Reliance Retail Ventures acquires 89% stake in Clovia for Rs 950 crore

Reliance Retail Ventures (RRVL) has acquired 89 per cent equity stake in Purple Panda Fashions, which owns and operates the Clovia business, an industry leader in the bridge-to-premium intimate wear category, with an investment of Rs 950 crore through a combination of secondary-stake purchase and primary investment.

The founding team and management will own the balance stake in the company, which include Pankaj Vermani, Neha Kant, and Suman Choudhary, who launched Clovia in 2013.

Speaking on the investment, Isha Ambani, director, RRVL, was quoted as saying in the release, “Reliance has always been at the forefront of enhancing choices and offering best-value proposition to consumers. We are pleased to add style, quality, and design-led intimate wear brand Clovia to our portfolio. We look forward to working with the strong management team at Clovia to take the business to greater heights.”

With this acquisition, RRVL will further strengthen its portfolio in the innerwear segment, having already acquired Zivame and Amante brands.

BDA Partners acted as exclusive financial advisor to Clovia, while Shardul Amarchand Mangaldas acted as legal counsel, and Deloitte Haskins & Sells LLP provided due diligence services for the transaction, RRVL said in the release.

Pankaj Vermani, founder and chief executive officer of Clovia, said, “Clovia is excited to become a part of the Reliance Retail family. Through this partnership, we will benefit from Reliance’s scale and retail expertise, extending the presence of the brand and bringing together a stronger value proposition through world-class quality, design, and fashion in the intimate wear category. We look forward to making Clovia the most loved brand in this category.” RRVL is also expanding its presence in the luxury and retail landscape. Last year, it entered into strategic partnerships with investments in Manish Malhotra’s brand and also has an equity investment in fashion designer Raghavendra Rathore’s company and Abraham & Thakore. It also recently entered into a joint venture with fashion designers Rahul Mishra and Anamika Khanna.