OYO reports first profitable fiscal year with INR 100 Cr net earnings; founder Ritesh Agarwal eyes global growth

May 30, 2024

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.

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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.

Continue Exploring: OYO in talks with family offices to raise $90 Million in down round

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.

Rebel Foods secures $13.2 Mn in debt funding from Alteria Capital and InnoVen Capital

SnackTeam

May 30, 2024

Kallol Banerjee and Jaydeep Barman, Co-Founders, Rebel Foods

Rebel Foods, a leading cloud kitchen unicorn, has secured 110 Cr ($13.2 Mn) in debt funding from Alteria Capital and InnoVen Capital.

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.

Continue Exploring: Rebel Foods to boost Oven Story Pizza’s reach with 250+ franchise outlets

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.

Continue Exploring: Cloud kitchen brand Rebel Foods secures INR 75 crore in debt funding from Northern Arc and Stride Ventures

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.

Continue Exploring: Rebel Foods expands to Saudi Arabia, aims for $100 Million food delivery enterprise in three years

Rebel Foods recently became a part of the open network for digital commerce (ONDC) to enhance its direct-to-consumer (D2C) offerings nationwide.

Continue Exploring: Rebel Foods joins ONDC to expand D2C presence and enhance consumer reach

Financial Performance

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.

Continue Exploring: Rebel Foods surpasses INR 1,000 Cr operating revenue milestone, reports 39% YoY growth in FY23

ITC Hotels partners with Dangayach Group to launch Storii resort in Jaisalmer, Rajasthan

SnackTeam

May 30, 2024

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.

Continue Exploring: ITC Hotels charts course for expansion, targets 70 new properties within next five years

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.

Continue Exploring: ITC Hotels expands ‘Storii’ portfolio with new boutique resort in Kolkata

Techno Sportswear secures $25 Million investment from A91 Partners for expansion

SnackTeam

May 30, 2024

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.

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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.

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Ethnic wear brand Libas raises INR 150 Cr in funding round led by ICICI Ventures

SnackTeam

May 30, 2024

Sidhant Keshwani, Founder & CEO of Libas

Libas, a D2C ethnic wear brand, has secured INR 150 Cr in a strategic funding round from ICICI Ventures, the alternative investment arm of ICICI Bank.

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.”

Continue Exploring: Bootstrapped ethnic fashion brand Libas surpasses INR 500 Crore revenue milestone in FY24; eyes 60-70% growth and seeks first round of funding

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.

Continue Exploring: Ethnic fashion brand Libas partners with GoKwik to strengthen D2C presence and drive growth

E-commerce Sector Attracts Increasing Investments

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.

Continue Exploring: Menswear brand DaMENSCH raises INR 21.62 Cr from existing investors

Cold-pressed oil brand Gramiyaa secures INR 9.5 Cr investment to fuel expansion in India and US markets

SnackTeam

May 30, 2024

Mohamed Yaseen, Sibi Manivannan and Naveen Rajamaran, Co-Founders, Gramiyaa

Gramiyaa, a Bangalore-based vertically integrated producer of cold-pressed oils, has secured INR 9.5 Crore in debt and equity infusion in its first external funding round. Led by UAE’s Homegrown Ventures and joined by Mumbai Angels and Campus Fund, this investment marks a significant milestone for Gramiyaa. The capital injection will bolster the company’s expansion efforts in both the Indian and US markets.

Established in 2017 by Sibi Manivannan, a third-generation traditional oil-maker, Gramiyaa initially operated through brick-and-mortar brand outlets in Trichy, Tamil Nadu. However, in 2020, the company transitioned to an online-first approach following the addition of co-founders Mohamed Yaseen and Naveen Rajamaran. Gramiyaa now distributes its products primarily through its website and various online marketplaces. To facilitate efficient distribution, the company utilizes micro warehouses strategically located in six major cities: Bangalore, Chennai, Hyderabad, Mumbai, Delhi, and Pune. With an in-house manufacturing unit in Tamil Nadu and a local warehousing model, Gramiyaa ensures the consistent delivery of high-quality products at affordable prices.

