Blinkit, Zomato’s quick commerce vertical, achieved positive adjusted EBITDA in March 2024 as it continued to scale up the average order value and volume in the fourth quarter of FY24.
In Q4 FY24, Blinkit recorded revenues of INR 769 Cr, a significant increase from INR 363 Cr in the same quarter of the previous year and INR 644 Cr in Q3 FY24.
The adjusted EBITDA loss of the quick commerce vertical showed continued improvement, decreasing from INR 203 Cr in Q4 FY23 and INR 89 Cr in Q3 FY24 to INR 37 Cr for the quarter that ended in March 2024.”
In the quarter that ended March 2024, Blinkit’s gross order value (GOV) surged by 97% year-on-year (YoY) to INR 4,027 Cr.
The quick commerce platform is currently operational in 26 cities, boasting over 526 dark stores in the quarter. Expansion efforts are primarily concentrated on the top eight cities in India.
“In Q4FY24, 80% of the new stores we opened are located in these top eight cities. Our presence in these key urban centers remains notably lower than desired. For instance, our second-largest city by gross order value (GOV), Bengaluru, comprises less than 30% of Delhi-NCR’s GOV, our largest market, with a similar disparity in store count,” stated Zomato in its shareholder letter.
The company announced plans to incorporate an additional 100 stores in Q1 FY25, with a target of reaching 1,000 stores by the end of FY25.
Zomato, a major player in the foodtech industry saw its consolidated profit after tax (PAT) surge by 26.8% to INR 175 Cr in the fourth quarter (Q4) of the fiscal year 2023-24 (FY24), up from INR 138 Cr in the previous quarter.
The company had reported a net loss of INR 187.6 Cr in the same quarter of the previous fiscal.
Q4 was the company’s fourth consecutive profitable quarter. Zomato reported a total profit of INR 36 crore in Q2 FY24 and INR 2 crore in Q1.
In FY24, Zomato achieved a profit after tax (PAT) of INR 351 Cr, a significant turnaround from the INR 971 Cr loss reported in FY23.
Zomato saw a surge in operating revenue, reaching INR 3,562 Cr in Q4 FY24, up from INR 3,288 Cr in Q3 FY24. This marked a 73% increase compared to the operating revenue of INR 2,056 Cr reported in Q4 FY23.
Additionally, the company announced that its quick-commerce vertical, Blinkit, achieved positive adjusted EBITDA in March 2024.
Foodtech giant Zomato‘s shares surged nearly 3% during intraday trading on Monday (May 13), touching a fresh 52-week high at INR 207.30 on the BSE ahead of the announcement of its Q4 results for the financial year 2023-24 (FY24).
However, the stock gave back some of the gains as the day progressed. By 14:09, the shares were trading at INR 199.55.
The company’s board is set to convene later today to assess and authorize the results for the fourth quarter and the fiscal year concluding in March 2024.
In the December quarter (Q3) of the fiscal year 2023-24 (FY24), Zomato reported a consolidated profit after tax (PAT) of INR 138 Cr. Additionally, the company witnessed a surge in operating revenue, which rose to INR 3,288 Cr in Q3 FY24 from INR 2,848 Cr in Q2 FY24.
Zomato disclosed on Saturday that the auditor of its subsidiaries, Zomato Hyperpure and Blink Commerce, had resigned. This development paved the way for the food tech platform to appoint Deloitte Haskins & Sells as its new auditor, aiming to streamline the audit process.
Zomato stated, “The resignation aims to facilitate the appointment of our current statutory auditor, M/s Deloitte Haskins & Sells LLP, as the statutory auditor of Zomato Hyperpure Private Limited (ZHPL) and Blink Commerce Private Limited (BCPL) as well, thereby enhancing the efficiency of the audit process.”
Following a remarkable surge of over 100% last year, Zomato shares have already climbed by 66% year to date in 2024.
The foodtech major is also introducing several new experiments. It has commenced piloting a new feature in select areas of Bengaluru and Mumbai, providing users with priority deliveries for an additional fee.
In order to fulfil large orders for up to 50 people at once, Zomato also introduced an all-electric “large order fleet.” Deepinder Goyal, the founder and CEO of the company, asserted that new vehicles would address the majority of issues that Zomato users run with while completing bulk purchases.
