Mumbai-listed value retail chain V-Mart Retail Ltd has signed a definitive agreement to acquire LimeRoad, a social commerce platform, in what is also likely another distressed transaction in the consumer facing category after beverage chain Beer Café was being sold to Bira91 last week.
Through the transaction, as per a press statement, both the parties will leverage each other’s strength to deliver emerging fashion trends to atleast 5 crore digital first shoppers.
The trends together with LimeRoad’s community expertise will transform V-Mart stores into a rich local-experience centers, driving higher repeat footfall overtime, the statement added. V-Mart currently operates 410 stores across Tier- II, III and IV cities.
V-Mart has committed to invest a total of Rs 150 crore into the Tiger Global-backed LimeRoad over a period of 2-3 years. It couldn’t be immediately ascertained the size of the immediate transaction.
V-Mart offers clothing, accessories, and personal care products for men, women, and children in stores having an average size of 8,000 square feet.
V-Mart, which went public in 2013, was started in 2002 by Delhi-based Lalit Agarwal, a cousin of RC Agarwal who is chairman of Vishal Retail (Now V2 Retail).
“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.” said Agarwal, MD at V-Mart Retail Ltd.
This is second acquisition struck by the listed value retail chain. In July 2021, it bought out Unlimited retail chain from Multiples PE-backed Arvind Fashions Ltd which owns the Flying Machine brand of denim apparel.
Suchi Mukherjee, the founder of LimeRoad will join V-Mart’s leadership team as CEO of LimeRoad & the omni-channel business of V-Mart. Ankush Mehra, the co-founder of LimeRoad will also continue as COO.
The startup was set up by Mukherjee, who has worked with the executive management team of Skype, Mehra, former head of supply chain at Reliance Hypermarkets, and Manish Saksena, former COO of Tommy Hilfiger India,
LimeRoad claims to offer unbranded styles and unique content to its 1.7 crore value shoppers. Women contribute to 65% of the business, with strong presence in the Rs. 500-1000 segment.
The startup added that during its peak, LimeRoad has delivered over 250,000 app downloads per day, and achieved GMV of Rs. 700 crore at consistently strong margins, post marketing costs.
LimeRoad also counts venture capital funds such as Matrix Partners and Lightspeed Venture Partners among its investors.
