Indian conglomerate – Reliance Retail Ventures Ltd acquired a majority stake in the online lingerie brand Clovia on March 20, 2022. It acquired an 89 per cent stake in Purple Panda Fashion Limited, which owns and operates Clovia.
The deal cost USD 124 million (INR 950 crore) to Reliance Retail, the company stated in a media statement. The said investment is a combination of secondary stake purchase and primary investment. The balance stake, i.e. 11%, will remain with the founding team and the management.
BDA Partners acted as an exclusive financial adviser to Clovia. Meanwhile, Shardul Amarchand Mangaldas were the legal counsel for the firm. Deloitte, Haskins & Sells LLP provided due diligence services for the transaction.
Reasons for Clovia’s acquisition
Reliance Retail Ventures limited seeks to further its portfolio in the innerwear segment.
Clovia has a solid in-house design process to offer trending designs and innovative styles, while it follows an asset-light outsourced production model.
This is RIL’s third acquisition in the lingerie brands. Previously, RIL acquired Zivame in 2021. Nine months later, RIL secured Amante.
RIL also has the India franchise rights of Dutch lingerie brand Hunkemoller. Besides, it sells Marks & Spencer’s innerwear through a JV with the British retailer.
What the founder of Clovia has to say
Pankaj Vermani, Founder & CEO of Clovia, said, “Clovia is excited to become a part of the Reliance Retail family. Through this partnership, we will benefit from Reliance’s scale and retail expertise, extending the presence of the brand and bringing together a stronger value proposition through world-class quality, design and fashion in the intimate wear category. We look forward to making Clovia the most loved brand in this category.”
What the director of Reliance Retail Ventures said
“Reliance has always been at the forefront of enhancing choices and offering the best value proposition to consumers. We are pleased to add style, quality and design-led intimate wear brand Clovia to our portfolio. We look forward to working with the strong management team at Clovia to take the business to greater heights,” said Isha Ambani, Director of Reliance Retail Ventures.
About Clovia
Pankaj Vermani, Neha Kant & Suman Choudhary launched Clovia in 2013. It is India’s leading bridge-to-premium D2C lingerie brand.
It offers more than 3500 product styles based on its feedback-led design approach. Subsequently, Clovia is backed by its proprietary “Clovia Curve Fit Test.”
The eight-year-old startup enjoys robust customer loyalty in intimate wear. Moreover, its design-led fresh styles and cleaver price offerings further enhance Clovia’s appeal.
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