Moneycontrol was the first to report this development.
This development comes close on the heels of reports suggesting that Meesho is looking to increase the size of its upcoming funding round to $500-$650 million from $300 million earlier. Last week, the company closed a $275 million funding round through a mix of primary and secondary share sales.
Meesho has refrained from commenting on questions regarding the appointment.
Chatterjee held the position of Chief Product Officer (CPO) at cryptocurrency exchange Coinbase for three years, spanning from 2020 to 2023.
Before that, he served as the Senior Vice President and Head of Product at Flipkart from 2015 to 2017.
Additionally, Chatterjee has held significant roles at Google, Oracle, and IBM Corporation. Furthermore, he is spearheading the development of his own AI generative company, Ema Unlimited, based in San Francisco.
According to his LinkedIn profile, he has made investments in companies such as Udemy, Palantir Technologies, TrueLayer, Remote, AlphaFlow, Skillshare, Roverlabs, Activity Hero, and BloomReach.
Chatterjee is one of two independent directors at Meesho, with the other being Rohit Bhagat, who presently serves as the non-executive chairman of PhonePe.
Bhagat joined Meesho as its first independent director in June 2023. Prior to this, he served as an independent director at Flipkart, Axis Bank, Freecharge, and several other entities.
Currently, Meesho’s board consists of a total of eight members. This includes the company’s cofounders Vidit Aatrey and Sanjeev Barnwal, along with primary investors Mukul Arora from Elevation Capital, Ashutosh Sharma from Prosus, Mohit Bhatnagar from Peak XV Partners, and Sarthak Misra from SoftBank, as well as six other board members.
It’s worth mentioning that both Chatterjee and Bhagat have prior experience working with Meesho’s competitor, Flipkart.
At present, Flipkart holds the leading position in the ecommerce marketplace, followed by Amazon and Meesho.
Established in 2015 by Aatrey and Barnwal, Meesho boasts a network of over 1.5 million sellers on its ecommerce platform from all over India, serving more than 140 million annual transacting users. To date, it has secured funding exceeding $1.08 billion.
The startup’s investors include Facebook, Prosus, Elevation Capital, DST Partners, and Facebook.
In the meantime, Meesho is actively involved in talks regarding a potential reverse flip of its US parent company, a step associated with its intentions for an IPO in India. However, the company’s plans have not been finalized yet.
Additionally, fintech firm Groww has completed the process of moving its domicile back to India as of March 2024. This makes Groww the second major startup, following PhonePe, to shift domicile to India.
Several other Indian startups, such as Zepto, RazorPay, and Pine Labs, are also considering reverse flipping.
What would motivate a top-tier Swiss luxury watch label to venture into the Indian market to market merely 5–6 timepieces annually, when they could effortlessly distribute their limited batch of 150–160 meticulously crafted pieces in regions like the US, Europe, or the Middle East, where collector demand thrives?
As per Vahe Vartzbed, head of independent Swiss luxury watchmaker HYT, “We perceive the Indian market as ripe for our distinct timepieces. With a robust community of collectors, India presents an ideal landscape for our brand introduction. We’re confident that this is the right time for niche brands like ours to enter India, given the demand for uniqueness among Indian watch enthusiasts.”
As prominent Swiss luxury watch brands set their sights on India, smaller independent labels like HYT are also making strides to enter the market, aiming to leverage its potential and connect with the collector base. Internationally, independent watchmakers like F.P. Journe, Richard Mille, and Gerald Genta are experiencing high demand, reflecting a growing preference among discerning collectors, including those in India, for exclusivity and innovative movements.
“Having the ability to choose our own path is a true privilege. “As an independent entity, we’re committed to constantly improving the artistry of our watches, incorporating more intricate decorative elements and subtle complications,” Vartzbed stated. “Moreover, our dedication to novelty propels us to explore fresh and inventive avenues for showcasing functions on our timepieces, even experimenting with novel materials to enrich their aesthetics.”
Viraal Rajan, director of Time Avenue, the exclusive partners of HYT in India, pointed out that the current challenge for independent watchmakers lies in production. Today’s consumers demand more than mere timekeeping; they seek watches that offer additional value and functionality.
“It’s all about possessing something that’s not just unique but also beautiful, meticulously crafted with passion and individuality. Mass production often falls short in fulfilling this craving for distinctiveness,” he emphasized.
