V-Mart acquires Tiger Global-backed LimeRoad for Rs 31 crores

• ByStartupStory     |    October 17, 2022

Direct-to-consumer (D2C) apparel business LimeRoad has been purchased by retail giant V-Mart Retail for a total of Rs 31.12 crore in cash. Through LimeRoad’s userbase of five crore online buyers in tier II and III markets, the sale is probably going to assist V-Mart boost its online presence.

This coincides with the fashion startup’s ongoing struggle to compete with online players like Amazon, Flipkart, and Myntra. To date, notable investors like Matrix Partners, Tiger Global Management, and Lightspeed India Partners have contributed more than $50 million to LimeRoad.

According to a statement, V-Mart will also contribute Rs 150 crore to help LimeRoad become profitable. The listed company currently has a network of 450 outlets throughout the nation, and LimeRoad claims to have over two lakh downloads per day and a GMV of Rs 700 crore. The phrase “gross merchandise value,” or “GMV,” is frequently used to describe the total amount of goods and services that a retail business sells over time.

Under the V-Mart brand, LimeRoad will function independently, and its CEO Suchi Mukherjee will remain in that position.”V-Mart is one of the top competitors in India’s value retail market, meeting the needs of the general public in terms of fashion. With this acquisition, we hope to expand our knowledge of omni-channel sales as well as attract millennials who are digital natives, according to Lalit Agarwal, managing director of V-Mart Retail Ltd.

The statement highlighted that the transaction’s completion is subject to receiving all required regulatory bodies’ approvals and conditions. For this transaction, Metta Capital served as V-sole Mart’s financial advisor, and Saraf and Partners served as its legal counsel.

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