Chowman eyes IPO by 2026, plans aggressive expansion across India

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May 16, 2024

Debaditya Chaudhury, Managing Director of Chowman Hospitality

Chowman, a Kolkata-based oriental restaurant chain, is planning to file for an IPO by the end of the fiscal year 2026, according to Debaditya Chaudhury, Managing Director of Chowman Hospitality.

The brand, which began its journey in 2010 with a 350 sq. ft. outlet in Kolkata, now boasts 35 locations across Kolkata, Bengaluru, Delhi, and Hyderabad.

“By the end of FY25, we anticipate having 50 outlets of the brand. We plan to open 15 more locations in cities such as Mumbai, Pune, Chennai, Bengaluru, Hyderabad, and Chandigarh. After that, we will begin expanding further into India,” he said.

“As we will be filing for the IPO soon, we plan on sticking with the company-owned & company-operated model for running our outlets,” he stated.

Continue Exploring: Asian cuisine chain Chowman expands further with a new outlet in Bengaluru’s Koramangala

The average Chowman outlet spans 1,500 to 3,000 sq. ft., with the capital expenditure for opening a location ranging from INR 1 crore to INR 1.5 crore.

The brand also plans to revamp its app and launch the updated version in October.

“We introduced our app in 2017, and as of right now, over three lakh loyal users place orders through it. We already have about 350 bikes in our own delivery fleet, and we plan to add more as we grow into new cities,” he stated.

Currently, 65 percent of the brand’s revenue comes from its food delivery service, with the remaining 35 percent generated from dine-in business.

“Before the Covid-19 pandemic, the revenue split between delivery and dine-in business used to be 50:50. However, the dynamics have shifted since the pandemic,” he emphasized.

The brand currently operates a single cloud kitchen in Kolkata and does not intend to open additional ones. However, it plans to invest in cloud kitchens in tier II cities during the second phase of its expansion.

The restaurant chain, which achieved a turnover of INR 150 crore last fiscal year, aims to reach INR 220 crore by the end of this fiscal year.

“We’re seeing an upsurge of 20% in same-store sales for our new outlets and a 5-6 % rise for our older ones,” he said.

Continue Exploring: Chowman brings Oriental Duck Festival to Delhi-NCR for the first time

Bain Capital and Temasek join forces to challenge Blackstone-Led consortium for Haldiram stake

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SnackTeam

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May 16, 2024

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Bain Capital has partnered with Singapore’s Temasek to rival a Blackstone-led consortium in the bid for a controlling stake in Haldiram Snacks Food Pvt Ltd. This competition among major buyout funds could lead to the largest private equity acquisition in India’s history.

Late last week, the Bain Capital and Temasek partnership submitted a non-binding offer, valuing India’s largest snack and convenience foods company at $8-8.5 billion (INR 66,400-70,500 crore). Initially, they had engaged separately with the founding family of the 87-year-old brand, according to sources familiar with the matter.

Snackfax had reported on May 14 that Blackstone, the world’s largest private equity fund, had partnered with the Abu Dhabi Investment Authority (ADIA) and Singapore’s sovereign wealth fund GIC to bid for up to a 76% stake in the company.

Continue Exploring: Blackstone-led consortium eyes $8.5 Billion stake in Haldiram snacks, setting stage for India’s largest PE buyout yet

Temasek, like ADIA and GIC, serves as a limited partner in Bain’s global funds. In November of last year, Bain achieved the final close of its fifth pan-Asia private equity fund at $7.1 billion, surpassing its target by 40%, marking its largest fund for the region to date.

Over the past seven months, Bain has been intermittently engaged in bilateral discussions with both the Nagpur and Delhi factions of the Agarwal family, who oversee Haldiram, as the group finalized a comprehensive pan-India restructuring plan. Initially centered around a minority investment, these discussions intensified towards the end of 2023, accompanied by factory visits and management meetings. However, the founding family has now expressed willingness to divest a majority stake, following the merger of its snacks business and the establishment of a separate company for its restaurant chain, which it intends to retain. The next generation of the Agarwal family is eager to explore alternative pursuits.