Speaking about the investment, Nader Amiri, General partner of Homegrown Ventures said, “The cooking oil sector has remained relatively stagnant in terms of innovation or enhancement for quite some time. Consumers, especially the younger demographic, are growing more skeptical of claims made by traditional edible oil brands, seeking transparency and authenticity. We’re incredibly enthusiastic about partnering with Gramiyaa, believing strongly that their team and commitment to process excellence have the capacity to fulfill the discerning demands of consumers, not only in India but on a global scale.”

Additionally, their US FDA and ISO certified manufacturing process enabled the company to export their products early on. Gramiyaa’s wood cold-pressed oils are sold in ethnic Indian stores across the USA.

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Mohamed Yaseen, Co-Founder of Gramiyaa, remarked, “Many direct-to-consumer cold-pressed oil brands opt to white-label products from small-scale oil mills to minimize their capital expenditure. However, this approach poses risks of hygiene, adulteration, and inconsistency, factors that discerning consumers strongly oppose. Therefore, Gramiyaa places a high priority on robust vertical integration while concurrently crafting a brand that resonates with the new generation.”

Financial Performance

During FY24, Gramiyaa manufactured 2.87 lakh litres of oil, generating a net revenue of INR 12 Crore while maintaining profitability in terms of EBITDA. With the infusion of recent funding, the company is now aiming for even more ambitious growth targets and intends to amplify its brand-building and marketing endeavors.

Continue Exploring: Annapurna Swadisht enters edible oil market with acquisition of Arati mustard oil brand for INR 28 Crore

India’s D2C market set to reach $2.7 bn by 2028: Report

SnackTeam

May 30, 2024

The direct-to-consumer (D2C) market in India is expected to reach $2.2 to $2.7 billion by 2028, growing at a rate of 35-40 per cent annually from 2023 to 2028, as per a recent report.

According to strategy consulting firm Redseer Strategy Consultants, annual D2C shipments soared from 0.1 billion in 2019 to 0.6 billion in 2023.

A substantial portion of these shipments is credited to the services offered by third-party logistics (3PL) providers, which play a crucial role in delivering exceptional customer service.

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3PL providers deliver customized and complete end-to-end logistics solutions, encompassing warehouse management, inventory control, shipment tracking, and transportation services.

“They providers play a crucial role in the value-chain of modern D2C brands. They constantly innovate to meet the distinct requirements of these brands, cultivating partnerships from the inception of the brand journey,” stated Kanishka Mohan, Partner at Redseer Strategy Consultants.

Innovative Strategies for D2C Brands

The report emphasized the innovative strategies employed by 3PL logistics companies to fulfill the increasing needs of modern D2C brands. According to the report, these providers are making significant investments in technology and infrastructure to provide faster delivery, real-time tracking, non-delivery reports, and predictive analytics for returns.

They offer seamless cash-on-delivery (COD) solutions with rapid remittance, usually within 48 hours, essential for the working capital of smaller brands. Additionally, they aid new-age companies in expanding into offline markets by offering integrated logistics and supply chain solutions, including warehousing, express part-truckload and full-truckload freight services, and efficient distribution to brick-and-mortar stores, as per the report.

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India’s cold chain sector set to achieve INR 5 Lakh Crore turnover by 2030

SnackTeam

May 30, 2024

India’s cold chain sector is expected to reach the INR 5 lakh crore mark by 2030 or 2032, as stated by a senior official from the Commerce and Industry Ministry.

At the FICCI-hosted Cold Chain and Logistics Summit, Joint Secretary of the Ministry of Commerce and Industry Surendra Ahirwar pointed out that the cold chain industry’s current revenue is about INR 2 lakh crore, and it is growing at a rate of more than 10 percent.

Ahirwar underscored the government’s initiatives aimed at fostering an environment conducive to innovation and efficiency within the cold chain sector.

