The $26M Urban Ladder acquisition and finding hidden value

Started in 2012 with a vision to make a million homes beautiful!

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Raised over $100Mn in pursuit of that vision from seasoned investors.

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Lost the plot for several reasons: supply chain management, poor quality, etc

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Co-founder and Senior Director resign.

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Laid off 40% of employees in 2020

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Acquired for $26M.

In a desperate attempt to raise $30 Mn, failed to gain the confidence of investors and existing investors may have written them off long back.

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So, why are they even worth $26 Mn for Reliance?


Let's explore the value of what's under the hood:

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Urban Ladder as:

+ Network: Over the years UL has built relationships with partners, possibly 1000s

+ Presence: Omni-channel presence with millions of downloads and experience stores across tier 1 cities

+ Order book: A half-decent pipeline based on a company which had a topline of $60 Mn in 2018-19 and some inventory

+ Controls: Distributed nation-wide quality control practises

+ Brand Name: Nah. Reliance is more likely to change it anyways


With Reliance diversifying into consumer-focused businesses, it would probably take them few years to get this all done from scratch.


Is the head-start worth $26 Mn?