THE URBAN LADDER IPO
Way to Urban Ladder IPO: Urban Ladder is a very well known company in India in providing online choice of wide range of home furniture and its home delivery. This Ratan Tata-backed company is willing to expands network of physical stores in Gurugram and Bengaluru. Company is having wide presence online through its online portal. The company also launched its first experience centre in Bengaluru last year, which was to be converted into an offline retail store.Home furnishing company Urban Ladder is also having 5 number of physical store situated in Gurugram and Bangaluru. In order to implement company’s expansion plans, company may go public in near future and Urban Ladder IPO may come by the end of FY2020. Company is planning to expend for 15 physical stores in the Gurugram and Bangaluru in near future. Urban Ladder is employing more than 500 employees presently. The Urban Ladder IPO will add good value to the company’s net worth.
“We are expecting a touch and go zone in April-June quarter and hope to be profitable by July-September quarter in Bangalore city, which is our primary place of business and a large part of our business. Our next financial year will be a profitable one (overall) which will be churning cash financially,” Urban Ladder co-founder and CEO Ashish Goel told PTI. Source moneycontrol.com
“The past year has been phenomenal for us at Urban Ladder. Our offline expansion in Bengaluru has been extremely well-received by customers for the differentiated furniture-shopping experience. This has energized us to chart the next course of our retail journey and build India’s largest furniture brand by March 2019,” said Ashish Goel, CEO and Co-Founder, Urban Ladder.
“The timing and the confluence of these initiatives will really strengthen our product innovation, category expansion, and push for profitability in FY 18-19,” he added. Urban Ladder further claims to be doing well on the financial front presently. As of March 2017, the company posted a 22% rise in its consolidated revenue leading to an amount of $6.4 Mn (INR 42.1 Cr), up from $5.2 Mn (INR 34.4 Cr) in the previous financial year. Also it witnessed a significant reduction in its losses to $24.5 Mn (INR 160 Cr) from $27.7 Mn (INR 181 Cr). Company is expecting to go profitable by next year and may go for Urban Ladder IPO for funding the company expansion plans.
Presently no official news is given about the company’s earnings but it is expected to come in profit with this financial year. Ratan Tata-backed Urban Ladder is having plans to create physical presence in Hyderabad, Chennai, Delhi and Mumbai over and above its online presence and physical presence in Gurugram and Bangaluru.
Very few of the online e-commerce companies like infibeam have tried the IPO route for fund raising and expansion other wise they like to go for private funding. Having the physical store gives any online e-commerce portal a good physical presence which is very much required for creating loyal customer base and making a public image of the brand. The expected Urban Ladder IPO will definitely add value to the company image. Some of the other online furniture players like Pepperfry and Livspace have gone ahead with their multi channel presence strategy.
Shortly after the announcement of Walmart paying $16 billion for a roughly 77 percent stake in Flipkart in what is the U.S. retail giant’s largest-ever deal, Walmart has announced that it may launch IPO for Flipkart in next four years. Walmart Inc said in a filing with a US regulator that it may take India’s Flipkart public in next four years, detailing for the first time a potential listing timeline for Walmart’s largest-ever acquisition. The Urban Ladder may find find a similar way and come with Urban Ladder IPO.
Also Read: Walmart may launch IPO for Flipkart
Urban Ladder was founded in 2012 by Ashish Goel and Rajiv Srivastava. The Urban Ladder management now aims to be profitable in the next 12 to 18 months and file an IPO by 2020. It is offering over 4,000 products across various furniture categories including wardrobes, beds, sofas, dining tables and coffee tables. It is financially backed by Ratan Tata, Sequoia Capital, Steadview Capital, SAIF Partners, and Kalaari Capital. The founders recently raised $15 Millions in February 2017, from Kalaari, SAIF and others, raising the total funding till date to $95 Millions. Now Urban Ladder IPO is making its way.
The ESOPs are becoming a good tool of choice for Indian startups to attract talent and reward employees. In October last year, BlackBuck, an Indian logistics startup and Flipkart has announced an ESOP repurchase plan, through which the opted employees have been offered an opportunity to take plan in the company’s financial management. Furniture player Urban Ladder has also announced that it may join the ESOP way like many startups and is set to offer ESOPs in order to attract senior-level talent. Urban Ladder had applied for the single brand licence in September last year when it has shifted its business model from online retail to becoming a furniture brand. Later on after that Urban Ladder received a Single Brand Retail Trade (SBRT) licence from the Department of Industrial Policy & Promotion (DIPP). Apart from all these methods, the Urban Ladder IPO will give a great boost to the company expansion.
Just wait for further update on Urban Ladder IPO …