Aditya Birla Fashion and Retail seeks to acquire Bewakoof for Rs 100 crore
Aditya Birla Fashion and Retail is in the concluding stages of investing Rs 100 crore to acquire a controlling stake in Bewakoof. Acquiring the clothing and accessories brand would mark ABFRL’s entry into the direct-to-customer segment of the fashion market.
“Both companies have signed a non-disclosure agreement and have also finished due diligence,” an anonymous senior executive, ET Bureau reported. “The team at Bewakoof is also moving to join Aditya Birla’s new firm.”
Acquiring online-first brands with stong sales and a loyal customer base enables larger businesses to catch up after entering the online market comparatively late. ABFRL announced last quarter that it plans to invest in eight to 10 early stage digital first brands, with a focus on fashion, before the end of the 2023 financial year.
ABFRL has large scale plans for the direct-to-customer segment of the market and created a new entity named Tmrw in June this year. Tmrw will both acquire and incubate 30 brands over the coming three years, the Economic Times reported. Bewakoof would fall under this project.
Bewakoof launched in 2012 and specialises in western style casual wear. The brand reports annual revenue totals of around Rs 250 crore and has raised funds of around Rs 160 crore to date. The business’ investors include IvyCap Ventures, Spring Marketing Capital, and InvestCorp.
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