Reliance picks 96% share in UrbanLadder for Rs 182 crores

Reliance Retail Ventures Limited (RRVL) is a subsidiary of Reliance Industries Limited (RIL). RRVL has acquired 96% equity shares of Urban Ladder Home Decor Solutions Private Limited (UrbanLadder). This was for a cash consideration of Rs 182.12 crore. With this, RRVL also has a vested option to buy other 4% shares. This will take its shareholding to 100% of the equity share capital of UrbanLadder. It also aims to make a further investment of up to Rs 75 crore. The further investment is expected to be completed by December 2023.

About UrbanLadder

UrbanLadder incorporated in India on February 17, 2012. UrbanLadder is in the business of operating a digital platform for home furniture and decor products. It also has a chain of retail stores in several cities across India. UrbanLadder's audited turnover was Rs 434 crore, Rs 151.22 crore and Rs 50.61 crore; and Net Profit/(Loss) of Rs 49.41 crore, Rs 118.66 crore and Rs 457.97 crore in FY 2019, FY 2018 and FY 2017 respectively.

With Urban Ladder set to sell its business, Flipkart and Amazon along with market leader Pepperfry will dominate this sector. The last two years have been challenging for the e-furniture market. The funding in this sector lowered as investors pressured them to turn profitable. 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.

The said investment requires no governmental or regulatory approvals. The investment does not fall within related party transactions. Further, none of RIL's promoter/promoter group/group companies has any interest in the transaction.

Urban Ladder, in particular, has had a rough ride in recent years. Founded by Ashish Goel and Rajiv Srivatsa in 2012, the company raised more than ₹700 crores from top venture capital funds such as Sequoia Capital, SAIF Partners, Kalaari Capital and hedge fund Steadview Capital. But after its Series E round two years ago, it struggled to raise capital. Last November, it raised ₹15 crores, though some of its existing investors did not participate in the round.