Myntra, the fashion and lifestyle e-commerce platform, stated on Wednesday that it anticipates 20 million users to visit the platform during its sale which starts on 31 May.
The platform anticipates 1.35 million additional users to shop during the 20th edition of EORS (End of Reason Sale), according to Neha Wali, Head of Growth and Revenue.
Myntra stated that by empowering kiranas and enhancing the last-mile delivery ecosystem, kirana partners gain an extra source of income due to the heightened volume of orders during EORS.
“We will optimize the use of all its Forward Distribution Centres (FDCs) to ensure a smoother, hassle-free delivery process during and after EORS,” it said in a statement.
Biggies Burger, a homegrown burger chain, is set to capitalize on the potential of the Eastern market in India. With plans to aggressively expand, the brand aims to open 75 stores in the East region by 2028, targeting 2.5-3 times annual growth by expanding its store network, as revealed by the company.
The company expects the market to contribute around 20% to its overall revenue and aims to capture approximately 15% market share in the East market.
Having set its sights on achieving a total of 250 operational stores by the end of the fiscal year 2025-2026 and with ongoing plans for expansion into the East, Biggies Burger aims to establish itself as the leading burger brand across all regions of India.
Regarding this expansion, Biraja Rout, the Founder of Biggies Burger, remarked, “Having built a loyal customer base in the South and West, we believe our distinctive offerings will also strike a chord with consumers in Eastern India.”
Current Operations and Market Presence
Established in 2011, the burger chain currently operates 141 stores, mainly situated in South and West India. The ongoing strategic expansion into the Eastern market is poised to significantly bolster its presence and capture a larger portion of the burgeoning Indian QSR market.
Earlier this year, the company secured an undisclosed sum in pre-Series A funding, valuing it at INR 210 crore, aiming to extend its reach throughout the nation.
In a competitive market where consumers are increasingly health-conscious yet unwilling to compromise on taste, Tangelo Ice Cream has emerged as a standout player. Since its launch in August 2022, Tangelo has rapidly become a favorite among ice cream lovers, thanks to its commitment to wholesome ingredients and delicious flavors.
“Tangelo has a legacy that I’m proud to continue. It all started as a hobby for my father after he retired, and we officially launched the brand in August 2022. And we make wholesome, healthy ice creams that are also outstandingly delicious,” said Ayesha Malhotra, Co-Founder of Tangelo Ice Cream. Tangelo prides itself on using real ingredients without artificial flavors or colors, ensuring that every scoop is made from at least 30% real fruit. This commitment to quality has been a cornerstone of their success.
Rapid Growth and Market Success
With the summer season on, the brand has been seeing a significant footfall. Tangelo has seen a staggering 4X increase in sales over the past year. “Our sales this year have gone up 4X from last year. So, we’re very excited,” said Malhotra.
This growth has been driven by an expanding product range, including vegan, sugar-free, and classic dairy ice creams. Their retail footprint has also grown, with three outlets in the NCR region, the latest being in Gurgaon on Golf Course Road, a strategic location close to their largest customer base.
However, operating in the ice cream industry is no easy feat. “The cold chain & distribution pose unique challenges for ice cream,” Malhotra explained. Maintaining the required temperature for frozen products is crucial, and Tangelo has navigated these challenges with a focus on quality and customer satisfaction. “Ice cream is a fragile product where people, once they become loyal to a brand, can stick to it,” she added, highlighting the emotional and nostalgic connection many have with ice cream.
Originally an offline-first brand, Tangelo has shifted its focus to online sales. “Since then, we’ve made a conscious effort to change it to an online-first brand,” Malhotra stated. This shift has paid off, with their online sales experiencing a significant boost. Tangelo has also expanded its presence through 10 dark stores across NCR, further enhancing their delivery capabilities.
While the main growth driver is online sales, Malhotra recognizes the importance of offline presence for building brand awareness. “Offline does help, but the growth comes from the online presence,” she noted. The new Golf Course Road outlet serves not just as a retail space but as a strategic point for enhancing customer experience and brand visibility.
