Reliance Retail has invested more than ₹182 crore in online furniture retailer Urban Ladder in return for a 96% stake in the company, according to a regulatory filing. The sale is being termed as a distress sale of sorts, given that Urban Ladder’s losses have been mounting over the last two years. The company competes with the likes of Pepperfry and Swedish furniture major IKEA.
The company will invest an additional ₹75 crore in Urban Ladder to take its shareholding to 100%, and expects this transaction to be complete by December 2023. Reliance said that the investment will help its digital and new commerce initiatives.
UrbanLadder’s turnover was ₹434 crore, ₹151.22 crore and ₹50.61 crore, in FY 2019, FY 2018 and FY 2017 respectively, the filling showed. However, the company’s losses were mounting up — in FY 2108, it posted a net loss of more than ₹118 crore, and in FY 2019, that further ballooned close to ₹458 crore. In June last year, Urban Ladder had to lay off hundreds of employees, presumably due to mounting losses.