Blinkit now offers EMI (equated monthly instalments) for customers, letting them split payments for purchases above INR 2,999.
Albinder Dhindsa, CEO of Blinkit took to Linkedin and wrote, “We believe this will improve affordability and enable better financial planning for our customers.”
Blinkit updates EMI feature after ‘Seller Hub’
Notably, the EMI feature applies to all orders except those with gold and silver coins. This update comes a day after Blinkit launched the ‘Blinkit Seller Hub’ to help brands list and sell their products on its platform.
Additionally, the quick commerce major added a return option for clothing and footwear in cities like Delhi NCR, Mumbai, Bengaluru, Hyderabad, and Pune. They also introduced a feature for businesses to add their Goods and Services Tax Identification Number (GSTIN) during purchases on the platform.
Blinkit to offer cafe feature for F&B
Furthermore, Blinkit is thinking about introducing a cafe feature for snack and beverage deliveries. It has become a major growth driver for Zomato, with revenue doubling to INR 1,156 Cr in Q2 FY25 from INR 505 Cr last year.
For now, Blinkit now runs 639 dark stores nationwide, each averaging INR 10 Lakh in daily Gross Order Value. It plans to grow this network to 2,000 stores by the end of FY26.
Meanwhile, the company is losing market share in Delhi NCR as it focuses on expanding in other major cities.
Coca-Cola reported on Wednesday that heavy monsoons in several states hurt its volume growth in India for the third quarter. The company, which shared its Q3 earnings, saw a 2% decline in unit volume cases but expects growth to resume in the coming months.
Coca-Cola beverage company reports 2% decline in volume growth
According to The Hindu Business Line, during the earnings call, Coca-Cola Chairman and CEO James Quincey mentioned, “In India, volume declined in states that were impacted by higher-than-normal monsoons. In geographic areas that were unaffected, volume grew mid-single digits. We remain upbeat about progress in integrated execution and our ability to capture long-term growth opportunities.”
Meanwhile, heavy rains and floods affected the FMCG industry in the September quarter, particularly beverage companies, which saw slow domestic volume growth.
Quincey mentioned, “India had a particularly heavy monsoon in a number of states and that affected the volume. Actually, by the way, heavy monsoons tend to be a good predictor of agricultural yield, which would be then better next year.” He called the heavy rains a “temporary factor” and said the company is “looking for India to return to growth.”
Coca-Cola refranchising cuts unit volume 31%
Notably, Coca-Cola stated that “unit case volume declined 31 per cent, largely due to the impact of the refranchising of bottling operations,” referring to its company-owned bottling investments.
In January, Coca-Cola transferred its company-owned bottling operations in Bihar, Rajasthan, the Northeast, and parts of West Bengal to independent partners. “During the nine months ended September 27, 2024, the company recorded a net gain of $290 million related to the refranchising of our bottling operations in certain territories in India, including the impact of post-closing adjustments,” it noted in its financial statement.
The packaged food and beverage industry is banking on the festival season. Coca-Cola India previously mentioned seeing a positive sales trend, especially during festivals.
PepsiCo and Coca-Cola are considering launching soft drinks 15-20% cheaper than their main brands to target regional markets and combat competition from Reliance Consumer Products’ Campa, according to industry executives.
Reliance’s better retailer margins spur B-Brands from PepsiCo
According to Economic Times, Reliance Consumer Products is aggressively pricing its Campa brand and offering retailers better margins as it expands distribution. This move pressures PepsiCo and Coca-Cola, which have mostly dominated the market, to develop counter strategies like launching cheaper products or B-brands to protect their core brands’ image and margins.
“If need be, we will make a range which will fight that (B-segment) pricing also,” commented Ravi Jaipuria, chairman of Varun Beverages, PepsiCo’s largest bottling partner in India. He added that PepsiCo “is not affected” by Campa’s pricing strategy. “They (Reliance) have a different play,” Jaipuria said while talking to ET in response to a query about Campa’s pricing. He acknowledged Campa as “formidable competition,” saying, “Going forward, they will take share of the total market. Who will get affected first – I’m not sure … I don’t know. But we are improving our go-to market.”
