According to CMD Lalit Agarwal, the e-commerce websites of V-Mart Retail and Unlimited would merge with LimeRoad.
As part of its intentions to phase out its direct-to-consumer platforms for its brands V-Mart and Unlimited, the value retail giant intends to use LimeRoad's digital skills to establish a presence in the e-commerce space.
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According to Lalit Agarwal, chairman and managing director of the company, value fashion retailer V-Mart Retail intends to combine its recently acquired LimeRoad platform with its online shopping platforms for V-Mart and Unlimited.
The CMD claims that the company would utilise the newly acquired platform's digital know-how to establish a presence in the e-commerce market and that all V-Mart and Unlimited products will eventually be offered by LimeRoad.
Customers are increasingly adopting digital commerce. Every consumer's lifestyle and purchasing habits will include the channel. We have worked to advance our internal technology and tools over the past three years in an effort to keep up with this trend. However, we were unable to produce volumes and grow at the desired rate, according to Agarwal.
Therefore, we considered it crucial to get a brand that is knowledgeable about technology and digital consumers.
Less than 5% of the value-oriented retailer's current revenues come from the e-commerce channel.
On October 17, the 410-store V-Mart Retail chain, which mostly serves tier II, III, and IV areas, bought LimeRoad, an online marketplace for clothing. The business also purchased 74 locations of the retail brand Unlimited from Arvind Lifestyle Brands in South and West India last year.
Agarwal claims that V-Mart Retail contributed Rs. 67 crore toward LimeRoad's debts and that another Rs. 100 crore will be used to scale up the brand.
This is a decline for the e-commerce platform, which in its prime had attracted roughly $50 million from prestigious investors like Tiger Global, Lightspeed, and others.
"LimeRoad was producing solid volumes and turnover before Covid, but after Covid, the business struggled to raise money and encountered marketing difficulties. However, we believe the business has enormous growth potential,” Agarwal said.
According to a press release from V-Mart, the e-commerce site presently has roughly 1.7 crore registered users and more than half of its sales come from female customers. In order to boost its percentage of sales from women consumers, V-Mart Retail wants to capitalise on this strength. According to Agarwal, V-Mart Retail produces roughly 80% of its sales from clothing, of which 22% come from women, 27% come from children, and 37% come from men.
