Aditya Birla Fashion and Retail (ABFRL) is likely to acquire a controlling stake in a Mumbai-based start-up Bewkaoof by investing nearly Rs 100 crore, The Economic Times reported. Both companies are supposed to be in the final stage of talks before the expected acquisition. 

“Both companies have signed a non-disclosure agreement and they have also finished due diligence. The team at Bewakoof is also moving to join Aditya Birla’s new firm,” a person aware of the development told The  Economic Times. 

In an attempt to strengthen its footprint in the direct-to-consumer( D2C) market in India, ABRL launched TMRW in June. The platform announced the acquisition of 30 brands in the next three years in India's D2C segment. 

Since its inception in 2017, Bewakoof has raised Rs 187 crore in funding from investors including Investcorp, IvyCap Ventures and Spring Marketing Capital. 

Tracxn data suggests that Bewakoof was lastly valued at Rs 482 crore. In 2020, the company bagged a revenue of Rs 200 crore. However, after the pandemic, the D2C brand was seeking potential buyers to fulfil its growth and expansion plan. 

The D2C marketplace in India is slowly increasing. This year, amid a so-called funding winter, D2C companies have raised Rs 543 crore. A significant contrast compared to the other start-up segments. 

The possibility of this deal has sparked interest among other D2C players in the market. Dhinau Das, co-founder of Agility Ventures said, “We are surely going to see a lot more such deals happening in the near future. This also helps early-stage investors get exit opportunities at a time when larger funding rounds look a tad challenging amidst a global economic slowdown."