Retail firm V-Mart Retail has acquired direct-to-consumer (D2C) trend modelin an all-cash deal as a part of a misery sale.
As a part of the acquisition, the corporate is buying property price Rs 14.61 crore and assuming present liabilities of Rs 36.26 crore, V-Mart mentioned in a inventory trade submitting.
The sale is probably going to assist V-Mart strengthen its on-line presence by way of LimeRoad’s person base of 5 crore internet buyers in Tier II and III markets.
This additionally comes at a time when the style startup is struggling to maintain up with competitors from on-line gamers like Matrix Companions, Tiger International Administration, and Lightspeed India Companions., , and . Up to now, LimeRoad has raised over $50 million from marquee buyers like
V-Mart can even make investments Rs 150 crore to assist LimeRoad obtain profitability, it mentioned in an announcement. The listed entity at the moment has a community of 450 shops throughout the nation, whereas LimeRoad is claimed to have achieved over two lakh downloads per day together with a gross merchandise worth (GMV) of Rs 700 crore. GMV is a generally used time period that refers back to the whole worth of products and providers bought over a time frame by a retail firm.
LimeRoad will function as an unbiased entity beneath the V-Mart label and the startup’s CEO Suchi Mukherjee will proceed her function.
“V-Mart is without doubt one of the strongest gamers within the worth retail phase fulfilling the style wants of lots throughout India. With this acquisition we intention to not solely purchase digital-first millennials however construct our Omni-channel experience,” mentioned Lalit Agarwal, Managing Director of V-Mart Retail Ltd.
The completion of the transaction is topic to crucial approvals and circumstances from regulatory authorities, the assertion famous.acted as an unique monetary advisor and Saraf and Companions acted as authorized advisor to V-Mart for this transaction.
(This story was up to date to make clear the small print of the deal based mostly on the corporate’s inputs.)