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“Zomato, Swiggy Hit With Rs 200-Crore GST Blow: Delivery Workers’ Earnings to Shrink, Customers May Pay New Levy”

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Food delivery giants Zomato and Swiggy are bracing for an annual goods and services tax outgo of Rs 180–200 crore each after the GST Council clarified that platforms must pay 18% tax on delivery fees. The decision ends a long-running dispute over whether aggregators or gig workers were liable, but it also raises costs for an industry already struggling with slowing growth.

Executives at both firms told ET that the additional tax will not be absorbed by the companies. Instead, the burden is likely to be shared between delivery workers, whose payouts could be trimmed, and customers, who may face a new delivery levy. “This will immediately reduce partner earnings and in parallel, a charge to consumers is being considered,” said a senior Zomato executive, requesting anonymity.

The ruling follows earlier run-ins between tax authorities and the platforms. In December 2024, Zomato received a notice for Rs 803 crore in unpaid GST, interest, and penalties for 2019–22. Swiggy too was issued a pre-demand notice. How the latest clarification will impact these past claims remains unclear.

Brokerages see the change as a negative in the near term. Morgan Stanley noted that the 18% GST on local delivery services will now apply whether firms account for it as revenue or as pass-through, but added that companies are well-positioned to shift the cost to users.

The development comes amid muted growth in online food delivery. Gross order value has been expanding below 20% year-on-year for both players in recent quarters, far slower than earlier years. For April–June, Zomato posted an operating profit of Rs 451 crore, while Swiggy’s food business reported Rs 192 crore.

Section 9(5) of the GST Act already obliges platforms to collect tax on behalf of restaurants. The latest interpretation now firmly brings delivery services into the net.

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Leadership Reset at HUL: Priya Nair Replaces Rohit Jawa After 2-Year Stint; Fernandez Calls India a $10-Billion Growth Engine

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Unilever has signaled a reset in its India playbook, appointing Priya Nair as managing director and chief executive of Hindustan Unilever (HUL), marking the first time a woman will lead India’s largest consumer goods maker. The decision, according to Unilever’s global chief executive Fernando Fernandez, stems from the need to reignite sales momentum in a market that accounts for nearly 14% of the multinational’s global turnover.

Speaking at the Barclays Global Consumer Staples Conference, Fernandez underlined that the leadership overhaul was aimed at making India a co-anchor of growth alongside the United States. “Priya brings global perspective and depth of experience, which is critical for HUL at this juncture. Companies of HUL’s scale risk becoming inward-looking, but the India of tomorrow requires leadership that thinks beyond legacy models,” he said.

Nair, who assumed charge on August 1, succeeded Rohit Jawa, whose two-year term was the shortest in HUL’s history. Alongside her elevation, HUL has also inducted senior executives from Britannia and Hero MotoCorp to head its foods and finance divisions.

India remains Unilever’s second-largest market after the US, with HUL controlling over 50% share in hair care, skincare, dishwashing, and packaged foods, and around 45% in laundry. The company is betting that India’s projected 5-6% real GDP growth will be mirrored in its own volume expansion over time.

HUL’s revenue rose 5% in the June quarter, but growth has hovered between flat and 4% for nearly two years, reflecting sluggish consumer demand. To diversify, HUL has bought high-growth startups such as skincare label Minimalist and nutraceuticals brand Oziva, both expected to cross €100 million in combined revenues this year.

With reach across 9 million retail outlets, including 3 million directly served, and a digital ordering app, Shikhar, HUL is banking on a mix of scale, technology, and new categories to hold its dominance as competition intensifies from agile new-age brands.

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FlexifyMe, the AI Physio Platform from Shark Tank India, Closes ₹20 Crore Round Led by IvyCap; Targets Chronic Pain with Data-Driven Care

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Digital physiotherapy platform FlexifyMe has raised ₹20 crore (approximately $2.4 million) in a pre-Series A round led by IvyCap Ventures, with participation from Signal Ventures and its existing backers. The healthtech startup, which gained national attention after featuring on Shark Tank India Season 3, said the new capital will be directed towards expanding its hybrid care model, opening advanced posture and gait analysis labs, and deepening clinical research partnerships.

