Craving snacks? Low sodium foods may be to blame

Health & Diet

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May 9, 2023

Hunger is a complex biological phenomenon that is regulated by multiple factors, including hormones, brain signals, and nutrient levels. Sodium is one of the essential minerals that play a critical role in regulating hunger and thirst signals in the body. Many people believe that eating low sodium foods leads to increased hunger and cravings, but does this claim have any supporting scientific data? In this article, we will read about different reasons for hunger cravings and the role of low sodium foods in hunger cravings.

Relationship Between Low Sodium Foods and Hunger:

Sodium is a crucial mineral for the efficient operation of numerous physiological systems, including:

Blood pressure regulation
Fluid balance
Nerve and muscle function

It is also involved in regulating the hunger and thirst signals in the body through its effects on the hypothalamus. It is a region of the brain that manages hunger. Sodium helps to regulate the secretion of hormones, such as antidiuretic hormone (ADH), which controls fluid balance and thirst signals, and aldosterone, which regulates blood pressure.

A diet low in sodium may lead to decreased levels of sodium in the bloodstream, which can trigger the hypothalamus to release hunger signals. This can result in increased hunger and cravings, particularly for high-sodium foods. Moreover, low sodium levels can cause fluid imbalances, which can lead to symptoms such as bloating, fatigue, and headaches. These symptoms can further contribute to increased hunger and cravings.

Yet, it is important to note that not all people experience increased hunger and cravings when they consume low sodium foods. Some people may even experience the opposite effect, with decreased hunger and cravings. This variability is likely due to individual differences in the regulation of hunger and thirst signals and the body’s response to low sodium levels.

It is also important to consider that low sodium diets may lead to decreased sodium salt cravings because of the reduction in the amount of low sodium salt in the diet rather than increased hunger and cravings. When people consume high-sodium foods, they may develop a preference for salty flavours and the reduction in salt intake can lead to decreased cravings for salt.

Additionally, it is important to consider the role of other nutrients in regulating hunger and cravings. A low sodium diet may also be low in other essential nutrients, such as:

Potassium
Magnesium
Calcium

Which can contribute to increased hunger and cravings. Furthermore, low sodium diets may contain fewer calorie-dense foods, which can lead to decreased energy intake and increased hunger. To seek treatment for chronic health conditions to manage cravings. One needs to stay hydrated and manage stress and emotions.

The relationship between low-sodium diets and hunger is complex and influenced by many factors. While low sodium levels can trigger hunger signals in some individuals, others may experience decreased hunger and cravings.

The effect of low sodium diets on hunger and cravings also depends on the overall nutrient composition of the diet and individual differences in the regulation of hunger and thirst signals. Maintaining a balanced diet that contains enough amounts of key elements, such as sodium, to support optimal health and regulate hunger and thirst signals.

If you’re thinking about following a low sodium diet, It is always recommended that you speak with a healthcare professional to ensure that you are getting enough of all essential nutrients. it should be done to prevent any potential health complications.

Zomato’s share prices drop as ONDC threatens with cheaper food options

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May 9, 2023

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Swiggy and Zomato are facing stiff competition from the Indian government’s ONDC (Open Network for Digital Commerce), which allows restaurants to sell food directly to customers without relying on third-party platforms. This feature is proving to be highly beneficial for restaurants and is rapidly gaining popularity in the digital commerce landscape.

Screenshots comparing food prices on Zomato and ONDC have gone viral on social media. A plain Margherita pizza is available for INR 195 on Zomato, while it costs only INR 156 on ONDC, making it around 20 percent more affordable. Non-vegetarians will have to pay INR 280 for a McChicken Burger on Zomato, whereas the same burger costs only INR 109 on ONDC.

According to analysts, Zomato’s shares have fallen by over 5 percent in response to the emergence of ONDC as a potential competitor to Zomato and Swiggy’s market share.

Zomato’s stock price on the NSE was recorded at INR 62.50 at 11 am, indicating a 3.7 percent decrease from the previous day’s closing price. Additionally, there was significant trading activity, with 46 million shares being traded.

