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Apparel companies anticipate weak retail market during festive season

By
M Haziq Pandit
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0
Apparel

Apparel͏͏ companies͏͏ anticipate͏͏ a͏͏ weak͏͏ retail͏͏ market͏͏ during͏͏ the͏͏ festive͏͏ season.͏͏ According͏͏ to͏͏ a͏͏ survey͏͏ by͏͏ the͏͏ apparel͏͏ industry͏͏ body,͏͏ 63%͏͏ of͏͏ respondents͏͏ expect͏͏ clothing͏͏ and͏͏ apparel͏͏ sales͏͏ to͏͏ remain͏͏ the͏͏ same͏͏ or͏͏ decline͏͏ compared͏͏ to͏͏ last͏͏ year,͏͏ with͏͏ 25%͏͏ projecting͏͏ sales͏͏ to͏͏ reach͏͏ only͏͏ 75%͏͏ of͏͏ last͏͏ year’s͏͏ figures.

The͏͏ Clothing͏͏ Manufacturers͏͏ Association͏͏ of͏͏ India͏͏ (CMAI)͏͏ conducted͏͏ the͏͏ survey.

“The͏͏ sluggish͏͏ business͏͏ environment͏͏ over͏͏ the͏͏ past͏͏ six͏͏ months͏͏ makes͏͏ these͏͏ trends͏͏ unsurprising.͏͏ However,͏͏ we͏͏ remain͏͏ hopeful͏͏ for͏͏ festive͏͏ spending͏͏ and͏͏ anticipate͏͏ a͏͏ gradual͏͏ demand͏͏ surge͏͏ with͏͏ the͏͏ upcoming͏͏ wedding͏͏ season͏͏ later͏͏ in͏͏ the͏͏ year,”͏͏ said͏͏ Rajesh͏͏ Masand,͏͏ president͏͏ of͏͏ CMAI.

Consumer͏͏ Spending͏͏ Shifts:

Around͏͏ 35%͏͏ of͏͏ respondents͏͏ have͏͏ lower͏͏ expectations͏͏ due͏͏ to͏͏ a͏͏ shift͏͏ in͏͏ consumer͏͏ spending͏͏ towards͏͏ other͏͏ lifestyle͏͏ areas,͏͏ while͏͏ 24%͏͏ cite͏͏ the͏͏ slowing͏͏ economy͏͏ and͏͏ inflation͏͏ as͏͏ key͏͏ factors.

Continue͏͏ Exploring:͏͏ Organised͏͏ apparel retailers͏͏ to͏͏ clock͏͏ 8-10%͏͏ revenue͏͏ growth͏͏ this͏͏ fiscal͏͏ year

Brand͏͏ Performance͏͏ Expectations:

Only͏͏ 18%͏͏ of͏͏ respondents͏͏ expect͏͏ low-priced͏͏ brands͏͏ to͏͏ perform͏͏ better͏͏ this͏͏ festive͏͏ season,͏͏ while͏͏ 75%͏͏ believe͏͏ mid-priced͏͏ brands͏͏ will͏͏ fare͏͏ better.͏͏ CMAI͏͏ noted͏͏ this͏͏ reflects͏͏ “the͏͏ Indian͏͏ consumer’s͏͏ growing͏͏ maturity,͏͏ with͏͏ an͏͏ increasing͏͏ willingness͏͏ to͏͏ pay͏͏ a͏͏ premium͏͏ for͏͏ quality͏͏ rather͏͏ than͏͏ focusing͏͏ solely͏͏ on͏͏ price.”

Preference͏͏ for͏͏ Offline͏͏ Retail:

The͏͏ survey͏͏ revealed͏͏ a͏͏ 75.5%͏͏ preference͏͏ for͏͏ offline͏͏ retail͏͏ channels,͏͏ with͏͏ 24.5%͏͏ favouring͏͏ online͏͏ retail.

Indian͏͏ wear͏͏ is͏͏ expected͏͏ to͏͏ perform͏͏ well͏͏ according͏͏ to͏͏ 52%͏͏ of͏͏ respondents,͏͏ followed͏͏ by͏͏ casual͏͏ wear,͏͏ while͏͏ formal͏͏ wear͏͏ appears͏͏ to͏͏ be͏͏ out͏͏ of͏͏ favour.

CMAI͏͏ is͏͏ an͏͏ association͏͏ of͏͏ over͏͏ 5,000͏͏ members͏͏ from͏͏ the͏͏ Indian͏͏ apparel͏͏ industry,͏͏ including͏͏ manufacturers,͏͏ exporters,͏͏ brands,͏͏ and͏͏ the͏͏ ancillary͏͏ sector,͏͏ serving͏͏ more͏͏ than͏͏ 35,000͏͏ retailers͏͏ nationwide.

Continue͏͏ Exploring:͏͏ India’s͏͏ apparel retail͏͏ industry͏͏ to͏͏ continue͏͏ growing͏͏ with͏͏ rising͏͏ incomes͏͏ and͏͏ demand͏͏ for͏͏ affordable͏͏ fashion:͏͏ Centrum

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Danone to invest €20 Mn in Punjab plant over four years

By
M Haziq Pandit
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0
Danone

Food and beverage giant Danone announced a €20 million investment to expand its specialised nutrition facility in Lalru, Punjab, over the next four years. Additionally,͏͏ the͏͏ company͏͏ is͏͏ launching͏͏ a͏͏ three-year͏͏ programme͏͏ to͏͏ train͏͏ approximately͏͏ 5,000͏͏ smallholder͏͏ dairy͏͏ farmers͏͏ in͏͏ Punjab͏͏ in͏͏ sustainable͏͏ farming͏͏ practices,͏͏ aimed͏͏ at͏͏ increasing͏͏ milk͏͏ yields,͏͏ enhancing͏͏ their͏͏ incomes,͏͏ and͏͏ improving͏͏ cattle͏͏ welfare.

Training͏͏ Programme͏͏ for͏͏ Smallholder͏͏ Dairy͏͏ Farmers:

In͏͏ a͏͏ statement,͏͏ Antoine͏͏ de͏͏ Saint-Affrique,͏͏ CEO͏͏ of͏͏ Danone,͏͏ said,͏͏ “India͏͏ is͏͏ a͏͏ key͏͏ growth͏͏ market͏͏ for͏͏ Danone.͏͏ We͏͏ are͏͏ dedicated͏͏ to͏͏ fostering͏͏ inclusive͏͏ growth͏͏ for͏͏ all͏͏ our͏͏ farming͏͏ partners͏͏ and͏͏ supporting͏͏ local͏͏ manufacturing.͏͏ This͏͏ programme͏͏ aligns͏͏ with͏͏ our͏͏ ongoing͏͏ commitment͏͏ to͏͏ local͏͏ farmer͏͏ communities͏͏ in͏͏ India.͏͏ At͏͏ Danone,͏͏ we͏͏ believe͏͏ that͏͏ our͏͏ success͏͏ is͏͏ intertwined͏͏ with͏͏ that͏͏ of͏͏ our͏͏ farmer͏͏ partners,͏͏ and͏͏ we͏͏ must͏͏ collaborate͏͏ closely͏͏ with͏͏ them͏͏ to͏͏ create͏͏ shared͏͏ value.”

Continue͏͏ Exploring:͏͏ No͏͏ global͏͏ relevance͏͏ without͏͏ a͏͏ strong͏͏ presence͏͏ in͏͏ India,͏͏ says͏͏ Danone SA͏͏ CEO

The͏͏ farmer͏͏ development͏͏ programme͏͏ will͏͏ be͏͏ implemented͏͏ in͏͏ collaboration͏͏ with͏͏ BAIF͏͏ Development͏͏ Research͏͏ Foundation.͏͏ It͏͏ will͏͏ concentrate͏͏ on͏͏ animal͏͏ health,͏͏ manure͏͏ management,͏͏ livestock͏͏ management,͏͏ and͏͏ community͏͏ engagement.

Vikram͏͏ Agarwal,͏͏ Chief͏͏ Operations͏͏ Officer͏͏ of͏͏ Danone,͏͏ stated,͏͏ “We͏͏ source͏͏ specialised͏͏ nutrition-grade͏͏ milk͏͏ from͏͏ more͏͏ than͏͏ 5,000͏͏ small͏͏ dairy͏͏ farmers͏͏ across͏͏ 100͏͏ villages͏͏ near͏͏ our͏͏ Lalru͏͏ plant.͏͏ Our͏͏ partnership͏͏ aims͏͏ to͏͏ expand͏͏ through͏͏ inclusive͏͏ growth,͏͏ which͏͏ will͏͏ be͏͏ crucial͏͏ in͏͏ helping͏͏ our͏͏ farmer͏͏ partners͏͏ enhance͏͏ their͏͏ yields͏͏ and͏͏ livelihoods͏͏ while͏͏ increasing͏͏ the͏͏ volume͏͏ of͏͏ high-quality͏͏ milk͏͏ available͏͏ for͏͏ Danone͏͏ as͏͏ we͏͏ continue͏͏ to͏͏ invest͏͏ in͏͏ expanding͏͏ capacity͏͏ at͏͏ the͏͏ plant.͏͏ Together,͏͏ we͏͏ are͏͏ fostering͏͏ mutual͏͏ growth͏͏ for͏͏ a͏͏ brighter͏͏ future.”

