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PhonePe’s Pincode pilots 20-minute quick delivery service, challenges Zepto, Blinkit

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Ashutosh Dubey
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PhonePe's Pincode pilots 20-minute quick delivery service, challenges Zepto, Blinkit |credit:Money Control|

PhonePe‘s Pincode has entered the quick commerce space, piloting a quick delivery service in parts of Bengaluru, Delhi NCR, Mumbai, Pune, Hyderabad, and Varanasi. The ecommerce app delivers groceries and other products in 10-20 minutes.

Pincode works on marketplace model

According to INC42, the products will be delivered by Pincode’s delivery executives, and delivery partners of logistics companies such as Shadowfax and Loadshare. Unlike most quick commerce players, Pincode doesn’t have a dark store model. Instead, it has a marketplace model, under which it brings together neighbourhood kirana stores and buyers on its platform.

Continue Exploring: CEO Deepinder Goyal’s net worth surpasses INR 10,100 Cr; holds 4.18% stake in Zomato

“We figured delivery from a neighborhood kirana store or a supermarket within 20 minutes can be done without setting up dark stores and that is what we are doing,” one of the sources said.

This model eliminates the need for costly inventory storage or warehouse management, and Pincode believes that this asset-light approach can benefit both retailers and customers. In the pilot stage, customers can get groceries, personal care products, sports equipment, among others in 10-20 minutes.

Phonepe introduces Pincode to deliver in Bengaluru in 2023

In April 2023, PhonePe initially launched Pincode app in Bengaluru to sell groceries, apparel, food and technology products on the Open Network for Digital Commerce (ONDC) platform. Back then, Pincode was primarily a buyer-side app. However, since last quarter, the startup has moved away from the ONDC network as it began developing its own marketplace.

Continue Exploring: D2C skincare brand Sugar Cosmetics to secure INR 38 Cr in In-house investment round

With the entry into the quick commerce space, Pincode will take on the likes of Blinkit, Swiggy Instamart, Zepto, and Big Basket. The development comes at a time when major players in the quick commerce space are firming up their expansion plans. To fuel this expansion, Zepto has raised over $1.3 Bn across three funding rounds in 2024 so far.

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CCI approves Google’s Alphabet acquiring stake in Flipkart

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Ashutosh Dubey
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CCI approves Google's Alphabet acquiring stake in Flipkart

The Competition Commission of India (CCI) has given the green light for Google parent company Alphabet to acquire a stake in ecommerce giant Flipkart.

Flipkart Deal comprise acquisition of minority investment

The watchdog stated that the proposed deal comprises the acquisition of a “minority, non-controlling investment” in Flipkart through subscription of shares. Additionally, the transaction will involve an arrangement between an affiliate of Google and a subsidiary of Flipkart for the “provision of additional cloud services”.

Continue Exploring: Tata Cliq reports 42% sales drop to INR 247 Cr, attributes decline to exit from electronics

This development comes six months after Flipkart announced that it had added Google to its cap table as a minority investor as part of a larger round led by its parent and retail giant Walmart. The deal was contingent on regulatory approvals and terms that both parties needed to agree upon. Flipkart raised a massive $1 Bn round earlier this year, with Walmart committing $600 Mn and Google reportedly contributing $350 Mn.

Alphabet raises premium to 5%-10%

Reportedly, the capital was raised at a 5%-10% premium to Flipkart’s last reported valuation of $33 Bn during the previous fundraise. Flipkart’s marketplace entity also received an infusion of INR 1,421 Cr from its Singapore parent in April 2024, which was preceded by another INR 924 Cr infusion earlier this year.

Continue Exploring: Meesho introduces voice bot Gen AI, expects 20% cost reduction

Meanwhile, the approval comes at a time when Flipkart has been on an expansion spree. Earlier this year, it forayed into the quick commerce segment with the launch of ‘Flipkart Minutes’ and has plans to rapidly scale up the offering. However, the company has also been facing renewed regulatory scrutiny. 

In September this year, the CCI found Flipkart, along with Amazon, guilty of flouting antitrust rules by giving preference to certain sellers.

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Tata Cliq reports 42% sales drop to INR 247 Cr, attributes decline to exit from electronics

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Ashutosh Dubey
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Tata Cliq reports 42% sales drop to INR 247 Cr, attributes decline to exit from electronics

Tata Cliq, the ecommerce platform of the Tata Group, has seen its sales drop for the second consecutive year.

