New Delhi: Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries Ltd, bought a majority stake in online furniture seller Urban Ladder Home Decor Solutions Pvt Ltd (UrbanLadder) for Rs 182.12 crore.

RRVL has bought 96% holding in the equity share capital of Urban Ladder and has a further option of acquiring the balance stake, taking its shareholding to 100%, the company informed the stock exchange on Saturday night.

"RRVL has a further option of acquiring the balance stake, taking its shareholding to 100% of the equity share capital of Urban Ladder. RRVL proposes to make a further investment of up to Rs 75 crore. The further investment is expected to be completed by December 2023," RIL said in the exchange filing. 

Urban Ladder’s buyout is likely to trigger consolidation among online furniture retailers and create a few large dominant brands, as smaller retailers get squeezed between the might of the e-commerce behemoths and the unorganized sector, which operates outside the tax system.

RRVL has a further option of acquiring the balance stake, taking its shareholding to 100% of the equity share capital of Urban Ladder.

RRVL proposes to make a further investment of up to Rs 75 crore. The further investment is expected to be completed by December 2023.

UrbanLadder was incorporated in India on February 17, 2012. Urban Ladder is in the business of operating a digital platform for home furniture and décor products. It also has a chain of retail stores in several cities across India.