Future Expansion Plans
Looking ahead, Tangelo plans to continue its expansion. “We want to expand our dark stores again to areas just on the outskirts of NCR,” Malhotra revealed. This cautious yet ambitious approach aims to maintain quality while reaching new customers. Additionally, Tangelo is set to launch two new products within the next quarter, keeping the brand fresh and exciting for consumers.
With this, the ice cream brand is also witnessing good repeat numbers.
Tangelo’s success isn’t just about numbers; it’s about the strong connection with customers, she said. “We have a high number of returning customers. I’m very pleased with that,” Malhotra said, with a 30% repeat customer rate indicating strong brand loyalty. This loyalty is built on delivering a product that people genuinely enjoy. “People see value in Tangelo,” she emphasized.
Among their offerings, chocolate flavors have been particularly popular. “We do vegan sugar and dairy sugar, and people can’t tell that it’s not a regular kulfi,” Malhotra shared, showcasing their ability to create healthy yet indulgent treats.
As Tangelo continues to innovate and grow, Malhotra remains optimistic about the future. “Every month since January we’ve been expanding,” she said. The brand is also exploring quick commerce options to enhance their delivery speed, aiming to offer an even better customer experience.
Over the past fiscal year, a dozen prominent retailers and fast-food chains experienced their most sluggish rate of store expansions in at least half a decade, with growth slowing to 9%. This downturn mirrors a waning appetite for discretionary and lifestyle goods among consumers.
According to their latest investor presentations, as of March 31, these companies, which include Reliance Retail, Aditya Birla Fashion & Retail, D’Mart, Tata’s Trent, Titan Co, and Starbucks, collectively operated 33,219 stores. This figure marks an 18% increase from the previous fiscal year’s count of 30,551 stores.
During the last fiscal year, these companies expanded their network by approximately 2,700 stores, averaging about 7 new stores per day. However, this figure is nearly halved compared to the 13 stores added daily during FY23.
The year-on-year retail sales growth rate experienced a decline in every month of the previous fiscal year, indicating subdued consumer sentiment across various sectors including apparel, footwear, and quick-service restaurants (QSR). The Retailers Association of India (RAI) reported that the slower growth rate of 4-7% observed in the previous fiscal persisted into the current year, with April recording a modest 4% increase, as per their survey of the top 100 retailers.
Lalit Agarwal, chairman of hypermarket chain V-Mart, stated to analysts, “We are not pursuing an overly aggressive strategy, but rather adopting a prudent and analytical approach. Our focus is on opening stores that can maintain the return on equity (ROE) and return on capital employed (ROCE) levels we anticipate. Therefore, we are being highly selective in our expansion efforts, as market dynamics have become somewhat distorted with competitors offering higher rentals and more favorable terms to consumers.”
The relaxation of pandemic restrictions witnessed a surge in sales across athleisure wear, apparel, and lifestyle products, fueled by pent-up demand as consumers refreshed their wardrobes following the reopening of offices and increased socializing and dining out. In response, retailers hastened their store launches, with many opting for larger spaces in prime locations to capitalize on the booming demand driven by revenge shopping.
Rajeev Varman, the CEO of Restaurants Brands Asia, which operates Burger King, stated, “Our guidance remains at 700 restaurants by FY 27, and we are steadfast in our commitment to this goal. We firmly believe in responsible growth and will always prioritize this principle. If we deem it necessary to moderate our growth rates in any given year, we will do so. Our approach is not reckless; instead, we emphasize responsible and disciplined growth, which we will uphold moving forward.”
