Fashion retailer V-Mart Retail (V-Mart) has acquired the fashion and lifestyle pure-play online commerce platform LimeRoad for Rs 31.12 crore, which will help the company expand its presence in the omnichannel space.

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.

With this acquisition, the company aims to not only acquire digital-first millennials but build its omnichannel expertise. This acquisition will V-Mart move close to its 20 percent target contribution from online sales in the next two to three years.

“As of now, it (LimeRoad) has Rs 10 crore plus run rate per month, but we will scale it up, within the next 12 months, to the pre-COVID-19 level when it was doing around Rs 50 crore per,” Lalit Agarwal, Founder and MD of the retail chain of stores told CNBC-TV18 on Tuesday.

Also Read: V-Mart aims to expand omnichannel presence with acquisition of LimeRoad

Agarwal said that V-Mart products will be available on the LimeRoad app. “We will continue with the brand LimeRoad. We will bank on that and that can become a digital arm for all our V-Mart customers,” he said.

He added that V-Mart doesn’t do too many acquisitions and that nothing else is on the cards right now.

In a statement earlier, V-Mart said: "Given the underlying strong unit economics post-marketing, V-Mart plans to invest a total of Rs 150 crore to enable LimeRoad to scale and achieve sustained profitability."

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First Published:Oct 18, 2022 3:40 PM IST