The retail arm of Reliance Industries has acquired a 96 percent stake in online furniture company Urban Ladder for Rs 182.12 crore. Reliance Industries gave this information in a notice sent to the stock markets late on Saturday. The information says, “Reliance Retail Ventures Ltd. (RRVL) Urban Ladder Home Decor Solutions Pvt. Has acquired equity shares of Rs. 182.12 crore. Through its investment, it has acquired a 96 percent stake in Urban Ladder.
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The company said, “This investment will encourage the group’s digital and neo-commerce initiative and at the same time increase the offer of products to consumers.” RRVL will also have the option to purchase the remaining stake in the Urban Ladder, taking its total stake to 100 per cent equity share capital. Apart from this, RRVL has proposed to invest another Rs 75 crore in the company.
Formation of Urban Ladder in India
The company said that the investment would be completed by December 2023. Urban Ladder was formed in India on 17 February 2012. Apart from online, the company has a presence in the retail store business. The company operates a chain of retail stores in various cities of the country. The financial year 2018-19 Urban Ladder stood at Rs 434 crore. The company made a net profit of Rs 49.41 crore during the financial year.