India Sweet House raises investment from Viney Equity Market LLP in pre-IPO round

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October 15, 2024

Hospitality, Hotels & Restaurants, Luxury, Unicorns, Startups — OYO targets to secure $200 million for US expansion

Oravel Stays Ltd, parent company of OYO, recently bought Motel 6 and Studio 6, and is now in discussion to secure more investments to fuel its growth through acquisitions. This comes after its $525 million purchase of G6 Hospitality from Blackstone Real Estate, a big move into the US market.

Oyo acquires G6 Hospitality with over 320 hotels in US

With over 320 hotels in 35 states, OYO is rapidly expanding in the US. It added 100 hotels in 2023 and plans to grow by another 250 hotels next year.

According to Business Standard, OYO’s parent company, Oravel Stays, is talking to overseas and Indian investors to raise $200 million (about INR 1,681 crore) at an estimated valuation of $4.5-$5 billion. In August, OYO raised INR 1,457 crore (about $175 million) in a funding round led by Ritesh Agarwal’s Singapore-based entity, Patient Capital, accompanied by J&A Partners and ASK Financial Holdings.

Continue Exploring: Pluckk partners with Spencer’s Retail as Exclusive Fresh Produce Supplier

SoftBank-backed OYO to Refinance Debt

At that time, Patient Capital invested INR 830 crore, J&A Partners invested INR 120 crore, and ASK invested INR 14 crore. In addition, the SoftBank-backed company is seeking to refinance $450 million of its debt, aiming to lower interest rates from 14% to 10-10.5% and extend the loan maturity by three years to FY29. To be safe, it’s adding a $350 million bridge facility for interim funding until the equity raise happens. “The $350 million is a contingency plan and may not be drawn,” a source told BS.

Established in 2012 by Ritesh Agarwal, OYO, a hospitality service company extends easy-to-book, affordable accommodation globally. The company provides over 40 integrated products and solutions in more than 35 countries, including India, Europe, and Southeast Asia.

Continue Exploring: Timberland returns to India via Reliance Retail, now available on AJIO

OYO Plans to Launch IPO Next Year

Meanwhile, OYO plans to go public next year after delaying its IPO twice. The company will revise its draft red herring prospectus (DRHP) with SEBI once it refinances its $660 million Term Loan B. In FY24, they became profitable by reducing expenses and increasing revenue. The unicorn reported a net profit of INR 229.5 crore in FY24, compared to a net loss of INR 1,286.5 crore in the previous year.

Looking ahead, OYO plans to expand its premium offerings and international presence. Innov8, owned by the brand, has entered the office management space, similar to Awfis and Smartworks. Additionally, OYO is revamping its top leadership, promoting five executives in technology, product, strategy, operations, and distribution.

Farmery introduces Organic Honey and Wild Forest Honey with eco-friendly glass bottles

D2C

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October 15, 2024

D2C, FMCG, E-Commerce , Quick commerce — Farmery introduces Organic Honey and Wild Forest Honey with eco-friendly glass bottles

Farmery, a D2C brand focused on fresh, sustainable food, has launched two new honey variants: Organic Honey and Wild Forest Honey. They will be sold in eco-friendly glass bottles with 500g plus 100g free. The company’s new offerings include more ghee products to meet different consumer needs.

Farmery expands product line with Ghee alongside Honey

Notably, the brand’s Organic Honey (500g + 100g Free) at INR 650 comes from certified organic farms, offering pure, chemical-free, and nutrient-rich honey. Wild Forest Honey (500g + 100g Free) in INR 600 is collected from natural hives in the forest, rich in antioxidants and medicinal benefits.

According to Food Tech Biz, while talking about the product, Kamakshi Nagar, founder of Farmery explained, “At Farmery, we are constantly striving to offer products that resonate with nature’s purity and our customers’ health needs. With our Organic Honey, Wild Forest Honey, and our premium ghee offerings, we want to bring nature’s finest to every household in a way that is both sustainable and authentic. We believe these new variants will delight our customers with their distinct flavours, high nutritional value, and eco-friendly packaging.”