Continue͏͏ Exploring:͏͏ Danone India͏͏ appoints͏͏ Shashi͏͏ Ranjan͏͏ as͏͏ its͏͏ managing͏͏ director

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As quick commerce boom continues, Tiger Global eyes stake in Zepto

By
M Haziq Pandit
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0
Zepto

As the quick commerce competition intensifies in India, with companies branching out from FMCG and groceries to a broader range of consumer goods, Tiger Global is reportedly conducting due diligence on Zepto-owned dark stores in Bengaluru. This͏͏ suggests͏͏ a͏͏ keen͏͏ interest͏͏ from͏͏ the͏͏ New͏͏ York-based͏͏ investor͏͏ in͏͏ the͏͏ company͏͏ valued͏͏ at͏͏ $5͏͏ billion.

“Tiger͏͏ has͏͏ been͏͏ visiting͏͏ Zepto-owned͏͏ dark͏͏ stores͏͏ to͏͏ gain͏͏ a͏͏ deeper͏͏ understanding͏͏ of͏͏ their͏͏ operations,”͏͏ ET͏͏ reported,͏͏ citing͏͏ a͏͏ source͏͏ familiar͏͏ with͏͏ the͏͏ situation.

The͏͏ source͏͏ also͏͏ noted͏͏ that͏͏ the͏͏ US-based͏͏ investment͏͏ firm͏͏ is͏͏ examining͏͏ “how͏͏ Zepto͏͏ differentiates͏͏ its͏͏ execution͏͏ from͏͏ competitors,͏͏ as͏͏ well͏͏ as͏͏ the͏͏ factors͏͏ that͏͏ set͏͏ the͏͏ Indian͏͏ market͏͏ apart͏͏ from͏͏ global͏͏ markets.”

Another͏͏ source͏͏ mentioned͏͏ that͏͏ for͏͏ Tiger͏͏ Global,͏͏ “the͏͏ aim͏͏ is͏͏ to͏͏ engage͏͏ with͏͏ Zepto͏͏ and͏͏ establish͏͏ a͏͏ relationship͏͏ ahead͏͏ of͏͏ the͏͏ next͏͏ funding͏͏ round͏͏ before͏͏ an͏͏ IPO,͏͏ which͏͏ is͏͏ a͏͏ common͏͏ practice͏͏ for͏͏ most͏͏ late-stage͏͏ startups.”

Zepto’s͏͏ Public͏͏ Offering͏͏ Plans:

This͏͏ development͏͏ comes͏͏ as͏͏ Zepto͏͏ is͏͏ reportedly͏͏ in͏͏ talks͏͏ with͏͏ domestic͏͏ and͏͏ global͏͏ merchant͏͏ bankers͏͏ to͏͏ go͏͏ public͏͏ by͏͏ August͏͏ 2025,͏͏ with͏͏ plans͏͏ to͏͏ raise͏͏ approximately͏͏ $450͏͏ million͏͏ through͏͏ a͏͏ fresh͏͏ issue͏͏ of͏͏ shares.

Continue͏͏ Exploring:͏͏ Zepto initiates͏͏ talks͏͏ with͏͏ bankers͏͏ for͏͏ $450͏͏ Mn͏͏ IPO,͏͏ targets͏͏ August͏͏ 2025͏͏ listing

Additionally,͏͏ the͏͏ company͏͏ secured͏͏ $665͏͏ million͏͏ in͏͏ funding͏͏ at͏͏ a͏͏ valuation͏͏ of͏͏ $3.6͏͏ billion͏͏ in͏͏ June,͏͏ with͏͏ plans͏͏ to͏͏ double͏͏ its͏͏ dark͏͏ store͏͏ count͏͏ to͏͏ 700͏͏ by͏͏ March͏͏ 2025,͏͏ up͏͏ from͏͏ the͏͏ current͏͏ 350.

Rapid͏͏ Expansion͏͏ of͏͏ Dark͏͏ Stores:

Earlier͏͏ this͏͏ month,͏͏ Zepto͏͏ launched͏͏ its͏͏ services͏͏ in͏͏ Ahmedabad͏͏ and͏͏ plans͏͏ to͏͏ expand͏͏ further͏͏ into͏͏ other͏͏ parts͏͏ of͏͏ the͏͏ state,͏͏ including͏͏ Vadodara,͏͏ Surat,͏͏ and͏͏ Rajkot.

Continue͏͏ Exploring:͏͏ Zepto expands͏͏ quick commerce services͏͏ to͏͏ Gujarat,͏͏ eyes͏͏ growth͏͏ in͏͏ key͏͏ cities

Industry-Wide͏͏ Shift͏͏ in͏͏ Offerings:

This͏͏ move͏͏ aligns͏͏ with͏͏ a͏͏ broader͏͏ industry͏͏ trend,͏͏ as͏͏ various͏͏ quick͏͏ commerce͏͏ companies͏͏ are͏͏ exploring͏͏ new͏͏ offerings͏͏ in͏͏ anticipation͏͏ of͏͏ the͏͏ festive͏͏ season.

In͏͏ addition͏͏ to͏͏ Zepto,͏͏ major͏͏ players͏͏ like͏͏ Blinkit͏͏ and͏͏ Swiggy͏͏ Instamart͏͏ are͏͏ expanding͏͏ their͏͏ dark͏͏ store͏͏ networks͏͏ and͏͏ incorporating͏͏ higher-value͏͏ items,͏͏ such͏͏ as͏͏ electronics͏͏ and͏͏ fashion,͏͏ into͏͏ their͏͏ product͏͏ portfolios.

E-Commerce͏͏ Players͏͏ Embrace͏͏ Quick Commerce:

Meanwhile,͏͏ most͏͏ e-commerce͏͏ players͏͏ are͏͏ either͏͏ exploring͏͏ or͏͏ have͏͏ already͏͏ entered͏͏ the͏͏ quick͏͏ commerce͏͏ segment͏͏ to͏͏ capitalise͏͏ on͏͏ its͏͏ market͏͏ potential.

While͏͏ Flipkart͏͏ launched͏͏ its͏͏ service͏͏ called͏͏ Minutes͏͏ last͏͏ month,͏͏ Tata-owned͏͏ BigBasket͏͏ has͏͏ transitioned͏͏ from͏͏ an͏͏ online͏͏ grocery͏͏ delivery͏͏ platform͏͏ to͏͏ a͏͏ comprehensive͏͏ quick͏͏ commerce͏͏ platform.

Reliance͏͏ Industries’͏͏ digital͏͏ arm,͏͏ JioMart,͏͏ has͏͏ also͏͏ launched͏͏ a͏͏ pilot͏͏ program͏͏ for͏͏ the͏͏ instant͏͏ delivery͏͏ of͏͏ groceries͏͏ and͏͏ fast-moving͏͏ consumer͏͏ goods͏͏ (FMCG)͏͏ in͏͏ select͏͏ areas͏͏ of͏͏ Mumbai͏͏ and͏͏ Navi͏͏ Mumbai.

Continue͏͏ Exploring:͏͏ Quick commerce set͏͏ to͏͏ drive͏͏ India’s͏͏ gross͏͏ order͏͏ value͏͏ to͏͏ USD͏͏ 10͏͏ Bn͏͏ by͏͏ FY26

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Adani Airport’s JV April Moon Retail to acquire 74% stake in Cococart Ventures for INR 200 Cr

By
M Haziq Pandit
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0
Adani Airport's JV April Moon Retail Cococart Ventures

April Moon Retail Private Limited, a joint venture of Adani Airport Holdings Limited, is set to acquire a 74% stake in Cococart Ventures Private Limited for͏͏ INR͏͏ 200͏͏ crore,͏͏ according͏͏ to͏͏ the͏͏ stock͏͏ exchange͏͏ filing.

Key͏͏ Agreements͏͏ Signed͏͏ for͏͏ Cococart Ventures Acquisition:

“We͏͏ wish͏͏ to͏͏ inform͏͏ you͏͏ that͏͏ April͏͏ Moon͏͏ Retail͏͏ Private͏͏ Limited,͏͏ a͏͏ joint͏͏ venture͏͏ of͏͏ Adani͏͏ Airport͏͏ Holdings͏͏ Limited,͏͏ a͏͏ wholly͏͏ owned͏͏ subsidiary͏͏ of͏͏ the͏͏ Company,͏͏ has͏͏ signed͏͏ a͏͏ Share͏͏ Purchase͏͏ Agreement͏͏ (SPA),͏͏ Joint͏͏ Venture͏͏ Agreement͏͏ (JVA),͏͏ and͏͏ Share͏͏ Subscription͏͏ Agreement͏͏ (SSA)͏͏ on͏͏ September͏͏ 27,͏͏ 2024,͏͏ with͏͏ Cococart͏͏ Ventures͏͏ Private͏͏ Limited͏͏ (CVPL)͏͏ and͏͏ its͏͏ existing͏͏ shareholders,͏͏ Karan͏͏ Ahuja͏͏ and͏͏ Arjun͏͏ Ahuja,͏͏ to͏͏ acquire͏͏ a͏͏ 74%͏͏ stake͏͏ in͏͏ CVPL,”͏͏ the͏͏ statement͏͏ read.

The͏͏ acquisition͏͏ deal͏͏ is͏͏ anticipated͏͏ to͏͏ be͏͏ completed͏͏ by͏͏ October͏͏ 31,͏͏ 2024.