He spoke about the PM GatiShakti National Master Plan initiative, which accelerates infrastructure development for the logistics sector, including temperature-controlled warehouses. Additionally, he mentioned the National Logistics Policy launched in 2022, which comprehensively addresses various aspects of the logistics sector, including the cold chain.

Continue Exploring: Celcius Logistics secures INR 40 Cr in Pre-Series B funding round to strengthen cold chain solutions nationwide

He stressed the significance of the industry’s diverse efforts, spanning innovations, infrastructure expansion, and collaborations between industry and academia. He exemplified advancements such as temperature-controlled warehousing, ice battery technology, and streamlined packaging solutions as noteworthy progressions within the sector.

Addressing the gathering, Asheesh Fotedar, Chief Operating Officer of the National Centre for Cold-Chain Development (NCCD) under the Ministry of Agriculture, underscored NCCD’s endeavors to enhance the nation’s cold chain infrastructure, prioritizing sustainability, efficiency, and innovation.

He mentioned that NCCD is in the process of updating technical standards and minimum guidelines for the integration of cold-chain components in the sector. These updated guidelines will function as a blueprint for both central and state government entities establishing cold chain facilities across the country. Additionally, NCCD is actively collaborating with stakeholders to pinpoint challenges encountered by reefer truck owners while concurrently formulating policy recommendations to address these issues for submission to the ministry.

Digitization and Sustainability Initiatives

Fotedar also mentioned that NCCD is in the process of developing a mobile application to digitize data associated with cold chain components.

This initiative is anticipated to enhance capacity utilization, decrease fuel expenses, and mitigate the carbon footprint. Additionally, the application will capture pertinent logistics data to facilitate policymaking and analytics.

Amit Kumar, Co-Chairman of the FICCI Committee on Logistics, emphasized the significance of constructing sustainable infrastructure and embracing intelligent technologies to maximize energy efficiency and minimize environmental consequences.

The FICCI-Grant Thornton Bharat Report, “Cold Chain Dynamics: Mapping India’s Logistics Transformation,” was formally launched at the occasion.

The knowledge report underscores India’s vibrant food processing industry, underscoring the pivotal role of the cold chain sector amidst challenges like infrastructure disparities and elevated expenses.

Continue Exploring: Cold chain company Indicold secures Pre-Series A funding from Fundalogical Ventures

Jewellery retailer TBZ sees 36.16% surge in PAT in FY24

SnackTeam

May 30, 2024

Tribhovandas Bhimji Zaveri Ltd. (TBZ Ltd.), a 160-year-old Indian jewellery retailer, has reported a 36.16% year-over-year (YoY) increase in profit after tax (PAT) in the fiscal year (FY) 2024, growing from INR 39.67 crore in FY23 to INR 54.02 crore.

The company saw a significant 38.14% year-over-year (YoY) rise in profit before tax (PBT), climbing from INR 51.53 crore in FY23 to INR 71.18 crore in FY24.

Srikant Zaveri, chairman of TBZ, remarked, “Despite challenges such as elevated gold prices and election-related slowdowns this quarter, our strategic efforts have enabled us to stay on track. We’ve prioritized streamlining our supply chain and enriching customer interaction via tailored marketing endeavors.”

Continue Exploring: Organized gold jewellery retailers set for strong revenue growth in FY2025: CRISIL Analysis

Future Outlook and Expansion Plans

“Moving forward, we’re becoming more streamlined and efficient, thus fostering greater optimism for FY25. Our primary objectives include domestic expansion while upholding our dedication to distinctiveness, quality, and excellence,” he added.

TBZ’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged from INR 114.97 crore in FY23 to INR 138.17 crore in FY24, marking a 20.18% year-over-year increase.

The company’s profit before tax (PBT) margin saw a 94 basis points improvement, rising from 2.15% in FY23 to 3.10% in FY24, while the profit after tax (PAT) margin increased by 69 basis points, from 1.66% in FY23 to 2.35% in FY24.