Farmary’s products available on e-commerce platforms from October

Meanwhile, Organic Honey, Wild Forest Honey, and ghee variants will be available on Farmery’s website and major e-commerce platforms starting mid-October. As people become more health-conscious, there’s a rising demand for products that mix traditional values with modern dietary needs. Farmery’s new range meets this demand, offering a blend of tradition, quality, and flavour.

Interestingly, both honey types are known for their natural qualities and health benefits. As a natural substitute for refined sugar, honey can help with healthier eating when used moderately. Likewise, Farmery’s premium ghee offers a good source of healthy fats and nutrients.

These honey and ghee options show Farmery’s dedication to sustainability and transparency by offering clean, ethically sourced products. The honey comes in glass bottles that are eco-friendly and stylish, keeping the honey pure while cutting down on plastic waste. With the increase in diabetes in India, Farmery aims to offer products that support a healthier lifestyle.

Timberland returns to India via Reliance Retail, now available on AJIO

E-Commerce

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October 15, 2024

retail, reliance market , retail market, FMCG, Quick commerce, E- Commerce — Timberland returns to India via Reliance Retail, now available on AJIO

American Outdoor apparel and footwear company Timberland has returned through Reliance Retail and is now available on AJIO’s fashion platform. Previously, Timberland closed its India stores in 2015 due to tough local competition and issues with the brand Woodland.

Timberland exits India over tree logo dispute with Woodland in 2015

Owned by VF Corporation, Timberland and Woodland, both with tree logos, were involved in a legal dispute over intellectual property because their logos and products are very similar.

Continue Exploring: As competition heats up in quick commerce, Blinkit scraps ‘zero notice period’ policy

According to Economic Times, Reliance Industries stated in its earnings report on monday, October 14, “AJIO has been strengthening its portfolio through new brand launches like ASOS, H&M, Timberland, to name a few.” In 2009, Reliance Brands, a subsidiary of Reliance Retail, had a distribution and licence agreement with Timberland.

Reliance Retail now offers H&M and opens Armani Cafe

In the previous month, Reliance Retail announced that Swedish fast fashion giant, H&M‘s products will be available on its platform. Additionally, Reliance Retail plans to expand its quick-commerce services, following the trend among other retailers and FMCG companies. “JioMart is scaling up a quick commerce pilot by serving customers through own store network,” it said.

Continue Exploring: Millet-based snack brand Troo Good raises $9 Mn in funding led by Puro Wellness

Additionally, Reliance Retail is bolstering its F&B portfolio by adding Armani Cafe, an Italian fine dining spot, at Mumbai’s Jio World Plaza. “Premium Brands business launched its first Armani Cafe to further strengthen its F&B portfolio,” it said. Reliance also runs 18 stores of Pret A Manger, the UK-based fresh food and organic coffee chain.

Actor Paineeti Chopra becomes first Brand Ambassador of La Pink

Skincare

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October 15, 2024

Actor Paineeti Chopra becomes first Brand Ambassador of La Pink

La Pink, India’s first beauty brand with 100% microplastic-free products, has named actress Parineeti Chopra as its first brand ambassador. Famous for its natural and innovative products, this partnership is a big step for La Pink in setting new clean beauty standards and boosting confidence among women nationwide.

La Pink now offers sixty 100% microplastic-free product

Since launching in 2023 with 17 products, La Pink has grown to offer over 60 items, all created with customer feedback in mind. The brand’s focus on customers aims to change the beauty industry by providing products that match the needs and values of Indian consumers.

Continue Exploring: Nykaa issues 3.08 Lakh equity shares to employees under ESOP scheme

According to Indian Retailer.com, Nitin Jain, Founder and Director, La Pink released a statement regarding the announcement, saying, “Her smart and aspirational approach to self-expression blends effortlessly with our belief that beauty should reflect your true self. As a passionate advocate for social change, Parineeti’s support for initiatives that uplift women and foster self-love resonates deeply with La Pink’s mission of giving the best to the community. Nitin further said, “ We are thrilled to collaborate with her to encourage our community to embrace their individuality and celebrate their unique beauty with only the best of natural ingredients.”

Famous for her Bollywood career, as an entrepreneur, philanthropist, and social advocate, Parineeti Chopra represents the values of La Pink. Her involvement supports La Pink’s mission to change the Indian beauty industry by promoting conscious beauty choices and a healthier future for consumers and the planet.

