Reliance Retail Ventures, a retail arm of Reliance Industries led by Mukesh Ambani, has taken a 96 percent stake in the eight-year-old marketplace Urban Ladder. According to the stock market filing, this stake has been taken for 182.12 crore. Urban Ladder is one of the startups with which Reliance was in talks to take a stake for the last few months. These include Netmeds. With this move, Ambani’s e-commerce platform Jio Mart will move forward. And it will be able to give tough competition to Jeff Bezos currently owned by Amazon and Walmart owned by Jeff Bezos at the top of the e-commerce market.
100 percent stake was an option
It will also compete with Pepperfry backed by Goldman Sachs by taking a stake in online furniture selling platforms. The filing states that this will help in furthering the group’s digital and new commerce business and expanding the consumer products offered by the group.
Reliance Retail said it also had the option to acquire the remaining equity capital of Urban Ladder, which could increase its stake in the company to 100 per cent. The company has proposed further investment of up to Rs 75 crore in urban ladder which will be completed by December 2023. Prior to the deal, Urban Ladder had raised about Rs 857 crore ($ 114.9 million) from investors.
Retail stores in many cities of urban ladder
Urban Ladder was launched in India on 17 February 2012. It does the business of operating a digital platform for home furniture and decoration products. The company also has chain of retail stores in many cities across the country. According to the website, the company also operates Rites stores in NCR, Hyderabad, Mumbai, Pune, Bangalore and Chennai.
Urban Ladder had an audited turnover of Rs 434.00 crore, 151.22 crore and 50.61 crore in FY 2019, FY 2018 and FY 2017 respectively. According to the filing, the company made a profit of 49.41 crore in FY 2019, 118.66 crore in FY 2018 and 457.97 crore in FY 2017.