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Meesho’s festive season sale sees record orders, nearly doubling last year’s figures

By
M Haziq Pandit
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0
Meesho

E-commerce giant Meesho saw record orders on the first day of its festive season sale, nearly͏͏ doubling͏͏ last͏͏ year’s͏͏ figures͏͏ and͏͏ exceeding͏͏ daily͏͏ orders͏͏ by͏͏ more͏͏ than͏͏ three͏͏ times.

Major͏͏ E-Commerce͏͏ Players͏͏ Launch͏͏ Festive͏͏ Sales:

The͏͏ festive͏͏ season͏͏ sales͏͏ began͏͏ this͏͏ weekend,͏͏ with͏͏ e-commerce͏͏ giants͏͏ Amazon͏͏ and͏͏ Flipkart͏͏ launching͏͏ their͏͏ annual͏͏ sales͏͏ to͏͏ capitalise͏͏ on͏͏ the͏͏ most͏͏ profitable͏͏ period͏͏ for͏͏ online͏͏ shopping.

Meesho͏͏ reported͏͏ nearly͏͏ 6.5͏͏ crore͏͏ unique͏͏ customers͏͏ on͏͏ its͏͏ mobile͏͏ app͏͏ on͏͏ Day͏͏ 1,͏͏ along͏͏ with͏͏ approximately͏͏ 1.5͏͏ crore͏͏ app͏͏ downloads͏͏ prior͏͏ to͏͏ the͏͏ sale.͏͏ Meesho͏͏ Mall͏͏ experienced͏͏ significant͏͏ order͏͏ growth͏͏ compared͏͏ to͏͏ last͏͏ year,͏͏ with͏͏ nearly͏͏ 45%͏͏ of͏͏ these͏͏ orders͏͏ originating͏͏ from͏͏ first-time͏͏ customers.

Continue͏͏ Exploring:͏͏ Meesho partners͏͏ with͏͏ D2C͏͏ brands͏͏ ahead͏͏ of͏͏ festive͏͏ season͏͏ to͏͏ boost͏͏ offerings

“What͏͏ a͏͏ record-breaking͏͏ start͏͏ to͏͏ our͏͏ annual͏͏ Mega͏͏ Blockbuster͏͏ Sale!”͏͏ said͏͏ founder͏͏ Vidit͏͏ Aatrey͏͏ in͏͏ a͏͏ post͏͏ on͏͏ X.͏͏ “On͏͏ behalf͏͏ of͏͏ everyone͏͏ at͏͏ Meesho,͏͏ thank͏͏ you,͏͏ India,͏͏ for͏͏ choosing͏͏ us͏͏ as͏͏ your͏͏ preferred͏͏ online͏͏ shopping͏͏ destination!͏͏ This͏͏ is͏͏ just͏͏ the͏͏ beginning,͏͏ and͏͏ we’re͏͏ thrilled͏͏ to͏͏ set͏͏ even͏͏ more͏͏ records͏͏ together͏͏ this͏͏ festive͏͏ sale͏͏ season.”

Amazon’s͏͏ Great͏͏ Indian͏͏ Festival͏͏ and͏͏ Flipkart’s͏͏ Big͏͏ Billion͏͏ Days͏͏ are͏͏ currently͏͏ in͏͏ progress.͏͏ Festive͏͏ season͏͏ sales͏͏ are͏͏ critical͏͏ for͏͏ e-commerce͏͏ platforms͏͏ regarding͏͏ sales͏͏ performance.͏͏ To͏͏ prepare,͏͏ these͏͏ platforms͏͏ invest͏͏ significantly͏͏ in͏͏ advance͏͏ to͏͏ enhance͏͏ capacity͏͏ and͏͏ introduce͏͏ new͏͏ features.͏͏ Typically,͏͏ e-commerce͏͏ platforms͏͏ experience͏͏ a͏͏ surge͏͏ in͏͏ demand͏͏ for͏͏ high-value͏͏ items͏͏ across͏͏ various͏͏ categories,͏͏ including͏͏ premium͏͏ smartphones,͏͏ electronics,͏͏ appliances,͏͏ and͏͏ fashion͏͏ during͏͏ these͏͏ events.

Quick͏͏ Commerce͏͏ Platforms͏͏ Enter͏͏ the͏͏ Festive͏͏ Shopping͏͏ Arena:

This͏͏ year,͏͏ quick͏͏ commerce͏͏ platforms͏͏ such͏͏ as͏͏ Blinkit,͏͏ owned͏͏ by͏͏ Zepto,͏͏ Instamart,͏͏ and͏͏ Mumbai-based͏͏ Zepto͏͏ will͏͏ also͏͏ join͏͏ the͏͏ festive͏͏ rush,͏͏ aiming͏͏ to͏͏ capture͏͏ a͏͏ larger͏͏ market͏͏ share.

A͏͏ survey͏͏ conducted͏͏ by͏͏ Ipsos͏͏ Research,͏͏ commissioned͏͏ by͏͏ Amazon͏͏ India,͏͏ found͏͏ that͏͏ nearly͏͏ 71%͏͏ of͏͏ Indians͏͏ plan͏͏ to͏͏ shop͏͏ online͏͏ this͏͏ festive͏͏ season.͏͏ This͏͏ reflects͏͏ an͏͏ increase͏͏ in͏͏ consumer͏͏ confidence,͏͏ with͏͏ almost͏͏ 50%͏͏ of͏͏ respondents͏͏ intending͏͏ to͏͏ spend͏͏ more͏͏ on͏͏ festive͏͏ shopping͏͏ this͏͏ year͏͏ compared͏͏ to͏͏ last.

Continue͏͏ Exploring:͏͏ 60%͏͏ of͏͏ consumers͏͏ plan͏͏ to͏͏ boost͏͏ online͏͏ shopping͏͏ budgets͏͏ this͏͏ festive͏͏ season:͏͏ Meesho Survey

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Online retailers on track for 20-25% growth this festive season

By
M Haziq Pandit
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0
Online retailers

Online retailers such as Flipkart and Amazon are expected to record 20-25% growth in festive season sales this year, reflecting the response during the first three days of sales, as estimated by Datum Intelligence and͏͏ senior͏͏ industry͏͏ executives͏͏ familiar͏͏ with͏͏ the͏͏ sales͏͏ trends.

Significant͏͏ Sales͏͏ Increase͏͏ Recorded:

From͏͏ September͏͏ 26͏͏ to͏͏ 28,͏͏ online͏͏ retailers͏͏ recorded͏͏ a͏͏ sales͏͏ increase͏͏ of͏͏ approximately͏͏ 26%͏͏ compared͏͏ to͏͏ last͏͏ year,͏͏ reaching͏͏ around͏͏ INR͏͏ 26,500͏͏ crore͏͏ ($3.2͏͏ billion),͏͏ according͏͏ to͏͏ Datum͏͏ Intelligence,͏͏ which͏͏ monitors͏͏ ecommerce͏͏ data.͏͏ The͏͏ market͏͏ researcher͏͏ anticipates͏͏ gross͏͏ sales͏͏ of͏͏ $12͏͏ billion͏͏ for͏͏ this͏͏ festive͏͏ season,͏͏ reflecting͏͏ a͏͏ growth͏͏ of͏͏ about͏͏ 23%,͏͏ inclusive͏͏ of͏͏ discounts͏͏ and͏͏ returns.

Flipkart Meets͏͏ Internal͏͏ Targets:

E-retail͏͏ giant͏͏ Flipkart͏͏ is͏͏ on͏͏ track͏͏ to͏͏ meet͏͏ its͏͏ internal͏͏ targets͏͏ for͏͏ this͏͏ festive͏͏ season,͏͏ as͏͏ indicated͏͏ by͏͏ the͏͏ first͏͏ three͏͏ days͏͏ of͏͏ sales.͏͏ The͏͏ first͏͏ day͏͏ of͏͏ the͏͏ sale͏͏ was͏͏ exclusively͏͏ available͏͏ to͏͏ paid͏͏ VIP͏͏ and͏͏ Plus͏͏ members,͏͏ similar͏͏ to͏͏ Amazon͏͏ Prime.͏͏ “Day͏͏ 1͏͏ typically͏͏ caters͏͏ to͏͏ high-frequency͏͏ buyers,͏͏ and͏͏ the͏͏ next͏͏ day͏͏ it͏͏ opens͏͏ to͏͏ everyone…͏͏ With͏͏ three͏͏ days͏͏ of͏͏ trends͏͏ available,͏͏ Flipkart’s͏͏ sales͏͏ are͏͏ on͏͏ target,”͏͏ noted͏͏ one͏͏ of͏͏ the͏͏ executives͏͏ mentioned͏͏ above.

A͏͏ chief͏͏ executive͏͏ of͏͏ a͏͏ third-party͏͏ logistics͏͏ company͏͏ confirmed͏͏ the͏͏ sales͏͏ trajectory͏͏ up͏͏ until͏͏ Sunday͏͏ afternoon.

