Aditya Birla Fashion Retail Acquires Stake In Bewakoof For INR 200 Cr


TMRW, a wholly-owned subsidiary of Aditya Birla Fashion Retail, will invest Rs 200 crore in the direct-to-consumer (D2C) brand after acquiring a controlling stake in Bewakoof Brands.

TMRW acquired a majority stake in the company for Rs 200 crore by purchasing a secondary stake and allowing all of its existing investors to exit. Following the transaction, the company will own approximately 73-80 per cent of Bewakoof.

According to Aditya Birla Fashion’s filing with the stock exchanges, Bewakoof, founded in 2012 by Prabhkiran Singh, posted revenue of around Rs 162 crore, up from Rs 129 crore the previous fiscal.

Bewakoof’s revenue target for the next five years is Rs 1,500 crore. According to a press release, the company will use its partnership with TMRW to leverage various capabilities to help scale and grow its apparel business.

TMRW announced investments in eight digital-first lifestyle brands on Monday, with plans to enter the casual wear, kids wear, and western wear markets. Berrylush, Natilene, Juneberry, Nauti Nati, Nobero, Urbano, and Veirdo are the other seven brands.

The majority of the brands, however, are smaller than Bewakoof and have revenues ranging from Rs 15 to Rs 55 crore, according to Aditya Birla Fashion’s filing.

TMRW was launched earlier this year by Aditya Birla Fashion as part of the group’s strategy to launch and support new-age digital ventures. The venture is an attempt by ABFRL to establish a ‘House of Brands’ entity and actively invest in brands that are born online and generate a large portion of their sales through the internet.

TMRW has achieved a revenue run-rate of over Rs 700 crore with these eight brands on board and is on track to cross an annual revenue rate of Rs 1500 crore in the next 12 months, according to the filing.

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