Both the suitors and the Haldiram family are aiming to synchronize the transaction with the anticipated National Company Law Tribunal (NCLT) approved merger, projected to occur within the next three to four months. The Competition Commission of India (CCI) granted approval to the merger plan last April.

Depending on the ultimate stake available and valuation, Bain might enlist additional limited partners (LPs) and collaborators to create larger consortiums, a strategy Blackstone may also pursue. “However, both parties are adamant about seeking a shift in management control,” stated one of the individuals mentioned.

This marks the inaugural collaboration between Bain and Temasek on a deal in India. Previously, Bain has frequently partnered with GIC for co-investments.

Continue Exploring: Bain Capital invests in sports nutrition company 1440 Foods, boosting active lifestyle market

Bain and Temasek refrained from providing comments.

Haldiram CEO KK Chutani stated, “The company has no comments to provide at this time.”

Chutani, previously serving as the chief executive of Dabur International, assumed the role of CEO at Haldiram last summer, marking the first time a professional has taken the helm of the company.

People familiar with the transaction, speaking on the condition of anonymity, cautioned that the submission of non-binding bids does not guarantee successful final negotiations.

Mint reported first on May 7 that Bain and Temasek are competing to buy a majority stake in Haldiram Snacks.

“The primary challenge in this transaction lies in the scale and the premium expectation set by the Agarwal family,” remarked a private equity executive who had assessed the deal but opted not to proceed.

Continue Exploring: Haldiram’s Nagpur launches luxury chocolate brand ‘Cocobay’ catering to Indian taste buds

Wow! Momo adds flavorful variety to Vellore’s food scene with triple store launch

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May 15, 2024

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Wow! Momo, the Indian quick-service restaurant chain, announced the launch of three store formats—Wow! Kulfi, Wow! Momo, and Wow! China—in Vellore, Tamil Nadu. The new stores are situated on the VIT Main Road, as shared by the company on social media.

“We are excited to announce our opening at VIT Vellore. Wow! Momo wrote on LinkedIn, “Get ready for a triple Wow experience, where you can savour exotic flavours, exciting combos, and irresistible delights.”

Continue Exploring: Wow! Momo surpasses INR 400 Cr revenue mark in FY23 with 88% growth

Recently, the company expanded its offerings with the introduction of Wow! Kulfi, establishing its first kiosk at City Centre Mall in Kolkata.

Continue Exploring: Wow! Momo diversifies portfolio, enters dessert segment with Wow! Kulfi launch in Kolkata

Founded by Sagar Daryani, Binod Kumar Homagai and Shah Miftaur Rahman in 2008 in 2008, Kolkata-based Wow! Momo, now boasts a vast network of over 650 stores nationwide. These stores are spread across various states, encompassing Bihar, Goa, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal.

Recently, the company secured an investment of INR 70 crore from Z3 Partners as an extension to its latest round of fundraising, bringing the total amount raised to over INR 480 crore.

Continue Exploring: Wow! Momo secures INR 70 Crore funding boost from Z3Partners to fuel expansion and R&D efforts

DrinkPrime secures $3 Million in Series B funding led by SIDBI Venture Capital

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May 15, 2024

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Vijender Reddy & Manas Ranjan Hota, Co-Founders, DrinkPrime

Drinkprime, a Bengaluru-based watertech startup, has raised $3 million in a Series B funding round led by SIDBI Venture Capital Ltd (SVCL), along with several existing investors.

Manas Ranjan Hota, DrinkPrime’s COO and Co-Founder, expressed that this investment will fuel the startup’s expansion initiatives, enhance its product range, and fortify its industry-redefining IoT capabilities.

