Urban Ladder investors get only partial returns from Reliance Retail deal

Reliance Retail Ventures’ near total acquisition of online furniture retailer Urban Ladder has delivered only a partial return to top tier investment firms that had backed the Bengaluru-based startup, said two investors privy to the details of the transaction, which they termed as a “distress” sale.

On Saturday, Reliance Industries Ltd (RIL) told stock exchanges that its subsidiary Reliance Retail Ventures Ltd. (RRVL) had acquired a 96% share in Urban Ladder through an all-cash transaction for Rs 182 crore ($ 24 million). The deal, which closed after protracted negotiations over several months, provides RRVL with the option to further enhance its stake to 100%. The oil-to- telecom conglomerate said it would invest an additional Rs 75 crore in Urban Ladder by December 2023.