ABFRL closes Rs 90 crore Masaba deal, eyes Rs 500 crore revenue in five years
What's the deal? Aditya Birla Fashion and RetailDealroom has a profile for this one. Try Dealroom → Ltd (ABFRL) has completed its acquisition of a 52.4% stake in House of MasabaDealroom has a profile for this one. Try Dealroom → Lifestyle Pvt Ltd, making it a subsidiary. The all-cash deal is valued at around Rs 90 crore, covering both a secondary purchase and a primary infusion.
What ABFRL is buying: Incorporated in 2014, House of Masaba sells apparel, accessories, and beauty and personal care under the "Masaba" brand, positioned for younger, digital-first consumers. Its 2022 beauty line, LoveChild, spans make-up and fragrances.
Why now? The deal follows an earlier term sheet in which ABFRL had proposed a 51% stake, subject to definitive agreements. It has now closed those conditions, lifting its holding to 52.4%. No governmental or regulatory approvals were required.
What's the endgame? ABFRL wants to strengthen its play in fashion for young, digitally native consumers and step into branded beauty. It plans to scale Masaba mainly through the digital direct-to-consumer channel rather than store-led expansion.
By the numbers: ABFRL and the brand are targeting annual revenue of around Rs 500 crore within five years. Disclosed apparel revenue over the preceding three years ran at Rs 16 crore, Rs 20 crore, and Rs 14 crore (COVID-impacted), with FY22 estimated near Rs 30 crore — figures that exclude the beauty business.
The signal: The deal fits ABFRL's broader strategy of acquiring brands to widen its footprint across fashion, beauty, and lifestyle — betting on designer-led, digital-first labels to reach a new generation of buyers.
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