“Our growth has been phenomenal, with a threefold increase between 2021 and 2023. This significant investment paves the way for our company’s growth,” said DrinkPrime’s Co-Founder and CEO, Vijender Reddy Muthyala.

In a statement, the startup emphasized that SVCL’s investment in DrinkPrime aligns perfectly with its mission to foster entrepreneurship and sustainable development in India. This collaboration underscores the fund’s dedication to supporting innovative startups that tackle societal issues while driving economic growth.

Continue Exploring: DrinkPrime spearheads clean drinking water initiative amidst Bengaluru’s water crisis

Debraj Banerjee, Senior Fund Manager at SIDBI Venture Capital Ltd, expressed the firm’s commitment to supporting DrinkPrime’s mission of delivering clean, safe, and healthy drinking water to all. He emphasized their anticipation of DrinkPrime’s accelerated growth and expansion.

“I’ve seen DrinkPrime drive revolutionary change in a business that had been static for decades. That is why I have decided to double down on my investment in DrinkPrime,” said Bharath Jaisinghani, Executive Director of Polycab India Ltd.

Continue Exploring: DrinkPrime sets sights on 1 Lakh+ subscribers with new production facility in Hyderabad

Established in 2016, DrinkPrime offers subscription-based water purification services to Indian households, starting at just INR 333 per month, which covers installation and maintenance. The startup’s RO machines are equipped with IoT technology and tailored to meet the specific water purification requirements of families residing in various localities.

Since its founding, the startup has garnered over INR 77 crore ($9 million) in funding from notable investors such as Venture Catalysts++, PeakXV, and Omidyar Network, underscoring the confidence investors have in the founders’ business model.

In 2022, the startup secured INR 60 crore in a combination of debt and equity during its Series A funding round, spearheaded by prominent investors including Omidyar Network India, Sequoia Surge, and 9Unicorns.

Continue Exploring: DrinkPrime earns Trailblazer title at Dun & Bradstreet Startup50 awards, sets new standard for water purifier industry

Wow! Momo surpasses INR 400 Cr revenue mark in FY23 with 88% growth

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SnackTeam

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May 15, 2024

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Sagar Daryani, Shah Miftaur Rahman, Binod Homagai & Murali Krishnan, Co-Founders, Wow! Momo

The QSR chain Wow! Momo achieved a remarkable milestone as its revenue surged past the INR 400 Cr threshold in the fiscal year ended on March 31, 2023. The Kolkata-based startup, renowned for its delectable momos, experienced a staggering 88% growth in operating revenue, soaring from INR 219.8 Cr in the preceding fiscal year to INR 412.9 Cr in FY23.

The boost in revenue can be credited to the startup’s expansion of its store network and the introduction of new brands like Wow! Chicken, Wow! China, and China Belly.

Taking into account other sources of revenue, the total revenue surged by 87.3% to reach INR 416.3 Cr in the fiscal year under consideration, up from INR 222.19 Cr in FY22.

In contrast, the net loss expanded by 13% to INR 60.5 Cr in the fiscal year under consideration, up from INR 53.4 Cr in FY22.

Continue Exploring: Wow! Momo diversifies portfolio, enters dessert segment with Wow! Kulfi launch in Kolkata

The company’s total expenditure soared by 72% to INR 470.8 Cr in FY23, compared to INR 274.5 Cr in the previous fiscal year.

During the year under review, the startup allocated INR 159.9 Cr towards procuring raw materials, marking a 68% increase from the INR 95.3 Cr spent in FY22.

The employee cost surged by 77% to INR 90.6 Cr from INR 51.3 Cr in the previous year, suggesting that the startup expanded its workforce during the year under review.

Wow! Momo’s rent expenses soared to INR 62 Cr in FY23, marking a remarkable 109% increase from INR 29.6 Cr in the previous year. This uptick aligns with the startup’s expansion into various regions across the country.