The͏͏ first͏͏ week͏͏ of͏͏ festive͏͏ sales,͏͏ including͏͏ Flipkart’s͏͏ Big͏͏ Billion͏͏ Days͏͏ and͏͏ Amazon͏͏ India’s͏͏ Great͏͏ Indian͏͏ Festival,͏͏ is͏͏ the͏͏ most͏͏ critical͏͏ period͏͏ within͏͏ the͏͏ 45-50͏͏ day͏͏ sales͏͏ window.͏͏ This͏͏ week͏͏ also͏͏ sets͏͏ the͏͏ tone͏͏ for͏͏ the͏͏ remainder͏͏ of͏͏ the͏͏ festive͏͏ season͏͏ leading͏͏ up͏͏ to͏͏ Diwali.

Continue͏͏ Exploring:͏͏ Flipkart,͏͏ Amazon͏͏ to͏͏ kick͏͏ off͏͏ major͏͏ festive͏͏ sales͏͏ from͏͏ September͏͏ 26

Surge͏͏ in͏͏ Consumer͏͏ Demand͏͏ Across͏͏ Categories:

Several͏͏ brands͏͏ across͏͏ segments͏͏ such͏͏ as͏͏ luggage,͏͏ electronics,͏͏ accessories,͏͏ and͏͏ household͏͏ items͏͏ reported͏͏ experiencing͏͏ significant͏͏ growth͏͏ compared͏͏ to͏͏ typical͏͏ business-as-usual͏͏ (BAU)͏͏ days.

“Mobile͏͏ devices,͏͏ electronics,͏͏ consumer͏͏ durables,͏͏ home͏͏ goods,͏͏ and͏͏ general͏͏ merchandise͏͏ represented͏͏ 79%͏͏ of͏͏ sales͏͏ during͏͏ this͏͏ period.͏͏ Sales͏͏ in͏͏ fashion,͏͏ grocery,͏͏ and͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ also͏͏ surged͏͏ by͏͏ two͏͏ to͏͏ four͏͏ times,”͏͏ stated͏͏ Satish͏͏ Meena,͏͏ advisor͏͏ at͏͏ Datum͏͏ Intelligence.

Both͏͏ Flipkart͏͏ and͏͏ Amazon͏͏ stated͏͏ in͏͏ separate͏͏ announcements͏͏ that͏͏ they͏͏ continue͏͏ to͏͏ experience͏͏ strong͏͏ demand͏͏ across͏͏ various͏͏ segments.

Vidit͏͏ Aatrey,͏͏ co-founder͏͏ of͏͏ Meesho,͏͏ an͏͏ ecommerce͏͏ marketplace͏͏ targeting͏͏ smaller͏͏ cities͏͏ and͏͏ towns,͏͏ posted͏͏ on͏͏ X͏͏ on͏͏ Saturday,͏͏ stating,͏͏ “By͏͏ 2͏͏ PM͏͏ yesterday,͏͏ we͏͏ had͏͏ already͏͏ exceeded͏͏ our͏͏ previous͏͏ record͏͏ for͏͏ the͏͏ highest͏͏ number͏͏ of͏͏ orders͏͏ placed͏͏ on͏͏ Day͏͏ 1͏͏ last͏͏ year,͏͏ and͏͏ by͏͏ the͏͏ end͏͏ of͏͏ the͏͏ day,͏͏ that͏͏ figure͏͏ had͏͏ more͏͏ than͏͏ doubled.”

According͏͏ to͏͏ Meena,͏͏ while͏͏ sales͏͏ of͏͏ mobile͏͏ devices,͏͏ consumer͏͏ durables,͏͏ and͏͏ home͏͏ segments͏͏ met͏͏ expectations,͏͏ “other͏͏ categories͏͏ like͏͏ fashion͏͏ and͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ also͏͏ experienced͏͏ a͏͏ significant͏͏ uptick…͏͏ Overall,͏͏ the͏͏ mobile͏͏ category͏͏ is͏͏ projected͏͏ to͏͏ grow͏͏ by͏͏ 19%͏͏ in͏͏ value,”͏͏ he͏͏ added.

Typically,͏͏ smartphones,͏͏ large͏͏ appliances,͏͏ electronics,͏͏ and͏͏ fashion͏͏ are͏͏ among͏͏ the͏͏ top͏͏ sales͏͏ drivers͏͏ during͏͏ festive͏͏ seasons.͏͏ With͏͏ the͏͏ availability͏͏ of͏͏ quick͏͏ delivery͏͏ options,͏͏ the͏͏ sales͏͏ mix͏͏ is͏͏ evolving͏͏ across͏͏ platforms.

Rise͏͏ of͏͏ Quick͏͏ Commerce͏͏ Impacting͏͏ Online͏͏ Marketplaces:

Online͏͏ marketplaces͏͏ have͏͏ been͏͏ affected͏͏ by͏͏ the͏͏ rise͏͏ of͏͏ quick͏͏ commerce,͏͏ which͏͏ is͏͏ impacting͏͏ their͏͏ businesses͏͏ in͏͏ major͏͏ cities,͏͏ making͏͏ the͏͏ festive͏͏ season͏͏ particularly͏͏ crucial͏͏ this͏͏ year.͏͏ Flipkart͏͏ has͏͏ expanded͏͏ its͏͏ own͏͏ quick͏͏ commerce͏͏ service,͏͏ Minutes,͏͏ to͏͏ approximately͏͏ 80-100͏͏ dark͏͏ stores,͏͏ as͏͏ previously͏͏ reported.͏͏ Amazon͏͏ is͏͏ also͏͏ gearing͏͏ up͏͏ to͏͏ launch͏͏ its͏͏ quick͏͏ commerce͏͏ services͏͏ soon.͏͏ Both͏͏ companies͏͏ had͏͏ previously͏͏ considered͏͏ acquisitions͏͏ to͏͏ establish͏͏ a͏͏ foothold͏͏ in͏͏ the͏͏ quick͏͏ commerce͏͏ segment.͏͏ Myntra͏͏ noted͏͏ that,͏͏ in͏͏ addition͏͏ to͏͏ fashion,͏͏ segments͏͏ such͏͏ as͏͏ beauty͏͏ and͏͏ personal͏͏ care,͏͏ as͏͏ well͏͏ as͏͏ sports͏͏ footwear,͏͏ experienced͏͏ over͏͏ a͏͏ 50%͏͏ increase͏͏ in͏͏ demand.

Luggage͏͏ manufacturer͏͏ Uppercase,͏͏ which͏͏ secured͏͏ $9͏͏ million͏͏ from͏͏ Accel͏͏ last͏͏ month,͏͏ reported͏͏ that͏͏ its͏͏ sales͏͏ increased͏͏ fivefold͏͏ on͏͏ the͏͏ first͏͏ day.͏͏ “On͏͏ average,͏͏ over͏͏ these͏͏ three͏͏ days,͏͏ we͏͏ have͏͏ seen͏͏ sales͏͏ grow͏͏ by͏͏ 3.5͏͏ times͏͏ compared͏͏ to͏͏ our͏͏ business-as-usual͏͏ (BAU)͏͏ days,”͏͏ said͏͏ founder͏͏ Sudip͏͏ Ghose.͏͏ “By͏͏ offering͏͏ attractive͏͏ discounts͏͏ on͏͏ products,͏͏ we͏͏ are͏͏ able͏͏ to͏͏ boost͏͏ sales…͏͏ The͏͏ first͏͏ quarter͏͏ has͏͏ not͏͏ been͏͏ strong͏͏ for͏͏ the͏͏ industry,͏͏ as͏͏ revenge͏͏ buying͏͏ has͏͏ declined.͏͏ However,͏͏ we͏͏ are͏͏ anticipating͏͏ a͏͏ fantastic͏͏ third͏͏ quarter͏͏ starting͏͏ in͏͏ October,”͏͏ Ghose͏͏ added.

Mokobara,͏͏ another͏͏ luggage͏͏ brand,͏͏ is͏͏ also͏͏ conducting͏͏ a͏͏ sales͏͏ campaign͏͏ on͏͏ its͏͏ own͏͏ platform.͏͏ “Sales͏͏ are͏͏ strong͏͏ in͏͏ the͏͏ home͏͏ and͏͏ kitchen͏͏ categories,͏͏ with͏͏ demand͏͏ observed͏͏ across͏͏ both͏͏ ecommerce͏͏ and͏͏ quick͏͏ commerce͏͏ platforms.͏͏ Some͏͏ platforms͏͏ have͏͏ performed͏͏ better͏͏ than͏͏ others͏͏ in͏͏ managing͏͏ volumes͏͏ and͏͏ delivery͏͏ timelines,”͏͏ said͏͏ another͏͏ executive͏͏ at͏͏ a͏͏ direct-to-consumer͏͏ brand͏͏ that͏͏ sells͏͏ across͏͏ multiple͏͏ platforms.

