Zomato’s Blinkit to face Q1 FY24 revenue loss due to ongoing delivery executive strike: ICICI Securities

News

By

-

April 17, 2023

The strike of Blinkit’s delivery executives in Delhi-NCR since mid-last week is likely to have already resulted in approximately 1% revenue loss to the quick-commerce arm of Zomato in Q1 of the financial year 2023-24 (FY24), ICICI Securities said in a research note on Monday (April 17).

Since the start of the strike over Blinkit’s new pay structure for delivery partners on April 12, more than 50% of the 200 Blinkit dark stores in the region have remained closed.

“We estimate Blinkit was operating about 370 dark stores pan-India as of Q3 FY23. This implies almost 25% of the dark stores are currently not operational. Given that at least 3-4 days’ sales have already been lost, this implies about 1% loss in revenue from Blinkit and almost 0.15% of consolidated revenue for Q1FY24 – already,” said ICICI Securities note on Zomato.

After the strike started, a message on the Blinkit app in some areas of the national capital said: “Sorry for the inconvenience. Your store is under maintenance.” Later, in a statement, the startup said, “We have introduced a new payout structure for our partners that compensates them based on their effort to deliver an order. This is an opt-in exercise, and our teams are on the ground to answer any questions from the partners.”

Blinkit’s decision to reduce the delivery fees of its delivery executives, leading to the ongoing strike, coincides with Zomato’s drive to reach its profitability targets. The foodtech giant has already implemented various restructuring measures in its other business segments, including staff reductions and exiting the food delivery business in several cities.

According to ICICI Securities, the change in Blinkit’s delivery fee structure is a reflection of Zomato’s drive towards cost control. The brokerage believes that the change will enable Blinkit to expand the delivery radius for its existing dark stores and enhance its network coverage while limiting capital expenditure.

“We believe strikes/agitations are unavoidable in the sector given the large exposure to an urban ‘blue-collared’ workforce. However, given that the strike (at Blinkit) is happening in the national capital and has already garnered political attention, we think the company should try to resolve the issue at the earliest,” said the brokerage.

After the Blinkit delivery executives’ protest began, Yashpal Batra, a spokesperson of the Bharatiya Janata Party (BJP) from Haryana, supported the protest and met with Gurugram Labour Commissioner Dinesh Kumar to seek swift resolution of their concerns. Recently, the delivery executives met with Kumar to request a minimum payment of INR 25 per order delivered.

ICICI Securities has suggested that Blinkit can tackle the issue by providing better clarity on the anticipated change in earnings for delivery partners, and offering some concessions on the delivery fee.

ICICI Securities has maintained its ‘buy’ rating on Zomato’s stock, despite the growth challenges in the food delivery segment and the recent problems at Blinkit.

ICICI Securities has predicted that Blinkit’s growth will be at 30% quarter-on-quarter in the fourth quarter of FY23, primarily due to its expansion in more locations. In contrast, the brokerage anticipates that Zomato’s gross order value (GOV) in its food delivery segment will remain stable in the same quarter, despite the activation of Zomato Gold, because of the seasonal weakness and waning online consumption. Nonetheless, the brokerage has maintained its ‘buy’ rating on the Zomato stock despite the recent issues at Blinkit affecting its growth in the near term.

It is worth noting that Zomato’s consolidated net loss widened both year-on-year (YoY) and quarter-on-quarter (QoQ) to INR 346.6 crore in Q3 FY23, despite total adjusted revenue of INR 2,363 crore. Blinkit’s contribution to the adjusted revenue in the quarter was INR 301 crore.

ICICI Securities has reiterated its price target (PT) of INR 65 on Zomato, which represents a potential upside of 20.7% based on the stock’s closing price on the BSE.

Today, Motilal Oswal started covering Zomato and gave a ‘buy’ rating with a PT of INR 70. This PT indicates an increase of 30% to the stock’s closing price on Friday.

According to Motilal Oswal’s report, while Blinkit is demonstrating good scalability and profitability, the space is still in its early stages for Zomato, as there are a significant number of players in the ecosystem.

“We view the acquisition of Blinkit as an additional risk and high attrition at senior management level remains a concern,” the brokerage said.