Open Network for Digital Commerce (ONDC), which is supported by the government, aims to prevent the monopoly of a handful of large platforms such as Amazon, Flipkart, Swiggy, and Zomato in the e-commerce and food delivery sectors.

The government aims to increase the e-commerce penetration rate to 25 percent within the next two years, by leveraging the ONDC network. The network is expected to connect 900 million buyers and 1.2 million sellers, and generate a gross merchandise value of $48 billion.

According to Karan Taurani from Elara Capital, Zomato’s ability to raise commission rates in the medium term might be hindered as more restaurants switch to ONDC. This is a key driver for Zomato’s profitability, and hence, could pose a challenge for them.

“ONDC augurs well for food as a product which has lower average order value versus e-commerce and white goods, where there are trust issues,” Taurani said.

While ONDC has the backing of the government, it may face an uphill battle in winning over customers. Reports have surfaced of customers experiencing issues such as stale food and extended delivery times, with some deliveries taking over 90 minutes.

Taurani has also mentioned that the possibility of Zomato or Swiggy losing market share to ONDC is still valid, as long as ONDC can improve its user experience over time.

“Currently, it is very poor”, he said.

Digant Haria from GreenEdge Wealth is of the opinion that the market is big enough to support multiple players, indicating that there is room for both existing players such as Zomato and Swiggy and newcomers like ONDC to coexist in the industry.

“It is too early to say whether ONDC is a threat as it is in the nascent stages of adoption,” he said.

Zomato and Swiggy have an advantage in terms of making restaurants more discoverable to potential customers. Small eateries can pay a commission to these food delivery platforms to improve their ranking and increase visibility to people in nearby areas.

“ONDC does not do this. So, only well-established players like Domino’s with its own strong delivery network can think of moving to ONDC. Small restaurants do not have the luxury,” Haria said.

As Zomato and Swiggy strive to achieve profitability, their competition with ONDC is expected to be a prolonged one. In the meantime, investors are keenly awaiting Zomato’s Q4 financial results, which are yet to be announced.

Telangana to introduce auction system for liquor bars, eliminating license renewal

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May 9, 2023

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Under the current renewal system, bar owners are required to pay an annual fee of INR 41 lakh and an application fee of INR 2 lakh. (Representative Image)

To increase liquor sales in Telangana, the state government has lowered prices and is now considering a shift to an auction system for liquor bars. This would mean abandoning the current license renewal process and requiring bars to participate in an auction, similar to what is used for liquor shops. Sources with inside knowledge suggest that the state is preparing to issue directives on this change shortly. More than 1,400 bars in Telangana would be affected by this new policy.

Under the current renewal system, bar owners are required to pay an annual fee of INR 41 lakh and an application fee of INR 2 lakh. If these conditions are met, the license is automatically renewed.

At present, liquor shop auctions take place every two years. In Hyderabad, prime location liquor shops are required to pay a license fee of nearly INR 1 crore.

“This might be the case for bars too. And the license system may be in vogue for one or two years, but we can’t say how many bars will pay this kind of fee,” said industry sources.

“The new system will not prevent anyone from applying for licences and in fact, many will now be open to bidding, but there is concern about those who want to offer others for goodwill, but not get a good deal,” the sources said.

Hyderabad and Rangareddy are popular urban areas with high liquor sales, contributing significantly to the state’s revenue. Many bar owners have reportedly invested heavily in recent times to renovate and improve the interiors of their establishments. However, at that time, the state government did not suggest any increase in taxes based on turnover.

The Telangana government issued an order that permits certain shops and establishments to operate 24×7 by exempting them from Section 7 of the Telangana Shops and Establishments Act 1988. However, this exemption does not apply to bars and liquor stores. The order applies only to shops and establishments that fall under the definition of Section 2 (21) of the same Act. The government has made it clear that the April 4 order does not extend to liquor stores that come under the excise and prohibition department’s jurisdiction.

How to optimize inventory management in your food businesses to increase profits?

