RIL Online Retail Business: Reliance Industries has strengthened its hold in the online retail market. Reliance Retail Ventures Limited (RRVL) has bought a 96 percent stake in Urban Ladder Home Decor Solutions Private Limited (Urban Ladder). A total deal of Rs 182.12 crore has been done for this. Reliance Retail Ventures is a subsidiary of Reliance Industries. This deal is in cash. This deal will give Reliance a chance to expand into the online retail market.
Option to buy the remaining stake
According to this deal, RRVL has the option to buy the remaining stake in the urban ladder. If she buys the remaining stake, then her stake in the company will be 100 percent. It has proposed to invest another Rs 75 crore in urban ladder. This investment is expected to be completed by December 2023. The acquisition of Urban Ladder will increase Reliance Retail’s presence on the digital platform. The scope of its products will also increase.
About Urban Ladder
Urban Ladder is more than 8 years old. It started on February 17, 2012. Urban Ladder operates a digital platform for furniture and decor products. It also has retail store chains in many cities of the country. Its audited turnover was Rs 434 crore in FY 2018-19.
Reliance to become digital king
Reliance Industries has also taken a major step towards its expansion through this acquisition in the business of online delivery of Flipkart and Amazon-dominated groceries, apparel and electronics. Reliance Industries has been trying to increase its presence on the digital platform for some time. There will be no need for regulatory approval or government approval for the deal of urban ladder.