Gaurav͏͏ Nayyar,͏͏ COO͏͏ of͏͏ Boat,͏͏ stated͏͏ that͏͏ sales͏͏ have͏͏ increased͏͏ by͏͏ over͏͏ 20%͏͏ across͏͏ product͏͏ categories͏͏ and͏͏ platforms͏͏ compared͏͏ to͏͏ last͏͏ year.

However,͏͏ some͏͏ deliveries͏͏ on͏͏ Amazon͏͏ India͏͏ may͏͏ experience͏͏ delays͏͏ in͏͏ certain͏͏ cities,͏͏ as͏͏ the͏͏ company͏͏ has͏͏ notified͏͏ top͏͏ vendors͏͏ about͏͏ ‘capacity͏͏ constraints͏͏ at͏͏ its͏͏ warehouses.’͏͏ This͏͏ means͏͏ that͏͏ sellers͏͏ will͏͏ need͏͏ to͏͏ ship͏͏ products͏͏ independently͏͏ rather͏͏ than͏͏ using͏͏ Amazon͏͏ fulfilment͏͏ centres.

Regarding͏͏ Amazon’s͏͏ warehouse͏͏ issue,͏͏ the͏͏ note͏͏ stated,͏͏ “Fulfilment͏͏ centres͏͏ are͏͏ currently͏͏ experiencing͏͏ capacity͏͏ constraints͏͏ across͏͏ specific͏͏ bin͏͏ types͏͏ within͏͏ the͏͏ India͏͏ network.͏͏ To͏͏ prevent͏͏ disruptions͏͏ at͏͏ the͏͏ fulfilment͏͏ centres͏͏ and͏͏ to͏͏ avoid͏͏ a͏͏ bullwhip͏͏ effect͏͏ across͏͏ the͏͏ India͏͏ networks,͏͏ we͏͏ are͏͏ postponing͏͏ pushouts͏͏ to͏͏ the͏͏ week͏͏ of͏͏ October͏͏ 6͏͏ or͏͏ later.”͏͏ It͏͏ added,͏͏ “September-end͏͏ appointments͏͏ have͏͏ been͏͏ rescheduled͏͏ to͏͏ October͏͏ 10,͏͏ while͏͏ October͏͏ appointments͏͏ have͏͏ been͏͏ pushed͏͏ to͏͏ the͏͏ end͏͏ of͏͏ the͏͏ month͏͏ due͏͏ to͏͏ a͏͏ lack͏͏ of͏͏ space͏͏ in͏͏ the͏͏ fulfilment͏͏ centres.͏͏ Consequently,͏͏ appointments͏͏ for͏͏ all͏͏ top͏͏ vendors͏͏ were͏͏ cancelled,͏͏ resulting͏͏ in͏͏ longer͏͏ delivery͏͏ times͏͏ for͏͏ most͏͏ products,”͏͏ said͏͏ a͏͏ top͏͏ seller͏͏ on͏͏ Amazon͏͏ India.

“New͏͏ appointment͏͏ slots͏͏ are͏͏ becoming͏͏ available,͏͏ and͏͏ our͏͏ teams͏͏ are͏͏ working͏͏ diligently͏͏ to͏͏ allow͏͏ sellers͏͏ to͏͏ inbound͏͏ more͏͏ inventory͏͏ into͏͏ our͏͏ fulfilment͏͏ centres,”͏͏ a͏͏ spokesperson͏͏ for͏͏ Amazon͏͏ India͏͏ stated.

Continue͏͏ Exploring:͏͏ Retailers demand͏͏ fair͏͏ play͏͏ as͏͏ e-commerce͏͏ discounts͏͏ heat͏͏ up͏͏ festive͏͏ competition

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Video commerce and FlipInTrends boost shopper engagement for Flipkart during festive season sale

By
M Haziq Pandit
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0
Flipkart

Flipkart‘s festive sale, which began on 27th September with early access for members on 26th September, has gained momentum with increasing interest in tech-driven innovations such as interactive video commerce and͏͏ live͏͏ commerce͏͏ streams,͏͏ the͏͏ company͏͏ stated.

Surge͏͏ in͏͏ Live͏͏ Commerce͏͏ Purchases:

The͏͏ e-commerce͏͏ giant͏͏ reported͏͏ a͏͏ 25-fold͏͏ surge͏͏ in͏͏ purchases͏͏ during͏͏ live͏͏ commerce͏͏ streams͏͏ compared͏͏ to͏͏ the͏͏ pre-sale͏͏ period.͏͏ Notably,͏͏ 85͏͏ per͏͏ cent͏͏ of͏͏ video͏͏ commerce͏͏ consumers͏͏ are͏͏ youth,͏͏ with͏͏ 65͏͏ per͏͏ cent͏͏ from͏͏ tier͏͏ 2͏͏ cities.͏͏ Flipkart͏͏ also͏͏ highlighted͏͏ a͏͏ tenfold͏͏ increase͏͏ in͏͏ engagement͏͏ with͏͏ its͏͏ FlipInTrends͏͏ feature,͏͏ demonstrating͏͏ significant͏͏ interest͏͏ in͏͏ curated͏͏ and͏͏ trending͏͏ fashion͏͏ products.

Harsh͏͏ Chaudhary,͏͏ Vice͏͏ President͏͏ of͏͏ Growth͏͏ at͏͏ Flipkart,͏͏ stated,͏͏ “Early͏͏ trends͏͏ suggest͏͏ rising͏͏ demand͏͏ in͏͏ categories͏͏ that͏͏ facilitate͏͏ lifestyle͏͏ upgrades,͏͏ with͏͏ tier͏͏ 2+͏͏ cities͏͏ showing͏͏ growth͏͏ leading͏͏ up͏͏ to͏͏ this͏͏ year’s͏͏ festive͏͏ season.”

Continue͏͏ Exploring:͏͏ Flipkart invests͏͏ in͏͏ personalisation͏͏ and͏͏ GenAI͏͏ to͏͏ drive͏͏ growth͏͏ during͏͏ Big͏͏ Billion͏͏ Days

Strong͏͏ User͏͏ Traffic͏͏ in͏͏ Early͏͏ Days:

In͏͏ the͏͏ first͏͏ two͏͏ days͏͏ of͏͏ The͏͏ Big͏͏ Billion͏͏ Days͏͏ (TBBD),͏͏ Flipkart͏͏ recorded͏͏ over͏͏ 33͏͏ crore͏͏ user͏͏ visits,͏͏ indicating͏͏ multiple͏͏ repeat͏͏ visits͏͏ from͏͏ consumers.͏͏ Additionally,͏͏ more͏͏ than͏͏ 75͏͏ per͏͏ cent͏͏ of͏͏ transacting͏͏ sellers͏͏ on͏͏ the͏͏ platform͏͏ experienced͏͏ substantial͏͏ growth͏͏ in͏͏ orders͏͏ compared͏͏ to͏͏ the͏͏ pre-festive͏͏ period,͏͏ the͏͏ company͏͏ shared.

The͏͏ e-commerce͏͏ platform’s͏͏ early͏͏ observations͏͏ indicate͏͏ a͏͏ strong͏͏ festive͏͏ season͏͏ ahead,͏͏ with͏͏ increasing͏͏ demand͏͏ in͏͏ categories͏͏ such͏͏ as͏͏ mobiles,͏͏ food͏͏ &͏͏ nutrition,͏͏ and͏͏ grooming.

Flipkart͏͏ further͏͏ reported͏͏ that͏͏ Flipkart͏͏ Wholesale͏͏ experienced͏͏ 2x͏͏ growth͏͏ during͏͏ early͏͏ access,͏͏ driven͏͏ by͏͏ a͏͏ 3x͏͏ increase͏͏ across͏͏ FMCG͏͏ categories.͏͏ Meanwhile,͏͏ its͏͏ hyper-value͏͏ platform͏͏ Shopsy͏͏ saw͏͏ a͏͏ 70͏͏ per͏͏ cent͏͏ rise͏͏ in͏͏ customer͏͏ visits͏͏ and͏͏ a͏͏ 2.8x͏͏ surge͏͏ in͏͏ transactions͏͏ compared͏͏ to͏͏ the͏͏ pre-festive͏͏ period.

Continue͏͏ Exploring:͏͏ Flipkart,͏͏ Amazon͏͏ to͏͏ kick͏͏ off͏͏ major͏͏ festive͏͏ sales͏͏ from͏͏ September͏͏ 26

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Agritech startup Greenikk shuts down operations, returns partial capital to investors

By
M Haziq Pandit
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0
Agritech Greenikk

Agritech startup Greenikk stated on Monday that it is shutting down operations due to funding challenges and difficult market conditions.