Coca-Cola surges distribution of returnable INR 10 bottles
Two executives familiar with Coca-Cola’s plans said the company is increasing the distribution of returnable glass bottles at inr 10, especially for tier-2 markets. They also plan to launch regional brands that can be scaled as needed. One such brand is RimZim jeera, which was launched briefly and is now supplied on a limited scale. “This will protect margins of their mainstream brands which the cola major doesn’t want to compromise on, as well as not dilute equity of the brands,” one executive said.
Meanwhile, Campa sells its 200 ml bottles for INR 10, while Coca-Cola and PepsiCo sell 250 ml bottles for INR 20. Campa’s 500 ml bottle is priced at INR 20, compared to INR 30 for Coke and INR 40 for Pepsi. Although PepsiCo and Coca-Cola haven’t officially lowered prices, they’re using local promotions and bundling deals on quick-commerce platforms, the report further stated.
Furthermore, prominent regional competitors like Chennai’s Bovonto, Rajasthan’s Jayanti Cola, and Gujarat’s Sosyo Hajoori Beverages (partly owned by Reliance Consumer) are also big players in the soft drink market.
Reliance Consumer offers a 6-8% margin to distributors, compared to 3.5-5% by other soft drink makers. Tata Consumer Products MD Sunil A D’Souza said to ET that the entry of a new player with a different price point disrupts the industry. “While on paper it (price) is ’10 versus ’10, the other piece that you have (it didn’t surface quickly enough) was that while the ’10 (retail price) was the same to the consumer, the trade price was dramatically different,” he said, referring to the trade margins.
Tata Tea plans to raise prices across its brands in the next few months to boost profit margins, which have been affected by higher input costs, a top official announced on Wednesday, October 23.
Higher input costs led to price surge – Tata Consumer CEO
According to ET Retail, Tata Consumer Products expects an increase in overall volumes, which had been affected by urban flooding, a sluggish rural economy, and a general slowdown in growth, said CEO and Managing Director Sunil A D’Souza.
Meanwhile, the company reported a 1% profit increase in the July-September quarter, despite an 11% revenue jump. They believe tea prices have risen by over 25% this year due to supply disruptions.
It has begun taking “calibrated price increases” to avoid demand shock and stay competitive, D’Souza told. “… You would see some price implementations every quarter, if not a fortnight, and over a two-to-three-month period, we should be equalising margins,” he stated.
Tata Tea holds 28% of India’s tea retail market
Reports indicate that Tata Tea holds about 28% of the tea retail market in the country, competing with HUL. D’Souza explained that tea prices are up because overall production is down by 20%, and exports have increased.
Furthermore, the tea board decided to stop plucking leaves at the end of November instead of mid-December, which will further impact supply. Regarding Starbucks’ 18% sales drop, D’Souza attributed it to urban flooding and the overall economy but mentioned that new product lines should help.
In addition, D’Souza said the company expects volume growth from improved rural demand, due to better monsoons and expanded distribution. They also announced a partnership with Salesforce to launch ‘Mavic,’ an integrated sales and service platform aimed at boosting revenue and cutting costs.
Still, he did not specify the benefits expected from the tie-up. Salesforce’s India head, Arundhati Bhattacharya, said the company grew 35% in FY24 from Indian operations and hopes India remains one of its fastest-growing markets.
Swiggy has launched a new initiative called the ‘Seal’ programme to improve hygiene and food quality among its restaurant partners. Currently live in Pune, it will expand to over 650 cities across India during November, Swiggy announced.
Swiggy to revoke partners failing hygiene standards
According to INC42, the programme aims to improve restaurant hygiene by providing partners with insights and support to ensure hygienic, well-cooked food in quality packaging. “Since the programme’s launch two weeks ago, restaurant partners have shown high interest, with hundreds of requests for hygiene audits already received. Should any concerns arise about a restaurant holding the Seal, Swiggy will thoroughly review the feedback and may revoke the badge if the restaurant fails to maintain the established standards,” the statement further stated.