Tata UniStore registers INR 430 Cr loss in FY23

According to its latest filing with the Registrar of Companies (RoC), Tata UniStore, which owns and runs Tata Cliq, reported a 42% drop in sales to INR 247 crore in fiscal 2024 from INR 430 crore in FY23. The company’s sales have been under pressure since it exited the electronics category.

Continue Exploring: Meesho introduces voice bot Gen AI, expects 20% cost reduction

Meanwhile, the company attributed the drop in revenue to the exit from the electronics category. However, it narrowed its net loss to INR 391 crore in FY24 from INR 874 crore in FY23 and INR 750 crore in FY22. The company did not attribute any reason for this improvement in its filing.

Further, Tata UniStore said in its filing that while profitability has improved during FY24, revenue in FY24 was not comparable with FY23 as the previous year had revenue from the electronics business that it exited in early part of FY23. The exit of electronics was part of the transfer of the electronics category exclusively to the group’s super app, Tata Neu, so that it would scale up rapidly.

“With aggressive growth targets for future years, the company plans to continue to improve its contribution margins and further strengthen its position as a leading omnichannel multi-brand e-retail player in India,” Tata UniStore said in the filing. The company said it took significant steps to grow its platforms, have stronger partnerships with brands and strong association with Tata Neu.

“Tata UniStore improving loss trajectory masks a concerning reality — its revenue has collapsed by 42% last fiscal suggesting the turnaround comes from retreating rather than recovering,” said Mohit Yadav, an analyst and founder at business intelligence firm AltInfo.

Continue Exploring: CEO Deepinder Goyal’s net worth surpasses INR 10,100 Cr; holds 4.18% stake in Zomato

Tata UniStore sees equity in minus, borrowings surges 12X 

With a negative equity of INR 183 crore and a 12-fold jump in borrowings to INR 517 crore, the ecommerce venture appears to be in strategic limbo, raising questions about its future in India’s hyper-competitive digital retail space, he concluded.

In the last week, Tata Cliq rebranded itself as Tata Cliq Fashion. It shifted from being a marketplace that sold everything to focusing on fashion and lifestyle products like apparel, footwear, watches, accessories, beauty items, gadgets, and home goods. In a regulatory filing, the company mentioned that it launched the Tata Cliq Palette app nationally last fiscal year and opened two beauty retail stores named Tata Cliq Palette in Navi Mumbai and Pune. They aim to grow their platform by focusing on personalized beauty.

“The company continues to focus on being a strong partner to all brands by helping them leverage their existing retail footprint to offer customers a unique and differentiated omnichannel experience,” it said.

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Meesho introduces voice bot Gen AI, expects 20% cost reduction

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Ashutosh Dubey
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Meesho introduces voice bot Gen AI, expects 20% cost reduction

Meesho, an e-commerce platform, has announced the launch of a multilingual Gen AI-powered voice bot to enhance its customer support on Tuesday, November 26.

Meesho’s Gen AI supports Hindi, English for now

The bot, which was launched a month ago, integrates emotion recognition, human-like interactions, and language transitions. Currently, it supports Hindi and English, with plans to expand to additional languages in the future.

Continue Exploring: D2C skincare brand Sugar Cosmetics to secure INR 38 Cr in In-house investment round

Reportedly, the voice bot has already shown promising results, with a 10% higher Customer Satisfaction (CSAT) score and a 95% resolution rate. It is currently handling 60,000 customer calls per day in post-order experience, which accounts for less than 50% of the total calls Meesho receives. However, the company plans to scale the bot to manage all post-order queries within a year.

Meesho’s AI reduces per-call costs by 25%

According to Sanjeev Barnwal, Co-founder and CTO of Meesho, the voice bot has also helped reduce per-call costs by 25% compared to human-operated calls. He anticipates a further cost reduction to 15-20% in the future. Despite the automation, Barnwal assured that there would be no layoffs in the customer executive division. Instead, Meesho is upskilling its employees to handle more complex calls.

Continue Exploring: Flipkart’s Ekart achieves 8x growth in three years, boosts monetization efforts

Meanwhile, the launch of the voice bot is part of Meesho’s efforts to enhance its customer support and improve overall customer experience. With its ability to recognize emotions and provide human-like interactions, the bot is well-equipped to handle customer queries and concerns. As Meesho continues to scale the bot’s capabilities, it is likely to have a positive impact on the company’s customer satisfaction scores and overall business operations.

