Value-fashion retailer V-Mart buys fashion startup LimeRoad; will invest Rs 150 crore
V-Mart, a value-fashion retailer, has signed a definitive agreement to acquire discovery marketplace LimeRoad on a slump sale basis.
V-mart said in a stock exchange filing it will pay a lumpsum of Rs 31.12 crore cash, subject to mutually agreed adjustments by both parties.
“As part of the acquisition of LimeRoad business, the company is also acquiring assets worth approximately Rs 14.61 crore and assuming current liabilities of Rs 36.26 crore,” the retailer added.
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. V-Mart also plans to invest Rs 150 crore to help LimeRoad scale and achieve sustained profitability.
“V-Mart is one of the strongest players in the value retail segment. With this acquisition, we aim to not only acquire digital-first millennials but build our omnichannel expertise. V-Mart will operate LimeRoad as an independent business unit, retaining its tech startup culture.” said Lalit Agarwal, managing director of V-Mart Retail Ltd.
LimeRoad’s founder Suchi Mukherjee will join V-Mart’s leadership team as the CEO of LimeRoad and its omnichannel business, while cofounder Ankush Mehra will continue as chief operating officer.
“V-Mart is a leader in the price-meets-quality space. This partnership helps us fundamentally solve the quality conundrum at value prices online, and accelerate our aims of making the freshest of fashion accessible to our customers through an online-offline experience,” said Mukherjee.
This is V-Mart’s second acquisition after the Unlimited store brand, which is bought from Arvind Fashions.
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