The Plant Based Foods Industry Association (PBFIA) has urged the Food Safety and Standards Authority of India (FSSAI) to reconsider restrictions on the usage of the term ‘milk’ in product labeling. At a recent summit, Sanjay Sethi, Executive Director of PBFIA, called upon FSSAI to adopt a more standardized approach to labeling practices. Despite the current mandate for a ‘this is not dairy’ disclaimer on packaging, Sethi emphasized the importance of uniform nomenclature.
Sethi urged the CEO of FSSAI to actively engage with the industry, facilitating dialogue and collaboration to bolster support for startups and foster innovation in product development, particularly in competition against larger corporations.
He suggested the establishment of ‘Plant Protein Clusters’ in various states to promote collaboration among educational institutes, startups, and government entities.
Speaking at the event, FSSAI CEO G Kamala Vardhana Rao urged the industry to enhance public awareness. He shared his astonishment upon discovering the term ‘flexitarian,’ which refers to individuals who mainly consume plant-based proteins while occasionally incorporating meat and dairy into their diets.
Referring to an ICMR report, Rao highlighted that the protein content in pulses is comparable to that in meat products. He praised the industry’s endeavors and expressed gratitude for Sethi’s backing of plant-based startups, commending the Cluster initiative.
Rajesh Agrawal, Additional Secretary at the Ministry of Commerce and Industry, emphasized the importance of technology in encouraging voluntary production and fostering investments in large-scale exports to enhance the market value of plant-based products.
OYO, a major player in the hospitality industry, is reportedly in talks to raise a down round at a valuation of $2.3 billion, down 77% from its peak $10 billion valuation back in 2019.
According to a report from The Arc, the Ritesh Agarwal-led startup is in talks with the financial services firm InCred to secure approximately $80 million to $90 million from family offices. The hospitality giant is said to be open to receiving commitments of at least $2 million each from investors within InCred’s network.
The OYO company spokesperson refrained from commenting on the issue. However, a company spokesperson informed The Arc, “This information is incomplete and inaccurate. Our current priority is refinancing our existing debt, which is poised to greatly enhance our profitability.”
InCred reportedly proposed that OYO establish a special purpose vehicle (SPV) aimed at facilitating investments from affluent individuals and family offices into the company. A portion of the funds will be allocated to clearing the debt of the company preparing for its IPO, with the remainder earmarked for bolstering growth initiatives.
According to a source familiar with the matter, InCred organized a conference call with founder and CEO Ritesh Agarwal, which saw the participation of nearly 100 investors, as reported by The Arc.
What’s intriguing is that during the call, the company’s management purportedly disclosed to investors that the round’s total size would be $150 million, with half of it sourced from an undisclosed sovereign wealth fund. Additionally, OYO is reportedly considering a public listing within the next 12 to 24 months.
Although the fund’s name remains undisclosed, earlier reports have indicated that OYO has been engaged in discussions with the Malaysian sovereign wealth fund, Khazanah Nasional Berhad, since at least the beginning of this year.
During the call, investors purportedly pressed Agarwal for further details regarding his strategy for resolving the $2.2 billion debt secured from Japan’s Mizuho and Nomura in 2019. Over the past three years, this debt has been adjusted to a quasi-equity segment amounting to $950 million as of 2022, which must be reimbursed within a 10-year timeframe. An installment of $383 million is expected to be settled by 2027.
This development comes in the wake of reports suggesting that OYO was contemplating raising up to $450 million through the sale of dollar bonds as part of a refinancing effort led by JP Morgan.
Consequently, reports indicate that the company has approached the market regulator Securities and Exchange Board of India (SEBI) to retract its IPO documents, intending to submit a revised draft red herring prospectus after completing the financing round. The SoftBank-backed startup, resubmitted its IPO draft via a confidential route last year, aiming to garner between $400 million to $600 million from the public markets. This sum is notably lower than the initial $1.2 billion IPO target set in 2021.