By this initiative, Swiggy will give verified customer feedback to restaurant partners, focusing on preventing contamination, proper cooking, and packaging quality. This will help restaurants improve hygiene. Swiggy will also provide support through account managers, detailed reports, and educational webinars on hygiene best practices to help them maintain high standards.
Swiggy teams up with FSSAI-accredited agencies for hygiene audits
Meanwhile, Deepak Maloo, head of customer and restaurant experience at Swiggy Food, commented, “As Swiggy completes a decade in food delivery, we believe that access to clean, hygienic food is just as important as great-tasting food. With the launch of the Swiggy Seal, we aim to support our restaurant partners with actionable insights to improve hygiene standards. The Swiggy Seal gives customers confidence to order, backed by genuine reviews, while helping restaurant partners enhance their practices through expert collaboration.”
Furthermore, the food tech giant has teamed up with FSSAI-accredited agencies like Eurofins and Equinox to offer restaurants professional hygiene audits at special rates. These partnerships aim to improve contamination prevention, food handling, and cleanliness.
Including recent service expansions, Swiggy launched Swiggy Bolt for 10-minute food delivery in six cities and Swiggy XL EV fleet for bulk orders in Gurugram. The company is also testing a premium membership program, Rare Club, with annual fees from INR 50,000 for high-end consumers.
Recently, Swiggy raised its platform fee to INR 10 from INR 7 per order on its food delivery service, a 43% increase, following rival Zomato’s lead.
Financially, Swiggy reported a revenue of INR 11,247 Cr in FY24. The food delivery business generated a Gross Order Value (GOV) of INR 24,717 Cr. Swiggy’s losses decreased by 44%, from INR 4,179.3 Cr in FY23 to INR 2,350 Cr in FY24.
Blinkit has introduced the ‘Blinkit Seller Hub’ to help brands list and sell their products on its platform. This hub allows brands to manage their sales themselves without needing to deal with intermediaries or the platform. Blinkit’s Chief Technology Officer (CTO) Sajal Gupta shared this update in a post on X.
Over 200 brands now access seller hub: Blinkit CTO
Sajal took to X (formerly twitter) to announce and wrote, ““We believe we can serve the community of brands better by building tech that gives them more power and control over their quick commerce presence. Over 200 brands already have access to their Seller Hub and we are rolling out to more brands soon, after the required regulatory verifications.”
With this move, Blinkit aims to emulate e-commerce giant Amazon. Gupta said the company wants to “create a seller program in quick commerce which is significantly better than any other.” He added that their benchmark has always been “the OG, Fulfilment by Amazon (FBA).”
Blinkit launches return option for apparel, footwear
Amid the service updates, Blinkit introduced a return option for clothing and footwear in select cities such as Delhi NCR, Mumbai, Bengaluru, Hyderabad, and Pune.
Furthermore, Blinkit recently introduced a feature for businesses to add their GSTIN while making purchases on the platform. The startup is also considering a cafe feature to deliver snacks and beverages.
Meanwhile, Blinkit has become a major growth driver for Zomato recently. The quick commerce division’s revenue doubled to INR 1,156 Cr in Q2 FY25, up from INR 505 Cr in the same period last year.
Moving forward, Blinkit plans to boost its dark store count to 2,000 by FY26. Meanwhile, Zomato, its parent company, has raised the platform fee to INR 10 during the festive season.
Zomato stock gains 4.6%, ends day 2.9% higher on Q2 results
Zomato shares jumped 4.6% to INR 268 on the BSE on Wednesday, October 23, following the company’s quarterly financial report.
However, the stock gave up some gains to close 2.9% higher at INR 263.85 on the BSE. A total of 16.16 crore Zomato shares were traded today. The company’s market value stood at INR 2.3 lakh crore (about $27.7 billion) by the end of the day.
In the bigger market, the Sensex dropped 138.7 points (0.17%) to 80,081.98, and Nifty50 fell 36.60 points (0.15%) to 24,435.50. Zomato’s shares have been rising for the past year due to better financial performance, giving a 111.93% return so far this year.
