Reliance Retail Ventures Ltd has acquired a majority stake in Purple Panda Fashions, the parent company of intimate wear brand Clovia, as it looks to bolster its innerwear offerings.

India's largest retailer paid ₹950 crore to buy an 89% equity stake in Clovia through a combination of secondary stake purchase and primary investment. Clovia's founding team and management will own the balance stake in the company.

The acquisition comes four months after Reliance Retail bought lingerie brand amanté from Sri Lanka-based MAS Holdings for an undisclosed amount. In 2020, it had acquired a stake in Actoserba Active Wholesale, the owner of online lingerie retailer Zivame.

Launched in 2013 by Pankaj Vermani, Neha Kant and Suman Choudhary, Clovia sells innerwear and loungewear for women. The direct-to-consumer (DTC) brand follows an asset-light outsourced production model and offers over 3,500 product styles.

"Through this partnership, we will benefit from Reliance's scale and retail expertise, extending the presence of the brand and bring together stronger value proposition through world class quality, design and fashion in the intimate wear category," said Pankaj Vermani, founder and CEO, Clovia.

This deal comes at a time when Reliance Retail is on an acquisition spree to consolidate its omni-channel retail business. It has completed over 25 acquisitions in the last three years to add to its brand portfolio, products and services and network of physical stores.

The group's major acquisitions for retail expansion include Hamleys, Justdial, Milkbasket, Zivame, Portico, Netmeds, Urban Ladder, Dunzo, Shri Kannan Departmental Store, Jaisuryas and Kalanikethan. Recently, it partnered with 7-Eleven, the iconic global retail chain, to start its operations in India.

However, the acquisition of Future Group companies for ₹24,700 crore is still pending.

Reliance Retail posted a profit of ₹5,481 crore on a revenue of ₹1.57 lakh crore in FY21. It operates 14,412 stores as on December 2021. Its subsidiary Reliance Brands Ltd (RBL) also has a brand portfolio (including the partnerships) comprising Armani Exchange, Bottega Veneta, Burberry, Canali, Diesel, Emporio Armani, Gas, Giorgio Armani, Hugo Boss, Jimmy Choo, Michael Kors, Mothercare, Paul & Shark, Paul Smith, Pottery Barn, Salvatore Ferragamo, Tiffany, Tumi, Valentino and Versace.

In the fashion and lifestyle space, the company recently acquired a majority stake in Abraham & Thakore, a label known for contemporising the craft traditions of India. Reliance Retail has been consolidating its domestic fashion business with stakes in India's oldest fashion house Ritu Kumar, couture brand Manish Malhotra and Anamika Khanna's AK-OK. It also announced a 60/40 joint venture partnership with Rahul Mishra for a ready-to-wear brand.

Reliance Clovia deal

Reliance Retail acquires 89% stake in Clovia for ₹950 crore