Greenikk͏͏ had͏͏ secured͏͏ approximately͏͏ $1͏͏ million͏͏ in͏͏ total͏͏ funding͏͏ from͏͏ investors,͏͏ including͏͏ 100͏͏ Unicorns͏͏ (9unicorns),͏͏ IIM͏͏ A͏͏ Ventures,͏͏ Mastermind͏͏ Capital,͏͏ Smart͏͏ Sparks,͏͏ and͏͏ angel͏͏ investors͏͏ like͏͏ Mayank͏͏ Tiwari͏͏ of͏͏ ReshaMandi.

“We͏͏ raised͏͏ capital͏͏ in͏͏ 2022,͏͏ a͏͏ time͏͏ when͏͏ low-interest͏͏ funding͏͏ was͏͏ accessible͏͏ and͏͏ agri-tech͏͏ was͏͏ at͏͏ its͏͏ peak.͏͏ However,͏͏ we͏͏ focused͏͏ on͏͏ the͏͏ wrong͏͏ metrics͏͏ for͏͏ growth͏͏ and͏͏ scaling.͏͏ The͏͏ changing͏͏ industry͏͏ dynamics͏͏ made͏͏ it͏͏ challenging͏͏ to͏͏ secure͏͏ the͏͏ planned͏͏ $5͏͏ million͏͏ for͏͏ our͏͏ next͏͏ Series͏͏ A͏͏ round,”͏͏ said͏͏ Fariq͏͏ Naushad,͏͏ co-founder͏͏ of͏͏ Greenikk.

Capital͏͏ Return͏͏ to͏͏ Investors:

According͏͏ to͏͏ the͏͏ company,͏͏ it͏͏ is͏͏ returning͏͏ a͏͏ portion͏͏ of͏͏ the͏͏ capital͏͏ to͏͏ investors.

Naushad͏͏ also͏͏ emphasized͏͏ the͏͏ challenges͏͏ of͏͏ defaults͏͏ in͏͏ the͏͏ agri͏͏ sector.͏͏ “Stakeholders͏͏ are͏͏ not͏͏ repaying͏͏ their͏͏ loans.͏͏ We͏͏ extended͏͏ loans͏͏ worth͏͏ INR͏͏ 6͏͏ crore͏͏ and͏͏ encountered͏͏ defaults.͏͏ Significant͏͏ receivables͏͏ were͏͏ tied͏͏ up͏͏ with͏͏ certain͏͏ clients͏͏ who͏͏ resisted͏͏ payment͏͏ after͏͏ accruing͏͏ substantial͏͏ amounts.͏͏ We͏͏ spent͏͏ nearly͏͏ six͏͏ months͏͏ on͏͏ the͏͏ ground͏͏ to͏͏ collect͏͏ 80%͏͏ of͏͏ the͏͏ receivables,”͏͏ said͏͏ Naushad.

Continue͏͏ Exploring:͏͏ Centre͏͏ launches͏͏ INR͏͏ 750͏͏ Cr͏͏ AgriSURE͏͏ fund͏͏ to͏͏ boost͏͏ agritech startups

Defaults͏͏ and͏͏ collections͏͏ have͏͏ emerged͏͏ as͏͏ major͏͏ challenges͏͏ in͏͏ the͏͏ agri-tech͏͏ sector.͏͏ ReshaMandi,͏͏ once͏͏ a͏͏ leading͏͏ player͏͏ in͏͏ the͏͏ industry,͏͏ encountered͏͏ difficulties͏͏ in͏͏ collecting͏͏ receivables,͏͏ ultimately͏͏ contributing͏͏ to͏͏ its͏͏ downfall.͏͏ The͏͏ company͏͏ grappled͏͏ with͏͏ high͏͏ defaults͏͏ and͏͏ increasing͏͏ liabilities,͏͏ which͏͏ compelled͏͏ it͏͏ to͏͏ shut͏͏ down.

Greenikk Offers͏͏ Support͏͏ for͏͏ Employees:

Greenikk͏͏ stated͏͏ that͏͏ it͏͏ will͏͏ provide͏͏ two͏͏ months͏͏ of͏͏ severance͏͏ and͏͏ job͏͏ offers͏͏ through͏͏ references͏͏ to͏͏ nearly͏͏ 25͏͏ employees,͏͏ while͏͏ the͏͏ founders,͏͏ Naushad͏͏ and͏͏ Previn͏͏ Jacob͏͏ Varghese,͏͏ are͏͏ exploring͏͏ the͏͏ next͏͏ phase͏͏ of͏͏ their͏͏ entrepreneurial͏͏ journey.

After͏͏ a͏͏ substantial͏͏ fundraising͏͏ boom͏͏ in͏͏ 2021͏͏ and͏͏ 2022,͏͏ agritech͏͏ startups͏͏ are͏͏ currently͏͏ struggling͏͏ to͏͏ secure͏͏ venture͏͏ capital͏͏ for͏͏ larger͏͏ funding͏͏ rounds.͏͏ According͏͏ to͏͏ data͏͏ from͏͏ TheKredible,͏͏ these͏͏ startups͏͏ have͏͏ raised͏͏ about͏͏ $150͏͏ million͏͏ across͏͏ more͏͏ than͏͏ 30͏͏ deals͏͏ in͏͏ 2024͏͏ so͏͏ far,͏͏ with͏͏ no͏͏ transactions͏͏ occurring͏͏ in͏͏ September.͏͏ By͏͏ contrast,͏͏ they͏͏ raised͏͏ $636͏͏ million͏͏ in͏͏ 2021͏͏ and͏͏ $772͏͏ million͏͏ in͏͏ 2022.͏͏ The͏͏ sector͏͏ faced͏͏ a͏͏ drastic͏͏ decline͏͏ in͏͏ 2023,͏͏ with͏͏ funding͏͏ plummeting͏͏ to͏͏ a͏͏ mere͏͏ $178͏͏ million.

Continue͏͏ Exploring:͏͏ Uttar͏͏ Pradesh͏͏ govt͏͏ aims͏͏ to͏͏ integrate͏͏ AI͏͏ in͏͏ farming,͏͏ bolster͏͏ agritech startups͏͏ for͏͏ economic͏͏ growth

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WellBe Foods wins ‘Start-Up of the Year’ at Fi India Awards 2024

By
M Haziq Pandit
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WellBe Foods

WellBe Foods, a direct-to-consumer brand within the Nimida Group known for its “Deliciously Good” food options with “No Nasties,” has been honoured with the “Start-Up of the Year” award at the Fi India Awards 2024 in Bengaluru. This͏͏ accolade͏͏ underscores͏͏ WellBe͏͏ Foods’͏͏ dedication͏͏ to͏͏ transforming͏͏ the͏͏ FMCG͏͏ sector͏͏ by͏͏ offering͏͏ healthier,͏͏ nutritious͏͏ alternatives,͏͏ including͏͏ snacks,͏͏ snack͏͏ bars,͏͏ and͏͏ organic͏͏ kitchen͏͏ staples,͏͏ all͏͏ while͏͏ maintaining͏͏ the͏͏ authentic͏͏ taste͏͏ and͏͏ quality͏͏ consumers͏͏ expect.

The͏͏ Fi͏͏ India͏͏ Awards͏͏ honour͏͏ excellence͏͏ and͏͏ innovation͏͏ in͏͏ the͏͏ food͏͏ industry,͏͏ recognising͏͏ companies͏͏ that͏͏ are͏͏ redefining͏͏ possibilities͏͏ in͏͏ food͏͏ development.͏͏ WellBe͏͏ Foods’͏͏ commitment͏͏ to͏͏ creating͏͏ ‘Deliciously͏͏ Good,͏͏ Honestly͏͏ Made’͏͏ food͏͏ options͏͏ with͏͏ ‘No͏͏ Nasties’͏͏ that͏͏ prioritise͏͏ consumer͏͏ well-being͏͏ has͏͏ established͏͏ the͏͏ brand͏͏ as͏͏ a͏͏ leader͏͏ in͏͏ the͏͏ sector.

Continue͏͏ Exploring:͏͏ WellBe Foods enters͏͏ Hyderabad͏͏ market,͏͏ aims͏͏ for͏͏ 50%͏͏ YoY͏͏ growth

Gaurav͏͏ Manchanda,͏͏ founder͏͏ of͏͏ Nimida͏͏ Group,͏͏ stated,͏͏ “We͏͏ are͏͏ deeply͏͏ honoured͏͏ that͏͏ WellBe͏͏ Foods͏͏ has͏͏ been͏͏ recognised͏͏ as͏͏ ‘Startup͏͏ of͏͏ the͏͏ Year’͏͏ at͏͏ the͏͏ Fi͏͏ India͏͏ Awards.͏͏ This͏͏ award͏͏ highlights͏͏ our͏͏ steadfast͏͏ commitment͏͏ to͏͏ producing͏͏ Deliciously͏͏ Good͏͏ products͏͏ with͏͏ No͏͏ Nasties,͏͏ providing͏͏ consumers͏͏ with͏͏ healthier͏͏ alternatives.͏͏ It͏͏ also͏͏ reflects͏͏ our͏͏ dedication͏͏ to͏͏ taking͏͏ the͏͏ more͏͏ challenging͏͏ route—making͏͏ transparent͏͏ and͏͏ responsible͏͏ choices͏͏ with͏͏ Honestly͏͏ Made͏͏ products͏͏ that͏͏ align͏͏ with͏͏ our͏͏ vision͏͏ of͏͏ becoming͏͏ India’s͏͏ leading͏͏ Responsible͏͏ Retailer.”

