be completed by December 2023.
UrbanLadder was incorporated in India on 17 February 2012. The company is in the business of operating a digital platform for home furniture and décor products. It also has a chain of retail stores in several cities across India.
UrbanLadder’s audited turnover was Rs 434.00 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 FY19, FY18 and FY17 respectively.
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.
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.