Reliance acquires majority stake in furniture retailer Urban Ladder for Rs 182 crore
Reliance Retail has proposed to further invest up to Rs 75 crore, which may be done by December 2023.
Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited, on Saturday acquired 96% equity shares of Urban Ladder Home Decor Solutions, an online furniture startup, for Rs 182.12 crore.
Urban Ladder runs a digital space for home furniture and decor products and also has a chain of retail stores in several cities in India.
Reliance has a further option of acquiring the remaining stake, taking its stake to 100%, the company told the stock exchange on Saturday night. “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.
The company has proposed to further invest up to Rs 75 crore, which is expected to be done by December 2023.
The eight-year-old startup was valued at nearly Rs 1,200 crore in 2018. The valuation dropped to around Rs 750 crore in financial year of 2019. It’s audited turnover was Rs 434 crore and the net profit was Rs 49.41 crore in 2019, the stock exchange filing showed.
Urban Ladder Home Decor Solutions was founded by Ashish Goel and Rajiv Srivatsa in 2012. It initially raised over Rs 700 crore from top venture funds such as SAIF Partners, Sequoia Capital, Kalaari Capital and Steadview Capital, a hedge fund. However, the company faced difficulties to raise funds after the Series E funding. In November 2019, the company was able to raise Rs 15 crore, but many of its existing investors did not participate in the round.
Earlier in August, Reliance Retail had acquired a majority stake in Netmeds, an online pharmaceutical firm, for about Rs 620 crore.“This investment is aligned with our commitment to provide digital access for everyone in India,” said Isha Ambani, director of Reliance Retail Ventures, had said.