V-Mart set to acquire fashion marketplace LimeRoad; to invest ₹150 crore
V-Mart Retail Ltd On Monday, the discount fashion retailer announced that it had signed a definitive agreement to acquire online fashion marketplace – LimeRoad.
The company says this will help it strengthen its omnichannel strategy and leverage synergy to bring emerging fashion trends to first-time digital shoppers.
According to regulatory documents, V-Mart said it would make a one-time cash payment of ₹31.12 crores subject to mutually agreed on adjustments. “As part of the acquisition of the LimeRoad business, the company also acquired assets worth approximately ₹14.61 crores and assumes current liabilities of 36.26 crores,” V-Mart added.
The completion of the transaction is subject to the necessary approvals and closing conditions. “Given the unit’s strong economic fundamentals after marketing, V-Mart plans to invest 150 crores in enabling LimeRoad to grow and achieve sustainable profitability,” the company said.
This is V-Mart’s second acquisition in recent times, having acquired the Unlimited retail brand from Arvind Fashions. Lalit Agarwal, CEO of V-Mart Retail Ltd, said: “V-Mart is one of the strongest players in the retail value segment, serving the fashion needs of the masses worldwide.” With this acquisition, we not only aim to attract digitally-focused millennials but also develop our multi-channel expertise.
V-Mart will operate LimeRoad as an independent business unit, keeping the technology startup culture intact. Suchi Mukherjee, founder of LimeRoad, will join V-Mart’s leadership team as LimeRoad’s CEO and lead the company’s omnichannel business.
Ankush Mehra, the co-founder of LimeRoad, continues as COO. The statement adds that LimeRoad offers buyers the latest unbranded styles and unique content worth 1.7 crores.
LimeRoad’s net sales for fiscal year 22 were ₹69.31 crores, ₹79.64 crores for fiscal year 21 and ₹179.95 crores for fiscal year 20, according to regulatory filings. V-Mart currently operates a network of about 410 stores with solid penetration in Tier 2, -3 and -4 cities.
“V-Mart and LimeRoad have the potential to become the fastest growing omnichannel fashion retail platform in India,” the company added. LimeRoad’s Mukherjee says high-priced value shoppers meet style—aspiration meets quality. “This partnership helps us solve the quality conundrum at great prices online and accelerates our vision of making the freshest fashion accessible to the establishment. Our core customers through unique rich online and offline experiences.
This large market is expected to grow at a CAGR of 39% over the next 5 years.