Loading...

Reliance confirms acquisition of minority stake in Zivame

Reliance confirms acquisition of minority stake in Zivame
Photo Credit: VCCircle
30 Nov, 2020

Reliance Industries (RIL) has indicated that it conducted transactions with Actoserba Active Wholesale, which owns and operates online lingerie retailer Zivame, in the first half of the financial year 2020-21. 

Financial terms of the transaction were not disclosed.

RIL, in a stock exchange filing, has listed Zivame as an associate company. As per markets regulator SEBI, an associate company is one in which a director, sponsor or venture capital fund holds equity shares in excess of 15%. 

The nine-year-old company last raised funds in a $2.7 million round from returning investors Zodius Capital and Avendus Capital in September 2019. It has raised over $87 million in a mix of debt and equity funding across multiple rounds so far, as per VCCEdge data. 

Founded by former SAP executive Richa Kar, the company underwent multiple management changes in 2018 to appoint former Arvind Internet executive Amisha Jain as CEO. 

In July, media reports suggested that RIL-owned Reliance Brands had bought a 15% stake in Zivame from Ronnie Screwvala-backed Unilazer Ventures. RIL was also said to be in conversations with other investors, including Zodius Technology Fund and Malaysian sovereign wealth fund Khazanah Nasional Berhad, to buy out their stakes in the company. Zodius Capital owns nearly 45% stake in the company after it bought out shares of early investors Kalaari Capital and Chiratae Ventures in 2018. 

RIL has been on an acquisition spree for its retail subsidiary Reliance Retail Ventures, and digital assets and telecom subsidiary Jio Platforms to build out both platforms. For RRVL, the company recently announced the acquisition of 96% stake in online furniture brand Urban Ladder for Rs 182 crore. RRVL’s big ticket acquisition of Future Group’s retail and other businesses for $3.38 billion has been stuck due to an ongoing international arbitration proceeding with Amazon.