Continue͏͏ Exploring:͏͏ Adani Wilmar͏͏ eyes͏͏ expansion͏͏ with͏͏ $1͏͏ Bn͏͏ fund͏͏ to͏͏ acquire͏͏ three͏͏ food͏͏ brands͏͏ in͏͏ India

Alongside͏͏ the͏͏ acquisition͏͏ of͏͏ Cococart͏͏ Ventures,͏͏ Adani͏͏ Dahanu͏͏ Thermal͏͏ Power͏͏ Station͏͏ (ADTPS)͏͏ announced͏͏ on͏͏ Friday͏͏ that͏͏ Adani͏͏ Electricity͏͏ Mumbai͏͏ has͏͏ entered͏͏ into͏͏ a͏͏ business͏͏ transfer͏͏ agreement͏͏ with͏͏ its͏͏ wholly͏͏ owned͏͏ subsidiary,͏͏ North͏͏ Maharashtra͏͏ Power͏͏ Limited,͏͏ to͏͏ carve͏͏ out͏͏ ADTPS͏͏ through͏͏ a͏͏ slump͏͏ sale͏͏ on͏͏ a͏͏ going͏͏ concern͏͏ basis.͏͏ The͏͏ Dahanu͏͏ Power͏͏ Plant͏͏ is͏͏ a͏͏ 500͏͏ MW͏͏ coal-fired͏͏ power͏͏ project͏͏ situated͏͏ in͏͏ Maharashtra.

Adani Enterprises Reports͏͏ Significant͏͏ Profit͏͏ Growth:

Adani͏͏ Group’s͏͏ flagship͏͏ entity,͏͏ Adani͏͏ Enterprises,͏͏ reported͏͏ a͏͏ consolidated͏͏ net͏͏ profit͏͏ of͏͏ INR͏͏ 1,454͏͏ crore͏͏ for͏͏ the͏͏ first͏͏ quarter͏͏ ended͏͏ June͏͏ 2024,͏͏ marking͏͏ a͏͏ 116%͏͏ year-on-year͏͏ (YoY)͏͏ increase.͏͏ This͏͏ compares͏͏ to͏͏ INR͏͏ 674͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year.

Revenue͏͏ from͏͏ operations͏͏ for͏͏ the͏͏ reporting͏͏ period͏͏ rose͏͏ by͏͏ 12%͏͏ year-on-year͏͏ (YoY)͏͏ to͏͏ INR͏͏ 25,472͏͏ crore,͏͏ up͏͏ from͏͏ INR͏͏ 22,644͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year.

Continue͏͏ Exploring:͏͏ Adani,͏͏ Wilmar͏͏ to͏͏ initiate͏͏ stake͏͏ sale͏͏ in͏͏ joint͏͏ venture͏͏ next͏͏ month

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IPO-bound Swiggy facing INR 327 Crore GST demand

By
M Haziq Pandit
-
0
Swiggy

Foodtech giant Swiggy faces potential goods and services tax (GST) liabilities totaling INR 326.7 crore, as indicated in its recently submitted updated draft red herring prospectus (DRHP).

Tax͏͏ Compliance͏͏ Concerns:

In͏͏ December͏͏ 2023,͏͏ the͏͏ Pune͏͏ zonal͏͏ unit͏͏ of͏͏ the͏͏ Directorate͏͏ General͏͏ of͏͏ GST͏͏ Intelligence͏͏ (DGGI)͏͏ issued͏͏ a͏͏ demand͏͏ notice͏͏ to͏͏ the͏͏ foodtech͏͏ giant͏͏ for͏͏ allegedly͏͏ failing͏͏ to͏͏ pay͏͏ tax͏͏ on͏͏ the͏͏ delivery͏͏ fees͏͏ collected͏͏ from͏͏ customers.͏͏ This͏͏ case͏͏ relates͏͏ to͏͏ the͏͏ period͏͏ between͏͏ July͏͏ 2020͏͏ and͏͏ March͏͏ 2022.

The͏͏ DRHP͏͏ stated,͏͏ “In͏͏ December͏͏ 2023,͏͏ our͏͏ Company͏͏ received͏͏ show͏͏ cause͏͏ notices͏͏ from͏͏ the͏͏ GST͏͏ authorities,͏͏ asking͏͏ us͏͏ to͏͏ explain͏͏ why͏͏ a͏͏ tax͏͏ liability͏͏ of͏͏ INR͏͏ 326.7͏͏ crore,͏͏ along͏͏ with͏͏ interest͏͏ and͏͏ penalties͏͏ for͏͏ the͏͏ period͏͏ from͏͏ July͏͏ 2020͏͏ to͏͏ March͏͏ 31,͏͏ 2022,͏͏ should͏͏ not͏͏ be͏͏ demanded͏͏ and͏͏ recovered.͏͏ The͏͏ alleged͏͏ amount͏͏ is͏͏ based͏͏ on͏͏ the͏͏ delivery͏͏ charges͏͏ collected͏͏ by͏͏ our͏͏ Company͏͏ from͏͏ the͏͏ end͏͏ user͏͏ on͏͏ behalf͏͏ of͏͏ the͏͏ delivery͏͏ partners.”

In͏͏ its͏͏ IPO͏͏ documents,͏͏ the͏͏ foodtech͏͏ giant͏͏ stated͏͏ that͏͏ it͏͏ will͏͏ keep͏͏ an͏͏ eye͏͏ on͏͏ developments͏͏ in͏͏ the͏͏ case͏͏ and͏͏ “take͏͏ appropriate͏͏ action͏͏ regarding͏͏ any͏͏ further͏͏ proceedings͏͏ as͏͏ necessary.”

However,͏͏ Swiggy͏͏ cautioned,͏͏ “We͏͏ cannot͏͏ guarantee͏͏ that͏͏ an͏͏ unfavorable͏͏ decision͏͏ regarding͏͏ this͏͏ matter͏͏ will͏͏ not͏͏ occur,͏͏ nor͏͏ that͏͏ such͏͏ a͏͏ decision͏͏ will͏͏ not͏͏ adversely͏͏ affect͏͏ our͏͏ financial͏͏ condition͏͏ and͏͏ operations.”

It͏͏ is͏͏ worth͏͏ mentioning͏͏ that͏͏ Swiggy’s͏͏ publicly͏͏ listed͏͏ competitor,͏͏ Zomato,͏͏ is͏͏ also͏͏ facing͏͏ multiple͏͏ demand͏͏ notices͏͏ from͏͏ GST͏͏ authorities͏͏ across͏͏ various͏͏ states.

Just͏͏ a͏͏ week͏͏ ago,͏͏ Zomato͏͏ received͏͏ a͏͏ new͏͏ GST͏͏ penalty͏͏ notice͏͏ of͏͏ INR͏͏ 18͏͏ crore͏͏ from͏͏ West͏͏ Bengal͏͏ authorities,͏͏ following͏͏ similar͏͏ notices͏͏ from͏͏ GST͏͏ officials͏͏ in͏͏ Delhi,͏͏ Tamil͏͏ Nadu,͏͏ Karnataka,͏͏ and͏͏ other͏͏ states.

Ongoing͏͏ Legal͏͏ Issues:

In͏͏ addition͏͏ to͏͏ the͏͏ GST͏͏ notices,͏͏ Swiggy͏͏ is͏͏ facing͏͏ multiple͏͏ legal͏͏ challenges,͏͏ as͏͏ outlined͏͏ in͏͏ the͏͏ DRHP.͏͏ Cofounder͏͏ and͏͏ CEO͏͏ Sriharsha͏͏ Majety͏͏ received͏͏ a͏͏ notice͏͏ last͏͏ year͏͏ from͏͏ the͏͏ Deputy͏͏ Labour͏͏ Commissioner͏͏ in͏͏ Lucknow͏͏ over͏͏ allegations͏͏ of͏͏ employing͏͏ child͏͏ laborers.͏͏ Furthermore,͏͏ a͏͏ criminal͏͏ complaint͏͏ has͏͏ been͏͏ filed͏͏ by͏͏ a͏͏ DGGI͏͏ official͏͏ in͏͏ Hyderabad͏͏ against͏͏ Swiggy’s͏͏ top͏͏ executives͏͏ and͏͏ directors͏͏ for͏͏ claiming͏͏ input͏͏ tax͏͏ credit͏͏ without͏͏ corresponding͏͏ service͏͏ supply,͏͏ falsifying͏͏ records,͏͏ producing͏͏ fake͏͏ accounts,͏͏ and͏͏ providing͏͏ false͏͏ information;͏͏ this͏͏ matter͏͏ is͏͏ currently͏͏ pending͏͏ before͏͏ a͏͏ trial͏͏ court.͏͏ Additionally,͏͏ the͏͏ National͏͏ Restaurant͏͏ Association͏͏ of͏͏ India͏͏ (NRAI)͏͏ has͏͏ lodged͏͏ a͏͏ case͏͏ against͏͏ Swiggy͏͏ for͏͏ alleged͏͏ violations͏͏ of͏͏ competition͏͏ laws͏͏ before͏͏ the͏͏ Competition͏͏ Commission͏͏ of͏͏ India͏͏ (CCI).

The͏͏ DRHP͏͏ also͏͏ highlighted͏͏ significant͏͏ attrition͏͏ levels͏͏ at͏͏ the͏͏ foodtech͏͏ giant.͏͏ According͏͏ to͏͏ the͏͏ draft͏͏ IPO͏͏ papers,͏͏ employee͏͏ attrition͏͏ reached͏͏ 53.74%͏͏ in͏͏ the͏͏ financial͏͏ year͏͏ 2023-24͏͏ (FY24),͏͏ an͏͏ increase͏͏ from͏͏ 50.49%͏͏ in͏͏ FY23͏͏ and͏͏ 37.1%͏͏ in͏͏ FY22.͏͏ For͏͏ the͏͏ fiscal͏͏ year͏͏ ending͏͏ March͏͏ 2024,͏͏ Swiggy’s͏͏ voluntary͏͏ attrition͏͏ rate͏͏ was͏͏ 34.56%,͏͏ while͏͏ the͏͏ involuntary͏͏ attrition͏͏ rate͏͏ was͏͏ 19.18%.

