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Reliance Industries' retail arm has acquired 96 per cent stake in online furniture retailer Urban Ladder for Rs 182.12 crore.
“Reliance Retail Ventures Limited (RRVL)...has acquired equity shares of Urban Ladder Home Decor Solutions Private Ltd for a cash consideration of Rs 182.12 crore," Reliance Industries (RIL) said in a late night regulatory filing on Saturday.
The said investment represents 96 per cent holding in the equity share capital of Urban Ladder, it added.
“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,” it said.
RRVL has a further option of acquiring the balance stake, taking its shareholding to 100 per cent of the equity share capital of Urban Ladder.
Besides, RRVL has proposed to make a further investment of up to Rs 75 crore.
“The further investment is expected to be completed by December 2023,” the filing said.
Urban Ladder was incorporated in India on February 17, 2012.
Besides online, the company has presence in offline channels and operates a chain of retail stores in several cities across India.
In 2018-19, Urban Ladder's audited turnover was Rs 434 crore and the net profit was Rs 49.41 crore, it said.
Photograph: Reuters