We will see the case study on the Urban Ladder And Reliance Deal. What this deal meant to both the companies and why Reliance acquired it?
Reliance industries limited subordinate Reliance Ventures limited has acquired a 96% stake in a Bengaluru-based firm (Urban Ladder: Home Decor and furnish) for Rs 182.12 cr. It is making a more comprehensive campaign in the e-commerce based business as the largest retail chain among Indian organizations to fight other international e-commerce platforms Amazon and Flipkart.
This is the company’s fourth expansion this year. It previously acquired a 100% stake for Rs 152.5 cr. in Tamil Nadu-based Kannan Departmental Store in March. And 60% stake for 620 Cr. in Chennai-based e-pharmacy Netmeds and Future retail assets in August.
Reliance retail limited has the option of obtaining the remaining stake, representing 100% of equity share capital. They will make further speculation of the remaining 4% stake up to Rs 75 Cr. in Urban Ladder. This venture is required to be finished by December 2023, the organization said in a recording with stock trades.
About Urban Ladder
Consolidated in India in 2012, Urban Ladder is occupied with working on a computerized (Digital) stage for home furnishings and stylistic layout items. It additionally has a chain of retail locations in a few urban areas across India which further empowers the reliance group’s digital and new business activities and broadens the bouquet of consumer items provided by the group, while at the same time improving client commitment and experience over its retail contributions.
Urban Ladder Downfall
This is the subsequent distress deal in online furnishing and stylistic theme space. Kishore Biyani’s Future Group had obtained Rocket Internet-owned Fabfurnish in 2016. The Rocket had also invested over Rs 372 Cr. in Urban Ladder, it was sold for less than Rs 15 Cr. Before this game plan, Urban Ladder had raised over Rs 770 cr. from Steadview, Sequoia Capital, SAIF Partners, and Kalaari Capital. The organization has been fighting for as long as two years to discover new supporters. However, existing investors had written off it long back.
In fact, Urban Ladder reported a profit of Rs 49 Cr. in 2018-2019. Along with net losses of Rs 118.66 cr. and Rs 457.97 cr. during 2017-18 and 2016-17, respectively.
To conclude, it should be noted that one of Urban Ladder’s co-founders Rajiv Srivasta had left the firm a year back. He later joined the Singapore-based Firm Antler as head of India and local associate. (We tried to cover all the details in this case study on Urban Ladder. Hope it’s useful.)
With the acquisition of Urban Ladder, Pepperfry is the main and only independent part of the online furniture fragment. The organization as of late raised Rs 298 Cr. round driven by Pidilite at a valuation of over Rs 34 Million. In February 2020, chemicals maker Pidilite Industries invested Rs 298 cr. in Pepperfry, which includes Goldman Sachs, Bertelsmann India Investments, among its key investors.
“Having an equity stake, obviously means that we will have a very close collaboration with these platforms and. therefore bring those insights to our organization and which can form a part strategy as the market moves gradually albeit in a very small manner to sort of a platform where ready to make furniture, etc., becomes more popular”.About the investment in Pepperfry, Pidilite Industries’ CFO Pradip Menon had said
About Reliance Retail
Reliance Retail is a part of Reliance Industries – India’s most valued firm. It has raised about Rs 4 billion in recent months. After its subordinate-Jio Platforms, secured over Rs 14 billion this year from Facebook and Google among other prominent financial specialists. (High Profile Investors)
Reliance Retail serves more than 3.5 million clients every week through its almost 10,000 actual stores. Within that 6,500 are in urban areas and towns of the country. It entered the internet business space with JioMart through a joint endeavor with Jio Platforms.
JioMart now has a presence in more than 200 Indian urban areas and towns. It also maintains an association with Facebook to incorporate WhatsApp.
As indicated by sources, for the time being, the organization will keep on working as a different brand inside the Reliance ecosystem with CEO and co-founder Ashish Goel proceeding to hold his post for the present.
Hope this case study on the Urban Ladder and Reliance Retail was Useful.