Actor Parineeti Chopra happy to align with Brand concept

Furthermore, Parineeti Chopra, Brand Ambassador, La Pink explained, “When I came across La Pink, the concept of being microplastic-free instantly caught my attention. While there are many natural and organic skincare brands, very few are discussing the harmful effects of microplastics on our skin and the environment. That’s why I knew I had to participate in this mission.”

Continue Explore: Beauty e-commerce unicorn Purplle completes Series F round, raising INR 1,500 Cr

“Indian consumers deserve to know about these ingredients and make informed choices. La Pink’s products, like the Ideal Bright Serum and Vitamin C Sunscreen, have become my go-to essentials. They repair, nourish, hydrate, and maintain the skin’s pH balance, all while being completely free of microplastics. This is exactly what modern skincare should be—unique, natural, and innovative. I’m excited to be associated with La Pink and hope this collaboration will inspire people to embrace mindful beauty choices for healthier skin and a better planet,” she added.

Moving ahead, La Pink’s partnership with Parineeti Chopra starts a new chapter in promoting clean, sustainable beauty. The brand stays dedicated to raising awareness about microplastics in skincare and encouraging eco-friendly choices. With Parineeti Chopra as their ambassador, La Pink aims to lead a positive change toward mindful beauty in India.

Millet-based snack brand Troo Good raises $9 Mn in funding led by Puro Wellness

Food & Beverage

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October 15, 2024

Millet-based snack brand Troo Good has raised $9 million (INR 75 crore) in a new funding round led by Puro Wellness, with participation from existing investors Oaks Asset Management and V Ocean Investments.

Expansion͏͏ Plans:

The͏͏ Hyderabad-based͏͏ company͏͏ intends͏͏ to͏͏ utilise͏͏ the͏͏ new͏͏ capital͏͏ to͏͏ enhance͏͏ its͏͏ infrastructure,͏͏ broaden͏͏ its͏͏ distribution͏͏ network͏͏ throughout͏͏ India,͏͏ and͏͏ prioritise͏͏ the͏͏ development͏͏ of͏͏ millet-based͏͏ products.

Founded͏͏ in͏͏ 2018͏͏ by͏͏ Raju͏͏ Bhupati,͏͏ Troo͏͏ Good͏͏ focuses͏͏ on͏͏ producing͏͏ and͏͏ selling͏͏ millet-based͏͏ snacks,͏͏ such͏͏ as͏͏ chikkis,͏͏ protein͏͏ bars,͏͏ and͏͏ nutri͏͏ bars.

Bhupati͏͏ stated,͏͏ “This͏͏ funding͏͏ will͏͏ enable͏͏ us͏͏ to͏͏ enhance͏͏ our͏͏ infrastructure,͏͏ broaden͏͏ our͏͏ distribution͏͏ network͏͏ across͏͏ India,͏͏ and͏͏ concentrate͏͏ on͏͏ innovative͏͏ millet-based͏͏ products.͏͏ We͏͏ are͏͏ dedicated͏͏ to͏͏ making͏͏ healthy,͏͏ affordable͏͏ snacks͏͏ accessible͏͏ to͏͏ everyone͏͏ and͏͏ are͏͏ enthusiastic͏͏ about͏͏ the͏͏ opportunities͏͏ that͏͏ lie͏͏ ahead.”

Continue͏͏ Exploring:͏͏ Troo Good targets͏͏ INR͏͏ 100͏͏ Crore͏͏ revenue͏͏ as͏͏ it͏͏ expands͏͏ production͏͏ and͏͏ aims͏͏ for͏͏ pan-India͏͏ presence

Troo Good’s͏͏ Financial͏͏ Growth:

This͏͏ latest͏͏ round͏͏ raises͏͏ Troo͏͏ Good’s͏͏ total͏͏ funding͏͏ to͏͏ around͏͏ INR͏͏ 130͏͏ crore.͏͏ The͏͏ company͏͏ had͏͏ earlier͏͏ secured͏͏ INR͏͏ 55͏͏ crore͏͏ in͏͏ a͏͏ Series͏͏ A͏͏ round͏͏ in͏͏ 2021.͏͏ Troo͏͏ Good͏͏ has͏͏ consistently͏͏ been͏͏ profitable,͏͏ demonstrating͏͏ year-on-year͏͏ revenue͏͏ growth͏͏ while͏͏ competing͏͏ in͏͏ the͏͏ highly͏͏ competitive͏͏ FMCG͏͏ market.