Innovative͏͏ Product͏͏ Range:

WellBe͏͏ Foods͏͏ is͏͏ on͏͏ a͏͏ mission͏͏ to͏͏ transform͏͏ how͏͏ people͏͏ eat͏͏ by͏͏ providing͏͏ deliciously͏͏ good,͏͏ honestly͏͏ made͏͏ products͏͏ with͏͏ No͏͏ Nasties.͏͏ The͏͏ brand’s͏͏ range͏͏ of͏͏ traditional͏͏ Indian͏͏ snacks͏͏ is͏͏ reimagined͏͏ in͏͏ a͏͏ healthier͏͏ form,͏͏ avoiding͏͏ maida,͏͏ refined͏͏ oil,͏͏ and͏͏ refined͏͏ salt.͏͏ Instead,͏͏ WellBe͏͏ uses͏͏ innovative͏͏ alternatives͏͏ like͏͏ rice͏͏ flour,͏͏ red͏͏ rice͏͏ flour,͏͏ rice͏͏ bran͏͏ oil,͏͏ rock͏͏ salt,͏͏ and͏͏ flaxseeds—an͏͏ exciting͏͏ first͏͏ for͏͏ traditional͏͏ Indian͏͏ snacks.͏͏

Organic͏͏ Kitchen͏͏ Essentials:

In͏͏ addition͏͏ to͏͏ snacks,͏͏ WellBe’s͏͏ kitchen͏͏ essentials͏͏ feature͏͏ a͏͏ variety͏͏ of͏͏ organic͏͏ options,͏͏ including͏͏ rice,͏͏ dal,͏͏ atta,͏͏ cold-pressed͏͏ oils,͏͏ and͏͏ bilona͏͏ ghee.͏͏ The͏͏ brand͏͏ also͏͏ offers͏͏ snack͏͏ bars͏͏ and͏͏ breakfast͏͏ muesli͏͏ that͏͏ are͏͏ free͏͏ from͏͏ refined͏͏ white͏͏ sugar,͏͏ artificial͏͏ colours͏͏ and͏͏ flavours,͏͏ and͏͏ synthetic͏͏ preservatives.

WellBe͏͏ products͏͏ can͏͏ be͏͏ found͏͏ on͏͏ the͏͏ company͏͏ website,͏͏ as͏͏ well͏͏ as͏͏ at͏͏ The͏͏ Organic͏͏ World,͏͏ Lulu,͏͏ More͏͏ Hyper͏͏ and͏͏ Supermarkets,͏͏ Ratnadeep,͏͏ Natures’͏͏ Basket,͏͏ and͏͏ in͏͏ the͏͏ general͏͏ trade͏͏ market͏͏ throughout͏͏ Hyderabad.

Continue͏͏ Exploring:͏͏ D2C͏͏ brand͏͏ WellBe Foods hits͏͏ 1000͏͏ store͏͏ milestone,͏͏ eyes͏͏ 25,000͏͏ GT͏͏ stores͏͏ by͏͏ FY24-25

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D2C furniture and mattress startup Wakefit reports 24% revenue growth to INR 1,017 Cr in FY24

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M Haziq Pandit
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Wakefit

Wakefit, the Bengaluru-based mattress and furniture manufacturer, reported a 24% year-on-year revenue increase, reaching INR 1,017 crore for the financial year ending March 31, 2024.The͏͏ company͏͏ also͏͏ announced͏͏ its͏͏ return͏͏ to͏͏ profitability,͏͏ with͏͏ earnings͏͏ before͏͏ interest,͏͏ taxes,͏͏ depreciation,͏͏ and͏͏ amortisation͏͏ of͏͏ INR͏͏ 65͏͏ crore.͏͏ Wakefit͏͏ had͏͏ maintained͏͏ profitability͏͏ during͏͏ its͏͏ first͏͏ four͏͏ years͏͏ of͏͏ operation.

Operating͏͏ revenue͏͏ for͏͏ FY24͏͏ was͏͏ approximately͏͏ INR͏͏ 985͏͏ crore,͏͏ an͏͏ increase͏͏ from͏͏ INR͏͏ 813͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ year,͏͏ the͏͏ company͏͏ reported.

Omnichannel͏͏ Expansion:

Wakefit͏͏ cofounder͏͏ Chaitanya͏͏ Ramalingegowda͏͏ credited͏͏ the͏͏ revenue͏͏ growth͏͏ to͏͏ the͏͏ company’s͏͏ emphasis͏͏ on͏͏ enhancing͏͏ its͏͏ omnichannel͏͏ presence.͏͏ He͏͏ noted͏͏ that͏͏ several͏͏ stores͏͏ have͏͏ matured,͏͏ new͏͏ outlets͏͏ are͏͏ being͏͏ launched,͏͏ and͏͏ the͏͏ automated͏͏ mattress͏͏ factory͏͏ has͏͏ contributed͏͏ to͏͏ this͏͏ success.

Evolving͏͏ Product͏͏ Portfolio:

“Initially,͏͏ when͏͏ we͏͏ launched͏͏ the͏͏ furniture͏͏ category,͏͏ we͏͏ focused͏͏ on͏͏ value-for-money͏͏ products͏͏ aimed͏͏ primarily͏͏ at͏͏ early-age͏͏ consumers͏͏ aged͏͏ 25͏͏ to͏͏ 30͏͏ or͏͏ young͏͏ couples.͏͏ Today,͏͏ a͏͏ substantial͏͏ portion͏͏ of͏͏ our͏͏ catalogue͏͏ is͏͏ designed͏͏ for͏͏ married͏͏ families,͏͏ ranging͏͏ from͏͏ 25͏͏ to͏͏ 50͏͏ years͏͏ old,”͏͏ said͏͏ CEO͏͏ Ankit͏͏ Garg.͏͏ “This͏͏ shift͏͏ has͏͏ led͏͏ to͏͏ the͏͏ introduction͏͏ of͏͏ more͏͏ classical͏͏ and͏͏ intricate͏͏ designs,͏͏ marking͏͏ a͏͏ significant͏͏ change͏͏ in͏͏ our͏͏ portfolio.”

Continue͏͏ Exploring:͏͏ Wakefit.co͏͏ introduces͏͏ cutting-edge͏͏ AI-driven͏͏ sleep͏͏ solutions͏͏ with͏͏ the͏͏ Wakefit͏͏ Zense͏͏ range

Retail͏͏ Expansion͏͏ Plans:

The͏͏ company͏͏ ventured͏͏ into͏͏ offline͏͏ retail͏͏ in͏͏ 2022͏͏ and͏͏ currently͏͏ operates͏͏ approximately͏͏ 80͏͏ stores͏͏ in͏͏ 26͏͏ cities.͏͏ It͏͏ plans͏͏ to͏͏ expand͏͏ its͏͏ footprint͏͏ to͏͏ 120͏͏ stores͏͏ over͏͏ the͏͏ next͏͏ six͏͏ months.

“During͏͏ the͏͏ past͏͏ 18͏͏ to͏͏ 24͏͏ months,͏͏ we͏͏ have͏͏ observed͏͏ a͏͏ substantial͏͏ increase͏͏ in͏͏ revenue͏͏ generated͏͏ from͏͏ retail͏͏ stores,”͏͏ Garg͏͏ stated.

At͏͏ present,͏͏ the͏͏ company͏͏ generates͏͏ 30%͏͏ of͏͏ its͏͏ revenue͏͏ from͏͏ retail͏͏ stores,͏͏ while͏͏ marketplaces͏͏ account͏͏ for͏͏ approximately͏͏ 20-30%,͏͏ he͏͏ noted.

Founded͏͏ in͏͏ 2016͏͏ and͏͏ backed͏͏ by͏͏ Peak͏͏ XV,͏͏ the͏͏ company͏͏ initially͏͏ focused͏͏ on͏͏ sleep͏͏ products͏͏ such͏͏ as͏͏ mattresses,͏͏ pillows,͏͏ and͏͏ bed͏͏ frames.͏͏ Over͏͏ time,͏͏ it͏͏ expanded͏͏ its͏͏ portfolio͏͏ to͏͏ include͏͏ a͏͏ wide͏͏ range͏͏ of͏͏ home͏͏ products,͏͏ including͏͏ sofas,͏͏ dining͏͏ sets,͏͏ wardrobes,͏͏ study͏͏ tables,͏͏ and͏͏ bookshelves.

