Reliance Retail has purchased 96% stakes in Urban Ladder for just 186 Crores. Why we are just 186 Crores? because last year the valuation of Urban Ladder was 1200 Crores. So, Reliance Retail is getting Urban Ladder at 1/6th of the value. The Urban ladder over the years has been struggling and that is the reason the investors have parted away with the company so cheaply. Reliance Retail has further options to acquire 100% stakes in the company. This is all cash-deal. RRVL proposes to make a further investment of up to INR 75 crore. Further investment is expected to be completed by December 2023.
UrbanLadder was incorporated in India on February 17, 2012. UrbanLadder 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 INR 434.00 crore, INR 151.22 crore, and INR 50.61 crore, and Net Profit / (Loss) of INR 49.41 crore, INR (118.66) crore, and INR (457.97) crore in FY 2019, FY 2018, and FY 2017 respectively.
With this investment, the Reliance Retail 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.