Value-fashion retailer V-Mart to acquires Online Marketplace LimeRoad

V-Mart Retail Ltd., a fashion retailer, announced on Monday that it would purchase the online market LimeRoad. This move will enable the business to increase its footprint in the omnichannel market.

According to a regulatory filing by V-Mart Retail, the company has inked a "business transfer agreement with A M Marketplaces (LimeRoad) and certain other parties for the acquisition of its LimeRoad business as a going concern on a slump sale basis."

V-Mart provided the following information regarding the type of payment: "for the acquisition of LimeRoad business, the company shall pay lump sum cash consideration of Rs 31.12 crore, which amount shall be subject to changes as mutually agreed between the parties."

Additionally, it stated that V-Mart is "acquiring assets worth Rs. 14.61 crore and assuming current liabilities of Rs. 36.26 crores," which are both subject to changes as the parties may mutually agree.

Given the underlying strong unit economics post-marketing, V-Mart stated in a statement that it planned to invest a total of Rs 150 crore to help LimeRoad expand and achieve long-term profitability.In FY22, LimeRoad's net revenue was Rs 69.31 crore.

Lalit Agarwal, the managing director of V-Mart Retail, stated that the business hopes to expand its omnichannel competence as well as attract millennials who are digital natives with this acquisition. According to him, "V-Mart will run LimeRoad as an autonomous business entity, keeping its digital startup ethos."

Furthermore, LimeRoad's current leadership will continue to serve under V-Mart. Suchi Mukherjee, a co-founder of LimeRoad, has joined the executive team at V-Mart as CEO of LimeRoad and the omnichannel company. Ankush Mehra, a second LimeRoad co-founder, will stay on as COO.

Around 65% of LimeRoad's business is currently contributed by the women's market. It dominates the value sector between Rs. 500 and Rs. 1,000.