According͏͏ to͏͏ Garg,͏͏ Wakefit͏͏ aims͏͏ for͏͏ a͏͏ 30%͏͏ revenue͏͏ increase͏͏ in͏͏ 2024-25.͏͏ The͏͏ company͏͏ will͏͏ concentrate͏͏ on͏͏ expanding͏͏ its͏͏ product͏͏ range,͏͏ strengthening͏͏ its͏͏ omnichannel͏͏ presence,͏͏ and͏͏ maintaining͏͏ its͏͏ investment͏͏ in͏͏ brand-building͏͏ initiatives.

In͏͏ January͏͏ 2023,͏͏ the͏͏ company͏͏ raised͏͏ $40͏͏ million͏͏ in͏͏ a͏͏ funding͏͏ round͏͏ led͏͏ by͏͏ Investcorp.

Continue͏͏ Exploring:͏͏ The͏͏ Sleep͏͏ Company͏͏ launches͏͏ second͏͏ tranche͏͏ of͏͏ INR͏͏ 2.4͏͏ Cr͏͏ ESOP͏͏ buyback͏͏ program

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Parag Milk Foods bets big on whey protein with INR 300 Cr investment, eyes 25% market share by FY28

By
M Haziq Pandit
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Parag Milk Foods whey protein

Parag Milk Foods has expanded its whey protein range under the Avvatar brand, focusing on consumer product personalisation as part of its new marketing strategy, according to Akshali Shah, executive director of Parag Milk Foods.

Ambitious͏͏ Market͏͏ Share͏͏ Goals:

With͏͏ this͏͏ expansion͏͏ and͏͏ expectations͏͏ of͏͏ the͏͏ category͏͏ growing͏͏ at͏͏ a͏͏ CAGR͏͏ of͏͏ 30-35%,͏͏ the͏͏ company͏͏ aims͏͏ to͏͏ secure͏͏ a͏͏ 20-25%͏͏ market͏͏ share͏͏ by͏͏ 2027-28.͏͏ It͏͏ has͏͏ already͏͏ established͏͏ a͏͏ whey͏͏ protein͏͏ manufacturing͏͏ facility͏͏ in͏͏ Pune,͏͏ Maharashtra,͏͏ which͏͏ provides͏͏ a͏͏ competitive͏͏ edge͏͏ and͏͏ bolsters͏͏ its͏͏ market͏͏ position,͏͏ Shah͏͏ noted.

Continue͏͏ Exploring:͏͏ Parag Milk Foods’͏͏ Q1͏͏ FY25͏͏ net͏͏ profit͏͏ surges͏͏ 27%͏͏ to͏͏ INR͏͏ 27͏͏ Cr

Investment͏͏ in͏͏ Manufacturing͏͏ Capabilities:

The͏͏ company͏͏ has͏͏ invested͏͏ around͏͏ INR͏͏ 300͏͏ crore͏͏ to͏͏ establish͏͏ and͏͏ enhance͏͏ its͏͏ whey͏͏ protein͏͏ manufacturing͏͏ capabilities.

The͏͏ whey͏͏ protein͏͏ category͏͏ currently͏͏ accounts͏͏ for͏͏ 7%͏͏ of͏͏ Parag’s͏͏ overall͏͏ revenue͏͏ and͏͏ is͏͏ projected͏͏ to͏͏ rise͏͏ to͏͏ 15%͏͏ over͏͏ the͏͏ next͏͏ 3-4͏͏ years.͏͏ At͏͏ present,͏͏ approximately͏͏ one-third͏͏ of͏͏ the͏͏ company’s͏͏ whey͏͏ protein͏͏ sales͏͏ are͏͏ generated͏͏ through͏͏ e-commerce͏͏ platforms,͏͏ providing͏͏ nationwide͏͏ reach.

To͏͏ target͏͏ the͏͏ youth͏͏ and͏͏ gym-goers͏͏ while͏͏ capitalising͏͏ on͏͏ the͏͏ increasing͏͏ demand,͏͏ Parag͏͏ Milk͏͏ Foods͏͏ plans͏͏ to͏͏ distribute͏͏ its͏͏ products͏͏ through͏͏ modern͏͏ trade͏͏ outlets,͏͏ specialised͏͏ whey͏͏ protein͏͏ stores,͏͏ and͏͏ online͏͏ channels,͏͏ ensuring͏͏ omnichannel͏͏ accessibility.

This͏͏ ambitious͏͏ growth͏͏ target͏͏ is͏͏ supported͏͏ by͏͏ the͏͏ company’s͏͏ influencer-driven͏͏ marketing͏͏ campaigns͏͏ and͏͏ its͏͏ extensive͏͏ distribution͏͏ network,͏͏ featuring͏͏ over͏͏ 35͏͏ depots͏͏ and͏͏ a͏͏ solid͏͏ presence͏͏ in͏͏ both͏͏ traditional͏͏ and͏͏ digital͏͏ retail͏͏ channels.

According͏͏ to͏͏ the͏͏ company’s͏͏ Q1͏͏ FY25͏͏ regulatory͏͏ update,͏͏ Parag͏͏ Milk͏͏ Foods͏͏ has͏͏ a͏͏ network͏͏ of͏͏ approximately͏͏ 6,200͏͏ distributors͏͏ and͏͏ 682͏͏ super͏͏ stockists.͏͏ With͏͏ a͏͏ current͏͏ presence͏͏ in͏͏ 4.6͏͏ lakh͏͏ retail͏͏ touchpoints,͏͏ the͏͏ firm͏͏ aims͏͏ to͏͏ expand͏͏ its͏͏ reach͏͏ to͏͏ 13-15͏͏ lakh͏͏ touchpoints͏͏ by͏͏ 2027E.

Continue͏͏ Exploring:͏͏ MS͏͏ Dhoni͏͏ teams͏͏ up͏͏ with͏͏ Explosive͏͏ Whey͏͏ to͏͏ revolutionize͏͏ fitness͏͏ supplementation

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Authum Investment, Mahi Kela to acquire 46.85% stake in Prataap Snacks for INR 846.60 Cr

By
M Haziq Pandit
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0
Prataap Snacks

Authum Investment & Infrastructure, along with Mahi Madhusudan Kela, will acquire a 46.85% stake in Prataap Snacks, the Indore-based packaged foods company known for its Yellow Diamond snack brand and Rich Feast sweet snacks. The͏͏ deal,͏͏ valued͏͏ at͏͏ INR͏͏ 846.60͏͏ crore,͏͏ involves͏͏ a͏͏ share͏͏ purchase͏͏ agreement͏͏ signed͏͏ on͏͏ Thursday͏͏ to͏͏ acquire͏͏ approximately͏͏ 1.02͏͏ crore͏͏ equity͏͏ shares͏͏ from͏͏ three͏͏ private͏͏ equity͏͏ promoters,͏͏ as͏͏ disclosed͏͏ in͏͏ an͏͏ early͏͏ morning͏͏ filing͏͏ by͏͏ Prataap͏͏ Snacks.

Peak XV Partners Growth Investments I, Peak XV Partners Growth Investment Holdings II, and Sequoia Capital GFIV Mauritius Investments—hold͏͏ stakes͏͏ of͏͏ 2.48%,͏͏ 34.65%,͏͏ and͏͏ 9.72%,͏͏ respectively.

“The͏͏ acquirer͏͏ and͏͏ Persons͏͏ Acting͏͏ in͏͏ Concert͏͏ (PAC)͏͏ have͏͏ signed͏͏ a͏͏ share͏͏ purchase͏͏ agreement͏͏ dated͏͏ September͏͏ 26,͏͏ 2024,͏͏ with͏͏ the͏͏ sellers.͏͏ Under͏͏ this͏͏ agreement,͏͏ the͏͏ acquirer͏͏ will͏͏ purchase͏͏ 1.02͏͏ crore͏͏ equity͏͏ shares͏͏ of͏͏ the͏͏ target͏͏ company͏͏ at͏͏ a͏͏ price͏͏ of͏͏ INR͏͏ 746͏͏ per͏͏ share,͏͏ amounting͏͏ to͏͏ an͏͏ aggregate͏͏ consideration͏͏ of͏͏ INR͏͏ 846.60͏͏ crore,”͏͏ it͏͏ stated.

Additionally,͏͏ the͏͏ company͏͏ has͏͏ announced͏͏ an͏͏ open͏͏ offer,͏͏ triggered͏͏ by͏͏ the͏͏ acquisition͏͏ of͏͏ a͏͏ controlling͏͏ stake,͏͏ to͏͏ purchase͏͏ a͏͏ 26%͏͏ stake͏͏ in͏͏ the͏͏ company͏͏ from͏͏ the͏͏ market.