Established in 2012 by Ritesh Agarwal, OYO provides a range of accommodations including vacation rentals, coworking spaces, economical hotels, and corporate lodging. To date, the startup has secured over $3.5 billion in funding, with notable investors including SoftBank, Peak XV Partners, and Microsoft.
The startup reportedly concluded the financial year 2023-24 (FY24) with operating revenues amounting to $700 million. Meanwhile, its adjusted EBITDA, excluding ESOP costs and interest payments on debt, surged threefold year-on-year (YoY) to $110 million.
Swiggy has introduced two new initiatives to enhance the health and well-being of its delivery partners starting this summer. Collaborating with Dial 4242 and the Reliance-powered Visit app, the online delivery service has rolled out Mobile Medical Units (MMUs) and Teleconsultation Services for its entire fleet of delivery partners under its ‘Delivering Safely’ charter.
Stationed at key locations, these units offer health check-ups, including monitoring vital signs, identifying underlying health issues, and providing first aid for minor injuries sustained during delivery hours. Additionally, optometrists are available to conduct vision screenings and offer eye care services. Health education sessions are also held to promote wellness and preventive care among delivery partners. Starting with Bangalore, the MMUs will be deployed across various city locations, benefiting approximately 200 delivery partners daily.
Swiggy has also partnered with the Reliance-powered Visit app to offer teleconsultation services for all delivery partners and their families. This initiative provides virtual access to specialists in General Medicine, Gynecology, Orthopedics, and Pediatrics, catering to the healthcare needs of delivery partners, their spouses, and children. Additionally, delivery partners will receive prescribed medicines at subsidized rates to ensure they have access to necessary healthcare.
“At Swiggy, the safety and well-being of our delivery partners have always been top priorities. We’ve implemented various initiatives such as on-demand ambulance services, paid time off for periods, access to telemedicine, and summer recharge zones. Introducing mobile medical units and teleconsultations is just another step we’re taking to ensure their health and safety,” said Mihir Shah, Swiggy’s Head of Operations.
“Our delivery partners are constantly on the move, but their health should never be neglected. These mobile medical units meet them where they are, emphasizing the importance of prioritizing their well-being. By offering essential healthcare services, we strive to cultivate a culture of wellness among our delivery partners,” he added.
Both programs will soon be extended to additional cities in the coming weeks. This rollout further strengthens the company’s commitment to the health and safety of its delivery partners, building upon the successful introduction of initiatives such as the on-demand ambulance service in 2022, as outlined in the “Delivering Safely” charter.
Flipkart, a leading player in the e-commerce sector, has seen a remarkable 1.6X year-on-year growth in its grocery segment. This milestone highlights Flipkart’s dedication to delivering a comprehensive online shopping experience to consumers across India, offering a wide selection of daily essentials at competitive prices.
Flipkart Grocery prioritizes offering fresh produce at competitive prices. To build consumer trust, all products display manufacturing and expiry dates, ensuring transparency and freshness. The platform is expanding its presence in major metropolitan areas, including Bangalore, Chennai, Kolkata, Mumbai, and New Delhi, as well as in tier 2 and smaller towns. This expansion includes growing consumer bases in cities like Aurangabad, Bankura, Bokaro, Chhatarpur, Guwahati, Jamshedpur, Krishnanagar, and Visakhapatnam.
It distinguishes itself as the sole e-commerce company providing next-day delivery in over 200 cities, spanning major metros and smaller towns such as Anantapur, Berhampore, Gorakhpur, Moradabad, Nagaon, Saharsa, Shimoga, and Vellore. With products starting at just INR 5, Flipkart Grocery attracts cost-conscious consumers, reinforcing its reputation as a destination for value.
Top-performing categories include essential staples like oil, atta, as well as FMCG products such as tea, detergents, and personal care items. Premium categories have also experienced significant growth, with liquid detergents increasing by 1.8 times, and both dry fruits and energy drinks growing by 1.5 times.