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CEO Deepinder Goyal’s net worth surpasses INR 10,100 Cr; holds 4.18% stake in Zomato

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Ashutosh Dubey
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CEO Deepinder Goyal's net worth surpasses INR 10,100 Cr; holds 4.18% stake in Zomato

Zomato‘s founder and CEO Deepinder Goyal has seen a significant boost in his net worth, driven by a sharp rally in the company’s share price. Goyal’s net worth now exceeds INR 10,108.74 Cr ($1.19 Bn).

According to INC42, as per Zomato’s filing for its INR 8,500 Cr qualified institutional placement, the founder holds a 4.18% stake or 369.47 Mn equity shares in the company. This amounts to INR 10,108.74 Cr at the last closing market price.

Continue Exploring: Brokerages’ ‘Buy’ ratings on Swiggy’s IPO amid capitalization loss concerns

Zomato CEO foregoes salary until 2026

However, the founder forfeited his base salary of INR 3.5 Cr per annum till March 31, 2026, starting April 2021. Besides his base salary, Goyal is entitled to variable pay, which is at the discretion of the company’s board, and statutory benefits.

Goyal already entered the coveted billionaire club in July when the foodtech major’s shares touched INR 230 mark. This coincides with Zomato’s QIP that opened yesterday (November 25) and the company set a floor price of INR 265.91 per share for it. Zomato said it may offer a discount of up to 5% on the floor price.

Continue Exploring: Flipkart’s Ekart achieves 8x growth in three years, boosts monetization efforts

Zomato stock returns 123.78% to investors

Meanwhile, the stock has witnessed a significant uptrend since the beginning of this year on the back of its improving fundamentals and profitable quarters. On a YTD basis, its stocks have given a return of 123.78% to its investors.

Earlier this week, BSE announced the inclusion of Zomato’s stock in Sensex effective December 23 replacing JSW Steel. Following this, the stocks rose as much as 7.62%. Last week, global brokerage firm Morgan Stanley projected that Zomato stock has the potential to double in value within five years—or even in less than three years under a bullish scenario. It increased its price target to INR 355 per share from INR 278 for the company earlier.

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D2C skincare brand Sugar Cosmetics to secure INR 38 Cr in In-house investment round

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Ashutosh Dubey
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D2C skincare brand Sugar Cosmetics to secure INR 38 Cr in In-house investment round

Mumbai-based D2C brand Sugar Cosmetics is set to raise INR 38 Cr ($4.5 Mn) from its existing investors, including Anicut Equity Continuum Fund, Elevation Capital, Malabar Investment, L Catterton, among others.

Sugar Cosmetics secures fresh round at INR 2600-2700 Cr

According to INC42, the startup secured the fresh funding round at a valuation of INR 2,600- INR 2,700 Cr. This is almost the same valuation at which it raised $50 Mn in 2022.

Continue Exploring: Flipkart’s Ekart achieves 8x growth in three years, boosts monetization efforts

Responding to queries on the development, SUGAR cofounder and COO Kaushik Mukherjee said, “The investors who you have named are all existing shareholders of the company and some of the tranches of their investments may come into the company at different timelines.”

Malabar Investment acquires stake in Sugar in INR 80 Cr 

The fresh development has come almost a year after Malabar Investments acquired a stake worth INR 80 Cr in SUGAR from its existing investors – India Quotient and RB Investments. Sources told further that the startup may see another secondary transaction next year, giving exit to more of its early investors. SUGAR will likely use the fresh capital to scale Quench Botanics, a Korean skincare brand it launched last year with Bollywood actress Kareena Kapoor.

Continue Exploring: LT Foods goes global, aims to tap $2 Bn rice market of Saudi Arabia

Mukherjee said, “Our investments in FY25 are largely targeted towards scaling our skincare brand Quench Botanics that has seen strong traction in quick commerce and other ecommerce portals in the past six months. We have also earmarked some capital to build distribution for our more affordable range of colour cosmetics under the SUGAR POP sub-brand.” 

Besides, the startup is also working to strengthen the distribution network of SUGAR POP. In the financial year 2023-24 (FY24), SUGAR reported an operating revenue of INR 505.1 Cr, a 20% increase from INR 420 Cr in the previous fiscal year.

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Flipkart’s Ekart achieves 8x growth in three years, boosts monetization efforts

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Ashutosh Dubey
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Flipkart's Ekart achieves 8x growth in three years, boosts monetization efforts

The in-house logistics arm of ecommerce giant Flipkart, Ekart has scaled its operations and recorded an impressive 8-times growth over three years. 

