Aditya Birla’s TMRW invests ₹289 crore in eight D2C brands

Aditya Birla Group’s TMRW unit on Monday said it invested ₹289 crore in buying majority stakes in eight direct-toconsumer brands in the fashion space, signalling consolidation in the direct-to-consumer (D2C) brands market in the country.

D2C brands that have received investments from TMRW include Berrylush, Bewakoof,

Natilene, Juneberry, Nauti Nati, Nobero, Urbano, and Veirdo. Some of these transactions are subject to customary closing conditions and signing of definitive agreements, the company said in a statement on Monday.

More such investments are underway, a top executive at the company said. “We’re looking to build a portfolio of around 10-12 brands in our first year. To get to that foundation, we are looking to invest anywhere between ₹500-600 crore. The current starting point is that these eight brands are tracking at a run rate of ₹700 crore, and our ambition is to scale them to ₹1,500 crore in the next 12 months,” Prashanth Aluru, CEO and co-founder of TMRW, said in an interview.

Launched earlier this year to roll out and back new-age digital ventures, TMRW is the Aditya Birla Group’s attempt at building a ‘House of Brands’ entity to create a portfolio of disruptor brands in the fashion and lifestyle space. With the purchases, TMRW is now present across apparel segments, ranging from casualwear and kidswear to western wear. The company also plans to expand into lifestyle categories, including beauty and personal care.

In October, Mint reported that TMRW was in talks to buy majority stakes in three startups, including Hyderabad-based Urbano Fashion, run by Imperial

Online Services Pvt. Ltd; Hyderabad-based Pratyaya E-commerce Pvt. Ltd, which sells activewear under the Nobero brand; and Ahmedabad-based Awesomefab Shopping Pvt. Ltd, which sells casual clothing for men and women via Veirdo.com.

In all, TMRW has invested in six companies and eight brands. “The idea is to partner with the founder and scale the brand from where it is today to the next level,” Aluru said.

The company has pumped in ₹200 crore in Bewakoof Brands Pvt. Ltd for the acquisition of a 73-80% stake through a combination of equity and debt along with secondary stake acquisition via share subscription deal, loan agreement and share purchase agreement. Bewakoof Brands posted sales of ₹162 crore in FY22. TMRW has invested ₹27 crore for a 51% stake in Berrylush Designs and 100% in Omega Design for ₹10 crore.