Business

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May 9, 2023

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inventory management in your food businesses

As a food business owner, one of the most critical aspects of running a successful operation is efficient inventory management. Whether you own a small café or a large restaurant chain, optimizing your inventory management can help you save time, and money, and increase profits.

Inventory management is the process of overseeing and controlling the flow of goods and materials in a business to ensure that there is enough inventory to meet customer demand while minimizing costs and waste. This includes tracking inventory levels, monitoring sales and orders, and forecasting future demand to ensure that inventory levels are always optimized.

In the food industry, inventory management is particularly important as perishable goods must be closely monitored and managed to ensure that they do not spoil or go to waste. Effective inventory management can help food businesses improve their bottom line by reducing costs, minimizing waste, and improving customer satisfaction.

Inventory management is crucial for the success of any food business. It ensures that the right amount of ingredients and supplies are available when needed, and helps prevent overstocking or stockouts. Proper inventory management allows food businesses to operate efficiently, reduce waste, and increase profitability.

The following are the importance of Inventory Management in food businesses:

1. Efficient operations: Optimizing inventory management ensures that the right amount of ingredients and supplies are available at the right time, eliminating the need for rush orders and last-minute shopping trips. This results in smoother operations, faster service, and increased productivity.

2. Waste reduction: Overstocking ingredients or supplies can lead to spoilage, waste, and increased food costs. On the other hand, running out of key ingredients can lead to delays, unhappy customers, and lost revenue. Proper inventory management helps minimize waste by ensuring that stock levels are appropriate and that ingredients are used before they expire.

3. Cost savings: By optimizing inventory levels, food businesses can reduce the amount of capital tied up in inventory and reduce the cost of carrying inventory. Additionally, accurate inventory data can help businesses negotiate better prices with suppliers and avoid last-minute purchases at higher prices.

4. Improved forecasting: Proper inventory management enables businesses to better predict demand and adjust their purchasing and production accordingly. This results in more accurate forecasting, reduced waste, and improved profitability.

5. Regulatory compliance: Food businesses are subject to strict regulations regarding the storage and handling of food items. Proper inventory management helps ensure that food items are stored appropriately and that they meet regulatory requirements.

Effective inventory management enables businesses to operate efficiently, reduce waste, and increase profitability. Optimizing inventory management is crucial for the success of food businesses.

Here are few ways to optimize inventory management for your food businesses, to maximize profits across your operations.

1. Reducing Food Waste

One of the most significant benefits of optimizing inventory management in food businesses is reducing food waste. When you don’t manage your inventory correctly, you risk over-ordering food supplies that may expire or spoil before you can use them. This results in unnecessary waste, which can have a significant impact on your bottom line. By optimizing your inventory management, you can accurately forecast demand, order the right amount of ingredients, and reduce waste.

2. Lowering Costs

Optimizing inventory management can also help lower costs. When you have excess inventory, it requires additional storage space, which can be expensive. Additionally, holding onto inventory for too long can result in spoilage or obsolescence, leading to wasted money and resources. By accurately managing your inventory, you can reduce the costs associated with excess inventory and wasted resources.

3. Improving Cash Flow

Inventory management is closely tied to cash flow. When you hold excess inventory, it ties up your cash flow and prevents you from investing in other areas of your business. By managing your inventory efficiently, you can free up your cash flow, which can be used to invest in other areas of your business, such as marketing, technology, and expansion.

4. Enhancing Customer Satisfaction

Optimizing inventory management can also enhance customer satisfaction. When you have the right ingredients and supplies on hand, you can quickly prepare orders, avoid stockouts, and ensure that customers receive their orders promptly. On the other hand, if you don’t have the right supplies, you risk delaying orders, disappointing customers, and damaging your reputation.

5. Increasing Productivity

Finally, optimizing inventory management can help increase productivity. When you have an organized system for managing inventory, you can quickly find the supplies you need, reduce the time it takes to prepare orders and avoid unnecessary downtime. This can help you serve more customers and increase profits.