This growth can be attributed to the company’s efforts to monetise its supply chain. Ekart has emerged as a key logistics partner for several brands, including Snapdeal, Roposo, Libas, Naaptol, Sassafras, and HomeCentre, particularly during the festive season.

Continue Exploring: LT Foods goes global, aims to tap $2 Bn rice market of Saudi Arabia

Ekart delivers 6 million shipments daily

With a daily capacity of over 6 million shipments, Ekart’s last-mile network spans an impressive 98% of Indian postal codes. The company boasts an extensive warehousing capacity of over 50 million cubic feet and a fleet of 7,000 trucks. These capabilities have enabled Ekart to achieve a 30% increase in two-day deliveries and a 40% expansion in zonal coverage for ecommerce brands in India.

While the logistics industry is growing at a rate of 5-10% year-on-year, Ekart has expanded its client base of retail and D2C brands by an impressive 10X. “Ekart’s capabilities reflect the immense potential of India’s logistics industry, and we are proud to contribute to its evolution. We remain committed to developing industry-first technologies and supply chain innovations, with a focus on driving efficiency and scalability,” said Mani Bhushan, Chief Business Officer, Ekart.

Continue Exploring: HUL announces demerger of  ice cream business, cites synergies limitation

Ekart attributes 10% business to E2E supply

Further, Ekart’s end-to-end services, including last-mile deliveries, partial truckload and full truckload movements, and refurbishment, have led 25% of partners to adopt multiple solutions, optimising their supply chain strategies. Today, Ekart attributes over 10% of its business to E2E supply chain solutions, which has helped brands optimise their conversions by 3-4% and optimise supply chain costs by 10-12%.

“At Ekart, we believe our deep understanding of overall supply chains and relentless pursuit of efficiency is a key differentiator and enabler for the brands that we serve as well as India’s logistics ecosystem as a whole. Ekart has become a reliable option for brands looking to unlock supply chain value to scale their topline via extended reach and speed and improve profitability through efficiency and lesser handshakes by working with one trusted partner for end-to-end solutions,” added Bhushan.

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LT Foods goes global, aims to tap $2 Bn rice market of Saudi Arabia

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Ashutosh Dubey
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LT Foods goes global, aims to tap $2 Bn rice market of Saudi Arabia

LT Foods Limited, a global FMCG company, has entered the Saudi Arabian retail market with the opening of a new office in Riyadh. This move aims to tap into the Kingdom’s $2 billion rice and rice-based food market, reflecting the company’s strategy to expand its global footprint.

LT Foods registers 18% revenue growth, 21% profit surge

For now, LT Foods generates $1 billion in global revenue and has sustained 18 years of revenue growth at 18% and profit growth at 21%.

Continue Exploring: Goyal Salt ltd registers approx. 60% revenue growth, hits INR 74.82 Cr in H1FY25

However, the Riyadh office will address the growing demand for authentic rice and rice-based products among Saudi consumers. This office will also serve as a hub for LT Foods’ regional operations, leveraging its expertise to cater to the local culinary preferences. 

Meanwhile, LT Foods is set to invest SAR 185 million in warehousing, inventory, and personnel over the next five years, targeting a revenue of SAR 435 million during the same period.

Further, the company, with Saudi Agricultural and Livestock Investment Company (SALIC) as a strategic shareholder, is also preparing to establish local manufacturing facilities in Saudi Arabia. 

DAAWAT, Hadeel, and Mufaddal, part of Saudi Arabia – MD

“We have built successful businesses in every market where we have set up our operations. We have provided quality products and premium food offerings to consumers. LT Foods has also added significant value to the economy and to its operations. We are now very excited to expand our footprint in Saudi Arabia. Our trusted brands, DAAWAT, Hadeel, and Mufaddal, have long been a part of the Kingdom of Saudi Arabia (KSA). With SALIC being a strategic shareholder in LT Foods, we are now expanding our footprint in the KSA with warehouses and are prepared to establish local manufacturing,” said Vijay Arora, Chairman and Managing Director, LT Foods.

Continue Exploring: Western Railways announces launch of Mumbai’s first open-air Restaurant on wheels

Adding further, Gursajan Arora, CEO – Middle East Business, LT Foods, stated, “Saudi Arabia is one of the largest importers of rice and a key market for us. We see tremendous potential for growth in the market and are excited to bring our legacy of quality, innovation, and trust to the region. With our Riyadh office, we aim to deepen our connections with local consumers and partners, tailoring our offerings to meet their specific preferences. We are confident in our ability to strengthen our market presence, drive sustainable growth, and continue delivering exceptional value to all our stakeholders.”

