V-Mart Retail Ltd., a known value fashion retailer, has signed a definitive agreement to acquire LimeRoad, a marketplace built for the value-seeking aspirational Indian.
Through this, the companies will leverage clearly identified synergies and deliver emerging fashion trends at an unbeatable value to 5 crore digital-first shoppers (Online and offline).
LimeRoad offers fresh unbranded styles and unique content to its 1.7 crore value shoppers, delivering fast web speed and a light app while ensuring a smooth online experience.
At peak, LimeRoad has delivered more than 2,50,000 app downloads per day, was ranked third in 'All India Shopping Play Store' ranking, and achieved GMV of more than Rs 700 crore at consistently strong margins, and post-marketing costs.
Women contribute to 65 percent of the business, with a strong presence in the Rs 500-1000 segment, LimeRoad has an NPS score of 44 which out-scores most marketplaces.
With over 20 years of experience, V-Mart has expertise in understanding the value customers need, the ability to deliver high-quality products at value prices, penetration in Tier ll, lll, and IV cities through a growing network of 410 stores, prudence, and a track record of delivering shareholder returns.
The Companies will combine these capabilities with LimeRoad’s community and editorially driven fashion quotient, ability to spot emerging trends first, logistics efficiency, technology, and data to transform the way the latest trends are delivered to aspirational consumers across all forms of retail.
LimeRoad will solve the trust and quality issues for value customers online, and work with V-Mart’s expertise to translate emerging trends into product depth, through sharply focused owned D2C brands.
Given the underlying strong unit economics post-marketing, V-Mart plans to invest a total of Rs 150 crore to enable LimeRoad to scale and achieve sustained profitability.
“V-Mart is one of the strongest players in the value retail segment fulfilling the fashion needs of masses across India. With this acquisition, we aim to not only acquire digital-first millennials but build our Omni-channel expertise,” said Lalit Agarwal, MD, V-Mart Retail Ltd said,
He further added, “We are proud to bring LimeRoadto the V-Mart family, having proven their ability to grow and scale a marketplace business while delivering best-in-the-industry metrics. V-Mart will operate LimeRoad as an independent business unit, retaining its tech start-up culture”.
Suchi Mukherjee, Founder of LimeRoad joined V-Mart’s leadership team as CEO of LimeRoad and the Omni-channel business, and Ankush Mehra, Co-Founder of LimeRoad would continue as COO.
"V-Mart is a leader in the price meets quality space. This partnership helps us fundamentally solve the quality conundrum at value prices online, and accelerate our vision of making the freshest of fashion accessible to our core customers through a uniquely rich online-offline experience. This is a large market, expected to grow at 39 percent CAGR over the next 5 years. Excellent execution is key to sustained share and value creation,” commented Suchi Mukherjee, Founder and CEO, LimeRoad.
The completion of the transaction is subject to necessary approvals and customary closing conditions.
Metta Capital acted as an exclusive financial advisor and Saraf and Partners acted as legal advisor to V-Mart for this transaction.