Effective inventory management is a critical factor in the success of any food business. The ability to control inventory levels, minimize waste, and maximize profits are all key benefits that come with optimizing inventory management. By implementing a robust inventory management system and regularly analyzing and adjusting it, food businesses can ensure they are meeting their customers’ demands while also minimizing costs. With the rise of technology and data analytics, food businesses now have access to powerful tools to help them better manage their inventory and streamline their operations. Ultimately, optimizing inventory management is not just about reducing costs or maximizing profits, but also about ensuring customer satisfaction and loyalty, which is essential for long-term success in the competitive food industry.

Indian Restaurant Association takes on Zomato and Swiggy with launch of Waayu, a zero-commission food delivery app

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May 9, 2023

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The Indian Hotel and Restaurant Association recently launched an app called ‘Waayu’ that aims to provide a commission-free platform for food delivery. The app allows hotels, restaurants, and catering businesses to place delivery orders without incurring any commission charges.

According to a statement released by the industry body on Monday, the platform will assist restaurants in setting more competitive prices for their menu. Over a thousand brands, such as Mahesh Lunch Home, Bhagat Tarachand, Banana Leaf, Shiv Sagar, Guru Kripa, Kirti Mahal, and Persian Darbar, have already joined the platform.

The brand has appointed actor and investor Suniel Shetty as its ambassador.

With Waayu, restaurants can receive their payment directly and immediately into their own bank accounts through various payment modes like Paytm, Google Pay, UPI, net banking, debit or credit cards, or cash on delivery. They can choose to deliver their orders through available options like Grab or Dunzo, or by using their own delivery staff.

In addition, the Waayu app will provide a SaaS platform that automates the order workflow, enabling restaurants to manage orders efficiently, according to the industry body. The app is developed by Anirudha Kotgire and Mandar Lande under the name Destek Horeca.

“We are working with a plan of onboarding over 10,000 restaurants in the next three months from Mumbai, Pune, and the suburbs. Our next step is to take WAAYU in both metro and non-metro cities across India. We aim to disrupt the online and dine-in food industry with deep technology to provide quality food from popular restaurants at affordable rates. Zero commission model has always been our unique selling proposition and we would continue to do so,” Lande said.

This initiative comes at a time when restaurants in various cities are expressing dissatisfaction with food delivery companies like Zomato and Swiggy, citing high commissions and delayed deliveries. Recently, some Mumbai-based eateries have reported that Zomato has reduced the delivery radius for online orders, possibly due to a shortage of delivery personnel.

In March, Zomato not only increased the commissions on food delivery orders but also urged restaurants to spend more by advertising on the platform and bearing the cost of cancellations.

ADF Foods reports strong Q4 results with 72% increase in net profit to INR 20 Crore

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May 9, 2023

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adf — ADF Foods provides frozen foods as well as ready-to-eat and ready-to-cook (RTC) products, such as sauces, pickles, edible pastes, and dips, across more than 50 markets.

ADF Foods Ltd, an FMCG company, announced on Monday that it had experienced a 72% increase in its standalone profit after tax for the March 2023 quarter, amounting to INR 20.30 crore, primarily due to increased revenues.

According to a statement released by the company, it had disclosed a profit after tax (PAT) of INR 11.80 crore for the corresponding quarter of the previous year.

ADF Foods Ltd witnessed a 19% growth in its revenue from operations, which climbed to INR 98.2 crore in the January-March FY22 period from INR 82.4 crore.

For the financial year ending March 31, 2023, the board has proposed a dividend of INR 5 per share.

ADF Foods provided a business update stating that its greenfield expansion plan to increase its frozen food capacity is anticipated to commence during the second quarter of FY24 and reach completion within a period of 12-18 months.

ADF Foods Chairman & Managing Director Bimal Thakkar said, “Our flagship brand Ashoka remains a top Indian food brand in stores across the US, UK and Asia Pacific, thanks to our dedication towards traditional recipes and high-quality ingredients. Our planned expansion in Surat will unlock further frozen food production capacity”.

The company representative affirmed that they will maintain their focus on expanding their sales and distribution channels in India and abroad, with the aim of increasing their market penetration.

