Blog Post

Updated: Fabmall & Parent Co Acquired By AV Birla Group? Not Fabmall.com, Says K. Vaitheeswaran

Updated Below
Online to offline, it is. The AV Birla Group has entered the retail segment by buying 90% of Hyderabad based Trinethra Super Retail, which also owns online retailer Fabmall. The AV Birla Group has bought Trinethra from private equity firm Indian Value Fund, managed by GW Capital Pvt. Ltd. The financial details of the deal remain undisclosed, but India Value Fund retains 10% stake in Trinethra. [Sources: ET and TOI]
Fabmall.com has recently been rebranded as Indiaplaza.in (does that have anything to do with the acquisition?), and powers shopping sites for NDTV, Malayala Manorama and others.
The Trinethra group has revenues of Rs.250 crores, and 172 outlets in Andhra Pradesh, Kerala, Karnataka and Tamil Nadu. In 2004, the India Value Fund had acquired a controlling stake in the Trinethra-Fabmall combined entity by investing Rs.27 crore, buying out ICICI Ventures’ stake for Rs.17.5 crore.

Update: I just spoke to K. Vaitheeswaran, COO of Fabmall.com, and he informs us that the online business has not been acquired by the AV Birla Group. We’re expecting an official statement confirming the same, shortly. Credit due to reader Chetan Patil for the information.

Related:
Fabmall Joins Hands With Malayala Manorama To Launch E-Shopping Site
Trinethra acquires grocery retail chain Fabmall
– Sept 2006: Kamla Bhatt Interviews K. Vaitheeswaran of Fabmall – Part 1, Part 2 (audio)

6 Responses to “Updated: Fabmall & Parent Co Acquired By AV Birla Group? Not Fabmall.com, Says K. Vaitheeswaran”

  1. Some of Fabmall.com stakeholders also have stakes in Indiaplaza.com.
    ( I guess these are the private investors to whom Sify sold IndiaPlaza.com)
    Fabmall.com has recently rebranding itself as IndiaPlaza.in .
    IndiaPlaza.com caters to NRI's and IndiaPlaza.in is for the customers within India.

  2. Jhak Maro

    Fabmall in its first avataar started off as Fabmart and was only an internet portal with no offline play. Group of 7 people got together to start this portal. Then Reliance took a stake in Fabmart back in 2001 / 2002. Then Fabmart started a store of its own in Bangalore – around the same time Reliance lost interest in Fabmart – and got rid off it. Then Fabmart rebranded itself as Fabmall. Then Fabmall allcated equity in its offline business to XYZ and allocated equity in its online business to IMG (India Monsoon Group) – the same company that first invested in Sulekha.

    So here's the thing – Fabmall offline has no stake in Fabmall online – but the Magnificent Seven who founded Fabmart have a stake in both Fabmall online and Fabmall offline. So AV Birla seems to have picked up 90% of Trinethra / Fabmall.