Reliance is building up it’s retail empire – ahead of Future deal, Reliance Brands adds Zivame in its cart

A Zivame storezivame.com
  • According to reports, Reliance Brands has already bought out Ronnie Screwvala’s 15% stake in Zivame.
  • Zivame was founded by Richa Kar in 2011 and the popular shopping website has a valuation of $200 million and its revenue for FY19 stood at ₹140 crore.
  • Zivame’s 30 physical retail stores and existing online commerce will be an add-on to Reliance’s apparel offering.
Reliance is on an acquisition spree. While talks with Kishore Biyani’s Future Retail are still on for a buyout by Reliance Retail, its subsidiary company Reliance Brands is set to acquire lingerie retail startup Zivame. According to an ET report, Reliance Brands has already bought out Ronnie Screwvala’s 15% stake in Zivame.

Zivame was founded by Richa Kar in 2011 and the popular shopping website has a valuation of $200 million and its revenue for FY19 stood at ₹140 crore. But according to ET, Reliance could end up paying $160 million to buy Zivame. Zivame’s other investors include Zodius Capital and Malaysian sovereign fund Khazanah Nasional Berhad.

Zivame was looking to expand its retail footprint in the country and was looking for funds. Zivame’s 30 physical retail stores and existing online commerce will be an add-on to Reliance’s apparel offering.

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Meanwhile, the acquisition from Reliance comes at a time when the conglomerate is doubling down on its retail offering, with one eye on Future Retail. The fashion and lifestyle category contributes just about 8% to Reliance Retail’s total revenue but has a margin of 24%.

During the company’s Annual General Meeting, Mukesh Ambani, chairperson of Reliance Industries had stressed on the importance of startups in Reliance’s ‘golden decade’ of growth. “I believe that there is no better partner for Indian start-ups than JIO. We are well positioned to help Indian start-ups in a number of ways. Whether it be in technology development, product development, distribution, market access, or even scale-up capital,” he said on July 15.

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