This also comes at a time when the fashion startup is struggling to keep up with competition from online players like Amazon, Flipkart, and Myntra. So far, LimeRoad has raised over $50 million from marquee investors like Matrix Partners, Tiger Global Management, and Lightspeed India Partners.
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V-Mart will also invest Rs 150 crore to help LimeRoad achieve profitability, it said in a statement. The listed entity currently has a network of 450 stores across the country, while LimeRoad is said to have achieved over two lakh downloads per day along with a gross merchandise value (GMV) of Rs 700 crore. GMV is a commonly used term that refers to the total value of goods and services sold over a period of time by a retail company.
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LimeRoad will operate as an independent entity under the V-Mart label and the startup’s CEO Suchi Mukherjee will continue her role.
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The sale is likely to help V-Mart strengthen its online presence through LimeRoad’s user base of five crore online shoppers in Tier II and III markets.