Indian Online fashion and lifestyle e-commerce company Fashionandyou.com, has acquired its national peer Urbantouch.com in a cash-plus-stock deal. People familiar with the acquisition said "Fashionandyou.com and Urbantouch.com will co-exist
as independent identities and will focus on emerging as a leading lifestyle e-commerce portals operating across persistent and flash sales model," the companies said in a press statement released Tuesday.
part of the deal Abhishek Goyal, founder UrbanTouch.com will join Fashionandyou.com as the new CEO. The existing shareholders of Urbantouch.com will be exiting.
Harish Bahl, CEO, Fashionandyou.com said, “This acquisition is a strategic move for fashionandyou.com to further strengthen its market leadership in fashion and lifestyle e-retailing. UrbanTouch.com will help us in expanding our product offering in personal and beauty care segment."
Fashionandyou.com is a members only fashion and lifestyle e-commerce company with 36 million members and is one of the fastest growing e-commerce companies in India.
"The new acquisition will add to current portfolio of products lines of fashion apparels, designer wear, accessories, footwear, watches, jewellery and home décor products among other lifestyle products," the press statement said.
Fashion and You has paid thirty million dollars in cash and stock for the acquisition, said a person with direct knowledge of the transaction.
The acquisition also eases the exit for private equity investors, Tiger Global and Accel Partners who had invested over Rs 20 crores in Urban Touch in two rounds; the first in early 2011, and the last earlier this year.
Fashion and You, which was founded in 2010, has raised multiple rounds of risk capital, totalling above fifty million dollars. It last raised funds of forty million dollars in November 2011 in a round led by Norwest Venture Partners and Intel Capital. Its other investors include Sequoia Capital India and Nokia Growth Partners, reported ‘Business Times’.