The renowned company, known for its innovative fluid-based time display, will introduce watches with prices ranging from INR 45 lakh to INR 4.6 crore in India.
On a global scale, The Swatch Group, Richemont, LVMH, and Citizen reign supreme in the watch industry, holding ownership over the majority of major brands. These industry giants invest heavily in product promotions and boast extensive distribution networks. Given this landscape, how does a smaller brand like HYT, with its limited production, manage to thrive and venture into emerging markets like India?
“Our production capacity remains constrained. This year, we’re focusing on crafting just 150 pieces, prioritizing exclusivity and catering to a discerning group of collectors. We don’t feel compelled to conform to market pressures because our offerings are inherently unique. Our collectors are already familiar with traditional timepieces, but they turn to us when they desire something genuinely distinctive and innovative. We’re certainly not someone’s initial choice for a timepiece,” expressed Vartzbed.
The watch brand currently boasts 25–26 points of sale globally, spanning across Asia, the Middle East, Europe, and the Americas. Venturing into the Indian market aligns with its diversification strategy, with plans to elevate production to 200 watches by 2025. “Our focus remains on attaining a harmonious and evenly spread presence worldwide. Quality distribution stands as paramount for us, ensuring accessibility to our brand without compromising its exclusivity,” emphasized Vartzbed.
The HYT brand and product portfolio are currently managed by a team of only 12 individuals, with four skilled watchmakers tasked with assembling the watches. Collaborating with external experts, the company focuses on developing mechanical movements, while its sister company, Preciflex SA, pioneers state-of-the-art fluidic technology.
“Since establishing the company 12 years ago, we’ve engaged in collaborations with numerous movement makers. Throughout the years, we’ve continuously refined and adapted our approach, dedicating ourselves to the development of the movement that currently drives our timepieces,” stated Vartzbed. Swiss watch exports to India amounted to INR 2,008.58 crore in 2023.
Flipkart, a major player in e-commerce, is in talks to relocate its parent entity from Singapore to India, as reported by ET.
Valued at around $33 billion, Flipkart, one of India’s leading technology startups, potentially coming back to India signifies the growing trend of reverse flipping. This trend is underscored by Walmart-owned PhonePe also relocating its headquarters to India.
Flipkart Pvt Ltd, the parent company, presently operates from Singapore, akin to PhonePe’s previous setup before shifting its base to India in October 2022.
Regarding PhonePe, the company, valued at nearly $10 billion in 2022, relocated to India and reportedly expended over $900 million to register its parent entity there. Flipkart is also anticipated to face a substantial reverse flipping tax.
As per the ET report, Flipkart’s senior leadership has internally deliberated relocating the parent entity to India, with plans for the move anticipated to gain momentum in the coming months.
Nevertheless, implementing this transition could present challenges given Flipkart’s vast scale and the involvement of multiple entities managing its e-commerce operations in India.
The decision to relocate to India is linked to Flipkart’s overarching goal of pursuing an initial public offering (IPO) in the long run. Although Flipkart isn’t currently planning an IPO for 2024, the recent prosperous IPOs of consumer companies underscore the market’s interest in large-scale consumer businesses listed on domestic stock exchanges.
Nonetheless, market confidence hinges on profitability, an area where Flipkart has a significant gap to bridge.
In the fiscal year that ended on March 31, 2023, Flipkart Internet Private Limited, the B2C division of Walmart-owned Flipkart, recorded an operating revenue of nearly INR 15,000 Crores. During the financial year 2022-23 (FY23), the marketplace arm experienced a notable surge in operating revenue, increasing by 42% to INR 14,845.8 Crores from INR 10,477.4 Crores in FY22.
During the period under review, the company successfully decreased its cash burn, resulting in a 9% reduction in net loss to INR 4,026.5 Crores compared to INR 4,419.5 Crores in FY22.
However, Flipkart’s B2B arm saw its net loss increase by over 42% to INR 4,845.7 Crores in FY23, compared to INR 3,404.3 Crores in the previous fiscal year.
Flipkart is reportedly refining its product and cost strategies in pursuit of profitability. The company has expanded into the fintech category, offering digital lending and UPI payments.