Despite facing stiff competition in the food delivery industry, Motilal Oswal predicted a 29% revenue compound annual growth rate (CAGR) for Zomato between FY23-25 due to the rapid growth of the industry in India, fuelled by increasing internet penetration, consumption, and urbanisation. As a leading player in the industry, Zomato is expected to gain from this trend.

“We expect strong growth to be complemented by the company turning profitable over FY25, despite elevated competitive intensity,” the brokerage added.

Although the stock market saw a decline in most new-age tech stocks today, Zomato’s shares remained relatively stable, trading at INR 53.8 on the BSE during noon trade.

Insect farming startup Ynsect raises $175 Million to expand high-value food production

News

By

SnackTeam

-

April 17, 2023

0

Ynsect SAS, a startup in the insect farming industry, has successfully raised additional funding to support its global expansion plans and prioritize producing higher-value food for both pets and humans.

Having recently closed a financing round of €160 million ($175 million), the French company’s total funds raised to date amount to roughly $625 million. With the aim of increasing profitability in the face of soaring costs of energy, raw materials, and debt, the company is transitioning away from animal feed – such as mealworms for fish – and towards higher-margin products, such as pet food and food ingredients.

“We are really focused today on where the value, the revenue are the highest,” and where the climate and biodiversity footprints are best, Ynsect co-founder Antoine Hubert said in an interview. “Animal feed is a good market, but it takes more time to make a positive financial and economic impact.”

Insects have gained recognition as a sustainable protein source, with regulatory approvals in Europe. However, they remain a niche market and comparatively expensive food item in the West. Additionally, securing funding for startups and new technologies has become increasingly challenging due to heightened investor scrutiny and limited funding opportunities.

Hubert emphasized the difficulties the industry confronts, noting that investors are now more thoughtful about their investment decisions.

“It’s positive to see in this tough environment, to find support and people who believe in what you are doing,” he said.

The identities of the investors in the latest funding round were not disclosed by Hubert, as Ynsect is currently in discussions for a second tranche of funding set to conclude later this year. Ynsect has previously received backing from investors such as Astanor Ventures, Bpifrance, and Robert Downey Jr., who played the lead role in the Iron Man movie franchise.

Ynsect, whose farms are located in France, the Netherlands, and the US, is currently expanding its operations in Mexico and exploring potential entry into the Asian market. With approximately $175 million in secured supply contracts and ongoing negotiations for customer deals worth around $1 billion, the company is poised for further growth.

Ynsect is pursuing an “asset-light” business model that involves a combination of joint ventures and licensing agreements, requiring less capital investment. This shift in strategy will result in a reduction of the company’s global workforce of 360 employees by approximately 20%. However, Ynsect still intends to hire around 40 people for new positions.

Anushka Sharma and Virat Kohli choose a wholesome post-IPL match meal. Check it out!

News

By

SnackTeam

-

April 17, 2023

0

For years, Anushka Sharma and Virat Kohli have been the epitome of relationship goals. Apart from their undeniable chemistry, the couple shares a passion for food. While Anushka savors South Indian delicacies and other traditional cuisines, Virat indulges in his favorite cheat meal, chole bhature. Nonetheless, their latest choice of refreshment has sparked a discussion about their preference for healthier options. Following Virat’s IPL match on Saturday, the duo was spotted having a wonderful time together, relishing some invigorating sparkling water.

Virat’s drink also included some lemon and mint. Anushka Sharma shared a selfie and wrote, “Post match drinks sesh – sparkling water. We party hard(ly),” along with a laughing emoji.

It is noteworthy that Anushka Sharma and Virat Kohli are proponents of healthy living and clean eating. In a recent interview with Grazia India, Anushka disclosed that she and Virat follow a distinct lifestyle. When their neighbors, Vicky Kaushal and Katrina Kaif, invited them for dinner last month, Anushka and Virat had to confess that they dine at 6 pm and retire by 9:30 pm.

Anushka said, “Katrina and Vicky have invited us to their home, but we eat dinner at 6 and we sleep at 9:30. So I said (to Katrina Kaif), for you, we’ll eat at 7-7:30 but we have to leave soon.”