Continue Exploring: Wow! Momo’s rapid expansion continues with a buzzing new outlet at GMR Hyderabad International Airport

The EBITDA loss saw an improvement to INR 5.58 Cr from INR 15.8 Cr in FY22, alongside a boost in the EBITDA margin to -1.35% in FY23 from -7.2% in the preceding year.

Established in 2008 by Binod Kumar Homagai, Sagar Daryani, and Shah Miftaur Rahman, Wow! Momo boasts a presence spanning over 25 Indian cities with more than 500 outlets. In March 2023, the startup announced its decision to unify all its brands under the umbrella brand, Wow! Eats.

Last month, the startup raised INR 70 Cr from homegrown investment firm Z3Partners. Earlier this year, it had secured $42 Mn from Malaysian sovereign fund Khazanah Nasional Berhad.

Continue Exploring: Wow! Momo secures INR 70 Crore funding boost from Z3Partners to fuel expansion and R&D efforts

In total, the startup has amassed approximately $135 Mn in funding to date, with notable backers including Tiger Global, ValueQuest Capital, and Lighthouse Funds.

Wow! Momo competes with renowned players such as Jumbo King and Goli Vada Pav in the fast food industry.

After successful trial run, Zomato expands priority food delivery service to Delhi, Hyderabad, and Pune

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May 15, 2024

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Several weeks following the trial run of its priority food delivery service in select areas of Mumbai and Bengaluru, Zomato, the foodtech giant, has now broadened its reach to encompass additional cities such as Delhi, Hyderabad, and Pune.

According to information provided on the Zomato app, the company is offering users in select cities the option to prioritize their orders, resulting in delivery up to 5 minutes quicker than the standard service.

Zomato is levying a fee of INR 19 to INR 29 per order for priority deliveries, including ‘Zomato Gold’ users who are also subject to this additional charge for prioritized service.

Zomato asserts that priority orders are individually handled and not grouped with other orders, ensuring expedited deliveries.

Continue Exploring: Zomato tests priority deliveries in Bengaluru, Mumbai with extra charges

The expansion of the priority delivery service is anticipated to bolster Zomato’s revenue stream further.

This development comes at a time when Zomato has been exploring a variety of new initiatives to enhance its revenue. Last month, it was reportedly conducting trials of last-mile delivery services tailored for office workers within corporate parks.

It recently launched an all-electric “large order fleet” designed to accommodate orders for up to 50 people at once.

Continue Exploring: Zomato launches all-electric ‘large order fleet’ for events and gatherings

In March, the foodtech major launched a “Pure Veg Fleet,” featuring delivery personnel in green uniforms and introduced a new app mode catering to 100% vegetarian dietary preferences. However, the decision to have separate uniforms for this fleet’s personnel was later revoked due to online backlash.

Continue Exploring: Zomato renames ‘Pure Veg’ mode to ‘Veg Only’ amid social media backlash

Last month, the company raised its platform fee to INR 5 per order from INR 4 earlier.

Last week, Zomato announced its fourth consecutive profitable quarter, attributing the success to the introduction of new fees and offerings. The company’s consolidated profit after tax surged by 26.8% to INR 175 Cr in the quarter ending March 31 of the financial year 2023-24 (FY24), up from INR 138 Cr in the previous quarter.

Revenue from operations surged by over 8% to INR 3,562 Cr in the quarter, up from INR 3,288 Cr in Q3 FY24.

Continue Exploring: Zomato’s Q4 net profit surges 27% quarter-over-quarter to INR 175 Cr

Nonetheless, Zomato witnessed a decrease in the Gross Order Value (GOV) of its food delivery segment compared to the previous quarter, dropping to INR 8,439 Cr from INR 8,486 Cr. However, there was a notable 28% increase in GOV on a year-over-year basis.

During Q4, the average monthly transacting customers for the food delivery business increased to 19 Mn, up from 18.8 Mn in the previous quarter.

After the results, various brokerages, including Bernstein, revised their target prices for Zomato. The stock concluded Wednesday’s (May 15) trading session with a 2.4% increase, reaching INR 191.95 on the BSE.

