V-Mart is also “acquiring assets worth ₹14.61 crore and assuming current liabilities of ₹36.26 crore”, which shall be subject to adjustments as mutually agreed between them, it added.

Indian fashion retailer V-Mart Retail Ltd will acquire online marketplace LimeRoad as part of its omni-channel expansion. The former signed a ‘business transfer agreement’ with Gurugram-based A M Marketplaces and certain other parties to acquire the latter’s LimeRoad business as a going concern on a slump sale basis, V-Mart said in a regulatory filing.

LimeRoad’s net revenue in fiscal 2021-22 was ₹69.31 crore.

The company shall pay lump sum cash consideration of ₹31.12 crore, which shall be subject to adjustments as mutually agreed between the parties, the retail company said in the filing.

“Given the underlying strong unit economics post marketing, V-Mart plans to invest a total of ₹150 crore to enable LimeRoad to scale and achieve sustained profitability,” V-Mart said in a statement.

V-Mart will operate LimeRoad as an independent business—65 per cent of which comprises the women segment—retaining its tech start-up culture and will retain the existing leadership of the latter.

Fibre2Fashion News Desk (DS)