During a visit to Delhi, Anushka Sharma embarked on a flavorful culinary adventure, treating her taste buds to a variety of mouth-watering delicacies. Her food diary featured two staple meals – the first being Virat’s favorite chole bhature, and the second consisting of kulcha with delectable paneer and flavorful dal. Anushka shared pictures of her indulgent meals with her online followers, showcasing the special chole bhature platter that came with sides of onions, green chutney, and pickle. With the other plate comprising a delectable kulcha served with paneer ki sabzi and dal, Anushka playfully captioned her post with “When in…”. Be sure not to miss out on the mouth-watering sides of onions, green chutney, and pickles.

On a previous occasion, the two were spotted enjoying a delightful coffee and cookie date. Anushka humorously remarked, “Feeling mighty victorious when you manage to sneak in a quick breakfast.”

MOFSL predicts 30% growth potential for Zomato: Here’s why the brokerage is optimistic about the stock

News

By

SnackTeam

-

April 17, 2023

0

According to a report by Motilal Oswal Financial Services, the food delivery market in India is expected to grow at a compound annual rate of 19% between FY23-25, while other markets are experiencing a slowdown. This growth is expected to be driven by an increase in the number of transacting users and order frequency, resulting in a higher proportion of online food ordering.

The report suggests that online food ordering in India is set to reach a 24% share by FY25E, up from 13% in FY21. The report also includes an analysis of Zomato, with a target price of INR 70.

On April 17, the shares of the restaurant aggregator and food delivery company were trading at INR 53.42 apiece on the BSE, indicating a 0.76% decline.

According to the brokerage firm, the adoption of online delivery in India has been fueled by increasing internet penetration, urbanization, and consumption. With a projected internet user base of 1 billion by 2025, as estimated by Redseer, and only 9% of the population currently using the internet (in comparison to 36% in China and 50% in the US), there is a vast untapped market with plenty of room for growth. This suggests a long-term potential for growth in the sector.

As per MOFSL, the food delivery market in India has now become a stable duopoly with Zomato holding a 55% market share and Swiggy holding 45%, following Amazon’s exit. The high barrier to entry, requiring significant capital to displace the established players, creates a considerable competitive advantage or “moat” for the incumbents.

“We expect Zomato to gain from the relatively early stage of the food delivery ecosystem in India, as increased formalisation along with a growing share of platform-led delivery (currently at 7% of overall food consumption) should help boost its Food delivery gross order value (GOV) to INR 38,400 crore in FY25 from INR 21,300 crore in FY22.”

Financials & Growth:

According to research analysts Mukul Garg, Raj Prakash Bhanushali, and Pritesh Thakkar at MOFSL, Zomato is expected to achieve a robust 29% revenue compound annual growth rate (CAGR) between FY23 and FY25. This growth is anticipated to be driven by increased penetration, a higher proportion of users making transactions, and an increase in the frequency of orders.

Additionally, the analysts predict that Zomato will reach breakeven by FY25, building on the food business segment’s EBITDA level breakeven achieved in 1QFY23. MOFSL also expects Zomato’s gross margin to improve significantly from 5.3% in FY22 to 33.5% in FY25.

Additionally, the brokerage noted that Zomato Gold is anticipated to contribute to the company’s growth. The early indications of Gold adoption are positive, with 900,000 users signing up in the first month alone. The brokerage believes that this trend will help Zomato to improve its growth trajectory, as the frequency of orders is expected to increase after declining in recent quarters.

However, MOFSL also expressed concern about the limited differentiation between Zomato and Swiggy’s offerings, with both companies providing food delivery, dine-in, and quick commerce services. A fragmented market without a clear leader could negatively impact margins due to the absence of efficiency gains from order bunching. MOFSL anticipates a contribution margin of 5.6% of gross order value (GOV) for Zomato in FY25E, compared to its medium-term target of 8%.

Biggies Burger expands its reach to Bengaluru with the launch of its newest store

News

By

SnackTeam

-

April 17, 2023

0

Biggies Burger, the popular Indian burger chain, is excited to unveil its latest addition in Sarjapur, Bengaluru. As the 14th store in Bengaluru, Biggies Burger continues to make its mark in the city with a hyperlocal expansion strategy, bringing its delicious offerings even closer to the people.

Biggies Burger, a well-known brand among Indian consumers, has initiated an aggressive expansion plan this year, with the goal of reaching 350 stores nationwide by 2024. With over 130 stores already in operation throughout the country, Biggies Burger is well on its way to achieving this ambitious target.

