V‐Mart Retail - Cementing Its Footing To Attract Digital First Millennials: Centrum Broking

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.V-Mart Retail Ltd. agreed to acquire the business of ‘Limeroad’ for a consideration of Rs 670 million on a slump sales basis paying for its exiting liabilities. This acquisition would cement its footing to attract digital first millennial customers as ‘Limeroad’ already holds 17 million loyal customer base. Further V-Mart plans to invest ~Rs 800 million (~20% of its Ebitda) over next two-years to scale-up customer base and setting up back end infrastructure. Management said to be confident to achieve sustainable profitability in one year. V-Mart paid ~0.9 time price to sales for acquiring ‘Limeroad’ to firm up its omni channel strategy. Management alluded strong synergies for long term as there is strong overlap with V-Mart’s core markets and similar target group customers settled in non-metro and tier-I markets with household income less than Rs 5 lakhs and age group of 15-40 years. We strongly believe, this acquisition would give leg-up to V-Mart in building its digital aspiration..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

V‐Mart Retail - Cementing Its Footing To Attract Digital First Millennials: Centrum Broking

We strongly believe, Limeroad acquisition would give leg-up to V-Mart in building its digital aspiration.

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