Meanwhile, in Q2 FY25, Zomato’s net profit increased by 389% year-on-year to INR 176 Cr. However, net profit fell by 30% from INR 253 Cr in Q1 FY25 due to Blinkit’s expansion costs. Despite this, brokerages are still positive about the stock. Axis Securities kept its buy rating on Zomato with a target price of INR 350.
Blinkit to achieve 20%+ growth in 5 years
According to INC42, the brokerage said, “Strong demand from the top 10 cities for food order delivery is expected to continue. Blinkit is anticipated to achieve 20%+ growth over the next 5 years, supported by growing demand, a better brand, and superior execution.” Nuvama kept its buy rating with a price target of INR 325 for the stock.
“Zomato continues to push the paddle of growth across its business.We expect Blinkit dark store addition to be faster than initially expected—hence growth shall be even faster while profitability would be delayed due to higher upfront cost thereof, which, in our view, is the right strategy in a cut-throat QC market,” Nuvama further added.
Amid the festive season, Zomato raised its platform fee to INR 10. The company earned INR 75 Cr from the platform fee in the quarter ending September 2024.Zomato shares jumped 4.6% to INR 268 on the BSE on Wednesday, October 23, following the company’s quarterly financial report.
However, the stock gave up some gains to close 2.9% higher at INR 263.85 on the BSE. A total of 16.16 crore Zomato shares were traded today. The company’s market value stood at INR 2.3 lakh crore (about $27.7 billion) by the end of the day.
In the bigger market, the Sensex dropped 138.7 points (0.17%) to 80,081.98, and Nifty50 fell 36.60 points (0.15%) to 24,435.50. Zomato’s shares have been rising for the past year due to better financial performance, giving a 111.93% return so far this year.
Meanwhile, in Q2 FY25, Zomato’s net profit increased by 389% year-on-year to INR 176 Cr. However, net profit fell by 30% from INR 253 Cr in Q1 FY25 due to Blinkit’s expansion costs. Despite this, brokerages are still positive about the stock. Axis Securities kept its buy rating on Zomato with a target price of INR 350.
Blinkit to achieve 20%+ growth in 5 years
According to INC42, the brokerage said, “Strong demand from the top 10 cities for food order delivery is expected to continue. Blinkit is anticipated to achieve 20%+ growth over the next 5 years, supported by growing demand, a better brand, and superior execution.” Nuvama kept its buy rating with a price target of INR 325 for the stock.
“Zomato continues to push the paddle of growth across its business.We expect Blinkit dark store addition to be faster than initially expected—hence growth shall be even faster while profitability would be delayed due to higher upfront cost thereof, which, in our view, is the right strategy in a cut-throat QC market,” Nuvama further added.
Amid the festive season, Zomato raised its platform fee to INR 10. The company earned INR 75 Cr from the platform fee in the quarter ending September 2024.
Bikaji aims to diversify into artisan bakery and café-style items
The investment will happen in stages over the next two years, marking Bikaji’s move into premium bakery and café products to meet changing consumer tastes in India’s retail market. This acquisition would help Bikaji diversify its products into artisan bakery products and café-style food items. The Hazelnut Factory has six stores in Lucknow, one store in Kanpur, and one in Delhi, providing specialty coffee, artisanal sweets, as well as several bakery and café products.
According to Indian Retailer.com, Deepak Agarwal, MD of Bikaji Foods International mentioned in a media release, “This acquisition marks a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter into retail QSR, premium artisanal sweets, and the bakery segment. By integrating The Hazelnut Factory’s premium offerings with Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”
The Hazelnut Factory eyes growth through Bikaji networks
This acquisition helps Bikaji build a “House of Brands,” offering cross-selling opportunities, a wider customer base, and a bigger market presence. Ankit Sahni, Founder of The Hazelnut Factory, said, “With our innovative culinary offerings and Bikaji’s strong distribution network and operational excellence, we are well-positioned to accelerate our growth.”