To address rising demand, Flipkart has upgraded its grocery supply chain infrastructure, establishing 11 grocery fulfillment centers in strategic locations such as Ahmedabad, Bhubaneswar, Chennai, Hubli, Hyderabad, Kolkata, Ludhiana, Malda, Patna, Sonipat in Delhi NCR, and Visakhapatnam. These centers span over 1.2 million square feet and have a capacity of nearly 2.1 million units, processing 160,000 grocery orders daily.
Utilizing in-house technology, it has streamlined its operations to meet the growing demand for online groceries. Innovations like voice-enabled shopping, zero-interest credit, and open-box delivery have played a crucial role in improving the overall customer shopping journey. Moreover, data analytics are utilized to provide competitive pricing, identify customer clusters for efficient proximity, and enable real-time delivery tracking.
As part of its sustainability drive, the e-commerce giant now completes over 50 percent of its grocery deliveries using electric vehicles (EVs), reflecting a remarkable 140 percent year-on-year surge. Pioneering in states such as New Delhi, West Bengal, Maharashtra, Karnataka, Telangana, and Tamil Nadu, Flipkart is committed to fostering a more eco-friendly future. Further initiatives involve delivering groceries in reusable totes and employing eco-conscious packaging materials to curtail waste and lessen environmental footprint.
Hari Kumar G, Vice President and Head of Grocery at Flipkart, said, “The growth of Flipkart in the grocery sector mirrors our steadfast dedication to fostering innovation and prioritizing customer needs in emerging categories, all while ensuring competitive value for everyday grocery essentials. As we continue to expand and improve our services, our focus remains on providing unparalleled convenience to millions of customers throughout India.”
“At Flipkart, our aim is to establish pioneering benchmarks in the digital grocery arena, reaffirming Flipkart as the top pick for customers. We are steadfast in our commitment to making e-grocery accessible to every corner of the nation. With our dynamic team and customer-centric philosophy, we are on the brink of transforming the way India approaches online grocery shopping,” he added.
Lost Sheep Coffee, a UK-based coffee roaster, has introduced a new line of barista-quality, specialty grade RTD canned iced coffees.
Available in two flavors, mocha and latte, these milk-based iced coffees feature Lost Sheep Coffee’s signature Get To The Hopper blend. Crafted from beans sourced from Paranaiba, Brazil, and Huila, Colombia, these beans undergo hand-roasting at the brand’s Whitstable-based roastery. The result is a rich and creamy concoction with notes of chocolate and caramel.
Both beverages are crafted with skimmed milk, ensuring they contain fewer than 85 calories per can, catering to the increasing consumer preference for lighter choices. Additionally, they boast traceability from ‘farm to can’, meeting the demand for transparency and accountability in sourcing.
Stuart Wilson, the creator of Lost Sheep Coffee, remarked, “As Gen Z consumers show a preference for ready-to-drink coffee over hot brews, the category is vibrant. However, currently in the UK, no other brand offers ‘farm-to-can’ traceable, specialty-grade beans in a milk-based ready-to-drink coffee format.”
He further elaborated, stating, “While numerous ready-to-drink coffee offerings rely on instant coffee, ours stands out with its use of specialty-grade coffee beans, the pinnacle of quality globally. Sourced meticulously, our beans hail from Paranaiba, Brazil, cultivated at an elevation of 1100 meters above sea level, alongside carefully selected beans from Huila, Colombia, grown at altitudes ranging from 1500 to 2000 meters.”
“In the ready-to-drink market, this degree of traceability sets us apart, positioning us perfectly to revolutionize the category with a novel, specialty-grade product that is both innovative and competitively priced.”
Wilson clarified that, considering 35% of consumers express interest in RTD coffee offering functional benefits, the brand anticipates expanding the range to include products fortified with added protein and vitamins within the upcoming months.
The RTD iced coffees can be found at numerous UK retailers, priced at an RRP of £2.20 per can.
