Reliance Retail expands its apparel footprint with Clovia stake buyout

India’s largest retailer in terms of revenue, Reliance Retail, has reportedly acquired an 89% equity stake in Clovia for USD 125 million. The D2C brand is owned and run by Purple Panda Fashions Pvt. Ltd. and will help the retailing giant expand its footprint into the innerwear and apparel space.

Reliance Retail has already acquired Amante and Zivame brands in the innerwear segment, with the latest investment being made through a combination of primary and secondary stake purchases.

Clovia is essentially a bridge-to-premium D2C brand for women’s loungewear and innerwear that sells over 3,500 products across loungewear and innerwear categories for millennial women. The company was launched in 2013 by Neha Kant, Pankaj Vermani, and Suman Choudhary.

Before Reliance Retail’s investment, Clovia had raised a total of USD 25.8 million to date, while its parent Purple Panda Fashions was last valued at USD 43 billion in December 2020.

According to Clovia founder and CEO Vermani, the company is looking forward to becoming a part of India’s largest retailer and will benefit from Reliance’s scale and expertise. The move will also allow Clovia to expand its presence and offer a stronger value proposition through high-quality, fashion, and design in the innerwear space.

Isha Ambani, the Director of Reliance Retail Ventures Ltd., was quoted saying that the company has always looked forward to offering the best value to its customers and that the group is thrilled to work with Clovia’s strong management team and take the business to newer heights.

It is worth noting that this is Reliance Retail’s second buyout in March 2022. Earlier this month, the retailer had earlier announced to have invested for a majority stake in the designer brand Abraham & Thakore.

The Indian retailer had reported a turnover of a whopping USD 21.6 billion while its net profit accounted for USD 750 million during March-end last year.

Source Credits –

https://www.moneycontrol.com/news/business/reliance-retail-acquires-89-percent-stake-in-intimate-wear-brand-clovia-8253161.html