Shift in Focus: Retail Sector’s Embrace of E-commerce
In 2023, the retail sector acquired 7.1 million square feet of space across the top eight cities, a figure expected to decline to 6-6.5 million square feet in 2024, as reported by CBRE, a commercial real estate services firm. Additionally, retailers are shifting their focus towards ecommerce, which now constitutes 8-10% of the total retail market, according to the India Phygital Report 2024, with projections indicating it will reach 14% by 2026-27. This increase in market share is attributed to a growing active user base, estimated to be between 275-312 million, which is anticipated to rise to 439 million by 2026-27, as outlined in the report.
The India Phygital Report was formulated through surveys conducted across 500 stores representing 200 brands, along with the analysis of 4.4 million e-commerce transactions from 350 brands. It revealed that apparel and accessories accounted for 18.8% of e-commerce penetration, while home furnishing stood at 6.1%. However, the penetration rate remained low for jewelry, at just 2.1%.
Bata India Ltd, a prominent shoemaker, has reported a 3.02 percent decline in consolidated net profit to INR 63.64 crore for the fourth quarter ended March 2024. According to a regulatory filing from Bata India, it had posted a net profit of INR 65.62 crore in the January-March period a year ago.
During the quarter under review, Bata India witnessed a 2.47 percent increase in revenue from operations, amounting to INR 797.87 crore. This marks a rise from INR 778.58 crore recorded in the corresponding period of the previous year.
In the March quarter, Bata India’s total expenses stood at INR 736.83 crore, reflecting a 5.22 percent increase.
“The results for the quarter showcase our resilience despite challenging demand conditions, driving sustainable growth with strong margin performance,” stated Bata India in an earnings statement.
During the March quarter, Bata’s total income amounted to INR 736.83 crore, marking a 5.22 percent increase.
Commenting on the performance, MD and CEO Gunjan Shah remarked, “Bata India adeptly navigated through the unexpected market sluggishness, steering toward sustainable growth driven by brands supported by substantial investments in marketing and technology. Our strategies enabled us to maintain margins effectively.”
Annual Financial Highlights
In the financial year ended on March 31, 2024, Bata India witnessed a decline of 18.7 percent in its consolidated net profit, amounting to INR 262.51 crore compared to INR 323 crore in the previous year. Despite this, its revenue from operations for FY24 showed a marginal increase, reaching INR 3,478.61 crore compared to INR 3,451.56 crore in the previous year.
Bata has reiterated its commitment to a “positive outlook and accelerating growth” by maintaining significant investments in both the brand and technology.
In a separate filing, Bata India informed that its board, in a meeting held on Wednesday, has recommended a 240 percent dividend, amounting to INR 12 per equity share of INR 5 each, for the financial year ending March 31, 2024.
On Wednesday, shares of Bata India Ltd concluded at INR 1,373.50 on the BSE, marking a 1.23 percent increase.
OYO, the hospitality and travel tech platform, reported its first profitable fiscal year in 2023-24 with a net earning of nearly INR 100 crore, founder Ritesh Agarwal said on Thursday.
Agarwal shared on social media platform X that he anticipates growth not only in India but also in OYO’s other key markets including the Nordics, South East Asia, the US, and UK.
Agarwal expressed, “While a delighted customer or a hotel partner brings the biggest smile to my face, our initial financial results for FY24 also humble me.”
“We achieved our first net profitable financial year at nearly INR 100 crore. This marks our eighth consecutive quarter of positive EBITDA, and we maintain a cash balance of around INR 1,000 crore,” he elaborated.
He also emphasized that global credit rating firm Fitch has recognized OYO’s enhanced performance and robust cash flows, resulting in an upgrade to its credit rating.
“Emerging travel trends such as premiumization, spiritual travel, business travel, conferences, and destination weddings are fueling growth not only in our country, but also in our other key markets of the Nordics, South East Asia, the United States, and the United Kingdom. FY25 looks to be even more exciting,” said the OYO founder.
He added that while these figures are provisional, the audited financials are expected to closely align with them.
Earlier this week, Fitch Ratings announced the upgrade of OYO’s parent firm, Oravel Stays’ rating, attributing it to the hospitality company’s enhanced financial profile.