Vivek͏͏ Anand͏͏ PS,͏͏ Partner͏͏ at͏͏ Oaks͏͏ Asset͏͏ Management,͏͏ remarked,͏͏ “Troo͏͏ Good͏͏ has͏͏ consistently͏͏ provided͏͏ value͏͏ year͏͏ after͏͏ year,͏͏ demonstrating͏͏ the͏͏ robustness͏͏ of͏͏ its͏͏ business͏͏ model͏͏ and͏͏ the͏͏ exceptional͏͏ leadership͏͏ of͏͏ founder͏͏ Raju͏͏ Bhupati.”

Troo͏͏ Good͏͏ asserts͏͏ that͏͏ it͏͏ sells͏͏ more͏͏ than͏͏ 3͏͏ million͏͏ units͏͏ daily͏͏ of͏͏ its͏͏ popular͏͏ millet͏͏ chikkis͏͏ and͏͏ other͏͏ millet͏͏ snacks.͏͏ For͏͏ the͏͏ fiscal͏͏ year͏͏ ending͏͏ March͏͏ 2023,͏͏ the͏͏ company͏͏ reported͏͏ a͏͏ revenue͏͏ of͏͏ INR͏͏ 52.7͏͏ crore,͏͏ marking͏͏ a͏͏ 7%͏͏ increase.

Rising͏͏ Interest͏͏ in͏͏ Healthy͏͏ Snacking:

India’s͏͏ healthy͏͏ snacking͏͏ sector͏͏ has͏͏ been͏͏ attracting͏͏ significant͏͏ interest͏͏ from͏͏ investors͏͏ for͏͏ quite͏͏ a͏͏ while.

For͏͏ example,͏͏ last͏͏ month,͏͏ fresh͏͏ fruits͏͏ and͏͏ vegetables͏͏ platform͏͏ Pluckk͏͏ acquired͏͏ the͏͏ D2C͏͏ nutrition͏͏ brand͏͏ Upnourish͏͏ for͏͏ $1.4͏͏ million͏͏ to͏͏ strengthen͏͏ its͏͏ nutrition͏͏ offerings.͏͏ Earlier͏͏ that͏͏ same͏͏ month,͏͏ D2C͏͏ bread͏͏ brand͏͏ The͏͏ Health͏͏ Factory͏͏ raised͏͏ $3.5͏͏ million͏͏ in͏͏ a͏͏ seed͏͏ funding͏͏ round͏͏ led͏͏ by͏͏ Peak͏͏ XV͏͏ Partners’͏͏ accelerator͏͏ programme,͏͏ Surge.

Earlier͏͏ this͏͏ year,͏͏ Slurrp͏͏ Farm,͏͏ a͏͏ brand͏͏ specialising͏͏ in͏͏ snacks͏͏ for͏͏ children,͏͏ raised͏͏ $7.2͏͏ million͏͏ from͏͏ investors͏͏ such͏͏ as͏͏ Fireside͏͏ Ventures͏͏ and͏͏ Raed͏͏ Capital.

The͏͏ Indian͏͏ D2C͏͏ market͏͏ is͏͏ anticipated͏͏ to͏͏ hit͏͏ $100͏͏ billion͏͏ by͏͏ 2025.͏͏ Additionally,͏͏ forecasts͏͏ suggest͏͏ that͏͏ the͏͏ food͏͏ and͏͏ beverage͏͏ (F&B)͏͏ industry͏͏ will͏͏ expand͏͏ to͏͏ $691.47͏͏ billion͏͏ by͏͏ 2030.

Continue͏͏ Exploring:͏͏ Troo Good expands͏͏ operations͏͏ with͏͏ high-tech͏͏ facility͏͏ in͏͏ Chhattisgarh

Pluckk partners with Spencer’s Retail as Exclusive Fresh Produce Supplier

Food & Beverage

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October 15, 2024

Pluckk partners with Spencer's Retail as Exclusive Fresh Produce Supplier

Pluckk, a unique digital fresh food brand for fruits and vegetables, has partnered with Spencer’s Retail. Spencer’s will now exclusively sell Pluckk’s premium produce in its Fresh Section in stores in Lucknow, Varanasi, and Gorakhpur.