Founded in 2021 by Manjeet Singh and Amit Bhayani, FlexifyMe combines artificial intelligence with licensed physiotherapy to treat chronic musculoskeletal conditions such as lower back, neck, and shoulder pain. Its proprietary system analyzes posture and motion to detect weaknesses and guide patients toward corrective treatment. Unlike traditional symptom-led care, the platform claims to deliver measurable, data-backed interventions.

The company offers one-on-one live physiotherapy sessions, curated video-based exercise programs, and yoga routines through subscription packages. It also partners with enterprises, insurers, and healthcare providers to integrate its solutions into larger wellness ecosystems.

“Our goal is to make recovery from chronic pain scientific and measurable. By blending AI insights with qualified physiotherapists, we can help patients avoid unnecessary surgeries and return to active living faster. This funding will allow us to build more labs, strengthen clinical validation, and scale our services across India,” said Manjeet Singh, co-founder of FlexifyMe.

The startup had earlier raised $1 million in a seed round led by Flipkart Ventures. Its Shark Tank India pitch attracted Emcure Pharmaceuticals’ executive director Namita Thapar, who invested in the company during Season 3.

India’s physiotherapy and rehabilitation market is expected to grow rapidly as lifestyle-related chronic pain conditions rise. FlexifyMe’s bet is that a tech-first, hybrid approach can capture this demand at scale.

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From ₹50,000 Investment to a Cookie Empire: How The Cookie Co is Baking India’s Next Dessert Success

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When Kshiti Jikar Mehta began baking cookies in her family kitchen in 2018, she had little more than an idea and a passion for food. Seven years later, her brand The Cookie Co has evolved into a fast-growing startup, with a flagship outlet in Vadodara and plans to expand across India.

The company specializes in New York–style artisanal cookies priced for mass affordability. What started as a home-based venture soon grew into a cloud kitchen operation before establishing its first retail presence. “From having no business plan to running a store today, the journey has been about perseverance and belief,” Mehta said.

Vadodara-based dessert brand The Cookie Co is fast emerging as a serious contender in India’s premium snacking market. Founded in 2019 by Ivy League alumna and former finance professional Kshiti Jikar Mehta, the company has transformed from a home kitchen venture into a structured consumer brand, now eyeing pan-India expansion.

What began as small-batch baking from her mother-in-law’s kitchen has grown into three outlets and a thriving direct-to-consumer channel that ships cookies across the country. The company reports a consistent 50 percent year-on-year growth rate, supported by high customer retention and modest marketing spends. “We want to serve cookies to every corner of the country while ensuring the artisanal standards remain intact,” says Mehta.

She credits part of her growth to India’s evolving startup ecosystem. Pro-startup policies, access to financial aid and the rise of strategic partnerships, she said, have created an environment where new entrepreneurs can scale faster than before. “This is the best time to invest in one’s dreams,” Mehta observed.

The Cookie Co’s flagship store in Vadodara marks a significant step for the brand, but Mehta has her sights set on a national presence. The company is exploring franchise partnerships to replicate its format across key cities. “We want to take our cookies to every corner of the country and eventually build a global footprint,” she said.

Mehta, who spent her early years in the United States, believes India now offers a fertile ground for entrepreneurs. “I don’t miss anything about living abroad. India today has everything, from ease of doing business to a supportive ecosystem. What we need is the courage to take risks,” she added.

As consumer appetite for premium yet accessible desserts grows, The Cookie Co aims to position itself as a leading player in India’s evolving bakery market. From ₹50,000 to a Cookie Empire: How The Cookie Co is Baking India’s Next Dessert Success

The Cookie Co’s offerings stand out for their freshness, affordability, and New York–style recipes. All products are egg-free, preservative-free, and designed with an extended shelf life, making them suitable for both retail shelves and nationwide delivery. The brand’s customer base has also expanded into corporate gifting, where it is seeing strong traction from institutional partners seeking customized dessert boxes.

