Reliance Retail acquires 96% shares of Bengaluru-based Urban Ladder; to invest 75 cr more

In a recent development, Reliance Industries has acquired about 96% shares of Bengaluru-based online furniture retailer Urban Ladder for Rs. 182.12 crore. Reliance Industries Limited announced the move in an official statement on Saturday. This deal is most likely to aid Mukesh Ambani led Reliance Industries limited to challenge other online retailers like Ikea, Flipkart, Amazon and Pepperfry, in home furnishing and furniture market in India which is worth about $32 billion.

"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. The said investment represents 96 per cent holding in the equity share capital of Urban Ladder," informed Reliance in a statement. 

"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 further added. 

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Reliance Retail Ventures plans Rs 75 crore investment

A subsidiary of Reliance Industries Limited, Reliance Retail Ventures (RRVL) has acquired the Bangalore based Urban Ladder Home Decor Solutions (Urban Ladder). Further, the company has the option to acquire the remaining shares and gain 100% of the equity share capital of the online furniture retailer. As of now, Reliance Retail has proposed to further its investment in the company with additional Rs. 75 crore that is expected to be completed by December 2023, as per the statement.

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Detailing the profits of the online furniture retailer Urban Ladder, Reliance Industries informed that the audited turnover of the company in 2018-19 was Rs. 434 crores with a net profit of Rs. 49.41 crore. Incorporated on 17 February 2012 in India, Urban Ladder also has an offline presence along with a chain of retail stores in numerous cities across India. 

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(With inputs from PTI)