Biraja Rout, the Founder of Biggies Burger, is confident that the brand will achieve a revenue of INR 100 crore by the end of the financial year 2023. Biggies Burger has gained popularity as a successful Indian QR brand for franchising. As part of its franchising program, the brand has launched the ‘Biggies Entrepreneur Programme,’ which empowers aspiring foodpreneurs to build a profitable QSR business as franchisees, ensuring long-term sustainability.

Located in Natura Walk, Sarjapur, the newly opened Biggies Burger store showcases the brand’s signature menu, featuring a range of mouth-watering burgers, delectable sides, and refreshing beverages.

“We are excited to open a new store in Bengaluru. We have been building a loyal customer base across the country and we are confident that we will reach our 350-store mark by 2024, said Biraja Prasad Rout.

He added “Our menu is diligently planned to suit the tastes of the local people, and we are confident that the new store will be a hit among the local community.”

Biggies Burger’s latest store opening in Sarjapur is a testament to its commitment to providing customers throughout India with authentic grilled burgers.

Amazon Fresh widens its reach, now delivering in 50+ cities in India

News

By

SnackTeam

-

April 17, 2023

0

According to Srikant Sree Ram, Director of Amazon Fresh, the online grocery arm of Amazon has expanded its reach in India to over 50 cities, compared to around 22 cities in April of last year.

Srikant Sree Ram added that more than 50% of the online grocery platform’s customers are from Tier 2 and 3 cities, making them a crucial customer base for Amazon Fresh as it expands its presence to over 50 cities in India.

“In the last year, we have more than doubled the number of cities that we are available in. We are now available in 50 plus cities including many Tier 2, 3 cities like Chandigarh, Kochi, Trivandrum and many more.”

According to him, Amazon Fresh’s priority is to expand further into Bharat while also making sure that it provides a complete range of products to its customers.

Despite the emergence of several players offering 30-minute quick grocery delivery models, Amazon Fresh has been emphasizing its slotted grocery delivery service to its customers.

According to Sree Ram, the key factors that most online grocery shoppers in India look for are quality and value for money. He cited a recent survey by LocalCircles, which revealed that 50% of the respondents prefer to pre-plan their online grocery purchases and opt for a delivery slot that is convenient for them.

“Our focus has remained squarely on ensuring we provide high-quality products, especially in fresh fruits and vegetables and ensure that we offer our customer the best value. Whether it comes through pricing or through offers. Grocery for us has been one of our fastest growing categories nationally,” he added.

Last year, in 2021, Amazon merged its grocery stores – ‘Fresh’ and ‘Pantry’ – into a single store called Amazon Fresh. Additionally, Amazon.in provides free delivery on all orders above INR 249 for its Prime members.

IFAT urges Blinkit to reconsider pay cut for delivery workers following protests

News

By

SnackTeam

-

April 17, 2023

0

IFAT (Indian Federation of App-Based Transport Workers) has urged Blinkit, the quick-commerce unicorn owned by Zomato, to reconsider its stance on recent reductions in pay for delivery drivers.

The industry body’s national General Secretary, Shaik Salauddin, said, “The sudden reduction in their wages not only undermines the workers’ hard work and dedication but also puts their livelihoods at risk.”

Salauddin stated that approximately 600 delivery personnel met with company officials on April 14 to address the pay reduction issue, but the company persisted with its decision to continue with the cut.

As a reminder, Blinkit reduced the remuneration of its delivery staff from INR 50 per order to INR 14 last week, prompting protests and indignation across Delhi/NCR. According to IFAT, over half of the 200 dark stores that Blinkit operates in Delhi, Gurugram, Faridabad, Ghaziabad, Noida, and Greater Noida have closed since April 13.

Last week, in response to a SnackFax query on the pay cuts, a Blinkit spokesperson had said, “We have introduced a new payout structure for our partners that compensates them based on their effort to deliver an order. This is an opt-in exercise, and our teams are on the ground to answer any questions from the partners.”

IFAT stated that Blinkit previously paid INR 50 per order to its first group of delivery staff, while the more recent employees earned INR 25 per order. The organization further revealed that the quick-commerce firm offered incentives and fuel expenses, which could amount to INR 1,400 per week in certain situations, in addition to the delivery payments.

