Reliance Industries on Saturday said it has inked a pact to acquire a significant stake in Shopsense Retail Technologies, which runs Fynd, for up to Rs 295.25 crore.
Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned subsidiary of the company, has entered into an agreement for acquisition of shares of Shopsense Retail, Reliance Industries Ltd (RIL) said in a regulatory filing.
"The aforesaid investment will further enable the group's digital and new commerce initiatives," it added.
RIIHL has an option to further invest an amount of up to Rs 100 crore in Shopsense, which is likely to be completed by December 2021, RIL said.
"The total investment will translate into 87.6 percent of equity share capital in Shopsense on a fully diluted and converted basis," it added.
Shopsense Retail or Fynd is a software technology company incorporated on September 27, 2012. It provides technology platform and solutions to merchants to manage their inventory and sales across multiple demand channels for consumers, including ecommerce platforms.
Founded by Farooq Adam, Harsh, and Sreeraman MG, Fynd has raised more than $7 million from investors including Google, Kae Capital, IIFL, Singularity Ventures, and GrowX, among others.
FYND has undergone major changes since its launch in 2012. Initially, it was called Shopsense, which provided brands with different products to improve customer experience. Some of its clients included Lee, Satya Paul, Anita Dongre, Flying Machine, and Being Human (along with other 330 brands, these are still FYND’s clients).
In early 2016, Shopsense was renamed as Fynd, to scale up the business with more avenues. Their products, such as Fynd Market Place and Fynd Store, help retailers save sales, which they may otherwise lose due to lack of stock of a product. For brands, Fynd saves warehousing costs, and stock transfers within stores. It provides fast delivery (in 2-3 days) as products are picked up from the stock point nearest to the customer (most of the orders are fulfilled from the same state).
The FYND app has had more than 10 million downloads, and 1.5 lakh visitors on the website every month.
(Edited by Megha Reddy)