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Aditya Birla’s fashion and retail company TMRW acquired a majority stake in e-commerce startup Bewakoof Brands on Monday for total cash consideration of Rs 200 crore.

The clothing retailer will acquire a 73-80% stake in Bewakoof through a combination of primary equity and debt infusion along with the acquisition of a secondary stake through a share subscription agreement, a loan agreement and a share purchase agreement, respectively, says Aditya Birla Fashion in a stock exchange filing.

TMRW, which aims to create a technology-led ‘House of Brands’ business in the coming years, also announced a partnership with seven other digital-first lifestyle brands. D2C brands include Berrylush, Natilene, Juneberry, Nauti Nati, Nobero, Urbano, and Veirdo.

These partnerships with new-age founders were established within months of the company’s launch, the company says.

Some of these transactions are subject to customary closing and final document signing conditions.

With these eight brands on board, TMRW claims that it has achieved a revenue rate of Rs 700 crore and is on track to cross an annual revenue rate of more than Rs 1500 crore in the next 12 months.

These agreements come nine months after the Aditya Birla Group company established a new subsidiary towards building a portfolio of new-age digital brands in categories of fashion, beauty and other allied lifestyle segments.

“Investment in these 8 D2C brands establishes a strong foundation with a diversified portfolio across various fashion subcategories. With this portfolio, TMRW has established a presence in a broad spectrum of apparel segments ranging from casual wear, children’s wear to apparel Western,” says the clothing retailer.

“TMRW’s vision is to partner with new-age founders by bringing strategic, operational and technology capabilities in addition to growth capital. With synergistic investments that will drive multiple brands, TMRW will enable rapid scale and brand building,” he adds.

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Speaking about the investment, Ashish Dikshit, Managing Director of Aditya Birla Fashion and Retail Ltd, said: “By leveraging ABFRL’s fashion capabilities and category expertise, TMRW is on its way to replicating success in the digital-first space by build the next generation of memorable brands that will fuel the growth of India’s e-commerce.”

The company plans to further expand into lifestyle-related categories, including beauty and personal care.

“With our investment and deep value-add, we are confident in scaling existing leading brands to become category leaders as well as category builders in several emerging categories,” says Prashanth Aluru, CEO and Co-Founder of TMRW.

Earlier this month, the fashion and retail arm of the Aditya Birla Group signed a pact with Galeries Lafayette, a French department store chain, to open luxury department stores and a dedicated e-commerce platform in India. Galeries Lafayette is known worldwide for its iconic location on Boulevard Haussmann in Paris.

With brands like Louis Philippe, Van Heusen, Allen Solly, Peter England and Pantaloons, Aditya Birla Fashion has a network of 3,468 stores, around 28,585 multi-brand outlets with 6,515 department store outlets across India as of 31 May. March 2022.

In January, ABFRL acquired a 51% stake in the ‘Masaba’ brand promoted by designer Masaba Gupta for Rs 90 crore. In 2021, it had announced the acquisition of a 51% stake in the design brand Sabyasachi. In 2019, the company acquired lifestyle and ethnic clothing retailer Jaypore for ₹110 crore.