Mehta, who studied at Purdue and Harvard before working in corporate finance roles in the United States, credits her shift to entrepreneurship to her long-standing passion for baking. What started as a source of comfort during her student years has now become a full-fledged enterprise. The company began with an initial investment of ₹50,000 and has already raised a small friends-and-family funding round to support its next phase. 

The Cookie Co is preparing for a 10-outlet expansion across western India while scaling its central kitchen and operations team. With a 95 percent women-led workforce and a clear roadmap for growth, the company aims to establish itself as a national player in the gourmet dessert space.

We are not just selling cookies, we are selling the experience of have fresh cookies out of the oven” says Kshiti.

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FirstClub Raises $23 Million Series A Led by Accel, RTP Global; Valuation Triples to $120 Million in 8 Months as Premium E-Commerce Bets Pay Off

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Bengaluru-based e-commerce startup FirstClub has raised $23 million in a Series A round, taking its valuation to $120 million, just three months after launching its consumer app. The round, which was 90 percent equity and the remainder debt, was co-led by Accel and RTP Global, with participation from Blume Founders Fund, 2am VC, Paramark Ventures, and Aditya Birla Ventures. This follows the company’s $8 million seed round in December 2024 at a $40 million valuation.

Founded by former Flipkart executive Ayyappan R in late 2024, FirstClub is positioning itself against India’s crowded quick-commerce market by focusing on premium and exclusive selections rather than delivery speed. The startup currently operates four “clubhouses,” or dark stores, in Bengaluru, offering 4,000 curated stock-keeping units across groceries, fresh produce, dairy, and packaged foods. Around 60 percent of its products are exclusive, selected after blind testing by consumer panels.

The model is showing traction. Average order values stand at ₹1,050, roughly double that of mainstream quick-commerce rivals such as Blinkit and Instamart. Repeat purchase rates are around 60 percent, with the customer base skewing 70 percent female and concentrated in households earning over ₹15 lakh annually. To maintain its positioning, the platform restricts checkouts below ₹199.

With fresh capital, FirstClub plans to expand to 35 dark stores in Bengaluru before moving into new cities. The company also intends to diversify into children’s nutrition, pet food, home essentials, and nutraceuticals, while piloting cafés that will serve freshly prepared items. Longer term, the startup aims to replicate premium retail experiences similar to Costco and Whole Foods for Indian consumers.

FirstClub currently employs 185 people, including a 75-member operations team, and is building its own supply chain to back its quality-first approach.

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Bengaluru Startup House of Zelena Raises ₹7 Crore Seed Round Led by Sprout Venture Partners, M Venture Partners; Total Funding Hits $1.2 Million

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House of Zelena (HOZ), a startup focused on maternity and postpartum wear, has raised ₹7 crore in a seed round co-led by Sprout Venture Partners and Singapore-based M Venture Partners. Early-stage accelerator GSF and a group of angel investors also participated in the round.

The latest infusion takes the company’s total funding to $1.2 million. HOZ said the capital will be channelled into strengthening its supply chain, accelerating product innovation and expanding community-led initiatives. Investments will also go towards building technology platforms to support engagement with mothers across the country.

Founded in Bengaluru, HOZ positions itself in the fast-growing maternity apparel and postpartum care segment. The company designs clothing that blends comfort, functionality and style, while also exploring textile-driven solutions that address pain management and recovery for new mothers.

“With this funding, our objective is to scale aggressively and deliver international-quality solutions at price points accessible to Indian moms,” said co-founder Mayank Kamal. “We are committed to innovating with textiles to make recovery and everyday wear easier for mothers, while creating a strong community around the brand.”

The maternal apparel market in India has gained momentum in recent years, driven by rising awareness, higher disposable incomes and growing e-commerce penetration. Analysts estimate the segment will continue to expand as more consumers shift towards specialized and functional wear during pregnancy and postpartum stages.

HOZ plans to leverage the funding to build a stronger distribution network while also focusing on design-led innovation. By tapping into both online and offline channels, the company aims to establish itself as a leading player in the niche but fast-expanding maternity wear space in India.

