Urban Ladder is an online company that deals in furniture are planning to sell the company at the price of 200 crores. The price is barely one-sixth of the price value of the company 2 years ago. Urban Ladder Valuation has decreased in the last few years.
The sales of the company will be advised by Investment Bank IndigoEdge. The company went into turmoil in 2019 when the co-founder and board member left the company and after that, they had to lay off their employees. After that Covid pandemic hit the company in 2020 and could not recover and now they are willing to sell the company.
Urban Ladder Valuation: Giant’s Bidding List
Urban Ladder was founded by Ashish Goel and Rajiv Srivatsa in 2012. The company deals in furniture, decor and mattresses. It also ran as a marketpace as well. Even though the the company had gained success in the early years, they had to keep on growing so that they could compete with the Swedish gaint, IKEA, who came in 2018.
Over the past few years. Urban Legends have been talking to lot of companies who can invest in the company. The main ones were flipkart for acquisition but it did not go well. Other investors include Fashion brand Fabindia. Some other ones Urban Legend apporached were Livspace, who is a interior desgin startup and Wakefit, which is a online mattress retailer. The deal is still not final. and in come cases it looks like it will not even go further to deal.
At its high time, Urban Legend was valued to be around 1200 crore. It was around January 2018 when the value was estimated. After that it came down to 750 crores ie around 110 million dollars in 2019. After an year they laid off their 90 employees and it is 25 percent of their workforce.
Its walue is 200 crores is a fraction of the capital it has raised ie 700 crores from top venture capital funds like Sequoia Capital, SAIF Partners, Kalaari Capital and Steadview Capital. Some investors may have take a major amount in order to secure an exit and for the company to survive.
CEO of Urban Ladder Ashish Goel said, “We are not looking for a buyer at this point.” Flipkart and Fabindia did not respond to emails , whereas, WakeFit and IndigoEdge turned down to comment.
Co-founder of the company, Rajiv Srivatsa lrft the company in October 2019, Where as Vani Kola, managing director of Kalaari Capital, also stepped down from the the company’s board nearly same time Rajiv left the company. Srivatsa is currently Head of Antler, of India which is a Singapore based venture capital fund.
Urban Ladder said it made a profit of 50 Crores while the revenue was doubled up to 298 crores. However the profits were one time investment in the balance sheet. The unit economics did improve for the company.
In February 2020, just before the pandemic hit in India, Urban Ladder made a revenue of 15-20 crores only. Like all other companies, it suffered pandemic too. The delivery of products and good were shut down for weeks and then the products and goods delay affecting the revenue.
It is also under debt of about 40 crores in its books. The funds it had borrowed from lenders other than banks. Trifecta Capital is the firm that has lended the company a loan.
The qoute is said by an anonymous person who does not want his identity to be revealed, and close to the company
“Urban Ladder has a great brand despite all its board turmoil and co-founder leaving, and a product that customers like. So it should be able to find a buyer in some conglomerate or any company which has deep pockets and has a long term view on the furniture and online space,”
As the Urban Ladder Valuation has decreased. And many giants are in the bidding race. Wait and watch who bids the most and acquires it.