Aditya Birla Fashion picks 51% stake in House of Masaba for Rs 90 cr

Aditya Birla Fashion and Retail Ltd (ABFRL) announced on Friday that it has received approval from the board to pick a 51 per cent stake in fashion brand House of Masaba for Rs 90 crore. The proposed acquisition is subject to definitive agreements, completion of closing conditions and statutory approvals. The time for completion of the deal is 60-90 days. 

“Through investment in brand 'Masaba', ABFRL will strengthen its play into fashion for young and digitally native consumers along with marking a foray into the branded beauty & personal care segment,” it said.

Brand Masaba will be scaled predominantly through the digital direct-to-consumer channel in order to leverage its connection with the younger and digitally-influenced consumers. The brand is targeting to achieve annual revenues of around Rs 500 crore in the next five years.

“Inspired by the ever-evolving, India-Proud Gen Z consumer, the brand will introduce multiple product extensions bringing Cosmetics, Personal Care, Athleisure & Home Decor to its portfolio. The House of Masaba already has established a strong foothold among the youth with a robust digital-first strategy and the tie-up with ABRFL will strengthen this position, making the brand future ready,” said House of Masaba founder Masaba Gupta.

Ashish Dikshit, Managing Director, ABFRL called House of Masaba “a young, effervescent brand with a refreshing and innovative take on every lifestyle category”.

The lifestyle, apparel, beauty and accessories company saw a revenue of Rs 16 crore, Rs 20 crore and Rs 14 crore, respectively from its apparel business in the last three years. The revenue for FY21 was, however, impacted by the COVID-19 pandemic. House of Masaba expects the FY22 revenue to touch Rs 30 crore. These do not include the revenue of the beauty business. 

House of Masaba was founded by Indo-Caribbean fashion designer Masaba Gupta in 2009. Masaba is widely known for her quirky prints. She was also named in the Forbes 30 under 30 list in 2017.

Over the years, House of Masaba had forayed into beauty, fashion jewellery, accessories, menswear, swimwear, and many more segments. Gupta also introduced a line of exclusive Masaba beauty products in collaboration with beauty e-commerce giant Nykaa. 

Masaba is the daughter of actress Neena Gupta and West Indies cricketing legend Sir Viv Richards. 

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