Reliance Retail Ventures Limited (RRVL), an arm of Reliance Industries Ltd (RIL), has bought an online furniture startup Urban Ladder. Reliance Retail has acquired a 96% share in Urban Ladder for Rs 182 crore.
The filing to the stock exchanges said, “RRVL has a further option of acquiring the balance stake, taking its shareholding to 100% of the equity share capital of Urban Ladder.”
Reliance Industries will likely make an additional investment of Rs 75 crore in the online furniture retailer by December 2023.
Reliance Retail is operating around 12,000 brick-and-mortar stores and JioMart e-commerce platform. In 2020, the company has so far raised over Rs 47,000 crore by selling slightly more than 10% stake to a clutch of private equity investors like KKR, General Atlantic, Silver Lake, Mubadala, Singapore’s GIC, TPG, ADIA, and Saudi Arabia’s PIF.
Urban Ladder was founded by Ashish Goel and Rajiv Srivastava in 2012. The Bengaluru-based company has raised investments from Kalaari Capital, Saif Partners, Sequoia Capital, and Steadview Capital over the years.
In the fiscal year 2019, the audited turnover of Urban Ladder was Rs 434.00 crore and a net loss of Rs 49.41 crore.
“No governmental or regulatory approvals were required for the said investment. The investment does not fall within related party transactions and none of RIL’s promoter/promoter group/group companies have any interest in the transaction,” the filing added.