ADF Foods, headquartered in Mumbai, provides frozen foods as well as ready-to-eat and ready-to-cook (RTC) products, such as sauces, pickles, edible pastes, and dips, across more than 50 markets.

Playboy Beer Garden continues expansion with new outlet in Gurgaon

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May 9, 2023

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At present, the company runs five Playboy Beer Gardens in India, with one each located in Gurgaon, Ludhiana, Zirakpur, Dehradun, and Indore.

A new outlet of Playboy Beer Garden, the brewery chain owned by Playboy Venues India, has been launched in Gurgaon, according to a recent social media post by a company official. The outlet is situated in Unitech Commercial Tower 2, Sector 45, Gurgaon, Haryana and offers a spacious retail area spanning 5,000 sq ft.

“Successfully launched another Playboy beer garden venue in Gurgaon last weekend. Playboy Venues India by JJK&R entire team has done an amazing job. Also, continuous support from the PLBY Group, Inc. team. Interiors are tremendous. Visit us,” said Rohit Malhotra, Chief Executive Officer of Playboy Venues India by JJ K&R, wrote in a LinkedIn post where he also shared pictures of the store.

“The launch was very successful and smooth. Everyone enjoyed the music, drinks, and food and appreciated the interiors. A lot of influential people from Delhi and Gurgaon have joined us at the launch party,” said Malhotra.

“We have taken inspiration from the mid-century as well as very early-day Playboy Beer Gardens,” said Malhotra, speaking about the interiors of the new beer garden.

The beer garden concept was first introduced in Bavaria during the 19th century, where people could enjoy beer and food served on long tables and benches in both indoor and outdoor settings. Since then, the concept has become popular worldwide.

Playboy Beer Garden was established by PLBY Group, a California-based global media and lifestyle company that was founded as Playboy Enterprises by Hugh Hefner.

In 2016, the QSR chain launched its first brewery in Pune, India. Recently, in 2021, Jay Jay Quality Restaurants acquired the master franchise rights to launch a range of Playboy-branded establishments in the country, including clubs, cafes, lounges, beer gardens, signature events, and merchandise.

Continuing its expansion spree, the company recently opened its outlet in Dehradun. “Added a new location of Playboy Beer Garden in Dehradun. It’s the biggest and prettiest so far for us. An interior design masterpiece overlooking the Mussoorie mountains. A must-visit is the place to enjoy a drink with a view,” wrote Malhotra in a LinkedIn post.

The company inaugurated its first Playboy Club in India earlier this year, located at the Grand Hotel in Vasant Kunj, New Delhi.

At present, the company runs five Playboy Beer Gardens in India, with one each located in Gurgaon, Ludhiana, Zirakpur, Dehradun, and Indore.

“We are opening Guwahati this month, then Bengaluru and Kolkata locations will be launched in the next two months. We are also looking to expand in more locations across the country aggressively,” said Malhotra.

Nestle, Tata Consumer and Kraft heat up competition to acquire Ching’s Secret

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May 9, 2023

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Nestle SA, a multinational food and beverage company headquartered in Switzerland, is reportedly among the bidders for the acquisition of Capital Foods Pvt Ltd. As per insider information, Nestle is competing against Tata Consumer Products and The Kraft Heinz Co for the purchase of the Indian company known for producing condiments, food items, and ingredients under the Ching’s Secret and Smith & Jones brands.

Among the list of potential candidates being considered, ITC has been identified by the sellers and their advisors as another contender in the running.

Late last year, the three major shareholders of Capital Foods Pvt Ltd made the decision to sell the company. These shareholders are Invus Group, a European family office and investment arm with a 40% stake; US private equity firm General Atlantic, which holds a 35% stake; and Ajay Gupta, Founder Chairman of Capital Foods and a former Advertising Executive who turned his focus to the food industry, with a 25% stake. The intention to sell was initially reported by ET on November 14, 2022.