Spencer’s Retail celebrates Pluckk’s partnership

According to sources, while addressing the collaboration, Saurabh Bansal, Chief Merchandising Officer of Spencer’s Retail, mentioned, “Our partnership with Pluckk marks a significant step towards enhancing the fresh food experience for our customers. Pluckk’s expertise and commitment to quality align perfectly with Spencer’s mission to offer the best products to our customers.”

Continue Exploring: Zomato set to relaunch logistics service ‘Xtreme’ with revised strategy

Further emphasising the outcomes, Pratik Gupta, CEO of Pluckk, explained, “We are excited to partner with Spencers Retail to introduce our high-quality produce to their customers. This collaboration allows us to showcase the best of our offerings, ensuring consumers have daily access to fresh, healthy, and safe food. We anticipate doubling our presence over the next 12 months.”

Pluckk offers 90 items, includes Ozone-washed fruits & Vegetables

With HACCP-certified quality assurance, Pluckk offers ozone-washed fruits and vegetables from partner farms and certified non-GMO (Genetically Modified Organism) products. Their range includes daily essentials, exotic choices, cuts, mixes, and juices, totaling 90 items.

Continue Exploring: D2C footwear brand Yoho secures INR 27 Cr in Pre-Series B funding for expansion

Founded in July 2021, Pluckk is a top digital brand for fresh fruits and vegetables. Co-founded by Pratik Gupta and funded by Exponentia Ventures (EV), it operates in Bengaluru and Mumbai. Pluckk supports the ‘farm-to-table’ concept, offering a variety of gourmet fruits and vegetables directly to consumers, cutting out the middlemen. The platform has already partnered with over 1,000 farmers in Mumbai and Bengaluru.

Currently, Pluckk runs in big cities like Delhi, Mumbai, Bengaluru, and Pune. It links farmers directly with consumers, delivering over 2 million products each month to 500,000 homes.

As competition heats up in quick commerce, Blinkit scraps ‘zero notice period’ policy

E-Commerce

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October 15, 2024

As competition heats up in the quick commerce sector and the fight for talent becomes increasingly fierce, Zomato-owned Blinkit has reportedly updated its employment contract.

According͏͏ to͏͏ Moneycontrol,͏͏ the͏͏ company͏͏ has͏͏ asked͏͏ several͏͏ employees,͏͏ especially͏͏ those͏͏ in͏͏ senior͏͏ roles,͏͏ to͏͏ sign͏͏ an͏͏ addendum͏͏ to͏͏ their͏͏ contracts,͏͏ increasing͏͏ their͏͏ notice͏͏ period͏͏ from͏͏ zero͏͏ to͏͏ two͏͏ months.

The͏͏ report͏͏ quoted͏͏ a͏͏ source͏͏ stating,͏͏ “Blinkit’s͏͏ move͏͏ is͏͏ both͏͏ pre-emptive͏͏ and͏͏ a͏͏ response͏͏ to͏͏ current͏͏ developments.͏͏ A͏͏ well-funded͏͏ competitor͏͏ like͏͏ Zepto͏͏ or͏͏ a͏͏ major͏͏ rival͏͏ like͏͏ Flipkart͏͏ could͏͏ make͏͏ attractive͏͏ offers͏͏ and͏͏ easily͏͏ lure͏͏ talent͏͏ away͏͏ from͏͏ Blinkit.͏͏ Many͏͏ companies͏͏ are͏͏ doing͏͏ this,͏͏ and͏͏ Blinkit͏͏ is͏͏ implementing͏͏ measures͏͏ to͏͏ prevent͏͏ talent͏͏ loss.”