This move comes as India’s QSR segment grows quickly. Urbanisation, a young population, and food aggregators are driving this growth in tier-2 and tier-3 cities. With the Hazelnut Factory acquisition, Bikaji aims to tap into this fast-growing market.
Licious, a Bengaluru-based meat delivery startup, revealed that its losses decreased by 44% to INR 293.77 crore in FY24 from INR 528.5 crore the previous year. In addition, its revenue fell by 8.4% to INR 685.05 crore from INR 748 crore in FY23.
Decline in sales on Dunzo and Swiggy Meatstore contributes to Loss
According to INC42, the startup said its revenue drop is due to stopping sales on Dunzo and Swiggy Meatstore, and reducing its presence in modern trade and local stores. The D2C brand makes money by selling meat, seafood, cold-cuts, and ready-to-eat meat items online.
However, Licious said the revenue drop was balanced by a 35% year-on-year growth in quick commerce deliveries. Due to high demand for fast deliveries, the startup is testing 30-minute meat deliveries in Gurugram and moving to a full-stack D2C model. They also mentioned that 85% of their revenue came from their own app and they deliver meat to 1.2 million consumers monthly through it.
Licious acquires My Chicken to expand offline presence
Additionally, Licious plans to expand its offline store network aggressively. They recently acquired Bengaluru-based retailer My Chicken and More, increasing their offline retail points to 26. Although the financial details were not disclosed, Licious said the acquisition will add 23 more stores to its network, expanding its offline presence.
With its offline expansion, the startup expects to break even or become profitable this financial year. In FY23, the D2C startup’s EBITDA margin was -58.9%.
Meanwhile, Licious co-founders Ajay Hanjura and Vivek Gupta released a statement saying, “We are now focused on building a full-stack distribution operation through an omnichannel strategy. Last year has been a transition, with short-term impacts from strategic adjustments. However, we expect to see the positive results of these choices by the end of FY25.”
Notably, Licious let go of about 80 employees in FY24 as part of a restructuring exercise.
Tata Starbucks opens second experiential coffee store in Colaba, Mumbai
TATA Starbucks has inaugurated its second experiential coffee store in India at Dhanraj Mahal in Colaba, Mumbai. This store honours Mumbai’s architectural heritage and offers a unique coffee experience.
Starbucks first experiential coffee store in New Delhi
After the success of its first store in New Delhi, TATA Starbucks continues to mix India’s rich flavours and culture with its global coffee expertise, expanding its presence in India. The store’s menu features local ingredients like jaggery, chili, shikanji, guava, and tamarind, showcasing India’s culinary traditions. Signature drinks include Malabar Coconut Cream Latte, Cinnamon Jaggery Latte, Cocoa Birds Eye Chilli Latte, and Tamarind Shikanji. They also offer freshly baked croissants, sandwiches, and scrambled eggs made in-house for a unique coffee and dining experience.
According to India Retailer.com, Sushant Dash, CEO of TATA Starbucks mentioned, “The launch of our second coffee experiential store reflects our commitment to celebrating coffee heritage through variety, artistry, and food theatre, complemented by a host of international coffee experiences.”
Starbucks to honours Mumbai’s culture with experiential store
Furthermore, He stated, “A decade ago, our journey began in Mumbai, and this store honours the city’s rich cultural tapestry and vibrant community. It’s not just a tribute to the heritage of Starbucks; it’s a celebration of the community and Third Place experience. As we continue to elevate our legacy in Mumbai, we’re dedicated to offering our customers unique coffee experiences and memorable connections.”
Meanwhile, the store offers a wide coffee selection, with five exclusive espresso bean options and thirteen whole bean choices from top coffee-growing regions like India, Kenya, Sumatra, and Latin America. Coffee lovers can enjoy a globally curated range, including Starbucks Willow Blend, Single-Origin Zambia, Single-Origin Colombia, Pike Place Roast, and House Blend.
Notably, the new store combines traditional and modern design in Dhanraj Mahal, an Art Deco building. It honours Mumbai’s cultural history while providing a welcoming space that mixes Indian and world-class design.
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