According to a statement, Fitch upgraded Oravel Stay’s long-term foreign and local currency issuer default ratings from ‘B-‘ to ‘B’, with a ‘Stable’ outlook.
The rating agency also raised the rating on the company’s $660-million senior secured term loan facility due in 2026 to ‘B’ from ‘B-‘.
Financial Performance in FY24
During FY24, OYO expanded its portfolio by approximately 5,000 hotels and 6,000 homes worldwide.
It also disclosed a PAT (Profit after Tax) of INR 99.6 crore ($12 million) and an adjusted EBITDA of INR 888 crore ($107 million) for the entire fiscal year, marking an increase from INR 274 crore ($33 million) in FY23.
EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, provides an alternative method of measuring profitability compared to net income.
According to documents filed with the Registrar of Companies (RoC), Rebel Foods’ board has approved a special resolution to issue 11,000 Series G1 and G2 non-convertible debentures, each valued at INR 1 Lakh, to raise a total of INR 110 Cr.
Alteria Capital Fund II injected INR 30 Cr, whereas Alteria Capital Fund III contributed INR 35 Cr to the round, both channeled through Orbis Trusteeship.
Conversely, the InnoVen Capital India Fund has injected INR 45 Cr into the debt round through Vistra ITCL.
Entrackr was the first to report the development.
Previous Funding Rounds
In its previous debt funding round in April last year, Rebel Foods secured INR 75 Cr ($9.1 Mn) from Northern Arc and Stride Ventures. Preceding that, in 2022, it raised INR 55 Cr ($6.6 Mn) in debt funding from InnoVen Capital and Trifecta Capital.
Established in 2011 by Kallol Banerjee and Jaydeep Barman, Rebel Foods hosts prominent QSR chains such as Faasos, Behrouz Biryani, Ovenstory Pizza, Mandarin Oak, The Good Bowl, and SLAY Coffee. The company runs more than 450 kitchens spread across 80 cities.
Apart from India, its brands also have a presence in the United Arab Emirates (UAE), Saudi Arabia, and the UK.
The company reported an operating revenue of INR 1,195.2 crore in FY23, marking a 39% year-on-year (YoY) increase. However, its losses also grew, widening by 23% YoY to INR 656.5 crore in the same fiscal year.
As part of an organizational restructuring effort, the startup laid off approximately 2% of its workforce in early 2023.
ITC Hotels has entered into a management agreement with the Jaipur-based Dangayach Group for a property, operating under the Storii brand, located in Jaisalmer, Rajasthan.
Storii by ITC Hotels in Jaisalmer will feature a 119-room resort situated to the east of the city along Jodhpur-Jaisalmer Road.
Resort Facilities and Amenities
The resort will include a restaurant, bar, and around 7000 square feet of banquet and meeting space.
Jaisalmer stands as one of the prominent tourism hubs in Rajasthan, often highlighted as a “must-visit” stop within the state’s desert circuits.
The city presents a fusion of art, architecture, hospitality, picturesque landscapes, and culinary delights.
Anil Chadha, CEO of ITC Hotels, described the project as a significant advancement, facilitating swift entry into a prominent and sought-after leisure market with the Storii brand. “We already boast over 800 rooms across our diverse brands in Rajasthan, spanning hotels in Jaipur, Jodhpur, Khimsar, Jaisalmer, and Udaipur,” he mentioned. “Storii Jaisalmer will further enhance our ability to provide yet another distinctive destination experience within the Rajasthan desert circuit.”
Harimohan Dangayach, the chairman and founder, along with Atul Dangayach, the managing director of Dangayach Group, expressed their joy during the signing ceremony, stating, “We are thrilled to collaborate with Storii for our latest resort venture in Jaisalmer. The resort’s strategic location in a vibrant leisure market harmonizes perfectly with the distinctive essence of the Storii brand, complemented by the operational excellence of ITC Hotels. We embark on this promising new partnership with ITC Hotels, anticipating substantial growth in the future.”
