Urban Ladder is now the most recent acquisition by Reliance Industries Limited or RIL. Reliance via Reliance Retail Ventures Limited (which is its wholly-owned subsidiary) took over 96% shareholding in Urban Ladder trying to enter the furniture market.
RRVL can in future secure the remaining 4% stake in Urban Ladder, according to documentation submitted by RIL with Bombay Stock Exchange filings. Recently, the Mukesh Ambani-driven firm RRVL had procured a stake – 60% in Netmeds for Rs 620 crore in August this year itself.
RIL has proposed to implant another Rs 75 crore in Urban Ladder by December 2023, taking its equity holdings and control to 100% in the furniture retailer. The statements via the spokespersons of RRVL said – “New investments will additionally empower RRVL in gathering computerized and new activities and will broaden the consumer product choices, while at the same time upgrading client commitment and experience over its retail contributions”.
This is a significant stress deal in online furnishings and stylistic layout space. Future Group had previously taken over Rocket Internet’s Fabfurnish in 2016. Rocket Internet which has also put over $50 million in Urban Ladder earlier, was able to sell the stake only under $2 million.
Prior to this arrangement, Urban Ladder had raised over Rs 770 crore or $105 million from investors namely SAIF Partners, Sequoia Capital, Steadview and Kalaari Capital. The organization has been battling for as long as two years to discover new supporters as the existing investors had already taken their hands back.
It’s significant to note that one of Urban Ladder’s promoter Rajiv Srivasta had left the firm a year ago. Srivasta joined Singapore-based private equity firm Antler as head of India division.
Pepperfry and Urban Ladder vowed to disturb the sloppy furnishings and home-style unorganized markets during the 2012-13 times. Keeping Peppergry aside, Urban Ladder lost the plot for many reasons from difficulties in flexibly delivery chains, low-quality services and many others.
Market experts also accept that Ikea’s entrance has changed the furniture market conditions. With acquisitions of Pepperfry and Urban Ladder the next big players, there seems to be an uncertainty in the industry as to its future projections. Ikea as of late raised a $40 million driven by Pidilite at a valuation over $460 million.
With Reliance’s entry into the segment, a lot of surprises may be lined up. Clearly, Mr Ambani is looking to expand his retail business but will the furniture market be his industry of choice to extract ultimate profits is still a question on he can answer.
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