Quick Commerce Landscape͏͏ Heats͏͏ Up:

The͏͏ decision͏͏ to͏͏ extend͏͏ the͏͏ notice͏͏ period͏͏ for͏͏ Blinkit͏͏ employees͏͏ comes͏͏ as͏͏ competition͏͏ in͏͏ the͏͏ quick͏͏ commerce͏͏ sector͏͏ intensifies.͏͏ Media͏͏ reports͏͏ indicate͏͏ that͏͏ Zomato,͏͏ the͏͏ parent͏͏ company͏͏ of͏͏ Blinkit,͏͏ implemented͏͏ this͏͏ policy͏͏ in͏͏ July.͏͏ Since͏͏ then,͏͏ Zepto͏͏ has͏͏ secured͏͏ $340͏͏ million͏͏ in͏͏ funding,͏͏ Walmart͏͏ has͏͏ launched͏͏ and͏͏ expanded͏͏ Flipkart͏͏ Minutes͏͏ across͏͏ several͏͏ Indian͏͏ cities,͏͏ and͏͏ Swiggy͏͏ has͏͏ received͏͏ approval͏͏ for͏͏ its͏͏ IPO,͏͏ which͏͏ is͏͏ one͏͏ of͏͏ the͏͏ largest͏͏ for͏͏ a͏͏ new-age͏͏ company͏͏ in͏͏ recent͏͏ years.

“In͏͏ instances͏͏ where͏͏ Blinkit͏͏ is͏͏ certain͏͏ that͏͏ an͏͏ employee͏͏ is͏͏ joining͏͏ a͏͏ direct͏͏ competitor,͏͏ the͏͏ employee͏͏ is͏͏ now͏͏ placed͏͏ on͏͏ a͏͏ two-month͏͏ garden͏͏ leave͏͏ or͏͏ relieved͏͏ immediately͏͏ to͏͏ prevent͏͏ sensitive͏͏ information͏͏ from͏͏ being͏͏ leaked͏͏ to͏͏ others,”͏͏ another͏͏ source͏͏ informed͏͏ Moneycontrol.

Continue͏͏ Exploring:͏͏ Blinkit best͏͏ positioned͏͏ to͏͏ benefit͏͏ from͏͏ quick commerce growth;͏͏ Zomato͏͏ PT͏͏ raised͏͏ to͏͏ INR͏͏ 353:͏͏ CLSA

It͏͏ is͏͏ important͏͏ to͏͏ highlight͏͏ that,͏͏ over͏͏ the͏͏ past͏͏ six͏͏ months,͏͏ quick͏͏ commerce͏͏ players͏͏ have͏͏ expanded͏͏ their͏͏ operations͏͏ and͏͏ diversified͏͏ their͏͏ catalogues͏͏ to͏͏ meet͏͏ increasing͏͏ consumer͏͏ demand.͏͏ Nearly͏͏ all͏͏ platforms,͏͏ including͏͏ Swiggy͏͏ Instamart͏͏ and͏͏ the͏͏ new͏͏ Flipkart͏͏ Minutes,͏͏ have͏͏ ventured͏͏ into͏͏ categories͏͏ such͏͏ as͏͏ electronics,͏͏ beauty,͏͏ pet͏͏ care,͏͏ toys,͏͏ and͏͏ smaller͏͏ household͏͏ appliances.

In͏͏ Blinkit’s͏͏ case,͏͏ the͏͏ additions͏͏ led͏͏ to͏͏ a͏͏ 130%͏͏ surge͏͏ in͏͏ gross͏͏ order͏͏ value͏͏ (GOV),͏͏ reaching͏͏ INR͏͏ 4,923͏͏ crore͏͏ in͏͏ Q1͏͏ FY25,͏͏ up͏͏ from͏͏ INR͏͏ 2,140͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ quarter͏͏ last͏͏ year.͏͏ Sequentially,͏͏ this͏͏ represents͏͏ a͏͏ 22.2%͏͏ increase͏͏ from͏͏ INR͏͏ 4,027͏͏ crore͏͏ in͏͏ Q4͏͏ FY24.

