Aditya Birla Fashion and Retail is in the last stage of acquiring a majority controlling stake in Bewakoof, an apparel and accessories brand that targets the youth, for up to Rs 100 crore, The Economic Times reported.
The deal if done will mark Aditya Birla Fashion's entry into the direct-to-consumer (D2C) segment.
“Both companies have signed a non-disclosure agreement and have completed due diligence. The team at Bewakoof is also moving to join Aditya Birla’s new firm,” a source told the publication.
Founded in 2012 as one of the first D2C brands in India, Bewakoof clocked annual revenues of about Rs 250 crore. Since inception, it has managed to raise Rs 160 crore from investors such as Investcorp, IvyCap Ventures, and Spring Marketing Capital.
Moneycontrol could not independently verify the news.
Aditya Birla Fashion set up its D2C entity TMRW in June, stating that it will acquire as well as incubate 30 brands within the next three years. The new firm is acquiring Bewakoof as part of Aditya Birla Fashion’s new strategy to create a portfolio that comprises new-age digital brands across fashion, beauty, and lifestyle segments.
“We are surely going to see a lot more such deals happening in the near future. This also helps early-stage investors get exit opportunities at a time when larger funding rounds look a tad challenging amidst a global economic slowdown,” said Dhianu Das, cofounder, Agility Ventures.
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