Updated: Oct 21, 2022
Fashion retailer V-Mart Retail on Monday (October 17) said it would acquire Tiger Global-backed eCommerce startup LimeRoad in an all-cash deal of INR 31.12 Cr on a slump basis.
Why it matters: Aiming to not only acquire digital first millennials but build an omnichannel expertise, Lalit Agarwal, managing director of V-Mart Retail stated that V-Mart will operate LimeRoad as an independent business unit, retaining its tech startup culture.
V-Mart is a leader in the price-meets-quality space. This partnership would help fundamentally solve the quality conundrum at value prices online, and accelerate making of the freshest of fashion accessible to customers through an online-offline experience, said Mukherjee, the founder of LimeRoad.
Backdrop: Founded in 2012, LimeRoad claims to sell its fashion products to 17 Mn buyers. The startup claims to deliver gross merchandise value (GMV) of more than INR 700 Cr at consistently strong contribution margins after marketing costs.
V-Mart plans to make a total investment of INR 150 Cr to help the startup scale further and achieve sustained profitability, the fashion retailer said in a release.
Also: The completion of the transaction is subject to necessary approvals and closing conditions. Both companies aim to leverage each other’s synergies and deliver emerging fashion trends to their customers through the acquisition.
This is V-Mart’s second acquisition after the Unlimited store brand, which is bought from Arvind Fashions.
As part of the deal, V-Mart would acquire the fashion marketplace’s assets worth about INR 14.61 Cr and assume its current liabilities of INR 36.26 Cr.
In brief: V-Mart acquiring LimeRoad will continue to operate with LimeRoad as an independent business unit to retain its tech startup culture.