“Since͏͏ the͏͏ acquirer͏͏ and͏͏ PAC͏͏ have͏͏ reached͏͏ an͏͏ agreement͏͏ to͏͏ acquire͏͏ voting͏͏ rights͏͏ exceeding͏͏ 25%͏͏ of͏͏ the͏͏ equity͏͏ share͏͏ capital͏͏ and͏͏ control͏͏ over͏͏ the͏͏ target͏͏ company…,”͏͏ it͏͏ stated.

In͏͏ the͏͏ open͏͏ offer,͏͏ a͏͏ price͏͏ of͏͏ INR͏͏ 864͏͏ per͏͏ share͏͏ has͏͏ been͏͏ proposed.͏͏ If͏͏ fully͏͏ subscribed,͏͏ the͏͏ open͏͏ offer͏͏ will͏͏ total͏͏ an͏͏ aggregate͏͏ consideration͏͏ of͏͏ INR͏͏ 544.17͏͏ crore.

Prataap͏͏ Snacks͏͏ reached͏͏ a͏͏ peak͏͏ price͏͏ of͏͏ INR͏͏ 1,371.45͏͏ on͏͏ January͏͏ 18,͏͏ 2024.

Continue͏͏ Exploring:͏͏ ITC͏͏ mulls͏͏ 47%͏͏ stake͏͏ acquisition͏͏ in͏͏ Prataap Snacks,͏͏ eyes͏͏ market͏͏ share͏͏ growth

No͏͏ Delisting͏͏ Plans:

Prataap͏͏ Snacks͏͏ will͏͏ continue͏͏ to͏͏ be͏͏ a͏͏ listed͏͏ entity͏͏ after͏͏ the͏͏ open͏͏ offer,͏͏ and͏͏ the͏͏ acquirers͏͏ have͏͏ no͏͏ intention͏͏ of͏͏ delisting͏͏ the͏͏ stock,͏͏ according͏͏ to͏͏ the͏͏ exchange͏͏ filing.

“The͏͏ acquirer͏͏ does͏͏ not͏͏ plan͏͏ to͏͏ delist͏͏ the͏͏ Target͏͏ Company͏͏ as͏͏ a͏͏ result͏͏ of͏͏ this͏͏ open͏͏ offer,”͏͏ it͏͏ stated.

However,͏͏ it͏͏ also͏͏ noted͏͏ that͏͏ the͏͏ open͏͏ offer͏͏ is͏͏ conditional͏͏ and͏͏ dependent͏͏ on͏͏ the͏͏ completion͏͏ of͏͏ the͏͏ share͏͏ purchase͏͏ agreement͏͏ with͏͏ the͏͏ promoters.

“The͏͏ share͏͏ purchase͏͏ agreement͏͏ outlines͏͏ the͏͏ terms͏͏ and͏͏ conditions͏͏ agreed͏͏ upon͏͏ by͏͏ the͏͏ acquirer,͏͏ the͏͏ PAC,͏͏ and͏͏ the͏͏ sellers,͏͏ along͏͏ with͏͏ their͏͏ respective͏͏ rights͏͏ and͏͏ obligations.͏͏ The͏͏ completion͏͏ of͏͏ the͏͏ open͏͏ offer͏͏ is͏͏ a͏͏ condition͏͏ precedent͏͏ to͏͏ the͏͏ underlying͏͏ transaction,”͏͏ it͏͏ stated.

Growth͏͏ and͏͏ Reach:

Founded͏͏ in͏͏ 2003͏͏ in͏͏ Indore,͏͏ Madhya͏͏ Pradesh,͏͏ Prataap͏͏ Snacks͏͏ is͏͏ one͏͏ of͏͏ India’s͏͏ fastest-growing͏͏ snack͏͏ food͏͏ companies.

It͏͏ operates͏͏ 15͏͏ manufacturing͏͏ facilities—eight͏͏ owned͏͏ and͏͏ seven͏͏ contracted—and͏͏ collaborates͏͏ with͏͏ over͏͏ 5,200͏͏ super͏͏ and͏͏ sub-distributors,͏͏ reaching͏͏ 2.5͏͏ million͏͏ touchpoints͏͏ nationwide.

Strong͏͏ Financial͏͏ Performance:

For͏͏ the͏͏ financial͏͏ year͏͏ 2024,͏͏ its͏͏ revenue͏͏ stood͏͏ at͏͏ INR͏͏ 1,617.93͏͏ crore,͏͏ reflecting͏͏ a͏͏ CAGR͏͏ growth͏͏ of͏͏ 14%͏͏ over͏͏ the͏͏ past͏͏ 10͏͏ years.

Continue͏͏ Exploring:͏͏ Haldiram’s͏͏ sets͏͏ sights͏͏ on͏͏ rival͏͏ Prataap Snacks,͏͏ explores͏͏ controlling͏͏ stake͏͏ for͏͏ market͏͏ domination

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Candytoy Corporate partners with Reliance Retail to supply confectionery toys to 1,400 outlets

By
M Haziq Pandit
-
0
Reliance
Reliance

Candytoy Corporate, a prominent manufacturer of candy toys, has teamed up with Reliance Retail to supply confectionery toys to 1,400 of the retailer’s stores, announced a senior company official. The Indore-based firm signed the agreement with Reliance Retail a few months ago, according to Founder Director Gaurav Mirchandani.

Growth͏͏ Plans:

“We͏͏ currently͏͏ have͏͏ a͏͏ purchase͏͏ order͏͏ for͏͏ over͏͏ 15͏͏ outlets͏͏ that͏͏ are͏͏ live,͏͏ with͏͏ 200͏͏ outlets͏͏ expected͏͏ to͏͏ go͏͏ live͏͏ by͏͏ the͏͏ end͏͏ of͏͏ Diwali,͏͏ and͏͏ 1,400͏͏ outlets͏͏ set͏͏ to͏͏ be͏͏ operational͏͏ by͏͏ the͏͏ end͏͏ of͏͏ this͏͏ financial͏͏ year,”͏͏ Mirchandani͏͏ stated.

When͏͏ inquired͏͏ about͏͏ the͏͏ order͏͏ size,͏͏ he͏͏ mentioned͏͏ that͏͏ it͏͏ would͏͏ have͏͏ a͏͏ run͏͏ rate͏͏ of͏͏ INR͏͏ 2͏͏ crore͏͏ per͏͏ month͏͏ from͏͏ 200͏͏ Reliance͏͏ Retail͏͏ stores,͏͏ which͏͏ is͏͏ expected͏͏ to͏͏ increase͏͏ to͏͏ INR͏͏ 4͏͏ to͏͏ 4.5͏͏ crore͏͏ per͏͏ month͏͏ by͏͏ the͏͏ end͏͏ of͏͏ this͏͏ fiscal͏͏ year.

“We͏͏ offer͏͏ over͏͏ 75͏͏ SKUs͏͏ in͏͏ the͏͏ sweets͏͏ and͏͏ savoury͏͏ flavours͏͏ category͏͏ of͏͏ candy͏͏ that͏͏ we͏͏ supply͏͏ to͏͏ Reliance͏͏ Retail,”͏͏ he͏͏ stated.

Continue͏͏ Exploring:͏͏ Reliance Retail expects͏͏ 2x͏͏ growth͏͏ in͏͏ revenues͏͏ and͏͏ EBITDA͏͏ over͏͏ the͏͏ next͏͏ 3-4͏͏ years

Candytoy Corporate’s͏͏ Global͏͏ Reach͏͏ and͏͏ Future͏͏ Expansion:

Candytoy͏͏ Corporate͏͏ (CTC),͏͏ valued͏͏ at͏͏ nearly͏͏ INR͏͏ 1,000͏͏ crore,͏͏ supplies͏͏ its͏͏ products͏͏ to͏͏ retailers͏͏ in͏͏ 40͏͏ countries͏͏ worldwide.

It͏͏ also͏͏ intends͏͏ to͏͏ divest͏͏ approximately͏͏ 10͏͏ per͏͏ cent͏͏ of͏͏ its͏͏ equity͏͏ to͏͏ finance͏͏ future͏͏ expansion͏͏ plans͏͏ and͏͏ is͏͏ considering͏͏ an͏͏ IPO͏͏ within͏͏ the͏͏ next͏͏ 2-3͏͏ years.

CTC͏͏ is͏͏ a͏͏ global͏͏ manufacturer͏͏ of͏͏ promotional͏͏ toys͏͏ and͏͏ confectionery͏͏ products,͏͏ operating͏͏ five͏͏ plants͏͏ and͏͏ 11͏͏ contract͏͏ manufacturers,͏͏ and͏͏ supplying͏͏ to͏͏ 40͏͏ countries͏͏ across͏͏ three͏͏ continents.