Continue͏͏ Exploring:͏͏ Blinkit sees͏͏ 22%͏͏ QoQ͏͏ revenue͏͏ growth͏͏ to͏͏ INR͏͏ 942͏͏ Cr͏͏ in͏͏ Q1,͏͏ adjusted͏͏ EBITDA͏͏ loss͏͏ drops͏͏ to͏͏ INR͏͏ 3͏͏ Cr

Currently,͏͏ Blinkit͏͏ operates͏͏ 639͏͏ dark͏͏ stores͏͏ nationwide,͏͏ with͏͏ the͏͏ average͏͏ daily͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ per͏͏ store͏͏ increasing͏͏ to͏͏ INR͏͏ 10͏͏ lakh,͏͏ up͏͏ from͏͏ INR͏͏ 6͏͏ lakh͏͏ across͏͏ 383͏͏ stores͏͏ previously.͏͏ The͏͏ company͏͏ aims͏͏ to͏͏ expand͏͏ its͏͏ dark͏͏ store͏͏ count͏͏ to͏͏ 2,000͏͏ by͏͏ the͏͏ end͏͏ of͏͏ 2026͏͏ while͏͏ ensuring͏͏ profitability.

Future͏͏ Projections͏͏ for͏͏ Quick Commerce:

According͏͏ to͏͏ analysis͏͏ by͏͏ brokerage͏͏ CLSA,͏͏ the͏͏ gross͏͏ order͏͏ value͏͏ of͏͏ major͏͏ quick͏͏ commerce͏͏ players͏͏ such͏͏ as͏͏ Blinkit,͏͏ Zepto,͏͏ and͏͏ Swiggy͏͏ Instamart͏͏ is͏͏ projected͏͏ to͏͏ reach͏͏ $10͏͏ billion͏͏ by͏͏ the͏͏ financial͏͏ year͏͏ 2025-26͏͏ (FY26),͏͏ driven͏͏ by͏͏ their͏͏ expansion͏͏ beyond͏͏ groceries͏͏ and͏͏ into͏͏ Tier͏͏ 2͏͏ and͏͏ Tier͏͏ 3͏͏ markets.

Continue͏͏ Exploring:͏͏ India’s͏͏ quick commerce sales͏͏ surge͏͏ 280%͏͏ in͏͏ two͏͏ years,͏͏ expected͏͏ to͏͏ reach͏͏ USD͏͏ 9.95͏͏ Bn͏͏ by͏͏ 2029

Zomato set to relaunch logistics service ‘Xtreme’ with revised strategy

Food & Beverage

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October 15, 2024

Months after discontinuing its logistics service ‘Xtreme’ due to weak demand, foodtech giant Zomato is now reportedly set to overhaul the offering and launch it again in the market.

According͏͏ to͏͏ ET,͏͏ Zomato’s͏͏ Xtreme͏͏ is͏͏ undergoing͏͏ a͏͏ shift͏͏ in͏͏ focus.

Focus͏͏ on͏͏ Food͏͏ Delivery:

“The͏͏ service͏͏ is͏͏ being͏͏ adjusted͏͏ to͏͏ emphasize͏͏ the͏͏ company’s͏͏ core͏͏ strength͏͏ in͏͏ food͏͏ delivery.͏͏ Many͏͏ restaurants͏͏ already͏͏ handle͏͏ direct͏͏ deliveries.͏͏ This͏͏ could͏͏ remain͏͏ an͏͏ experiment͏͏ that͏͏ the͏͏ company͏͏ may͏͏ or͏͏ may͏͏ not͏͏ choose͏͏ to͏͏ expand,”͏͏ sources͏͏ indicated͏͏ in͏͏ the͏͏ report.

Xtreme,͏͏ a͏͏ quick͏͏ parcel͏͏ delivery͏͏ service͏͏ for͏͏ merchants͏͏ featuring͏͏ a͏͏ standalone͏͏ application,͏͏ was͏͏ launched͏͏ in͏͏ October͏͏ 2023͏͏ as͏͏ part͏͏ of͏͏ the͏͏ foodtech͏͏ startup’s͏͏ entry͏͏ into͏͏ the͏͏ logistics͏͏ sector.

However,͏͏ the͏͏ company͏͏ had͏͏ to͏͏ shut͏͏ down͏͏ its͏͏ logistics͏͏ division͏͏ in͏͏ July͏͏ due͏͏ to͏͏ low͏͏ demand,͏͏ leading͏͏ to͏͏ the͏͏ removal͏͏ of͏͏ the͏͏ Xtreme͏͏ app͏͏ from͏͏ the͏͏ Google͏͏ Play͏͏ Store.͏͏ Current͏͏ users͏͏ now͏͏ see͏͏ a͏͏ message͏͏ indicating͏͏ that͏͏ their͏͏ area͏͏ is͏͏ not͏͏ serviceable.