Swiggy͏͏ submitted͏͏ its͏͏ updated͏͏ DRHP͏͏ to͏͏ the͏͏ markets͏͏ regulator͏͏ on͏͏ Thursday,͏͏ September͏͏ 26.͏͏ The͏͏ public͏͏ issue͏͏ will͏͏ consist͏͏ of͏͏ a͏͏ fresh͏͏ issuance͏͏ of͏͏ shares͏͏ valued͏͏ at͏͏ up͏͏ to͏͏ INR͏͏ 3,750͏͏ crore,͏͏ along͏͏ with͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ (OFS)͏͏ of͏͏ up͏͏ to͏͏ 18.53͏͏ crore͏͏ shares.

Continue͏͏ Exploring:͏͏ Swiggy files͏͏ updated͏͏ DRHP͏͏ with͏͏ SEBI͏͏ for͏͏ INR͏͏ 3,750͏͏ Cr͏͏ IPO

The͏͏ company,͏͏ which͏͏ will͏͏ be͏͏ listed͏͏ on͏͏ the͏͏ BSE͏͏ and͏͏ NSE,͏͏ intends͏͏ to͏͏ use͏͏ the͏͏ fresh͏͏ proceeds͏͏ to͏͏ support͏͏ its͏͏ subsidiary͏͏ Scootsy,͏͏ fund͏͏ marketing͏͏ activities,͏͏ invest͏͏ in͏͏ technology,͏͏ finance͏͏ inorganic͏͏ growth͏͏ through͏͏ acquisitions,͏͏ and͏͏ cover͏͏ general͏͏ corporate͏͏ purposes.

The͏͏ IPO-bound͏͏ startup͏͏ reduced͏͏ its͏͏ loss͏͏ by͏͏ 44%,͏͏ bringing͏͏ it͏͏ down͏͏ to͏͏ INR͏͏ 2,350͏͏ crore͏͏ in͏͏ FY24,͏͏ compared͏͏ to͏͏ a͏͏ loss͏͏ of͏͏ INR͏͏ 4,179.3͏͏ crore͏͏ in͏͏ FY23.͏͏ Operating͏͏ revenue͏͏ increased͏͏ by͏͏ 36%,͏͏ rising͏͏ to͏͏ INR͏͏ 11,247.3͏͏ crore͏͏ during͏͏ the͏͏ year͏͏ under͏͏ review,͏͏ up͏͏ from͏͏ INR͏͏ 8,264.5͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ year.

However,͏͏ the͏͏ startup’s͏͏ net͏͏ loss͏͏ increased͏͏ by͏͏ 8%͏͏ in͏͏ Q1͏͏ FY25,͏͏ rising͏͏ to͏͏ INR͏͏ 611͏͏ crore͏͏ from͏͏ INR͏͏ 564.08͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year.͏͏ On͏͏ a͏͏ positive͏͏ note,͏͏ the͏͏ foodtech͏͏ giant͏͏ successfully͏͏ narrowed͏͏ its͏͏ adjusted͏͏ EBITDA͏͏ loss͏͏ to͏͏ INR͏͏ 347.8͏͏ crore͏͏ in͏͏ Q1͏͏ FY25,͏͏ down͏͏ from͏͏ INR͏͏ 486.8͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ year’s͏͏ quarter.͏͏ Revenue͏͏ from͏͏ operations͏͏ surged͏͏ 35%͏͏ year-on-year,͏͏ reaching͏͏ INR͏͏ 3,222.2͏͏ crore͏͏ during͏͏ the͏͏ quarter.

Continue͏͏ Exploring:͏͏ Swiggy’s͏͏ Q1͏͏ loss͏͏ widens͏͏ 8%͏͏ YoY͏͏ to͏͏ INR͏͏ 611͏͏ Cr,͏͏ operating͏͏ revenue͏͏ jumps͏͏ 35%

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Swiggy allocates lion’s share of IPO proceeds to expand Instamart dark stores

By
M Haziq Pandit
-
0
Swiggy Instamart

Swiggy‘s updated prospectus, filed on Thursday for its initial public offering (IPO), reveals the Bengaluru-based company’s plans to continue investing heavily in its quick commerce vertical, Instamart.

Most͏͏ of͏͏ the͏͏ fresh͏͏ capital͏͏ raised͏͏ from͏͏ the͏͏ IPO—INR͏͏ 982͏͏ crore—is͏͏ expected͏͏ to͏͏ be͏͏ allocated͏͏ for͏͏ expanding͏͏ Instamart’s͏͏ dark͏͏ store͏͏ footprint.

Competitive͏͏ Pressures͏͏ Drive͏͏ Further͏͏ Investments:

In͏͏ May͏͏ 2023,͏͏ Sriharsha͏͏ Majety͏͏ stated͏͏ in͏͏ a͏͏ blog͏͏ post͏͏ that͏͏ the͏͏ company͏͏ had͏͏ moved͏͏ beyond͏͏ the͏͏ “peak͏͏ of͏͏ our͏͏ investments”͏͏ in͏͏ the͏͏ quick͏͏ commerce͏͏ sector.͏͏ The͏͏ decision͏͏ to͏͏ invest͏͏ further͏͏ in͏͏ Instamart͏͏ is͏͏ viewed͏͏ as͏͏ a͏͏ response͏͏ to͏͏ increasing͏͏ competitive͏͏ pressure͏͏ in͏͏ quick͏͏ commerce.

Swiggy’s͏͏ substantial͏͏ $700͏͏ million͏͏ fundraising͏͏ in͏͏ January͏͏ 2022͏͏ was͏͏ mainly͏͏ aimed͏͏ at͏͏ supporting͏͏ its͏͏ quick͏͏ commerce͏͏ growth͏͏ initiatives.

In͏͏ August,͏͏ Swiggy͏͏ appointed͏͏ Amitesh͏͏ Jha,͏͏ Flipkart’s͏͏ senior͏͏ vice͏͏ president,͏͏ as͏͏ the͏͏ chief͏͏ executive͏͏ officer͏͏ of͏͏ Instamart.

As͏͏ of͏͏ September͏͏ 10,͏͏ the͏͏ company͏͏ had͏͏ 605͏͏ active͏͏ dark͏͏ stores͏͏ in͏͏ the͏͏ country,͏͏ an͏͏ increase͏͏ from͏͏ 557͏͏ micro͏͏ warehouses͏͏ as͏͏ of͏͏ June͏͏ 30.

Continue͏͏ Exploring:͏͏ Swiggy Instamart expands͏͏ to͏͏ 42͏͏ cities,͏͏ eyes͏͏ growth͏͏ in͏͏ tier͏͏ 2͏͏ and͏͏ 3͏͏ markets

As͏͏ of͏͏ July,͏͏ brokerage͏͏ firm͏͏ UBS͏͏ estimated͏͏ Blinkit’s͏͏ quick͏͏ commerce͏͏ market͏͏ share͏͏ at͏͏ 40-45%,͏͏ followed͏͏ by͏͏ Swiggy͏͏ Instamart͏͏ at͏͏ 20-25%,͏͏ Zepto͏͏ at͏͏ 15-20%,͏͏ and͏͏ BB͏͏ Now͏͏ at͏͏ 10-15%.

For͏͏ the͏͏ current͏͏ financial͏͏ year,͏͏ Swiggy͏͏ Instamart͏͏ has͏͏ a͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ run͏͏ rate͏͏ of͏͏ $1.3͏͏ billion,͏͏ while͏͏ Blinkit’s͏͏ run͏͏ rate͏͏ exceeds͏͏ $2͏͏ billion͏͏ and͏͏ Zepto’s͏͏ stands͏͏ at͏͏ $1.5͏͏ billion.

Performance͏͏ Metrics:͏͏ Instamart vs.͏͏ Blinkit

In͏͏ the͏͏ June͏͏ quarter,͏͏ Instamart͏͏ reported͏͏ a͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ of͏͏ INR͏͏ 2,724͏͏ crore͏͏ and͏͏ revenue͏͏ of͏͏ INR͏͏ 403͏͏ crore,͏͏ resulting͏͏ in͏͏ a͏͏ take͏͏ rate͏͏ of͏͏ 14.8%.

The͏͏ take͏͏ rate͏͏ refers͏͏ to͏͏ the͏͏ percentage͏͏ of͏͏ revenue͏͏ a͏͏ company͏͏ earns͏͏ from͏͏ its͏͏ gross͏͏ order͏͏ value͏͏ (GOV).

Blinkit͏͏ reported͏͏ a͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ of͏͏ INR͏͏ 4,923͏͏ crore͏͏ and͏͏ revenue͏͏ of͏͏ INR͏͏ 942͏͏ crore͏͏ during͏͏ the͏͏ June͏͏ quarter,͏͏ resulting͏͏ in͏͏ a͏͏ higher͏͏ take͏͏ rate͏͏ of͏͏ 19.1%.

As͏͏ of͏͏ the͏͏ first͏͏ quarter͏͏ of͏͏ FY25,͏͏ Swiggy͏͏ Instamart’s͏͏ average͏͏ order͏͏ value͏͏ (AOV)͏͏ was͏͏ lower͏͏ than͏͏ Blinkit’s.͏͏ Swiggy͏͏ reported͏͏ a͏͏ year-on-year͏͏ (YoY)͏͏ increase͏͏ of͏͏ 10%͏͏ in͏͏ Instamart’s͏͏ AOV,͏͏ reaching͏͏ INR͏͏ 487,͏͏ while͏͏ Blinkit’s͏͏ AOV͏͏ for͏͏ the͏͏ same͏͏ period͏͏ was͏͏ INR͏͏ 625.