In January 2024, the company reportedly initiated a process to streamline its workforce, potentially resulting in a reduction of its total team size by 5-7%. The workforce reduction was finalized last month and is part of the ongoing performance review.
Recently, fintech unicorn Groww completed its reverse flip by relocating its domicile from the US to India.
Following PhonePe, Groww became the second major startup to relocate its domicile to India. Several other Indian startups, such as Zepto, Razorpay, and Pine Labs, are also considering reverse flipping, with many aiming for IPOs in India.
Furthermore, for fintech startups like PhonePe or Razorpay, having an Indian parent entity is advantageous from a regulatory perspective.
Malabar Gold and Diamonds witnessed a remarkable achievement this Akshaya Tritiya, selling gold jewellery worth INR 1361 crore, marking a 39 percent increase in sales over last year. Chairman of the Malabar Group, MP Ahammed, emphasized that this surge in sales reflects the enduring allure of gold among consumers and underscores the company’s position as a responsible jeweller.
“The company exclusively sources responsibly mined gold and diamonds from legitimate channels, ensuring no compromise on purity during the transformation into exquisite jewellery. Upholding ethical, transparent, and professional business standards, the brand remains steadfast in its commitment to responsible jewellery practices,” he emphasized.
In its latest business update to BSE and NSE, Kalyan Jewellers highlighted ongoing strong momentum in both foot traffic and revenue since the start of the current fiscal year. This trend persisted through Akshaya Tritiya, with significant foot traffic observed from existing and new customers across all markets in India and the Middle East, leading to substantial growth in retail revenue across gold and studded segments.
“We’ve monitored revenue for the initial 40 days of the ongoing quarter to ensure a comparable analysis, considering the variance in Akshaya Tritiya timing between the current and previous fiscal years. Despite this shift, we’ve observed early double-digit growth in same-store-sales (SSSG) during the first 40 days, compared to the corresponding period last year. Moreover, within this quarter, we’ve inaugurated 10 Kalyan showrooms and 7 Candere showrooms in India, bringing the total number of showrooms across India and the Middle East to 270 as of May 10, 2024,” stated the company.
“The surge in gold prices throughout April initially dampened jewellery demand and influenced diverse customer sentiments. Nonetheless, as gold prices stabilized in recent weeks, we’ve observed a resurgence in customer optimism, notably evident in the final days leading up to Akshaya Tritiya purchases. Across our 19 stores in Karnataka, Tamil Nadu, and Andhra Pradesh, we’ve experienced a sales growth of over 50% compared to last year, reaffirming our dedication to delivering unmatched value to our customers,” remarked Vishnusharan Bhatt, Managing Director of Bhima Gold.
The demand for daily groceries, essentials, and household products is expected to be muted in the current quarter, according to global research firm Kantar. However, it anticipates a rural-led recovery in the second half of FY25, with urban consumption potentially trailing behind.
In the March quarter, overall volumes, representing the number of products consumers purchased, increased by 5.2%, mirroring the growth seen in the previous three months up to December. Kantar’s data revealed that sales volumes in rural markets surged by 5.8%, while urban areas saw a 4.7% rise compared to the previous year. Kantar’s monitoring covers both branded and unorganized products, including bulk commodities sold without packaging. In contrast, Nielsen focuses primarily on tracking branded retail sales.
Saugata Gupta, Managing Director of Marico, remarked, “We experienced significant inflation resulting in shrinkflation or consumers opting for lower-grade products. However, the most challenging period seems to be over, and we now anticipate better growth ahead. We expect volume to increase, accompanied by some pricing growth. We are optimistic about achieving double-digit revenue growth.”
Shrinkflation occurs when pack sizes are reduced without a corresponding decrease in prices. Over the past two years, India’s price-sensitive consumer industry has encountered a demand slump following a nearly 25% increase in sticker prices by companies. This price hike was implemented to counteract rising input costs, initially triggered by global supply chain disruptions stemming from mobility restrictions and business closures imposed to curb the spread of the coronavirus.
Subsequently, historically low policy rates in the world’s wealthiest nations, along with the Ukraine conflict, caused commodity prices to spike.
However, over the past three quarters, companies have been slashing prices in response to a noticeable consumer preference for more affordable products. This strategy has aided them in reclaiming some of the market share they previously lost.
