ABFRL also said it is acquiring another ethnic wear brand TG Apparel & Decor that sells products both online and offline.
Aditya Birla Fashion and Retail (ABFRL) is acquiring ethnic wear startup Jaypore to boost its presence in the ethnic apparel segment. The company on Monday announced approval to the signing of the share purchase agreement to buy Jaypore that sells home decor, accessories, jewellery, apparel, gifts, vintage products etc.
The acquisition would allow ABFRL to expand into ethnic wear market, which is “the largest segment in the Indian fashion apparel market,” PTI quoted Ashish Dikshit, MD, ABFRL from a company statement. The ethnic wear segment for ABFRL is currently “under-represented” in the overall products offered by the company.
Jaypore would give ABFRL “a strong footing in a segment that is growing in double digits” and will “further strengthen” its position in the branded fashion category, said Dikshit. The enterprise value of Jaypore for the acquisition would be up to Rs 110 crore while the deal is expected to close in 3-45 days.
“I can only talk (on Tuesday) post approvals (to the deal),” Jaypore’s co-founder Puneet Chawla told Financial Express Online while denying to comment on the development.
ABFRL also said it is acquiring another ethnic wear brand TG Apparel & Decor that sells products both online and offline, the company said. TG Apparel posted turnover of Rs 33.7 crore in FY19. ABFRL would acquire 100 per cent equity stake in TG Apparel valued for up to Rs 25 lakhs subject to the book value on closing, PTI reported.
Details around the deal structure, Jaypore’s management/founder and employees movement in acquiring the startup wasn’t declared by ABFRL. Jaypore’s revenue stood at Rs 38.9 crore in FY19.
ABFRL is a part of $44.3 billion Aditya Birla Group and has revenues worth Rs 8,118 crore along with a network of 2,714 brand stores across 750 cities, over 18000 multi-brand outlets and more than 5000 point of sales in department stores across India. On the other hand, Jaypore’s customer base extends to over 60 countries globally.