Storii comprises carefully selected boutique properties within the premium segment.
Techno Sportswear, a Bengaluru-based company, has raised $25 million (around INR 208 crore) from the investment fund A91 Partners.
The company manufactures performance wear aimed at the general public and markets its sportswear apparel under the brand name Technosport. This marks its first fundraising effort.
The company, which began operations in 2007 with a small office and five employees, commissioned a modern factory five years ago in the textile hub of Tiruppur, Tamil Nadu. Led by promoter Sunil Jhunjhunwala, the company launched the Technosport brand in South Africa and the UAE in 2020-21. Advay Capital Advisors advised on the fundraising transaction.
A91 Partners, founded by Abhay Pandey, VT Bharadwaj, and Gautam Mago, former partners of Sequoia Capital India (now Peak XV Partners), directs its investments towards companies operating within the technology, consumer, and financial services sectors.
According to the company’s website, it employs over 500 people and manufactures 12 million garments annually.
As of press time, Techno Sportswear, A91 Partners, and Advay Capital had not responded to emails.
Since its founding in 2018, A91 has backed a number of businesses, including Digit Insurance, HealthKart, Paper Boat, and Blue Tokai Coffee.
The funds will be utilized to expedite offline expansion across various regions and enhance the presence of its exclusive brand and retail outlets in major metros as well as Tier-1, 2, and 3 cities.
Sidhant Keshwani, CEO of Libas, mentioned that a significant portion of the funding will also be allocated towards strengthening the platform’s technological infrastructure and increasing investments in marketing efforts.
Keshwani emphasized, “This funding will drive growth across various product categories and regions, prioritizing an enhanced omnichannel experience. Our partnership with ICICI Ventures, backed by their proven track record and managerial proficiency, seamlessly aligns with Libas’ goal to transform the Indian ethnic wear market.”
Gagandeep S Chhina, senior director of private equity at ICICI Ventures, remarked on the fundraising, stating, “Libas has exhibited industry-leading growth attributes in a capital-efficient manner and intends to fortify its digital footprint while emphasizing offline expansion and omnichannel capabilities within the Indian market.”
This marks the first instance of external funding for the fast-fashion ethnic wear brand, with the investment coming from ICICI Ventures’ IAF Series 5 fund.
Assuming the role from his father, Keshwani led Libas’ online debut in 2014. Presently, Libas has evolved into an omnichannel brand offering fast-fashion Indian traditional attire for women through both offline and online avenues.
According to Keshwani, 15% of Libas’ sales are generated through its website, while marketplaces such as Myntra and Amazon make up 70% of its overall revenue. The remaining 15% originates from offline channels.
The startup asserts that it achieved a revenue of INR 500 Cr in the financial year 2023-24 (FY24).
Expansion Plans for Exclusive Brand Outlets
Keshwani mentioned that the brand launched 15 exclusive brand outlets (EBOs) over the past year and now aims to expand by adding 200-250 outlets within the next 2.5 years. It targets achieving an annual revenue of INR 1,000 Cr by the end of the upcoming fiscal year.
Libas is counting on the growing ecommerce adoption in the country, supported by affordable internet prices and increasing smartphone penetration. Reports estimate that the number of online shoppers in India will exceed the 500 million mark by 2030.
Consequently, the e-commerce sector has become a favored destination for both investors and entrepreneurs. Just recently, D2C menswear brand DaMENSCH secured INR 21.62 Cr in an extended Series B round from existing investors including Matrix Partners and Saama Capital.
Earlier this week, Lyskraft, an omnichannel fashion startup founded by former Zomato senior executive Mohit Gupta and Myntra founder Mukesh Bansal, raised $26 million in a seed funding round led by Peak XV Partners.
Central to all of this is the indigenous fashion e-commerce market, forecasted to exceed the $112 billion mark by 2030, as per reports.
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