Conscious Chemist, a Gurugram-based skincare and cosmetics brand, has partnered with the e-commerce enablement platform GoKwik.
Through this partnership, Conscious Chemist aims to expand its presence across major Indian cities and towns, enhancing brand growth and optimizing the shopper experience.
“We are already seeing a 42% increase in conversions on our website since integrating with GoKwik. We are confident that this partnership will be a pivotal chapter in the next phase of our growth journey,” said Robin Gupta, founder and CEO of Conscious Chemist.
Conscious Chemist experienced significant growth following its feature on Shark Tank India, with revenue increasing fourfold and website traffic jumping fivefold. The company now plans to deepen its digital D2C presence by leveraging GoKwik’s technology and data science capabilities. This will optimize the checkout process through seamless login experiences, automatic address pre-filling, extensive payment options, and strategic discounts, all aimed at accelerating revenue growth.
Within a short period, following its partnership with GoKwik, Conscious Chemist has witnessed a surge in order volume by 20% and an uplift in GMV of 88%.
GoKwik CEO and co-founder Chirag Taneja said, “We are pleased to support them in elevating their growth and expanding their digital footprint.”
Conscious Chemist has recently secured INR 1 crore in debt from Recur Club to fuel its marketing efforts, product research, and digital expansion. The collaboration with GoKwik further reinforces its commitment to facilitating future expansion endeavors.
GoKwik hosts a diverse array of over 1500 e-commerce brands spanning fashion, beauty, health, nutrition, electronics, and various other vital categories. Notable brands in its portfolio include Lenskart, Neemans, Man Matters, Good Glamm Group, and Shoppers Stop, among others.
Rajat Luthra, CEO of Third Wave Coffee, remarked, “The addition of our new Santacruz location not only expands our presence in Mumbai but also underscores our dedication to nurturing community ties and promoting a culture centered on reading and learning.”
This marks the coffeehouse chain’s 118th location across the country.
Nidhi Gupta, director of Crossword Bookstores, expressed, “Nestled within the welcoming atmosphere of Crossword Bookstore, this latest Third Wave Coffee establishment provides visitors with an ideal environment to savor a high-quality coffee experience amidst a sanctuary of books.”
Gupta added, “This partnership further integrates the realms of outstanding coffee and intellectual engagement, offering a perfect destination for both coffee aficionados and bibliophiles.”
Founded in 2017 by Sushant Goel, Ayush Bathwal, and Anirudh Sharma, Third Wave Coffee operates under Heisetasse Beverages Private Ltd., an Indian company with cafes in various cities across India, including Hyderabad, Coonoor, Bengaluru, Delhi, Mumbai, Chandigarh, and Pune.
In September 2023, the company secured $35 million in Series C funding from Creaegis and its existing investor, WestBridge Capital. The funding is earmarked for nationwide expansion, bolstering its supply chain, advancing capabilities, and technology investments.
Nykaa, a leading beauty and fashion ecommerce platform, has granted 4.05 Lakh stock options under its Employee Stock Option Policy (ESOPs) scheme ahead of its earnings call for the quarter and year ending March 31, 2024 (FY24).
Based on the opening price of INR 176.75 on May 21, the allocated stocks’ valuation could be approximately INR 7.15 Cr.
This comes nearly two years after the company’s last major employee stock option grant. Under Nykaa’s ESOP 2022 scheme, 16 lakh shares were granted to its employees, along with 4 lakh units under the Stock Unit Plan, 2022.
Employees who received stocks could exercise their rights at the face value of Nykaa shares on the grant date, provided they did so within 90 days of issuance, according to the company’s prior disclosure regarding the Stock Unit Plan.
By allotting new stock plans, the company joins the ranks of startups using this strategy to enhance their employer brand profiles, which have suffered significant damage due to multiple mass layoffs reported within the ecosystem.
Data indicates that approximately 55% of founders are relying on ESOPs to attract the Indian workforce back to the startup ecosystem in 2024.
