Started in 2012 with a vision to make a million homes beautiful!
Raised over $100Mn in pursuit of that vision from seasoned investors.
Lost the plot for several reasons: supply chain management, poor quality, etc
Co-founder and Senior Director resign.
Laid off 40% of employees in 2020
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.
So, why are they even worth $26 Mn for Reliance?
Let's explore the value of what's under the hood:
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?