Reliance Brands is in talks to acquire Bollywood actor Alia Bhatt’s Ed-a-Mamma for Rs 300-350 crore. The potential deal involves the full acquisition of the childwear brand.
Reportedly, talks between Reliance and Ed-a-Mamma are in the final stages. Industry executives aware of the matter revealed an agreement is likely in the next 7-10 days.
The acquisition, if successful, will bolster Reliance’s kidswear portfolio.
Ed-a-Mamma, Sustainable Kids wear
Ed-a-Mamma was founded in 2020 by Alia Bhatt, who noticed a lack of sustainable and affordable kids’ clothing options. The brand aims to be a world-class home-grown provider of children’s clothing. Alia Bhatt’s vision led to the creation of Ed-a-Mamma.
The brand primarily sells through online platforms like FirstCry, AJIO, and Myntra. Moreover, it is available on Amazon, Tata CLIQ, and its own website. Retail chains like Lifestyle and Shoppers Stop also offer the brand’s products.
Initially, the brand targeted children aged 4 to 12 with its kidswear collection. However, recently, it expanded its offerings by launching a clothing line for infants. The new line includes dresses for girls, sleepsuits, bodysuits, and more.
In October last year, Alia Bhatt shared her plans with PTI for Ed-a-Mamma for the next 2-3 years.
She expressed her desire to expand into the infant segment and add more vertical categories related to family care. According to Bhatt, her brand aims to use storytelling to enhance children’s understanding of the planet.
The goal is to make children more sensitive and aware of environmental concerns. Ed-a-Mamma’s vision revolves around fostering a connection between children and the planet.
Alia’s Investment Profile
Alia Bhatt invested in Mumbai-based personal styling platform Style Cracker in November 2017. That was one of her initial investments by her. Other than being a versatile actor, she is a visionary investor too.
For Alia Bhatt, supporting a business idea is driven by the brand’s “story” rather than financial gains.
In October 2021, she acquired a stake in Phool.co, a startup based in a tier 3 city. Phool.co’s founder, Ankit Agarwal, expressed gratitude, calling Bhatt’s investment a validation of their efforts.
Moreover, He believed her involvement would pave the way for a global success story. Furthermore, Alia Bhatt’s early investments demonstrate her support for promising Indian startups.
In July 2020, Alia Bhatt invested Rs 4.95 crore in Nykaa’s parent company FSN E-Commerce Ventures.
Her investment skyrocketed to Rs 54 crore during Nykaa’s successful public listing, surpassing 10x growth. Moreover, Her investment prowess showcases her as a smart investor.
Alia Bhatt launched Ed-a-Mamma in November 2020 as a sustainable clothing brand. Within 10 months, the startup’s growth surged by 10x.
By October 2021, it achieved the status of a Rs 150 crore brand. Ed-a-Mamma’s clothing lineup is designed for children aged 2 to 14 years.
Accusations and Collaborations of Reliance Industries Limited
On May 24, 2023, Reliance Retail acquired a 51% controlling stake in Lotus Chocolate. Reliance Consumer Products Ltd (RCPL) officially took sole control of Lotus after completing the acquisition process.
The purchase entailed buying 51% of Lotus Chocolate’s paid-up share capital for Rs 74 crore. In the deal, the promoter, Pai family, sold the stake to RRVL.
Additionally, RCPL fulfilled the open offer under Sebi Takeover Regulations. Previously, RCPL proposed acquiring 77% of the paid-up share capital through a secondary purchase and open offer.
Thanks to Reliance Retail’s partnership, Shein, the Chinese clothing brand, will return to India after a three-year ban. Reliance Retail, a subsidiary of RIL, recently signed a deal with the Chinese fashion brand.
According to media reports, the collaboration aims to tap into India’s rapidly growing fashion market. To re-enter the Indian market, Shein will operate through Reliance Retail.
Reliance Brands presently partners with renowned international brands in various lifestyle segments. These segments include luxury, bridge-to-luxury, high premium, and high street.
Some notable brands in the partnership include Armani Exchange, Burberry, Bally, and Bottega Veneta. Other brands like Canali, Diesel, Dune, Hamleys, and Emporio Armani are also part of the collaboration.
The partnership extends to brands like Ferragamo, GAS, Giorgio Armani, Jimmy Choo, Kate Spade, Marks & Spencer, and Michael Kors.