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HUL announces demerger of  ice cream business, cites synergies limitation

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Ashutosh Dubey
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HUL announces demerger of  ice cream business, cites synergies limitation

Hindustan Unilever Ltd (HUL) has announced that its board has approved the demerger of its ice cream business into an independent listed entity.

HUL owns Kwality Wall’s, Cornetto, and Magnum

The ice cream business owns popular brands such as Kwality Wall’s, Cornetto, and Magnum. As per the plan, existing shareholders of HUL will receive shares in the new entity in proportion to their shareholding in HUL.The demerger process will be subject to necessary approvals and procedures in accordance with applicable laws.

Continue Exploring: Zomato CEO Deepinder Goyal gives up approx. $2 million salary: More than meets the eye?

Earlier, HUL had stated that it was exploring options to separate its ice cream business, which contributes around 3% to the company’s topline. The company had formed an Independent Committee to evaluate the best mode of separation.

Board has accorded in-principle approval to demerge – HUL

“The Board considered different modes of separation of the Ice Cream business and after due consideration, with a view to maximising value for all the shareholders, the Board has accorded in-principle approval to demerge the business,” said HUL. The company has also authorized its management to undertake preparatory steps required for the demerger of the Ice Cream business.

Continue Exploring: Brokerages’ ‘Buy’ ratings on Swiggy’s IPO amid capitalization loss concerns

With intention to separate its global ice cream business, the decision to demerge the ice cream business is in line with HUL’s parent entity, Unilever PLC’s. The Independent Committee had noted that the Ice Cream business has a different operating model, including cold chain infrastructure, and a distinct channel landscape, which limits synergies with the rest of the company’s business. 

For the financial year ended March 2024, HUL’s revenue from the sale of products was INR 59,579 crore.

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Zomato CEO Deepinder Goyal gives up approx. $2 million salary: More than meets the eye?

By
Ashutosh Dubey
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0
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Zomato CEO Deepinder Goyal gives up approx. $2 million salary: More than meets the eye?

Zomato founder and CEO Deepinder Goyal has voluntarily waived his base salary of INR 3.5 Cr per annum till March 31, 2026. Goyal hasn’t taken the base salary since April 1, 2021.

Deepinder Goyal foregoes salary since 2021

As per the company’s filing for its INR 8,500 Cr qualified institutional placement (QIP), “… vide letters dated March 24, 2021 and April 1, 2024, addressed to our board, Deepinder Goyal has voluntarily waived his salary for a period starting from April 1, 2021 till March 31, 2026, and shall continue to discharge his roles and duties as managing director and chief executive officer during this period.”

Continue Exploring: Zomato launches INR 8,500 Cr QIP at floor price of INR 266 per share

Besides his base salary, Goyal is entitled to a variable pay, which is at the discretion of the company’s board, and statutory benefits. The founder, who holds a 4.18% stake in Zomato, will also be entitled to a cash payment of INR 1.75 Cr within a month of cessation of employment.

Zomato’s QIP and expenses

Meanwhile, the company’s QIP opened on Monday (November 25) and they set a floor price of INR 265.91 per share for it. Zomato said it may offer a discount of up to 5% on the floor price.

The QIP issue is expected to see participation from qualified institutional investors in India, as well as Europe and the US. The bidders will feature alternate investment funds registered with SEBI, eligible FPIs, mutual funds registered with SEBI, venture capital (VC) funds registered with SEBI, foreign VC investors, among others.

Continue Exploring: Flipkart guilty of unfair trade practice! Consumer Commission’s action 

Further, the company plans to use the QIP funds for various initiatives, including setting up Blinkit’s dark stores and warehouses. Zomato has reserved INR 2,137 Cr for this purpose and proposes to open additional dark stores in order to scale up its existing network across cities as well as expand into new cities in India.

Reportedly, the company will also use INR 2,492 Cr for brand building and advertising initiatives. It plans to ramp up its ad expenses in the near future, expecting to deploy INR 2,492 Cr towards advertising activities on or before March 31, 2028. 

Additionally, Zomato will invest INR 1,769 Cr to build its cloud infrastructure and tech capabilities. The rest of the funds will be reserved for general corporate purposes.

Zomato’s Qatar business closure

In a separate development, Zomato has informed about the closure of its operations in Qatar. The company’s step-down subsidiary, Zomato Internet LLC (ZIL), didn’t have active business operations and was under the process of liquidation since the time of its filing its red herring prospectus (RHP) in July 2021.

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