In͏͏ the͏͏ food͏͏ delivery͏͏ segment,͏͏ the͏͏ largest͏͏ revenue-generating͏͏ vertical͏͏ for͏͏ both͏͏ companies,͏͏ Swiggy͏͏ trails͏͏ behind͏͏ Zomato,͏͏ which͏͏ reported͏͏ a͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ of͏͏ INR͏͏ 6,808͏͏ crore.

Continue͏͏ Exploring:͏͏ Swiggy files͏͏ updated͏͏ DRHP͏͏ with͏͏ SEBI͏͏ for͏͏ INR͏͏ 3,750͏͏ Cr͏͏ IPO

Its͏͏ listed͏͏ rival,͏͏ on͏͏ the͏͏ other͏͏ hand,͏͏ recorded͏͏ a͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ of͏͏ INR͏͏ 9,264͏͏ crore͏͏ from͏͏ food͏͏ delivery͏͏ during͏͏ the͏͏ April-June͏͏ period.

Although͏͏ Swiggy͏͏ achieved͏͏ a͏͏ higher͏͏ take͏͏ rate͏͏ of͏͏ 25.4%͏͏ in͏͏ this͏͏ segment͏͏ for͏͏ April-June,͏͏ compared͏͏ to͏͏ Zomato’s͏͏ 24.3%,͏͏ the͏͏ Bengaluru-based͏͏ company͏͏ reported͏͏ an͏͏ adjusted͏͏ EBITDA͏͏ of͏͏ INR͏͏ 57.8͏͏ crore,͏͏ while͏͏ Zomato’s͏͏ was͏͏ INR͏͏ 313͏͏ crore͏͏ for͏͏ the͏͏ same͏͏ period.

Zomato͏͏ also͏͏ boasts͏͏ a͏͏ larger͏͏ average͏͏ monthly͏͏ transacting͏͏ customer͏͏ base,͏͏ which͏͏ reached͏͏ 20.3͏͏ million͏͏ for͏͏ the͏͏ three͏͏ months͏͏ ending͏͏ in͏͏ June,͏͏ compared͏͏ to͏͏ Swiggy’s͏͏ 14.03͏͏ million.

Continue͏͏ Exploring:͏͏ Quick͏͏ commerce͏͏ set͏͏ to͏͏ drive͏͏ India’s͏͏ gross͏͏ order͏͏ value͏͏ to͏͏ USD͏͏ 10͏͏ Bn͏͏ by͏͏ FY26

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Swiggy’s IPO could net Prosus $500 Mn; founders set to cash out $36 Mn

By
M Haziq Pandit
-
0
Swiggy

Swiggy’s largest investor, Prosus, stands to gain over $500 million from the food and grocery delivery firm’s upcoming IPO, as it plans to offload a 5% stake. This͏͏ figure͏͏ is͏͏ based͏͏ on͏͏ Swiggy’s͏͏ projected͏͏ listing͏͏ valuation͏͏ of͏͏ $11-12͏͏ billion͏͏ and͏͏ could͏͏ vary͏͏ depending͏͏ on͏͏ the͏͏ final͏͏ issue͏͏ price.

Key͏͏ Stakeholders͏͏ Join͏͏ Prosus in͏͏ Offloading͏͏ Shares:

In͏͏ addition͏͏ to͏͏ Prosus,͏͏ other͏͏ investors͏͏ such͏͏ as͏͏ Elevation͏͏ Capital,͏͏ Accel,͏͏ and͏͏ Norwest͏͏ will͏͏ also͏͏ offload͏͏ part͏͏ of͏͏ their͏͏ stake͏͏ in͏͏ the͏͏ IPO,͏͏ according͏͏ to͏͏ Swiggy’s͏͏ updated͏͏ draft͏͏ red͏͏ herring͏͏ prospectus͏͏ (DRHP)͏͏ filed͏͏ late͏͏ on͏͏ Thursday.

Continue͏͏ Exploring:͏͏ Swiggy’s͏͏ early͏͏ investors͏͏ Prosus,͏͏ Accel,͏͏ and͏͏ Elevation͏͏ Capital͏͏ set͏͏ to͏͏ sell͏͏ shares͏͏ ahead͏͏ of͏͏ IPO

Prosus͏͏ Recoups͏͏ Investment:

Prosus,͏͏ through͏͏ its͏͏ affiliate͏͏ MIH͏͏ India͏͏ Food͏͏ Holdings,͏͏ holds͏͏ a͏͏ 31%͏͏ stake͏͏ in͏͏ Swiggy.͏͏ By͏͏ selling͏͏ less͏͏ than͏͏ one-fifth͏͏ of͏͏ this͏͏ stake,͏͏ it͏͏ is͏͏ expected͏͏ to͏͏ recover͏͏ over͏͏ half͏͏ of͏͏ its͏͏ total͏͏ $1͏͏ billion͏͏ investment,͏͏ made͏͏ across͏͏ multiple͏͏ funding͏͏ rounds.

Potential͏͏ Stake͏͏ Reduction͏͏ for͏͏ Prosus:

The͏͏ sale͏͏ of͏͏ shares͏͏ and͏͏ issuance͏͏ of͏͏ fresh͏͏ equity͏͏ by͏͏ Swiggy͏͏ could͏͏ reduce͏͏ Prosus’͏͏ stake͏͏ to͏͏ below͏͏ 25%,͏͏ which͏͏ would͏͏ prevent͏͏ the͏͏ investor͏͏ from͏͏ being͏͏ classified͏͏ as͏͏ the͏͏ company’s͏͏ promoter.

According͏͏ to͏͏ the͏͏ updated͏͏ DRHP,͏͏ Swiggy’s͏͏ shareholders͏͏ will͏͏ sell͏͏ a͏͏ total͏͏ of͏͏ 185.3͏͏ million͏͏ shares,͏͏ with͏͏ Prosus͏͏ leading͏͏ the͏͏ offer͏͏ for͏͏ sale͏͏ (OFS)͏͏ by͏͏ offloading͏͏ 118.2͏͏ million͏͏ shares.

Venture͏͏ capital͏͏ firm͏͏ Accel͏͏ is͏͏ set͏͏ to͏͏ sell͏͏ 10.6͏͏ million͏͏ shares͏͏ worth͏͏ approximately͏͏ $46͏͏ million,͏͏ while͏͏ Elevation͏͏ Capital,͏͏ one͏͏ of͏͏ Swiggy’s͏͏ earliest͏͏ investors,͏͏ will͏͏ realise͏͏ around͏͏ $32͏͏ million͏͏ from͏͏ the͏͏ sale͏͏ of͏͏ 7.4͏͏ million͏͏ shares.

Accel͏͏ and͏͏ Elevation͏͏ Capital͏͏ (formerly͏͏ SAIF͏͏ Partners͏͏ India)͏͏ each͏͏ wrote͏͏ seed͏͏ funding͏͏ cheques͏͏ of͏͏ $1͏͏ million͏͏ for͏͏ Swiggy͏͏ in͏͏ January͏͏ 2015.

In͏͏ October͏͏ 2014,͏͏ when͏͏ the͏͏ term͏͏ sheets͏͏ were͏͏ signed,͏͏ Swiggy͏͏ had͏͏ partnered͏͏ with͏͏ 25͏͏ restaurants͏͏ in͏͏ Bengaluru’s͏͏ Koramangala͏͏ neighbourhood͏͏ and͏͏ was͏͏ handling͏͏ an͏͏ average͏͏ of͏͏ 35͏͏ orders͏͏ per͏͏ day.

Swiggy Founders͏͏ to͏͏ Partially͏͏ Sell͏͏ Shares:

Swiggy’s͏͏ founders,͏͏ Sriharsha͏͏ Majety,͏͏ Rahul͏͏ Jaimini,͏͏ and͏͏ Nandan͏͏ Reddy,͏͏ will͏͏ also͏͏ be͏͏ partially͏͏ selling͏͏ their͏͏ stakes͏͏ through͏͏ the͏͏ IPO.

According͏͏ to͏͏ the͏͏ prospectus,͏͏ Majety͏͏ and͏͏ Reddy͏͏ sold͏͏ shares͏͏ in͏͏ the͏͏ company͏͏ through͏͏ secondary͏͏ transactions͏͏ between͏͏ July͏͏ and͏͏ September͏͏ this͏͏ year.͏͏ Majety͏͏ offloaded͏͏ a͏͏ stake͏͏ worth͏͏ INR͏͏ 196͏͏ crore͏͏ ($23͏͏ million),͏͏ while͏͏ Reddy͏͏ sold͏͏ shares͏͏ valued͏͏ at͏͏ INR͏͏ 101͏͏ crore͏͏ ($12͏͏ million).

Currently,͏͏ Majety,͏͏ Swiggy’s͏͏ group͏͏ CEO,͏͏ holds͏͏ a͏͏ 6.23%͏͏ stake͏͏ in͏͏ the͏͏ company͏͏ and͏͏ plans͏͏ to͏͏ sell͏͏ shares͏͏ valued͏͏ at͏͏ $7.5͏͏ million.

Reddy,͏͏ the͏͏ only͏͏ executive͏͏ director͏͏ on͏͏ Swiggy’s͏͏ board͏͏ besides͏͏ Majety,͏͏ is͏͏ also͏͏ selling͏͏ shares͏͏ for͏͏ a͏͏ similar͏͏ amount.͏͏ He͏͏ currently͏͏ holds͏͏ a͏͏ 1.76%͏͏ stake͏͏ in͏͏ Swiggy.

Jaimini,͏͏ the͏͏ third͏͏ co-founder͏͏ who͏͏ left͏͏ the͏͏ company͏͏ in͏͏ 2020͏͏ but͏͏ still͏͏ holds͏͏ a͏͏ 1.14%͏͏ stake,͏͏ is͏͏ also͏͏ selling͏͏ a͏͏ portion͏͏ of͏͏ his͏͏ shares.