“The protesting workers are also angry as these incentives have been gradually tapered out,” said Salauddin, adding, “We strongly condemn this unilateral decision by Blinkit and call on the company to reconsider its stance.”

The involvement of Yashpal Batra, a BJP representative from Haryana, in discussions with a local industry association in Gurugram that represents striking Blinkit staff last week has added a political aspect to the ongoing developments.

Numerous industry specialists, such as Ashneer Grover, the former CFO of Blinkit (formerly known as Grofers) and cofounder of BharatPe, have been expressing their views on the overall feasibility of the quick-commerce business model.

In 2017, Grover departed from Blinkit, then known as Grofers, and recently took to Twitter to voice his concerns about the sustainability of the quick-commerce model.

“BlinkIt/Zepto – [the] problem is not INR 15 for delivery against INR 50. [The] problem is 10 Min delivery has no economics – low ticket size and low margin can never be solved through forced low delivery cost. BlinkIt journey: 90 Min (bull run) —> Next day (bear run) —> 10 Min (bull run) —> ??,” wrote the ex-CFO on Twitter on April 16.

Zomato’s Q3 FY23 financial report indicates that Blinkit’s order volume rose by 21% QoQ to 3.16 Cr, although the average order value (AOV) decreased by 2.6% to INR 553.

Zomato founder Albinder Dhindsa remarked that although the AOV is significant, the company could still establish a profitable business even with an AOV that is 20% lower than the current level.

Coca-Cola ventures into startup scene with purchase of minority stake in Thrive, competitor to Swiggy and Zomato

News

By

SnackTeam

-

April 17, 2023

0

Coca-Cola, the beverage giant, is reportedly poised to make its first investment in an Indian startup. The company is said to be purchasing a minority stake in Thrive, a food ordering platform that competes directly with Swiggy and Zomato. Thrive is a search and delivery platform that has formed partnerships with over 5,500 restaurants.

As per a Coca-Cola executive, the strategic investment in Thrive will provide a competitive advantage to Coca-Cola and incentivize customers to exclusively order Coca-Cola beverages alongside their food orders. Additionally, the investment will aid customers in personalizing their orders, purchasing bundled deals, meal combinations, and loyalty codes.

Coca-Cola’s investment in Thrive will facilitate greater consumer engagement as Thrive has a significant number of mid-sized restaurant partners.

Coca-Cola offers a range of beverages that includes aerated drinks like Coke and Thums Up, as well as juices like Minute Maid, water under the brand Kinley, and coffee under the brand Georgia.

In 2020, three entrepreneurs, Dhruv Dewan, Karan Chechani, and Krishi Fagwani, founded Thrive to enable customers to order food from a selection of restaurant partners. Additionally, the platform provides restaurants the option to construct their own sub-portals. Previously known as Hashtag Loyalty and focused on offline food retail businesses, Thrive Now was launched amidst the pandemic in 2020.

Among its list of investors are Jubilant Foodworks, which holds the master franchise for Domino’s Pizza in India, and the payment company Razorpay.

Spice Up Your Snack Game with This Lip-Smacking Tandoori Momos Recipe

Recipes & Meals

By

SnackTeam

-

April 17, 2023

0

Who doesn’t love momos? Especially when they are smeared in spices and cooked to perfection in a tandoor. Tandoor momos are savory delights and are a street food favorite, and for all good reasons.

The juicy, succulent filling with just the right amount of spice is perfectly complemented by the charred and smoky tandoori flavor. With each bite, you’ll experience a burst of bold and aromatic flavors that will leave you wanting more. The crispy, hot exterior and the tender, flavorful filling are a match made in heaven, making Tandoori Momos the ultimate street food snack.

These lip-smacking tandoor momos will definitely spice up your snack game and if you are really craving for it then you should definitely hit the streets!

Or wait? Why even? When we have this ultimate tandoori momo recipe, right here for you with this one simple product that will literally enhance your tandoori momo game and will satisfy your craving and raise the bar of standards for you.