Continue Exploring: Bernstein raises Zomato’s price target to INR 230, upholds ‘OUTPERFORM’ rating following strong Q4 results

Mumbai restaurants to offer 20% ‘Democracy Discount’ to voters on May 20 & 21

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SnackTeam

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May 15, 2024

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Cafe Restaurant — (Representative Image)

A group of eateries in Mumbai have announced a 20% discount on the total dine-in bill value for May 20th and 21st for local voters. According to a statement by the Mumbai Chapter of the National Restaurant Association of India (NRAI), this initiative, dubbed the Democracy Discount, aims to motivate citizens to exercise their voting rights.

“In Mumbai, the sense of community has always been remarkable, and I’m excited that numerous fantastic brands are collaborating with us as part of the NRAI Mumbai Chapter,” expressed Rachel Goenka, Head of the NRAI Mumbai Chapter, in the statement.

Continue Exploring: Restaurants and food aggregators hit all-time highs on Mother’s Day

As part of this initiative, every participating restaurant will provide a 20% discount on the entire bill to dine-in customers who are verified residents with a valid voter ID and a marked finger indicating they’ve voted.

Mumbai is scheduled to participate in the fifth phase of the Lok Sabha elections on May 20, 2024.

Continue Exploring: Pricey cocoa, coffee, palm oil, and sugar spike dining costs: Restaurant bills set to increase by 5-8%

Barista Coffee unveils its largest café yet in Srinagar

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May 15, 2024

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Barista Coffee, a homegrown coffee chain, has launched its largest café in the country in Srinagar.

Spanning more than 4,000 square feet, the latest establishment sits adjacent to Dal Lake, marking the fifth Barista Diner venue in the city. With seating for over 100 patrons, it offers ample space for coffee lovers to relax and enjoy.

Continue Exploring: Barista Coffee hits the 400-store mark, aiming for 500 stores by 2024

Rajat Agrawal, CEO of Barista Coffee, said, “We’re excited to introduce the opening of Barista Diner, our latest and most expansive café situated at Dal Lake, Srinagar. Nestled in a prime spot with breathtaking views of The Dal, and offering exceptional culinary delights, we believe Barista Diner at Dal Lake will quickly establish itself as a favored destination for both locals and tourists exploring Kashmir.”

Barista Diner stands as the premier establishment among Barista’s locations, with presence in Noida, Gurgaon, Chandigarh, and Kapurthala.

Established in 2000, Barista Coffee Company Ltd has expanded its presence beyond India to include Sri Lanka and the Maldives.

Continue Exploring: AbCoffee expands footprint with new coffee counter in Gurugram, marking 38th outlet nationwide

India’s palm oil imports skyrocket by over 34% in April, driven by global price dip

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SnackTeam

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May 15, 2024

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In April, India’s palm oil imports surged by 34.11% year-on-year, reaching 684,000 tonnes, buoyed by a decline in global prices, as per the Solvent Extractors’ Association of India (SEA). This accounted for 52% of India’s total edible oil imports of 1,304,409 tonnes in April, with sunflower and soybean oils contributing 620,315 tonnes, according to the trade body’s statement.

When considering non-edible oils, the overall import of vegetable oils in April saw a notable increase of 26%, totaling 1,318,528 tonnes compared to 1,050,189 tonnes a year earlier.

The Solvent Extractors’ Association of India (SEA) mentioned that subdued global prices prompted increased imports of refined, bleached, and deodorized (RBD) palmolein and crude palm oil (CPO), with a decrease of nearly USD 100 per tonne noted last month.

Continue Exploring: India’s sunflower oil imports skyrocket by 51% in March, pushing palm oil to lowest levels since 2023

It further added that soybean oil prices experienced a global decline of USD 40 per tonne, whereas the sunflower oil rate saw a comparatively smaller drop of just USD 15 per tonne over the past month.