Targeting͏͏ $448͏͏ Million͏͏ Fundraising:

The͏͏ Bengaluru-based͏͏ company͏͏ aims͏͏ to͏͏ raise͏͏ up͏͏ to͏͏ INR͏͏ 3,750͏͏ crore,͏͏ or͏͏ approximately͏͏ $448͏͏ million,͏͏ through͏͏ a͏͏ fresh͏͏ issue͏͏ of͏͏ shares,͏͏ according͏͏ to͏͏ the͏͏ draft͏͏ papers.

Swiggy͏͏ submitted͏͏ a͏͏ confidential͏͏ DRHP͏͏ to͏͏ the͏͏ Securities͏͏ and͏͏ Exchange͏͏ Board͏͏ of͏͏ India͏͏ (Sebi)͏͏ in͏͏ April͏͏ and͏͏ received͏͏ approval͏͏ from͏͏ the͏͏ stock͏͏ market͏͏ regulator͏͏ earlier͏͏ this͏͏ week.

Continue͏͏ Exploring:͏͏ Swiggy files͏͏ updated͏͏ DRHP͏͏ with͏͏ SEBI͏͏ for͏͏ INR͏͏ 3,750͏͏ Cr͏͏ IPO

As͏͏ per͏͏ the͏͏ approval͏͏ granted͏͏ by͏͏ the͏͏ company’s͏͏ board͏͏ for͏͏ its͏͏ IPO͏͏ plan͏͏ in͏͏ April,͏͏ the͏͏ OFS͏͏ component͏͏ was͏͏ set͏͏ at͏͏ $800͏͏ million,͏͏ alongside͏͏ a͏͏ fresh͏͏ issue͏͏ of͏͏ $450͏͏ million,͏͏ bringing͏͏ the͏͏ total͏͏ issue͏͏ to͏͏ $1.25͏͏ billion.

The͏͏ amount͏͏ of͏͏ fresh͏͏ capital͏͏ being͏͏ raised͏͏ could͏͏ also͏͏ be͏͏ increased͏͏ to͏͏ $600͏͏ million,͏͏ and͏͏ the͏͏ company͏͏ has͏͏ convened͏͏ an͏͏ extraordinary͏͏ general͏͏ meeting͏͏ to͏͏ seek͏͏ shareholder͏͏ approval͏͏ for͏͏ this͏͏ change.

Continue͏͏ Exploring:͏͏ Swiggy attracts͏͏ celebrity͏͏ investors:͏͏ Rahul͏͏ Dravid,͏͏ Karan͏͏ Johar͏͏ &͏͏ others͏͏ invest͏͏ in͏͏ pre-IPO͏͏ round

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Zomato’s Co-Founder and CPO Akriti Chopra resigns

By
M Haziq Pandit
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Zomato Akriti Chopra

Foodtech giant Zomato‘s co-founder and Chief People Officer (CPO) Akriti Chopra has resigned from the company.

In͏͏ an͏͏ exchange͏͏ filing͏͏ with͏͏ the͏͏ BSE,͏͏ the͏͏ foodtech͏͏ giant͏͏ stated͏͏ that͏͏ Chopra͏͏ left͏͏ the͏͏ company͏͏ to͏͏ explore͏͏ other͏͏ interests.

The͏͏ filing͏͏ stated,͏͏ “We͏͏ would͏͏ like͏͏ to͏͏ inform͏͏ you͏͏ that͏͏ Ms.͏͏ Akriti͏͏ Chopra,͏͏ co-founder͏͏ and͏͏ Chief͏͏ People͏͏ Officer͏͏ designated͏͏ as͏͏ senior͏͏ management͏͏ personnel,͏͏ has͏͏ tendered͏͏ her͏͏ resignation͏͏ effective͏͏ September͏͏ 27,͏͏ 2024.”

Career͏͏ Journey͏͏ at͏͏ Zomato:

An͏͏ alumnus͏͏ of͏͏ Lady͏͏ Shri͏͏ Ram͏͏ College͏͏ for͏͏ Women,͏͏ Chopra͏͏ joined͏͏ Zomato͏͏ in͏͏ 2011͏͏ as͏͏ a͏͏ Senior͏͏ Manager͏͏ of͏͏ Finance͏͏ and͏͏ Operations,͏͏ eventually͏͏ advancing͏͏ to͏͏ the͏͏ position͏͏ of͏͏ Chief͏͏ Financial͏͏ Officer͏͏ (CFO)͏͏ in͏͏ 2019.

She͏͏ was͏͏ promoted͏͏ to͏͏ co-founder͏͏ in͏͏ 2021,͏͏ as͏͏ Zomato͏͏ was͏͏ preparing͏͏ to͏͏ go͏͏ public.

Chopra͏͏ is͏͏ married͏͏ to͏͏ Albinder͏͏ Dhindsa,͏͏ the͏͏ co-founder͏͏ and͏͏ CEO͏͏ of͏͏ Blinkit,͏͏ a͏͏ quick͏͏ commerce͏͏ company͏͏ that͏͏ Zomato͏͏ acquired͏͏ in͏͏ 2022.

Founded͏͏ in͏͏ 2008͏͏ by͏͏ Deepinder͏͏ Goyal͏͏ and͏͏ Pankaj͏͏ Chaddah,͏͏ Zomato͏͏ operates͏͏ across͏͏ various͏͏ verticals,͏͏ including͏͏ food͏͏ delivery,͏͏ quick͏͏ commerce,͏͏ B2B͏͏ supplies,͏͏ and͏͏ dining͏͏ experiences.͏͏ Following͏͏ Chaddah’s͏͏ departure͏͏ from͏͏ the͏͏ company͏͏ in͏͏ 2018,͏͏ three͏͏ other͏͏ senior͏͏ executives—Gaurav͏͏ Gupta,͏͏ Gunjan͏͏ Patidar,͏͏ and͏͏ Mohit͏͏ Gupta—were͏͏ promoted͏͏ to͏͏ co-founder͏͏ status.

Gaurav͏͏ Gupta͏͏ resigned͏͏ in͏͏ 2021,͏͏ while͏͏ Gunjan͏͏ Patidar͏͏ and͏͏ Mohit͏͏ Gupta͏͏ left͏͏ in͏͏ 2023͏͏ and͏͏ 2022,͏͏ respectively.͏͏ Following͏͏ Chopra’s͏͏ departure,͏͏ CEO͏͏ Deepinder͏͏ Goyal͏͏ remains͏͏ the͏͏ only͏͏ co-founder͏͏ at͏͏ the͏͏ foodtech͏͏ giant.

This͏͏ comes͏͏ as͏͏ Zomato’s͏͏ shares͏͏ are͏͏ experiencing͏͏ an͏͏ upswing.͏͏ On͏͏ September͏͏ 23,͏͏ the͏͏ stock͏͏ reached͏͏ an͏͏ all-time͏͏ high͏͏ of͏͏ INR͏͏ 298.05͏͏ during͏͏ intraday͏͏ trading͏͏ on͏͏ the͏͏ BSE.͏͏ The͏͏ surge͏͏ is͏͏ attributed͏͏ to͏͏ the͏͏ company’s͏͏ growing͏͏ profit͏͏ figures,͏͏ rising͏͏ revenue,͏͏ and͏͏ the͏͏ robust͏͏ growth͏͏ of͏͏ Blinkit.

Continue͏͏ Exploring:͏͏ Zomato shares͏͏ soar͏͏ to͏͏ all-time͏͏ high͏͏ of͏͏ INR͏͏ 298.05͏͏ amid͏͏ broader͏͏ market͏͏ rally

Strong͏͏ Financial͏͏ Results:

Zomato͏͏ reported͏͏ a͏͏ net͏͏ profit͏͏ of͏͏ INR͏͏ 253͏͏ crore͏͏ for͏͏ the͏͏ quarter͏͏ ending͏͏ June͏͏ 2024,͏͏ up͏͏ from͏͏ INR͏͏ 2͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year.͏͏ Additionally,͏͏ operating͏͏ revenues͏͏ surged͏͏ by͏͏ 74%,͏͏ reaching͏͏ INR͏͏ 4,206͏͏ crore͏͏ in͏͏ Q1͏͏ FY24,͏͏ compared͏͏ to͏͏ INR͏͏ 2,416͏͏ crore͏͏ in͏͏ Q1͏͏ FY23.

On͏͏ Friday͏͏ (September͏͏ 27),͏͏ the͏͏ company’s͏͏ shares͏͏ closed͏͏ down͏͏ 1.97%͏͏ at͏͏ INR͏͏ 278.25͏͏ on͏͏ the͏͏ BSE.

Continue͏͏ Exploring:͏͏ Zomato’s͏͏ net͏͏ profit͏͏ jumps͏͏ multi-fold͏͏ to͏͏ INR͏͏ 253͏͏ Cr͏͏ in͏͏ Q1,͏͏ marks͏͏ fifth͏͏ consecutive͏͏ profitable͏͏ quarter

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Swiggy’s revenue surpasses INR 10,000 Cr in FY24 as losses nearly halved

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M Haziq Pandit
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Swiggy

IPO-bound Swiggy reduced its losses by 44% for the financial year ending March 31, 2024. The decacorn startup reported a net loss of INR 2,350 crore in FY24, down from INR 4,179.3 crore in FY23.

In͏͏ the͏͏ first͏͏ quarter͏͏ of͏͏ FY25,͏͏ the͏͏ Prosus-backed͏͏ startup͏͏ reported͏͏ a͏͏ loss͏͏ of͏͏ INR͏͏ 611͏͏ crore.