Under a sale mandate managed by Goldman Sachs, Capital Foods Pvt Ltd has been valued between $500 million to $800 million. The company has approached nearly a dozen global and local consumer food corporations, including Hindustan Unilever, Norway’s Orkla, Nissin Foods, and General Mills, among others, to consider purchasing the business. Following the submission of non-binding bids, the three leading contenders for the acquisition have been identified as Invus Group, US private equity firm General Atlantic, and ITC.

According to one of the sources mentioned earlier, Nestle is said to be working on an all-cash offer, while Kraft has expressed interest in acquiring up to 75% of Capital Foods Pvt Ltd and then taking the company public. General Atlantic is reportedly looking to exit completely, while Invus Group and Ajay Gupta are open to staying on board for potential future value upside, depending on the offers made.

“Capital Foods’ brands Ching’s and Smith & Jones are fast growing across India. We get approached by investors to invest in the business and participate in this exciting growth story. However, we would not like to respond to market speculation, gossip and rumours,” said Gupta.

Efforts to obtain comments from representatives of General Atlantic and Invus Group were unsuccessful.

In a recent interview at the end of last month, Nestle India Chairman Suresh Narayanan mentioned that the company regularly evaluates acquisition opportunities as part of its ongoing evaluation process.

In an email response, a spokesperson for ITC stated that the company does not provide comments on market speculations.

A spokesperson for Nestle said, “We would not like to comment.”

As of press time, email inquiries sent to Tata Consumer and Kraft did not receive any response.

According to insiders close to the company, Capital Foods Pvt Ltd is projected to end FY23 with a top-line of INR 900 crore and an EBITDA margin of 25%. The core business is growing at a compound annual growth rate (CAGR) of 30%, while other similar brands are expanding at single-digit rates.

In February, S Raghunandan was appointed as the Chief Executive Officer of Capital Foods. He is a seasoned veteran in the consumer industry and is known for his proficiency in restructuring operations before selling them or buying out foreign partners. Raghunandan has previously worked at HUL, Dabur India, Paras Pharmaceuticals, Reckitt Benckiser India, and Jyothy Laboratories. He was responsible for selling Paras Pharmaceuticals to Reckitt and leading Jyothy’s acquisition of the unprofitable India business of the German company, Henkel in India.

Record surge in India’s alcohol consumption despite rising prices

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May 9, 2023

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In FY23, the consumption of alcoholic beverages in India surged, with an estimated 400 million cases sold. This uptick in demand was seen across all major categories, including whisky, brandy, rum, gin, and vodka, with a particular preference for premium products. To give a sense of scale, this equates to an average of 4.75 billion 750 milliliter bottles consumed.

According to industry executives citing data from the excise department, the spirits market in the country witnessed a sales volume of 395 million cases in the year ending March, representing a 12% growth from the previous fiscal year. This surge in sales volume added nearly 40 million cases to the previous high recorded four years ago.

“We have been increasing prices to the highest level versus the recent past in India,” Pernod Ricard global Chief Financial Officer Helene de Tissot told analysts last month.

“All the fundamentals are very strong in terms of consumer confidence, in terms of demographics, in terms of the organisation, and then we have very strong brand equity that we have been building over the past 20 years. So we are very ambitious for India in the short and mid long term.”

According to data from the excise department, whisky continued to dominate the spirits market, making up two-thirds of the total demand and growing by 11.4% despite already having a significant market share. Brandy contributed 21% to the overall demand, while rum had a share of 12%. Meanwhile, vodka sales saw a 29% increase, and gin sales experienced a massive surge of 61%, albeit from a lower base.

Although several major brands experienced a decline in FY21, particularly in the whisky category, the latest fiscal year saw a significant rebound. Allied Blenders, for example, saw a 15% growth primarily driven by Officer’s Choice, one of the largest whisky brands globally in terms of volume. In addition, Allied Blenders introduced multiple new brands, including Iconiq White Whisky, Srishti Premium Whisky, and X&O Premium World grain whisky. Tilaknagar Industries also joined the trend by launching a premium flavored brandy called Mansion House Reserve.

