V-Mart Retail Limited, India's premier value apparel retailer, has inked a formal deal to purchase LimeRoad, a discovery marketplace intended for the value-seeking aspirational Indian. The Companies will harness obvious discovered synergies to bring rising fashion trends at an unbeatable value to Bharat's 5 crore digital-first shoppers (Online and offline).
LimeRoad provides its 1.7 crore valuable consumers with the latest unbranded designs and original content. Through an award-winning logistics network (Economic Times supply chain of the year award 2018), the backend offers optimised logistics costs.
Given the underlying strong post-marketing unit economics, V-Mart intends to invest a total of Rs150 crore to enable LimeRoad to expand and achieve long-term profitability.
LimeRoad had 250,000+ app downloads per day at its height, a No.3 All India Shopping Play Store position, and a GMV of Rs700+ crore at consistently high margins after marketing expenditures. Women account for 65% of the business, with a notable presence in the Rs500-1000 range.
The Company will pay a lump sum cash consideration of Rs31.12 crore for the acquisition of LimeRoad Business, subject to adjustments as mutually agreed between the parties.
Eventually, V-Mart and LimeRoad will be a one-of-a-kind, lucrative Omni-channel player.
Metta Capital served as V-Mart's financial advisor, while Saraf and Partners was the appointed legal counsel.
At around 2.52 PM, V-Mart Retail was trading at Rs2,731.25 apiece, down by 1.23% from its previous closing of Rs2,765.30 on the BSE. The scrip touched intraday high and low of Rs2,819 and Rs2,686.85 respectively.
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