Revenue͏͏ Surge͏͏ Driven͏͏ by͏͏ Quick͏͏ Commerce:

Swiggy’s͏͏ operating͏͏ revenue͏͏ surged͏͏ 36%͏͏ to͏͏ INR͏͏ 11,247.3͏͏ crore͏͏ in͏͏ FY24,͏͏ up͏͏ from͏͏ INR͏͏ 8,264.5͏͏ crore͏͏ the͏͏ previous͏͏ year,͏͏ driven͏͏ by͏͏ the͏͏ growth͏͏ of͏͏ its͏͏ quick͏͏ commerce͏͏ arm,͏͏ Swiggy͏͏ Instamart.

Swiggy͏͏ generates͏͏ revenue͏͏ through͏͏ its͏͏ food͏͏ delivery͏͏ and͏͏ quick͏͏ commerce͏͏ businesses,͏͏ restaurant͏͏ reservation͏͏ and͏͏ event͏͏ ticketing͏͏ platform͏͏ DineOut͏͏ and͏͏ SteppingOut,͏͏ as͏͏ well͏͏ as͏͏ supply͏͏ chain͏͏ services͏͏ for͏͏ wholesalers,͏͏ among͏͏ other͏͏ streams.

Food͏͏ Delivery͏͏ and͏͏ Quick͏͏ Commerce͏͏ Growth:

The͏͏ food͏͏ delivery͏͏ business͏͏ generated͏͏ INR͏͏ 5,160͏͏ crore͏͏ in͏͏ operating͏͏ revenue͏͏ in͏͏ FY24,͏͏ marking͏͏ a͏͏ 25%͏͏ rise͏͏ from͏͏ INR͏͏ 4,129.9͏͏ crore͏͏ the͏͏ previous͏͏ year.

The͏͏ quick͏͏ commerce͏͏ business͏͏ recorded͏͏ an͏͏ operating͏͏ revenue͏͏ of͏͏ INR͏͏ 978.5͏͏ crore͏͏ in͏͏ FY24,͏͏ nearly͏͏ doubling͏͏ from͏͏ INR͏͏ 451.3͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ fiscal͏͏ year.

Continue͏͏ Exploring:͏͏ Swiggy’s͏͏ Q1͏͏ loss͏͏ widens͏͏ 8%͏͏ YoY͏͏ to͏͏ INR͏͏ 611͏͏ Cr,͏͏ operating͏͏ revenue͏͏ jumps͏͏ 35%

Out-of-Home͏͏ Consumption͏͏ Segment͏͏ Performance:

The͏͏ out-of-home͏͏ consumption͏͏ segment,͏͏ including͏͏ DineOut͏͏ and͏͏ SteppingOut,͏͏ reported͏͏ an͏͏ operating͏͏ revenue͏͏ of͏͏ INR͏͏ 157.1͏͏ crore,͏͏ up͏͏ 102%͏͏ from͏͏ INR͏͏ 77.6͏͏ crore͏͏ in͏͏ FY23.

Swiggy’s͏͏ platform͏͏ innovation͏͏ segment,͏͏ comprising͏͏ Swiggy͏͏ Minis,͏͏ Swiggy͏͏ Genie,͏͏ and͏͏ its͏͏ private͏͏ labels,͏͏ generated͏͏ INR͏͏ 171.9͏͏ crore͏͏ in͏͏ revenue,͏͏ reflecting͏͏ a͏͏ 46%͏͏ decline͏͏ from͏͏ INR͏͏ 319.2͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ fiscal͏͏ year.

Swiggy͏͏ reported͏͏ a͏͏ total͏͏ revenue͏͏ of͏͏ INR͏͏ 11,634.3͏͏ crore͏͏ in͏͏ FY24,͏͏ including͏͏ other͏͏ income,͏͏ marking͏͏ a͏͏ 33%͏͏ increase͏͏ from͏͏ INR͏͏ 8,714.3͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ fiscal͏͏ year.

Competitive͏͏ Landscape:

In͏͏ comparison,͏͏ Swiggy’s͏͏ listed͏͏ competitor͏͏ Zomato͏͏ posted͏͏ a͏͏ net͏͏ profit͏͏ of͏͏ INR͏͏ 351͏͏ crore͏͏ in͏͏ FY24,͏͏ alongside͏͏ an͏͏ operating͏͏ revenue͏͏ of͏͏ INR͏͏ 12,114͏͏ crore.

The͏͏ IPO-bound͏͏ company͏͏ effectively͏͏ managed͏͏ to͏͏ limit͏͏ its͏͏ expense͏͏ growth,͏͏ with͏͏ total͏͏ expenditure͏͏ increasing͏͏ only͏͏ 8%͏͏ to͏͏ INR͏͏ 13,947.3͏͏ crore͏͏ in͏͏ FY24,͏͏ up͏͏ from͏͏ INR͏͏ 12,884.3͏͏ crore͏͏ in͏͏ FY23.͏͏ In͏͏ the͏͏ first͏͏ quarter͏͏ of͏͏ FY25,͏͏ the͏͏ startup’s͏͏ total͏͏ expenses͏͏ amounted͏͏ to͏͏ INR͏͏ 3,907.9͏͏ crore.

As͏͏ the͏͏ startup͏͏ focused͏͏ on͏͏ its͏͏ quick͏͏ commerce͏͏ business,͏͏ Swiggy’s͏͏ procurement͏͏ cost͏͏ emerged͏͏ as͏͏ its͏͏ largest͏͏ expenditure͏͏ in͏͏ FY24,͏͏ representing͏͏ nearly͏͏ 33%͏͏ of͏͏ total͏͏ expenses.͏͏ Procurement͏͏ costs͏͏ reached͏͏ INR͏͏ 4,604͏͏ crore͏͏ in͏͏ FY24,͏͏ a͏͏ 36%͏͏ increase͏͏ from͏͏ INR͏͏ 3,380.7͏͏ crore͏͏ in͏͏ FY23.

Employee͏͏ Cost͏͏ was͏͏ the͏͏ second-largest͏͏ expense͏͏ for͏͏ Swiggy.͏͏ However,͏͏ employee͏͏ benefit͏͏ expenses͏͏ declined͏͏ by͏͏ 6%͏͏ to͏͏ INR͏͏ 2,012.1͏͏ crore͏͏ in͏͏ FY24,͏͏ down͏͏ from͏͏ INR͏͏ 2,129.8͏͏ crore͏͏ in͏͏ FY23.͏͏ The͏͏ cost͏͏ of͏͏ share-based͏͏ payments͏͏ reached͏͏ INR͏͏ 596͏͏ crore,͏͏ a͏͏ slight͏͏ increase͏͏ from͏͏ INR͏͏ 533.9͏͏ crore͏͏ in͏͏ FY23.

Like͏͏ many͏͏ startups͏͏ aiming͏͏ to͏͏ reduce͏͏ losses,͏͏ Swiggy͏͏ cut͏͏ its͏͏ advertising͏͏ expenses͏͏ by͏͏ 26%,͏͏ bringing͏͏ them͏͏ down͏͏ to͏͏ INR͏͏ 1,850.7͏͏ crore͏͏ in͏͏ FY24͏͏ from͏͏ INR͏͏ 2,501͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ fiscal͏͏ year.

The͏͏ startup’s͏͏ EBITDA͏͏ margin͏͏ improved͏͏ to͏͏ -16.2%͏͏ in͏͏ FY24,͏͏ up͏͏ from͏͏ -46.4%͏͏ in͏͏ FY23.͏͏ The͏͏ adjusted͏͏ EBITDA͏͏ loss͏͏ nearly͏͏ halved͏͏ to͏͏ INR͏͏ 1,835.5͏͏ crore͏͏ in͏͏ FY24,͏͏ down͏͏ from͏͏ a͏͏ loss͏͏ of͏͏ INR͏͏ 3,910.3͏͏ crore͏͏ the͏͏ previous͏͏ year.

Founded͏͏ in͏͏ 2014͏͏ by͏͏ Sriharsha͏͏ Majety,͏͏ Nandan͏͏ Reddy,͏͏ Phani͏͏ Kishan͏͏ Addepalli,͏͏ and͏͏ Rahul͏͏ Jaimini,͏͏ Swiggy͏͏ began͏͏ as͏͏ a͏͏ food͏͏ delivery͏͏ startup͏͏ before͏͏ expanding͏͏ into͏͏ the͏͏ quick͏͏ commerce͏͏ segment͏͏ with͏͏ Instamart.

IPO͏͏ Filing͏͏ Announcement:

After͏͏ much͏͏ anticipation,͏͏ Swiggy͏͏ publicly͏͏ filed͏͏ its͏͏ IPO͏͏ papers,͏͏ or͏͏ draft͏͏ red͏͏ herring͏͏ prospectus͏͏ (DRHP),͏͏ on͏͏ Thursday,͏͏ September͏͏ 26.͏͏ The͏͏ public͏͏ offer͏͏ will͏͏ include͏͏ a͏͏ fresh͏͏ issue͏͏ of͏͏ shares͏͏ valued͏͏ at͏͏ INR͏͏ 3,750͏͏ crore͏͏ ($450͏͏ million)͏͏ and͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ of͏͏ approximately͏͏ 18.53͏͏ crore͏͏ shares.