K Ramakrishnan, Managing Director of Kantar’s Worldpanel division in South Asia, anticipates subdued growth for at least another quarter, primarily due to the slowdown in urban areas. However, he expresses confidence in the revival of rural markets. He suggests that a strong performance in rural sectors could potentially drive growth back towards the latter half of the year.
He remarked, “The marathon that the snack category has been on since the onset of the pandemic is finally starting to slow down.”
India’s FMCG market expanded by 6.4% in the year that ended in March, a significant increase compared to the 1.2% growth witnessed the previous year. However, rural markets struggled to drive volumes. Nonetheless, most companies, including Hindustan Unilever, Britannia, and Dabur, have forecasted a demand revival in India. This optimism is buoyed by the prediction of an above-normal monsoon, which is expected to boost agricultural income. Moreover, higher spending initiatives by the new government in rural areas are expected to further support this resurgence.
Fynd, the omnichannel retail platform, is expanding its footprint on the Open Network for Digital Commerce (ONDC). Having unveiled its fashion-centric seller app in February, it empowers fashion, lifestyle, and beauty brands to exhibit their direct-to-consumer catalog to interested shoppers. Backed by Reliance, this versatile tech firm now aims to unveil its consumer-oriented Fynd buyer app.
Nimit Shah, Director of Government Initiatives at Fynd, expressed, “As one of the early adopters in the fashion-focused marketplace on ONDC, we chose to launch our journey through a seller app. Given ONDC’s vast reach to millions of consumers, our aim is to substantially expand the supply chain in fashion, lifestyle, and beauty sectors. Currently, we’re facilitating the ONDC journey for a few brands with the Fynd seller app, and our goal is to gradually extend this support to approximately 500 brands.”
“Simultaneously, we’re developing a buyer app. Presently, there isn’t a dedicated player emphasizing fashion, beauty, and lifestyle. We see an opportunity to deeply connect with consumers in these segments within the ecosystem. The buyer app is scheduled to launch in Q2 of FY25,” he elaborated. The company’s marketplace, GoFynd.com, presently caters to over 15,000 pin codes.
Shah further mentioned that as a Technology Service Provider (TSP), Fynd will facilitate enterprises in swiftly developing their own Seller App or Buyer App as SaaS. “Fynd has a reputation for managing large-scale operations, and with ONDC, we’re confident that the entire ecosystem will flourish as more participants come on board,” he concluded.
Shireesh Joshi, Chief Business Officer at ONDC, remarked, “Each new entrant to ONDC contributes a unique value proposition, enriching options for both buyers and sellers within the network. Ultimately, the network’s expansion will be fueled by the diversity of choices and the various business models through which enterprises can participate.”
Zomato, the foodtech giant, has stated that the auditors for its subsidiaries Zomato Hyperpure and Blink Commerce have resigned with immediate effect, allowing the platform to select Deloitte Haskins & Sells as the new auditor.
Zomato stated, “The resignation aims to facilitate the appointment of our current statutory auditor, M/s Deloitte Haskins & Sells LLP, as the statutory auditor of ZHPL and BCPL as well, aiming to enhance the efficiency of the audit process.”
Batliboi & Associates were designated as the statutory auditor for a continuous period of five years starting from the end of the company’s eighth annual general meeting, which took place on August 29, 2023.
“In continuation of our prior discussions and correspondence dated May 08, 2024, from the Global Controller Finance of Zomato Limited, we have been informed that the Management of the Holding Company aims to synchronize the statutory auditor of the Company with the auditors of the Holding Company. This alignment is intended to minimize duplication and enhance efficiency in the audit process at the group level,” the statement conveyed.
The company has concluded the audit of Hyperpure’s financial statements for the year ending March 31, 2024, with an audit report dated May 10, 2024.
In the meantime, the board of Zomato is set to convene today to assess and authorize the results for both the fourth quarter and the fiscal year ending in March 2024.
In the December quarter (Q3) of the financial year 2023-24 (FY24), Zomato reported a consolidated profit after tax (PAT) of INR 138 Cr. The company witnessed a surge in operating revenue to INR 3,288 Cr in Q3 FY24 from INR 2,848 Cr in Q2 FY24.
Zomato recently raised its platform fee by 25% to INR 5 per order and temporarily halted its intercity delivery service, Intercity Legends. This increase in platform fee was implemented across its major markets, including the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow.
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