Reliance Cap to invest $677K in 'affordable luxury' e-com venture Luxehues
Anil Ambani-controlled Reliance Capital Ltd has acquired more than 9.57 per cent stake in Radiant Hues CRM Solutions, the firm behind affordable luxury merchandise e-tail platform Luxehues.com, as per a statement.
This is part of the first tranche of the investment that would be topped up with more to take the total exposure to Rs 4.61 crore ($677,000) representing 14.07 per stake by May 2017.
Radiant Hues was founded in April 2011 and had a turnover of Rs 16 lakh for the financial year 2014-15. The website claims to list more than 50 brands currently across categories like watches, apparel, bags, shoes, etc.
It is part of Luxury Hues Group that also has other properties such as HighStreetLabels.com. Launched as a JV with American Express Global Network Services, it was positioned as a private membership-based shopping network. The website is not active currently.
The group also operates the India arm of Luxury Marketing Council, a trade group with chapters in more than 40 global cities. It also has a financial services subsidiary Financial Hues Pvt Ltd and operates luxury concierge service Quintessentially.
The group was co-founded by Amit Dutta and Peter Raj Kapoor in 2009. Prior to this, Dutta was vice president-marketing at American Express and vice president-marketing sales and after-sales at General Motors. Kapoor was associated with American Express for 20 years and was vice president and general manager, ASEAN and Southeast Asia, for global merchant services at American Express International.
Reliance Capital had previously said it is looking to invest Rs 6 crore ($903,000 then) in Luxuryhues.com in September 2015. The new disclosure means it has either scaled down the proposed investment or tweaked the terms.
Reliance Capital provides services around finance and investment, asset management, general insurance, broking businesses, consumer finance and asset reconstruction. Its erstwhile PE arm Reliance Equity Advisors has been renamed Fairwinds Asset Managers Ltd, after its top team completed a spin-off last year. Reliance Capital also has an early-stage alternative investment arm called Reliance Venture Asset Management.