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MD Manish Bandlish Says Mother Dairy Will Transfer GST Relief on Value-Added Dairy Products; ₹17,500 Crore Firm Eyes Stronger Demand

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Mother Dairy, one of India’s largest dairy brands, announced on Thursday that it will pass on the benefits of the recent Goods and Services Tax (GST) reduction on dairy products to its customers. The assurance follows the GST Council’s decision to lower tax rates on a wide basket of value-added dairy categories.

Mother Dairy, which posted revenues of ₹17,500 crore in the last financial year, said the rate cut covers paneer, cheese, butter, ghee, UHT milk, milk-based beverages and ice creams. The company said the move would not only make packaged dairy products more affordable but also expand their reach across households.

“We commend the Union Government’s decision to reduce GST rates on dairy items. This will significantly improve affordability and accessibility for consumers, especially in packaged categories that are witnessing strong growth,” said Manish Bandlish, Managing Director of Mother Dairy.

He added that the reform will strengthen consumer trust in safe, high-quality packaged products and encourage families to opt for value-added dairy choices. “We are fully committed to ensuring that the benefits of this reduction are effectively transferred to consumers,” Bandlish noted.

Industry analysts believe the reduction in GST will stimulate higher demand in organized dairy segments and expand market opportunities for farmers supplying to these value chains. Packaged dairy categories such as cheese, UHT milk and milk-based beverages have seen rapid growth in recent years, driven by urban consumption patterns and rising disposable incomes.

The GST relief comes at a time when consumer spending is under pressure from food inflation, and the move is expected to support household budgets while boosting demand for branded dairy products.

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Samantha Ruth Prabhu Co-founds ZOY, Expands Startup Count to 12 as India’s $1.3 Billion Menstrual Hygiene Market Heats Up

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Actor Samantha Ruth Prabhu has added another chapter to her growing entrepreneurial journey, joining menstrual and feminine healthcare brand ZOY as co-founder. With this, the actor’s tally of ventures as investor or co-founder has touched 12, spanning wellness, fashion, sports and personal care.

Prabhu, who earlier co-founded Secret Alchemist and fashion label Saaki, has consistently backed ventures aligned with her personal values. “I look for brands that can create meaningful impact. Whether it is Secret Alchemist, Saaki, Ekam or even the Chennai Pickleball team, I want to support businesses that I genuinely believe in,” she told Moneycontrol.

ZOY, founded by Maheshwari Moorthy, aims to disrupt India’s $1.3 billion menstrual hygiene market, which is projected to grow at 12 percent annually till 2030. The segment continues to be dominated by plastic-based, chemically processed products that studies have linked to fertility issues, PCOS, urinary tract infections and chronic discomfort.

The new venture plans to introduce toxin-free, holistic alternatives, including medicated strip sanitary napkins and the patented Snow Lotus Therapy Pad. The product has been designed to regulate cycles, support PCOS management and aid natural detoxification.

Prabhu, who has spoken openly about her personal health struggles, said her association with ZOY is an extension of her advocacy for mindful living and women’s empowerment. “This is not just about menstrual care. It is about rethinking women’s health as a whole. We want to build a brand that helps women make informed choices and experience their cycles differently,” she said.

Her focus on wellness comes at a time when Indian consumers are increasingly turning to clean and sustainable personal care. For Prabhu, ZOY marks not just another investment, but a commitment to reshape conversations around women’s health in India.

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Govt Promises ‘Cheaper Living’: GST Cuts on Food, Insurance, and Durables Could Rewire India’s ₹22 Lakh Crore Consumption Market

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This Diwali, the government has rolled out a sweeping reform in the Goods and Services Tax (GST) system, calling it a “Next-Gen GST” move that promises to make life easier for households, farmers, students, and businesses alike. By cutting down GST rates across a wide spectrum of items, from daily groceries to tractors, the reform is designed to reduce the burden on families while also giving a fresh push to the economy.

Lower Costs for Daily Essentials

For most households, the biggest relief will come in the form of reduced GST on common necessities. Items like hair oil, toothpaste, soap, toothbrushes, and shaving cream, which earlier attracted 18 percent tax, will now only carry a 5 percent rate. Everyday food products such as butter, ghee, cheese, pre-packaged namkeens, and ready-to-eat mixtures have also been reduced from 12 percent to 5 percent. Utensils, sewing machines, and even essentials for babies like feeding bottles and clinical diapers will now be cheaper as well.

