Reliance Retail buys Urban Ladder.


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Uploaded on Nov 19, 2020

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Reliance Retail buys Urban Ladder.

Reliance Retail buys Urban Ladder INTRODUCTION • Reliance Industries Ltd (RIL) has acquired online furniture seller Urban Ladder Home Decor Solutions Pvt. Ltd for ₹182.12 crore, expanding its presence in India’s fast-growing e-commerce market. Source: www.livemint.com Urban Ladder • Eight-year-old Urban Ladder operates a digital platform for home furniture and decor products. • It also has a chain of retail stores in several cities. • It was valued at around ₹1,200 crore in 2018, which dropped to around ₹750 crore in 2019. Source: www.livemint.com Reliance Retail Ventures Ltd • Reliance Retail Ventures Ltd (RRVL), the retail unit of billionaire Mukesh Ambani’s RIL, bought 96% of Urban Ladder and has the option to buy the remaining 4% stake. Source: www.livemint.com Investment • RRVL proposes to make a further investment of up to ₹75 crore, taking its ownership to 100% in the furniture e-tailer, which is expected to be completed by December 2023. Source: www.livemint.com The Urban Ladder acquisition • The Urban Ladder acquisition comes three months after Reliance Retail acquired a majority stake in online pharma firm Netmeds for around ₹620 crore. Source: www.livemint.com Consumer Products • The 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. Source: www.livemint.com Online furniture retail brands • The acquisition of Urban Ladder will create a few, large dominant online furniture retail brands, which will see Reliance and e-commerce marketplaces Flipkart and Amazon gaining market share along with existing furniture e-tailers like Pepperfry. Source: www.livemint.com Online furniture market in India • Data by RedSeer Consulting shows the online furniture market in India grew at an annual average pace of approximately 80-85% to touch $700 million in FY20. But online has less than 3% share in the overall furniture market, pegged at $17 billion. Source: www.livemint.com Challenges • The past two years have been challenging for the e-furniture market as funding remained subdued, and investors pressured them to turn profitable. Source: www.livemint.com Gross Merchandise Value • The share of home furniture continues to be a small part of online retail, and clubbed with e-grocery and online beauty products, raked up only 11% of the overall festive gross merchandise value (GMV) in the first week of e- commerce sales this year. Source: www.livemint.com