V-Mart to acquire Limeroad to create omni-channel fashion retail platform

V-Mart Retail, an Indian online shopping store, has agreed to acquire LimeRoad, a direct-to-consumer (D2C) fashion brand, to create the country’s fastest growing Omni-Channel value fashion retail platform.

LimeRoad with 1.7 crore value shoppers offers unbranded styles and unique content.

With gross merchandises value (GMV) of Rs. 700 crores at consistently strong margins and post marketing costs, the platform is said to enjoy robust presence in the Rs. 500-1,000 segment.

V-Mart with a growing network of 410 stores, has penetrated into Tier 2/3/4 cities.

Both the companies, through the transaction, will exploit clear and known synergies to identify and offer emerging fashion trends to Bharat’s 5 crore digital-first Shoppers (online and offline).

As part of the acquisition, V-Mart will invest Rs. 150 crores to scale up the operations of LimeRoad for sustained profitability.

Lalit Agarwal — V-Mart Retail Managing Director said: “V-Mart is one of the strongest players in the value retail segment fulfilling fashion needs of masses across India.

“With this acquisition we aim to not only acquire digital first millennials but build our Omni-channel expertise.”

Tiger Global-backed LimeRoad will operate as an independent business entity under the V-Mart label and retain its tech start-up culture.

V-Mart said, in a stock exchange filing, the company is acquiring assets worth Rs. 14.61 crore and assuming current liabilities of Rs. 36.26 crore, as part of the acquisition.

Suchi Mukherjee — LimeRoad Founder and CEO said: “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 vision of making the freshest of fashion accessible to our core customer through a uniquely rich online-offline experience. “This is a large market, expected to grow at 39% CAGR over the next 5 years.”

The closing of the transaction is subject to necessary approvals and customary conditions.

Metta Capital acted as an exclusive financial advisor and Saraf and Partners acted as legal advisor to V-Mart for this transaction.