Relief for Farmers and Agriculture

Agriculture has always been the backbone of the Indian economy, and this reform makes a clear effort to support it. Tractors, their tyres, and related parts, which were earlier taxed at 12–18 percent, are now uniformly at 5 percent. Tools that aid modern farming, such as drip irrigation systems and sprinklers, as well as bio-pesticides and micro-nutrients, have also seen their tax burden slashed. This move is expected to directly benefit farmers by reducing the cost of cultivation, preparation, and harvesting.

Healthcare Made More Affordable

The healthcare sector is another big winner. Health and life insurance, previously taxed at 18 percent, has been made completely tax-free. Diagnostic kits, reagents, glucometers, test strips, and corrective spectacles will now fall under a much lower 5 percent rate. Thermometers and medical-grade oxygen, crucial for healthcare, have also been exempted or drastically reduced. The changes are designed to make essential healthcare products and services more accessible to people across the country.

Education Without Added Costs

Students and parents will also notice a difference. Learning tools such as maps, globes, pencils, sharpeners, crayons, pastels, notebooks, and erasers will now be tax-free. By removing GST on these items, the government has taken a small but significant step toward reducing the financial pressure on families investing in education.

Automobiles and Appliances See Price Cuts

The new GST reform also makes a direct impact on consumer choices. Hybrid cars, motorcycles below 350 cc, and even vehicles for transporting goods have all received tax reductions, bringing them within easier reach of buyers. Similarly, electronic appliances like air conditioners, televisions above 32 inches, monitors, projectors, and dishwashers have seen their tax rates drop from 28 percent to 18 percent.

Simplifying the Process

Along with rate cuts, the government has promised process reforms to make GST simpler. These include automatic registration within three working days, provisional refunds through a system-based process, and relief for SMEs dealing with zero-rated supplies and inverted duty structures.

A Step Towards Self-Reliance

Described as a “Diwali gift” for citizens, these changes are not just about lowering prices but also about creating a more business-friendly environment. By making essentials, education, farming tools, and healthcare affordable, the government hopes to boost consumption and strengthen India’s path toward becoming more self-reliant.

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Hunch Ventures Acquires Jamie Oliver Restaurants India from IMM, Pledges ₹200 Crore Expansion into Tier-2 and Tier-3 Cities

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Global investment firm Hunch Ventures has acquired complete ownership of Jamie Oliver Restaurants in India, buying out London-based International Market Management (IMM). IMM, which previously held a 51 percent stake, confirmed its exit after nearly a decade in the Indian hospitality market. The financial terms of the deal were not disclosed.

Hunch Ventures first entered the partnership in 2015 when IMM launched Jamie’s Pizzeria, Jamie’s Italian and Jamie’s Kitchen outlets in India. With the latest transaction, Hunch now owns all 14 restaurants under the brand across the country.

Karanpal Singh, founder of Hunch Ventures, said the acquisition will allow the company to consolidate its hospitality presence and scale operations beyond major metros. “Hospitality has always been an asset class for us. We will now expand Jamie’s into tier-2 and tier-3 cities through both company-owned outlets and franchise partners, while also developing new food-led concepts,” Singh told ET.

The group has earmarked ₹200 crore over the next three years for the expansion, with additional investments expected from franchisees. Singh added that synergies will be built across Hunch’s wider portfolio, which spans agritech, commercial real estate, co-working platform The Circle Work, luxury club chain Quorum, air mobility venture FlyBlade, healthcare services, and premium concierge offerings.

The move comes as India’s food services industry recovers from five consecutive quarters of weak demand. Analysts say easing inflation, higher disposable incomes, and growing appetite for western comfort food are boosting investor confidence in the sector.

For IMM, this marks its second exit from India’s dining space. The firm sold its Wendy’s India rights to cloud kitchen operator Rebel Foods in 2023. Founder Jasper Reid said IMM’s UK shareholders were seeking a clean exit from the Jamie Oliver business, which paved the way for Hunch’s complete takeover.

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