ABFRL buys out ethnic retailer Jaypore

Aditya Birla Fashion and Retail (ABFRL) has acquired online-offline ethnic fashion retailer, Jaypore which offers curated collections of handmade, handwoven and handcrafted apparel, jewellery, home textiles, and accents, based on craft forms, from all over India. The Board of Directors of ABFRL has approved the signing of Share Purchase agreement to acquire Jaypore. The business comprises online and offline operations. ABFRL, which has devoted little shelf space so far to ethnic wear, is buying the brand at an enterprise value of Rs 110 crore in an all-cash transaction. The deal might seem a shade expensive; revenues in 2018-19 (unaudited) were Rs 38.9 crore, lower than the Rs 41.9 crore reported in 2017-18 and the Rs 40.6 crore posted in 2016-17. However, industry watchers point out that Jaypore’s brand recall is high.