This is the company’s fourth acquisition this year after Coimbatore-based Kannan Departmental Store in March, and e-pharmacy Netmeds and Future Retail’s assets in August.
This acquisition comes after Reliance Retail also bought the retail, wholesale and logistics business of Future Group in a slump sale for Rs 24,713 crore in August.
About Urban Ladder
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.
Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India.
Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
Reliance is one of the most profitable companies in India and the largest publicly traded company in India by market capitalization.
The 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.
Reliance Retail has bought the 96% stake in the Bengaluru-based Urban Ladder from its existing investors including Sequoia Capital India, Kalaari Capital, and Steadview Capital
RIL has acquired the Bengaluru-based firm for a cash consideration of Rs 182.12 crore.
Another 4% holdings
RRVL has a further option of acquiring the balance 4% stake in Urban Ladder, as per documentation filed by RIL with Bombay Stock Exchange filings.
RIL has proposed to infuse more Rs 75 crore in Urban Ladder by December 2023.
During 2018-19, UrbanLadder reported a profit of Rs 49 crore, the first since its inception in 2012. This was preceded by net losses of Rs 118.66 crore and Rs 457.97 crore in 2017-18 and 2016-17, respectively
The company has been struggling for the past two years to find new backers whereas existing investors had written it off long back.
Revenues for Reliance Retail in FY20 was Rs 1.63 trillion ($21.7 billion).
Reliance Retail saw a strong recovery in Q2FY21.
Comment from RIL
“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.”