The country's richest industrialist Mukesh Ambani-controlled Reliance Industries Ltd (RIL) has acquired furniture company Urban Ladder. The company said in a statement that its retail arm Reliance Retail Ventures Ltd (RRVL) has bought a 96 percent stake in Urban Ladder Home Decor Solutions Pvt Ltd for Rs 182.12 crore.
According to the statement, RRVL will also have the option to buy the remaining four percent stake. Along with this, RRVL has also proposed an investment of Rs 75 crore in the urban ladder. This investment will be made by December 2023. RIL has said in its statement that the acquisition will help it strengthen its hold in the fast-growing e-commerce market. It does not require any regulatory approval for this acquisition.
The company is preparing to compete with giants like Amazon and Flipkart. In such a situation, acquisitions like Urban Ladder will also help it to expand its consumer product base. Urban Ladder was founded in July 2012 by Ashish Goyal (CEO) and Rajiv Shrivats (COO). Apart from online business, the company's stores are in several other cities including Bengaluru, Chennai, Mumbai, Delhi NCR, Pune, and Hyderabad.
The company has previously raised capital through venture capital funds such as Sequoia Capital, Saif Partners, and Kalari Capital, as well as hedge funds such as Stadeview Capital. Ratan Tata, Honorary Chairman of Tata Sons, has also invested in Urban Ladder.