LimeRoad recorded a net profit of Rs. 69 crores, down from Rs. 179.95 crores.
Synopsis: In order to maintain LimeRoad’s tech startup culture, V-Mart will run it as a separate business entity.
To strengthen its position in the omnichannel industry, fashion retailer V-Mart Retail Ltd. has bought online marketplace LimeRoad. For Rs. 31.12 crores, it purchased the fashion and lifestyle pure-play online shopping platform.
- In order to expand and establish long-term profitability, it also intends to invest another Rs. 150 crores.
- The firm recorded 1.7 crore value shoppers and exceeded Rs. 700 crores in gross merchandise value.
- Tiger Global, Matrix, and Lightspeed were among the investors who supported LimeRoad, which had raised over $51 million in total.
- Through a particularly rich online-offline experience, this alliance advances the objective of making the newest fashion accessible to the core clients while fundamentally resolving the quality conundrum at value pricing online.
Retail behemoth V-Mart Retail has acquired direct-to-consumer (D2C) apparel company LimeRoad for a total of Rs 31.12 crore in cash. The sale is likely going to help V-Mart increase its online presence thanks to LimeRoad’s user base of five crore online shoppers in tier II and III markets. This is related to the startup’s continuous battle against online rivals like Amazon, Flipkart, and Myntra. More than $50 million has been invested in LimeRoad to date by well-known investors like Matrix Partners, Tiger Global Management, and Lightspeed India Partners.
Rs. 150 crores will also come from V-Mart to enable LimeRoad to turn a profit. The publicly traded company currently operates 450 locations across the country, and LimeRoad asserts that it receives over two lakh downloads daily and generates GMV of Rs. 700 crores. A common term for the entire quantity of goods and services that a retail business sells over time is Gross Merchandise Value or GMV.
V-Mart, which caters to the demands of the general population in terms of fashion, is one of the leading rivals in India’s value retail industry. This acquisition will increase understanding of omnichannel commerce and draw in millennials who were raised in the digital age.