When͏͏ asked͏͏ about͏͏ the͏͏ company’s͏͏ revenue,͏͏ Mirchandani͏͏ stated,͏͏ “We͏͏ anticipate͏͏ closing͏͏ this͏͏ fiscal͏͏ year͏͏ with͏͏ revenues͏͏ between͏͏ INR͏͏ 260͏͏ crore͏͏ and͏͏ 280͏͏ crore.͏͏ For͏͏ the͏͏ next͏͏ fiscal͏͏ year,͏͏ we͏͏ expect͏͏ to͏͏ close͏͏ at͏͏ INR͏͏ 400͏͏ crore͏͏ to͏͏ 450͏͏ crore.”

CTC͏͏ produces͏͏ candy͏͏ toys͏͏ for͏͏ a͏͏ variety͏͏ of͏͏ companies,͏͏ including͏͏ Colgate͏͏ Palmolive,͏͏ Puma,͏͏ MTR,͏͏ Bournvita,͏͏ Yellow͏͏ Diamonds,͏͏ Vistara͏͏ Airlines,͏͏ and͏͏ AirAsia,͏͏ among͏͏ others.

“We͏͏ already͏͏ have͏͏ the͏͏ purchase͏͏ orders͏͏ in͏͏ place,͏͏ but͏͏ we͏͏ need͏͏ time͏͏ to͏͏ deploy͏͏ them,͏͏ which͏͏ involves͏͏ opening͏͏ new͏͏ moulds͏͏ and͏͏ facilities,͏͏ among͏͏ other͏͏ preparations.͏͏ That’s͏͏ why͏͏ the͏͏ results͏͏ will͏͏ be͏͏ visible͏͏ in͏͏ the͏͏ next͏͏ financial͏͏ year,”͏͏ he͏͏ added.

This͏͏ fiscal͏͏ year,͏͏ CTC͏͏ anticipates͏͏ generating͏͏ approximately͏͏ INR͏͏ 120͏͏ crore͏͏ from͏͏ export͏͏ markets͏͏ and͏͏ INR͏͏ 200͏͏ crore͏͏ from͏͏ the͏͏ domestic͏͏ market,͏͏ which͏͏ includes͏͏ its͏͏ B2C͏͏ sales͏͏ and͏͏ channel͏͏ partners,͏͏ he͏͏ stated.

When͏͏ asked͏͏ about͏͏ raising͏͏ funds,͏͏ Mirchandani͏͏ remarked,͏͏ “We͏͏ are͏͏ currently͏͏ in͏͏ discussions͏͏ with͏͏ several͏͏ large͏͏ investors.”

IPO͏͏ Considerations͏͏ on͏͏ the͏͏ Horizon:

Regarding͏͏ the͏͏ IPO,͏͏ he͏͏ stated,͏͏ “After͏͏ the͏͏ conclusion͏͏ of͏͏ the͏͏ financial͏͏ year͏͏ 2026-27,͏͏ we͏͏ will͏͏ explore͏͏ the͏͏ possibilities͏͏ of͏͏ going͏͏ public͏͏ within͏͏ the͏͏ next͏͏ two͏͏ years.”

Overall,͏͏ CTC͏͏ manufacturers͏͏ in͏͏ India͏͏ produce͏͏ a͏͏ variety͏͏ of͏͏ promotional͏͏ toys,͏͏ including͏͏ candy͏͏ toys,͏͏ Barbie͏͏ dolls,͏͏ electronic͏͏ toys,͏͏ DIY͏͏ toys,͏͏ LED͏͏ toys,͏͏ musical͏͏ toys,͏͏ prank͏͏ toys,͏͏ sticky͏͏ toys,͏͏ and͏͏ more.

Continue͏͏ Exploring:͏͏ Ace͏͏ Turtle͏͏ inaugurates͏͏ third͏͏ Toys“R”Us͏͏ store͏͏ in͏͏ India,͏͏ plans͏͏ 12͏͏ new͏͏ stores͏͏ in͏͏ 2024

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Lulu Group to establish food processing and logistics centres in Andhra Pradesh

By
M Haziq Pandit
-
0
Lulu Group food processing

UAE-based Lulu Group International plans to establish modern food processing and logistics centres in Andhra Pradesh, alongside hypermarkets and a shopping mall, according to Chairman and Managing Director Yusuffali MA.

After͏͏ their͏͏ meeting,͏͏ Yusuffali͏͏ shared͏͏ on͏͏ social͏͏ media͏͏ platform͏͏ X͏͏ in͏͏ response͏͏ to͏͏ Andhra͏͏ Pradesh͏͏ Chief͏͏ Minister͏͏ N͏͏ Chandrababu͏͏ Naidu’s͏͏ post,͏͏ saying,͏͏ “Our͏͏ discussions͏͏ were͏͏ very͏͏ fruitful.”

Vision͏͏ for͏͏ a͏͏ State-of-the-Art͏͏ Retail͏͏ Experience:

He͏͏ stated,͏͏ “We͏͏ have͏͏ decided͏͏ to͏͏ launch͏͏ an͏͏ international-standard͏͏ shopping͏͏ mall͏͏ featuring͏͏ an͏͏ 8-screen͏͏ IMAX͏͏ multiplex͏͏ in͏͏ Vizag,͏͏ state-of-the-art͏͏ hypermarkets͏͏ in͏͏ Vijayawada͏͏ and͏͏ Tirupati,͏͏ as͏͏ well͏͏ as͏͏ modern͏͏ food͏͏ processing͏͏ and͏͏ logistics͏͏ centres͏͏ in͏͏ Andhra͏͏ Pradesh.”

He͏͏ tagged͏͏ Naidu,͏͏ highlighting͏͏ their͏͏ “18͏͏ long͏͏ years͏͏ of͏͏ brotherly͏͏ relationship.”

Continue͏͏ Exploring:͏͏ Lulu Group to͏͏ launch͏͏ logistics͏͏ and͏͏ food processing center͏͏ in͏͏ Amritsar

In͏͏ a͏͏ previous͏͏ post͏͏ on͏͏ X,͏͏ Naidu͏͏ provided͏͏ an͏͏ update͏͏ on͏͏ his͏͏ meeting͏͏ with͏͏ Yusuffali͏͏ and͏͏ the͏͏ group’s͏͏ Executive͏͏ Director,͏͏ Ashraf͏͏ Ali͏͏ MA,͏͏ who͏͏ had͏͏ returned͏͏ to͏͏ Andhra͏͏ Pradesh.

“I͏͏ had͏͏ a͏͏ highly͏͏ productive͏͏ meeting͏͏ with͏͏ their͏͏ delegation͏͏ in͏͏ Amaravati͏͏ today.”

Naidu͏͏ wrote,͏͏ “We͏͏ discussed͏͏ plans͏͏ for͏͏ a͏͏ mall͏͏ and͏͏ multiplex͏͏ in͏͏ Vizag,͏͏ hypermarkets͏͏ and͏͏ multiplexes͏͏ in͏͏ Vijayawada͏͏ and͏͏ Tirupati,͏͏ as͏͏ well͏͏ as͏͏ investments͏͏ in͏͏ the͏͏ food͏͏ processing͏͏ sector͏͏ throughout͏͏ the͏͏ state.”

He͏͏ assured͏͏ the͏͏ state͏͏ government͏͏ of͏͏ “every͏͏ possible͏͏ cooperation͏͏ and͏͏ support,”͏͏ adding,͏͏ “I͏͏ wish͏͏ my͏͏ friend͏͏ all͏͏ the͏͏ best͏͏ in͏͏ his͏͏ endeavours͏͏ and͏͏ look͏͏ forward͏͏ to͏͏ a͏͏ fruitful͏͏ partnership͏͏ for͏͏ the͏͏ development͏͏ of͏͏ Andhra͏͏ Pradesh.”͏͏ The͏͏ Abu͏͏ Dhabi-headquartered͏͏ group,͏͏ with͏͏ an͏͏ annual͏͏ turnover͏͏ of͏͏ USD͏͏ 8͏͏ billion,͏͏ operates͏͏ in͏͏ various͏͏ sectors,͏͏ including͏͏ hypermarket͏͏ operations,͏͏ shopping͏͏ mall͏͏ development,͏͏ goods͏͏ manufacturing͏͏ and͏͏ trading,͏͏ hospitality,͏͏ and͏͏ real͏͏ estate.

It͏͏ currently͏͏ has͏͏ operations͏͏ in͏͏ 25͏͏ countries͏͏ worldwide.

Continue͏͏ Exploring:͏͏ Lulu Group to͏͏ establish͏͏ two͏͏ of͏͏ India’s͏͏ largest͏͏ shopping͏͏ malls͏͏ in͏͏ Ahmedabad͏͏ and͏͏ Chennai

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