In a regulatory filing, fashion retailer V-Mart announced that it would be acquiring online marketplace LimeRoad in a bid to expand its online presence.
The company has signed 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,” said V-Mart Retail in a regulatory filing.
V-Mart’s acquisition of LimeRoad is set to cost the retailer Rs 31 crore, with the regulatory filing saying, ” the company shall pay lump sum cash consideration of Rs 31.12 crore, which amount shall be subject to adjustments as mutually agreed between the parties.”
In addition the company is “acquiring assets worth Rs 14.61 crore and assuming current liabilities of Rs 36.26 crore.”
V-Mart also plans to invest over Rs 150 crore in a bid to help LimeRoad – whose net revenue in FY22 was Rs 69.31 crore – expand.
“V-Mart will operate LimeRoad as an independent business unit, retaining its tech startup culture,” said Lalit Agarwal, V-Mart’s Retail Managing Director.
Existing leadership is set to remain in place, with LimeRoad co-founder Suchi Mukherjee joining V-Mart’s leadership team as CEO of LimeRoad and the omnichannel business, while Ankush Mehra – another co-founder – will continue as COO.
Source: Economic Times