Regarding palm oils, imports of RBD palmolein rose to 124,228 tonnes compared to 112,248 tonnes during the same period last year.

Shipments of CPO (crude palm oil) surged by 36% to reach 536,248 tonnes, up from 393,856 tonnes, while imports of crude palm kernel oil experienced a remarkable nearly 6-fold increase, soaring to 23,618 tonnes from 3,990 tonnes.

Continue Exploring: PepsiCo India trials healthier oil blend for Lay’s chips, aims to reduce palm oil usage

In the category of soft oils, imports of soybean oil witnessed a surge to 385,514 tonnes from 262,455 tonnes, while inflows of sunflower oil slightly decreased to 234,801 tonnes from 249,122 tonnes.

SEA reported that as of May 1, India’s edible oil stockpiles amounted to 2.245 million tonnes.

India stands as the largest importer of edible oil globally. Indonesia and Malaysia serve as the primary sources of RBD palmolein and CPO, while soybean oil originates from Argentina and Brazil, and sunflower oil from Russia, Romania, and Ukraine.

Fashion brand Beyoung launches first physical store, plans expansion to 300 outlets in next three years

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May 15, 2024

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Shivam Soni, Shivani Soni, Sakshi Soni, and Shankar Mali, Co-Founder, Beyoung

Fashion label Beyoung has announced its entry into physical retailing with its first store, as part of its plan to open 300 outlets within the next three years.

Thus far, the brand has secured a substantial portion of the online market in tier 2-4 cities. It aims to bolster its omnichannel presence by extending its reach across both online and offline platforms. Shivam Soni, the Founder of Beyoung, expressed, “This marks a significant stride in our offline expansion journey within tier 2, 3, and 4 cities. We eagerly anticipate delivering quality products to numerous additional cities and expanding our product categories in the upcoming year.” Beyoung, which inaugurated its debut store in Bhilwara, Rajasthan, is poised for further growth.

Established by Shivam Soni, Shivani Soni, Sakshi Soni, and Shankar Mali in 2018 in Udaipur, Rajasthan, Beyoung currently boasts a Gross Merchandise Value (GMV) of INR 200 crore. The brand has set its sights on reaching a GMV of INR 650 crore within the next three years.

Continue Exploring: Indian D2C fashion brand Beyoung secures strategic investment from Abu Dhabi Royal Family, eyes global expansion

India, the world’s second-most populous country, presents an enticing market for apparel brands, particularly as younger demographics show growing enthusiasm for western fashion trends. Notably, within the apparel sector, prominent brands like H&M and Puma derive more than 40-50% of their revenues from online sales, highlighting a heightened preference for e-commerce channels following the pandemic.

Experts predict that by 2027, the fashion and lifestyle e-commerce sector will burgeon into a $35-40 billion market. Within the Direct-to-Consumer (D2C) segment alone, there exists an addressable market of at least $15-20 billion, they suggest.

As Direct-to-Consumer (D2C) brands progress and broaden their reach, the fusion of online and offline channels becomes a strategic necessity. This integration facilitates increased consumer interaction and broader market access.

Continue Exploring: Beyoung teams up with Gokwik to enhance digital footprint and combat RTO rates

At the Phygital Retail Convention held in Mumbai, Mandar Dandekar, Partner at Sorin Investments, remarked, “Seven years ago, numerous brands operated solely or primarily online, but to achieve significant growth, they must adopt an omnichannel approach.”

Driven by approximately 200 million digital shoppers in the country, India’s Direct-to-Consumer (D2C) market is poised for exponential growth, projected to reach a size of $100 billion by 2025, following significant expansion in recent years.

Numerous malls are now embracing Direct-to-Consumer (D2C) brands, inviting them to showcase their products across their outlets. This shift comes as established brands in these segments transition offline following their online success. India currently hosts over 100 thriving D2C brands.

Continue Exploring: Malls open doors to D2C brands, explore short-term leasing

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