Continue͏͏ Exploring:͏͏ Zomato shuts͏͏ down͏͏ ‘Xtreme’͏͏ delivery͏͏ service,͏͏ relaunches͏͏ ‘Legends’͏͏ for͏͏ intercity͏͏ food͏͏ delivery

“There͏͏ are͏͏ several͏͏ restaurants͏͏ in͏͏ various͏͏ cities͏͏ that͏͏ prefer͏͏ to͏͏ keep͏͏ their͏͏ own͏͏ ordering͏͏ channels͏͏ while͏͏ still͏͏ wanting͏͏ the͏͏ quality͏͏ of͏͏ last-mile͏͏ delivery͏͏ provided͏͏ by͏͏ Zomato.͏͏ In͏͏ the͏͏ previous͏͏ experiment,͏͏ the͏͏ scale͏͏ never͏͏ grew͏͏ large͏͏ enough͏͏ to͏͏ impact͏͏ the͏͏ company’s͏͏ food͏͏ delivery͏͏ services͏͏ for͏͏ its͏͏ restaurant͏͏ partners.͏͏ However,͏͏ if͏͏ it͏͏ manages͏͏ to͏͏ reach͏͏ a͏͏ certain͏͏ scale,͏͏ a͏͏ decision͏͏ will͏͏ be͏͏ made͏͏ accordingly,”͏͏ one͏͏ of͏͏ the͏͏ sources͏͏ mentioned͏͏ in͏͏ the͏͏ report.

Exploring͏͏ New͏͏ Business͏͏ Ventures:

Additionally,͏͏ the͏͏ unicorn͏͏ attempted͏͏ to͏͏ relaunch͏͏ its͏͏ intercity͏͏ delivery͏͏ service,͏͏ Legends,͏͏ in͏͏ July,͏͏ but͏͏ it͏͏ was͏͏ suspended͏͏ just͏͏ a͏͏ month͏͏ after͏͏ entering͏͏ the͏͏ market.͏͏ The͏͏ decision͏͏ to͏͏ shut͏͏ down͏͏ Legends͏͏ was͏͏ in͏͏ line͏͏ with͏͏ Zomato’s͏͏ strategy͏͏ of͏͏ experimenting͏͏ with͏͏ new͏͏ offerings,͏͏ particularly͏͏ in͏͏ the͏͏ food͏͏ delivery͏͏ segment,͏͏ and͏͏ discontinuing͏͏ those͏͏ that͏͏ do͏͏ not͏͏ gain͏͏ sufficient͏͏ traction.

Continue͏͏ Exploring:͏͏ Zomato shuts͏͏ down͏͏ intercity͏͏ service͏͏ ‘Legends’͏͏ just͏͏ a͏͏ month͏͏ after͏͏ relaunch

The͏͏ company͏͏ has͏͏ been͏͏ conducting͏͏ various͏͏ experiments͏͏ this͏͏ year͏͏ to͏͏ assess͏͏ the͏͏ potential͏͏ of͏͏ expanding͏͏ its͏͏ business͏͏ lines͏͏ into͏͏ areas͏͏ such͏͏ as͏͏ logistics,͏͏ entertainment,͏͏ last-mile͏͏ deliveries,͏͏ large͏͏ order͏͏ fleets,͏͏ and͏͏ more.

In͏͏ late͏͏ August,͏͏ the͏͏ company͏͏ acquired͏͏ Paytm’s͏͏ ticketing͏͏ subsidiaries,͏͏ Wasteland͏͏ Entertainment͏͏ Private͏͏ Limited͏͏ and͏͏ Orbgen͏͏ Technologies͏͏ Private͏͏ Limited,͏͏ for͏͏ INR͏͏ 2,048͏͏ crore͏͏ in͏͏ an͏͏ all-cash͏͏ transaction.

Reliance Retail Q2 profit rises to INR 2,836 Cr, revenue falls 3.5% amid weak consumer demand

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October 15, 2024