Continue͏͏ Exploring:͏͏ Swiggy files͏͏ updated͏͏ DRHP͏͏ with͏͏ SEBI͏͏ for͏͏ INR͏͏ 3,750͏͏ Cr͏͏ IPO

Investors͏͏ including͏͏ Accel,͏͏ Coatue,͏͏ Alpha͏͏ Wave,͏͏ Elevation,͏͏ Norwest,͏͏ and͏͏ Tencent͏͏ will͏͏ sell͏͏ shares͏͏ as͏͏ part͏͏ of͏͏ the͏͏ offer͏͏ for͏͏ sale͏͏ (OFS).͏͏ Accel͏͏ India͏͏ IV͏͏ (Mauritius)͏͏ Ltd͏͏ will͏͏ offload͏͏ 1.05͏͏ crore͏͏ shares,͏͏ while͏͏ Alpha͏͏ Wave͏͏ Ventures͏͏ will͏͏ sell͏͏ 55.73͏͏ lakh͏͏ shares.

The͏͏ company͏͏ intends͏͏ to͏͏ use͏͏ the͏͏ IPO͏͏ proceeds͏͏ for͏͏ marketing͏͏ and͏͏ promotion,͏͏ investing͏͏ in͏͏ technology͏͏ and͏͏ cloud͏͏ infrastructure,͏͏ funding͏͏ inorganic͏͏ growth͏͏ through͏͏ acquisitions,͏͏ and͏͏ for͏͏ general͏͏ corporate͏͏ purposes.

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Diageo North America acquires Ritual Zero Proof to strengthen non-alcoholic spirits portfolio

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M Haziq Pandit
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Diageo Ritual Zero Proof

Diageo North America has acquired non-alcoholic spirits brand Ritual Zero Proof to capitalise on the growing demand for alcohol alternatives.

Rapid͏͏ Growth͏͏ of͏͏ Ritual Zero Proof:

Since͏͏ its͏͏ launch͏͏ in͏͏ 2019,͏͏ Ritual͏͏ has͏͏ rapidly͏͏ become͏͏ the͏͏ leading͏͏ non-alcoholic͏͏ spirit͏͏ brand͏͏ in͏͏ the͏͏ US,͏͏ highlighting͏͏ a͏͏ notable͏͏ shift͏͏ in͏͏ consumer͏͏ preferences͏͏ towards͏͏ healthier͏͏ beverage͏͏ choices.

A͏͏ Diverse͏͏ Range͏͏ of͏͏ Non-Alcoholic Options:

The͏͏ brand͏͏ offers͏͏ substitutes͏͏ for͏͏ whiskey,͏͏ tequila,͏͏ gin,͏͏ and͏͏ rum,͏͏ along͏͏ with͏͏ an͏͏ aperitif͏͏ alternative,͏͏ enabling͏͏ consumers͏͏ to͏͏ recreate͏͏ classic͏͏ cocktails͏͏ without͏͏ alcohol.͏͏ These͏͏ drinks͏͏ are͏͏ low͏͏ in͏͏ sugar,͏͏ crafted͏͏ with͏͏ natural͏͏ flavours,͏͏ and͏͏ gluten-free.

Ritual’s͏͏ founders—David͏͏ Crooch,͏͏ Marcus͏͏ Sakey,͏͏ and͏͏ GG͏͏ Sakey—created͏͏ their͏͏ product͏͏ line͏͏ to͏͏ offer͏͏ consumers͏͏ flavourful͏͏ alternatives͏͏ to͏͏ traditional͏͏ spirits.

Ritual’s͏͏ approach͏͏ has͏͏ struck͏͏ a͏͏ chord͏͏ with͏͏ a͏͏ diverse͏͏ consumer͏͏ base,͏͏ evidenced͏͏ by͏͏ the͏͏ fact͏͏ that͏͏ 94%͏͏ of͏͏ non-alcoholic͏͏ beverage͏͏ buyers͏͏ also͏͏ purchase͏͏ alcoholic͏͏ options.͏͏ This͏͏ underscores͏͏ the͏͏ category’s͏͏ incremental͏͏ value͏͏ within͏͏ the͏͏ broader͏͏ beverage͏͏ alcohol͏͏ market.

Continue͏͏ Exploring:͏͏ Diageo launches͏͏ single͏͏ malt͏͏ Crown͏͏ Royal͏͏ Canadian͏͏ whisky

Supporting͏͏ Diageo’s͏͏ Growth͏͏ Ambition͏͏ Strategy:

The͏͏ acquisition͏͏ supports͏͏ Diageo’s͏͏ broader͏͏ ‘Growth͏͏ Ambition’͏͏ strategy,͏͏ which͏͏ focuses͏͏ on͏͏ fostering͏͏ sustainable͏͏ growth͏͏ by͏͏ investing͏͏ in͏͏ high-potential͏͏ brands͏͏ within͏͏ emerging͏͏ categories.

The͏͏ non-alcoholic͏͏ beverage͏͏ segment͏͏ has͏͏ experienced͏͏ a͏͏ 31%͏͏ CAGR͏͏ in͏͏ retail͏͏ sales͏͏ over͏͏ the͏͏ past͏͏ five͏͏ years,͏͏ with͏͏ non-alcoholic͏͏ spirits͏͏ emerging͏͏ as͏͏ the͏͏ fastest-growing͏͏ category͏͏ in͏͏ adult͏͏ beverages.

Sally͏͏ Grimes,͏͏ CEO͏͏ of͏͏ Diageo͏͏ North͏͏ America,͏͏ stated:͏͏ “We͏͏ are͏͏ thrilled͏͏ to͏͏ welcome͏͏ it͏͏ into͏͏ our͏͏ broader͏͏ portfolio,͏͏ where͏͏ it͏͏ will͏͏ seamlessly͏͏ complement͏͏ both͏͏ our͏͏ non-alcoholic͏͏ and͏͏ alcoholic͏͏ offerings,͏͏ providing͏͏ consumers͏͏ with͏͏ even͏͏ more͏͏ choice͏͏ and͏͏ variety.”

This͏͏ acquisition͏͏ not͏͏ only͏͏ strengthens͏͏ Diageo’s͏͏ non-alcoholic͏͏ portfolio͏͏ but͏͏ also͏͏ positions͏͏ the͏͏ company͏͏ to͏͏ better͏͏ cater͏͏ to͏͏ a͏͏ market͏͏ that͏͏ is͏͏ increasingly͏͏ prioritising͏͏ health-conscious͏͏ choices.

Diageo͏͏ has͏͏ a͏͏ significant͏͏ presence͏͏ in͏͏ the͏͏ non-alcoholic͏͏ segment,͏͏ already͏͏ holding͏͏ leading͏͏ market͏͏ shares͏͏ in͏͏ key͏͏ markets͏͏ worldwide.

The͏͏ integration͏͏ of͏͏ Ritual͏͏ into͏͏ Diageo’s͏͏ portfolio͏͏ is͏͏ anticipated͏͏ to͏͏ capitalise͏͏ on͏͏ these͏͏ strengths,͏͏ further͏͏ reinforcing͏͏ the͏͏ company’s͏͏ status͏͏ as͏͏ the͏͏ leading͏͏ player͏͏ in͏͏ non-alcoholic͏͏ spirits͏͏ globally.

Since͏͏ its͏͏ initial͏͏ investment͏͏ in͏͏ Ritual͏͏ through͏͏ Distill͏͏ Ventures͏͏ in͏͏ 2020,͏͏ Diageo͏͏ has͏͏ seen͏͏ the͏͏ potential͏͏ of͏͏ the͏͏ non-alcoholic͏͏ landscape.͏͏ Distill͏͏ Ventures,͏͏ an͏͏ accelerator͏͏ for͏͏ founder-led͏͏ drinks͏͏ brands,͏͏ has͏͏ been͏͏ key͏͏ in͏͏ supporting͏͏ Ritual’s͏͏ growth,͏͏ allowing͏͏ it͏͏ to͏͏ establish͏͏ itself͏͏ as͏͏ a͏͏ market͏͏ leader.

As͏͏ part͏͏ of͏͏ the͏͏ acquisition,͏͏ David͏͏ Crooch͏͏ will͏͏ take͏͏ on͏͏ the͏͏ role͏͏ of͏͏ general͏͏ manager͏͏ for͏͏ Diageo’s͏͏ Non-Alcohol͏͏ business͏͏ unit,͏͏ responsible͏͏ for͏͏ driving͏͏ the͏͏ expansion͏͏ of͏͏ non-alcoholic͏͏ offerings͏͏ throughout͏͏ North͏͏ America.

David͏͏ stated:͏͏ “From͏͏ the͏͏ very͏͏ beginning,͏͏ we͏͏ aimed͏͏ to͏͏ create͏͏ an͏͏ iconic͏͏ brand͏͏ in͏͏ the͏͏ drinks͏͏ industry,͏͏ specifically͏͏ tailored͏͏ to͏͏ meet͏͏ the͏͏ needs͏͏ of͏͏ the͏͏ modern͏͏ consumer.͏͏ Ritual͏͏ embodies͏͏ this͏͏ mission,͏͏ and͏͏ Diageo͏͏ recognised͏͏ that͏͏ from͏͏ the͏͏ start.”

He͏͏ continued:͏͏ “With͏͏ the͏͏ ongoing͏͏ and͏͏ widespread͏͏ growth͏͏ of͏͏ the͏͏ category,͏͏ there͏͏ is͏͏ substantial͏͏ market͏͏ presence͏͏ and͏͏ consumer͏͏ demand.͏͏ Ritual͏͏ has͏͏ the͏͏ capacity͏͏ to͏͏ satisfy͏͏ consumer͏͏ preferences͏͏ and͏͏ tastes,͏͏ providing͏͏ traditional͏͏ spirit͏͏ alternatives͏͏ ounce-for-ounce.”

Continue͏͏ Exploring:͏͏ Pernod͏͏ Ricard͏͏ acquires͏͏ stake͏͏ in͏͏ non-alcoholic agave͏͏ spirit͏͏ brand͏͏ Almave

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