“There were no disruptions last year from a demand standpoint and a few states also allowed price increases to offset rising input cost,” said Vinod Giri, Director General at the Confederation of Indian Alcoholic Beverage Companies (CIABC). “However, prices of glass have almost doubled in a year, squeezing margins for companies.”

According to Giri, the segment is expected to achieve a Compound Annual Growth Rate (CAGR) of 7-8% over the next five years.

Around eleven states, including Rajasthan and several southern states, have permitted companies to increase prices, providing some relief from margin pressure. Telangana, which is one of the largest consumers of spirits, reduced liquor prices last week, which is expected to further boost demand.

Despite the increasing competition in the premium segment, companies have reported that rising costs are impacting sales, particularly at a mass level.

“While the outlook is fairly good for premium brands, there has been a severe cost push pressure which is difficult to offset beyond cutting operating costs,” said Rakshit Jagdale, Managing Director of Amrut Distilleries. “Hence, posting double-digit growth going forward could be challenging and is not sustainable.”

The prices of raw materials, such as extra neutral alcohol, glass, and packaging materials, have reached unprecedented heights, affecting liquor companies.

Investment firm Invesco lowers Swiggy’s valuation again, marking it down to $5.5 Billion

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May 9, 2023

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According to regulatory filings, Invesco, an investment firm based in Atlanta, has once again lowered the valuation of Swiggy, a foodtech startup, and now values it at $5.5 billion. This is a significant drop from its previous valuation of $10.7 billion in January of last year.

This action has been taken in the midst of a trend of top Indian startups experiencing decreased valuations, as investors remain hesitant to invest in them.

During the $700 million funding round in January 2022, Invesco assessed Swiggy’s value at $10.7 billion. Nevertheless, in October 2022, the investment company reduced the foodtech giant’s valuation to $8 billion, resulting in its shares being valued at $4,759 each.

The investment firm had previously reduced the value of its stake in the company to $8 billion.

According to Invesco’s filings as of January 31, 2023, the investment company possesses 28,844 Swiggy shares valued at $3,305.7 each, resulting in a total valuation of approximately $5.5 billion for Swiggy.

The recent reduction signifies a 50% drop from the $10.7 billion valuation that Invesco had assigned to Swiggy during the funding round.

Coincidentally, the valuation reduction has brought Swiggy’s valuation to a level comparable to its primary competitor, Zomato, whose market capitalization stood at approximately $5.45 billion at the end of Monday’s (May 8) trading session.

The reduction in valuation arrives during a period when the global economic slowdown has caused a significant decrease in the valuations of technology companies across the world. Consequently, several major Indian startups have also witnessed markdowns in their valuations in recent months.

BYJU’S valuation was reduced by nearly 50% to $11.5 billion by BlackRock, while Softbank lowered the valuation of IPO-bound OYO by 20% last year.

Despite offering more extensive discounts, Swiggy has struggled to keep pace with its publicly traded competitor, Zomato, which, according to analysts, has seized roughly 55% of India’s food delivery market. As a result, the Prosus and Softbank-supported foodtech startup has been unable to maintain its position in the market.

As a result, Swiggy has begun to branch out into other areas, such as the grocery sector. The foodtech startup has recently introduced Maxx, a platform that promises to deliver various items, including toys, electronics, gadgets, and home and kitchen essentials, in under an hour.

In addition, Swiggy intends to expand into additional categories like beauty and grooming, essential clothing, gardening, furnishing and decor, and health and fitness, thereby challenging the dominance of Amazon and Flipkart.

Swiggy has been actively discarding non-profitable business verticals lately. For example, it terminated Handpicked, a premium grocery vertical, a few months after launching its pilot in Bengaluru. It also divested its kitchen infrastructure business, Access, to Kitchens@ in March and discontinued its private label, The Bowl Company, in Delhi NCR towards the end of last year.

In addition, Swiggy had to restructure and consequently dismissed 380 employees earlier this year. The company recorded a loss of INR 3,628.9 Cr in FY22, which is 2.2 times higher than INR 1,616.9 Cr in FY21, as its expenses surged by 2.3 times to INR 9,574.5 Cr.

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