So, if you are someone who often craves for tandoori foods and momo in general you should definitely check out:

Brew Lab Tandoori Mix

Brew Lab Tandoori Mix is a special blend of spices that is perfect for creating delicious and authentic Tandoori dishes. This mix is a combination of flavorful spices like cumin, coriander, paprika, turmeric, and more. It is an all-purpose spice blend that can be used to marinate meats, veggies, or tofu for Tandoori-style dishes like chicken tikka, paneer tikka, or even Tandoori Momos.

Brew Lab Tandoori Mix is made with high-quality ingredients and is free from any artificial colors, flavors, or preservatives. This spice mix is perfect for those who love the taste of Tandoori dishes but want to avoid the hassle of making a marinade from scratch. With this mix, you can quickly and easily create delicious and flavorful Tandoori dishes in the comfort of your own home.

With the price as low as INR148 for 100g, it is more like an investment for you for every tandoori momo craving that you have.

Here’s a recipe to go with it:

Ingredients:

1 cup of boneless chicken or paneer or tofu (diced)
1/2 cup of yogurt
2 tablespoons of Brew Lab Tandoori Mix
1 tablespoon of ginger-garlic paste
1 tablespoon of lemon juice
Salt (as per taste)
1 tablespoon of oil
1/2 cup of all-purpose flour
1/4 cup of water
Chaat masala (to sprinkle on top)

Instructions:

In a mixing bowl, add yogurt, Brew Lab Tandoori Mix, ginger-garlic paste, lemon juice, and salt. Mix well.
Add diced chicken, paneer or tofu to the mixture and marinate for at least 30 minutes.
In the meantime, mix all-purpose flour, salt, and water in another bowl to form a smooth dough.
Roll the dough into small circles and place a spoonful of marinated filling in the center.
Bring the edges of the circle together and pinch to seal, creating a dumpling-like shape.
Repeat this process until all the dough and filling is used up.
Heat a pan with oil and place the momos in it.
Cook until the momos turn golden brown and are fully cooked.
Sprinkle chaat masala on top and serve with mint chutney or any dip of your choice.

So, what are you waiting for? Spice up your snack game with Brew lab tandoori mix today!

Savor the heat: Indulge in the bold flavors of Spicy Mutton Masala by using Himachilli Red Chilli Chukh

Recipes & Meals

By

SnackTeam

-

April 17, 2023

0

Mutton Masala is a delicious and spicy dish that is popular in many parts of the world, particularly in India and the Middle East. This dish is made with tender chunks of mutton that are cooked in a flavorful blend of spices, herbs, and aromatics. The dish is typically served with rice or bread and is a favorite among meat lovers.

If you enjoy spicy food and are looking for a new recipe to try, then Mutton Masala is definitely worth a try. The dish is relatively easy to make and can be customized to suit your personal taste preferences. In this recipe, we’ll use Himachilli Red Chilli Chukh. This fiery chutney is made with the hottest red chillies, and its authentic Himalayan recipe will give your mutton masala a bold and spicy flavor.

So, let’s get started and learn how to make Spicy Mutton Masala!

Ingredients:

1 lb mutton
2 onions, chopped
2 tomatoes, chopped
2 tbsp ginger garlic paste
2 tbsp Himachilli Red Chilli Chukh
1 tsp turmeric powder
1 tsp red chili powder
1 tsp garam masala powder
Salt to taste
Oil for cooking
Coriander leaves for garnish

Instructions:

Heat oil in a pressure cooker and add chopped onions. Fry until they turn golden brown.
Add ginger garlic paste and fry for 1-2 minutes.
Add chopped tomatoes and fry until they become soft and mushy.
Add mutton and fry for 3-4 minutes.
Add turmeric powder, red chili powder, garam masala powder, and salt to taste. Mix well.
Add 2 cups of water and pressure cook for 5-6 whistles or until the mutton is tender.
Once the pressure has released, open the cooker and add 2 tbsp of Himachilli Red Chilli Chukh. Mix well.
Garnish with coriander leaves and serve hot with rice or roti.

The Himachilli Red Chilli Chukh adds a bold and spicy flavor to this mutton masala recipe. Its fiery taste is balanced with the other spices, making it a perfect ingredient for those who love their food spicy.

So, if you want to indulge in the bold flavors of spicy mutton masala, try using Himachilli Red Chilli Chukh in your recipe. This chutney will add the perfect amount of heat and flavor to your dish, making it a favorite among spice lovers.

NewsHub