This trend has led numerous companies to allocate stock options to their workforce. For example, the logistics unicorn Delhivery disclosed the issuance of 75,000 stock options through its ESOP 2012 program just last week. Likewise, notable players such as Paytm, Cartrade, PocketFM, Spinny, and Cred have recently extended stock grants to a larger portion of their employees over the past few months.
For the Falguni Nayar-led beauty marketplace and house of brands, the announcement of ESOPs comes as it prepares to reveal its financial results for Q4 FY24 and FY24. Nykaa expresses confidence in reporting robust growth for the quarter.
In April, the company projected a “mid-twenties YoY” increase in revenue for the entire financial year 2024. It also forecasted “early thirties” growth in gross merchandise value (GMV).
In its last disclosed financials for Q3 FY24, the company witnessed a notable surge in its net consolidated profit, more than doubling to INR 17.4 Cr compared to the INR 8.5 Cr profit recorded in the same quarter of the previous year. Furthermore, its operating revenue experienced significant growth, increasing by 22% to INR 1,788 Cr in the reported quarter from INR 1,462 Cr posted in Q3 FY23.
This summer, Target aims to lower prices on a wide range of everyday essentials, spanning from diapers to milk. With inflation putting pressure on household finances and an increasing number of Americans scrutinizing their expenses, the retail giant is responding by making these staples more affordable.
Already implemented on 1,500 products, the price reductions will eventually extend to 5,000 items including food, beverages, and essential household supplies. Target and similar retailers are adapting to the needs of customers facing rising grocery costs, although inflation is showing signs of easing. Many consumers are opting for private label brands offered by Target and other major retailers, which are often more budget-friendly than popular name brands.
In January, Target introduced a collection named Dealworthy, featuring nearly 400 essential items spanning from apparel to electronics, priced at under $1, with the majority priced below $10.
Recently, McDonald’s announced its intention to launch a $5 meal deal in the U.S. next month, aiming to combat declining sales and customer dissatisfaction due to increased prices. Meanwhile, Walmart reported robust quarterly sales, attributed to a surge in customer traffic, including affluent households earning over $100,000, in search of deals.
Target is acutely aware of the spending restraint among shoppers and, in March, disclosed its first annual sales decline in seven years.
In the initial three months of this year, inflation has surged unexpectedly, following a steady decline in the latter half of 2023. The heightened figures at the start of 2024 have dampened optimism regarding the containment of the most severe inflationary period in four decades, sparking concerns of a potential resurgence in prices.
Last week’s latest inflation report indicated that prices, at least for the previous month, had started to decline once more.
On Monday, Target Corp. announced that the reduced prices will be gradually introduced throughout the summer on both national brands and its own private labels.
“In addition to our consistently low everyday prices, which we regularly fine-tune to remain competitive in the market and ensure that you receive excellent value every day,” the company stated in a prepared announcement.
Target is expected to provide further insights into its understanding of customer behavior and its strategies for addressing any shifts when it unveils its quarterly financial report on Wednesday.
In this agreement, RBI is obtaining all remaining shares of Carrols, not currently owned by the company or its affiliates, at $9.55 per share in cash, totaling a valuation of Carrols at around $1.0 billion.
By acquiring the largest Burger King franchisee in the United States, RBI expands its portfolio in line with the “Reclaim the Flame” strategy. As stated earlier, RBI intends to inject an extra $500 million to expedite the refurbishment of more than 600 Carrols eateries. Once the renovations are complete, RBI aims to transfer ownership of most acquired establishments to new or current smaller franchisees within the next seven years.
For the acquisition’s financing, RBI subsidiaries obtained a modification to their current credit arrangement, boosting their borrowing limit by $700 million to reach $5.9 billion in total. These funds, combined with existing cash reserves, facilitated the completion of the acquisition, encompassing the settlement of Carrols’ credit arrangement and the redemption of its outstanding debt.
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