Mukesh Sharma, chief finance officer of TBZ, commented, “Our enhanced profitability margins reflect our diligent cost control strategies and operational efficiencies. These endeavors have not only bolstered our financial performance but also empowered us to swiftly adapt to market dynamics.”

The company recently announced the continuation of Sara Ali Khan as its brand ambassador for the next two years. Additionally, its digital and social media initiatives achieved a total reach of 1.35 million, 900k impressions, and 27k engagements.

Established in 1864 as a modest one-store family venture, TBZ launched its flagship store in Mumbai. Now led by its fifth-generation successors, the company oversees operations across 33 stores spanning 25 cities.

Continue Exploring: Jewellery retailer Bluestone on track to become unicorn in pre-IPO funding round

Emami’s Q4 profits rise by 3.6%, revenue surges 6.6% to INR 891.24 Cr

SnackTeam

May 30, 2024

Emami Ltd, a leading FMCG company, has reported a 3.62% increase in its Profit After Tax (PAT) to INR 146.75 crore for the fourth quarter ending on March 31, 2024. According to a company regulatory filing, the PAT for the same quarter of the previous fiscal stood at INR 141.62 crore.

During the quarter under review, Emami’s revenue from operations reached INR 891.24 crore, marking a 6.61% increase from INR 835.95 crore recorded in the corresponding quarter of the previous year.

“The fourth quarter witnessed profit growth driven by volume,” stated Emami in an earnings report.

Continue Exploring: Emami delivers robust Q3 performance: Posts 12% growth in PAT to INR 261 Crore

The FMCG firm noted that its EBIDTA, standing at INR 211 crore, experienced a 6% growth.

In the March quarter of FY24, Emami’s total expenses rose by 7% to INR 680.26 crore.

The company stated that its domestic business expanded by 8%, with a recorded volume growth of 6.4%.

Performance of Key Brands

Emami mentioned that key brands such as BoroPlus, the Pain Management range, Healthcare range, 7 Oils in One, The Man Company, and Brillare demonstrated robust performance throughout the quarter.

However, it added that extended winters led Navratna and Dermicool to post low single-digit growth.

It stated that its international business experienced a growth of 9% in constant currency and 8% in INR terms, primarily propelled by the MENA region.

In the March quarter, its total income, encompassing other revenue, rose by 6.14% to INR 901.94 crore.

Emami Vice Chairman and Whole-Time Director Mohan Goenka remarked, “It is encouraging to witness signs of market recovery, particularly with rural areas gradually bouncing back. Our contribution from organized channels has increased to 26% of our domestic business from 22% in FY23.”

Continue Exploring: Emami Group taps McKinsey & Co to explore expansion into packaged essentials and kitchen appliances

Emami’s consolidated Profit After Tax (PAT) for the financial year, which ended on March 31, 2024, surged by 15.42% to INR 724.14 crore. It was at INR 627.41 crore in the previous fiscal.

In FY24, its revenue from operations increased by 5.06% to INR 3,578.09 crore compared to INR 3,405.73 crore a year ago.

The company stated that it introduced over 50 products and variants in both domestic and international markets during FY24, with the majority being digital-first products.

Outlook and Growth Prospects

Emami expressed optimism regarding future growth, citing a favorable economic landscape, anticipated normal monsoon forecasts, expected rural market recovery, governmental initiatives, and promising macroeconomic factors.

On Wednesday, shares of Emami Ltd concluded at INR 516 on BSE, marking a 3.04% decline from the previous closing.

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Financial Performance in FY24

Previous Funding Rounds

Financial Performance

Resort Facilities and Amenities

Expansion Plans for Exclusive Brand Outlets

E-commerce Sector Attracts Increasing Investments

Financial Performance

Innovative Strategies for D2C Brands

Digitization and Sustainability Initiatives

Future Outlook and Expansion Plans

Performance of Key Brands

Outlook and Growth Prospects