56% of online shoppers found ratings on e-commerce sites to be positively biased: LocalCircles survey

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May 15, 2024

In a recent survey conducted by the community social media platform LocalCircles, it was revealed that approximately 56 percent of online shoppers felt that ratings on e-commerce sites and apps showed a bias towards positivity over the past year. The findings indicated that only nine percent of e-commerce or online users believed that platforms effectively facilitated the identification of sponsored or influencer reviews and ratings. Additionally, a mere 16 percent of consumers reported that their negative reviews were consistently published in the preceding year.

The survey holds importance as the government contemplates mandating e-commerce companies to adhere to quality standards for consumer reviews. This consideration arises following an unsuccessful voluntary effort to adequately address the issue of fake reviews.

Continue Exploring: Govt to make quality consumer review norms mandatory for e-commerce platforms to combat fake reviews

According to LocalCircles, 56 percent of surveyed online shoppers have observed a positive bias in ratings on e-commerce websites and apps over the past 12 months.

LocalCircles stated that it conducted an extensive national survey to assess the efficacy of voluntary standards for online reviews and ratings, considering ongoing complaints.

“The survey gathered more than 54,000 responses from e-commerce site and app users across 344 districts nationwide,” it disclosed.

Although standards exist to prevent the removal of negative ratings and reviews, the survey unveiled a concerning trend: the percentage of e-commerce users who discovered that their negative ratings and reviews were not consistently published increased from 45 percent to 52 percent over the past 12 months.

Amid the controversy, the survey found that 46 percent of e-commerce users always consulted ratings and reviews when making purchases, while 44 percent referred to them occasionally.

“Despite the controversy, 46 percent of surveyed e-commerce users consistently relied on ratings and reviews when making purchases, while 44 percent referred to them occasionally,” it said.

Additionally, it was noted that only nine percent of surveyed e-commerce users indicated that all e-commerce sites/apps provided an interface for easily identifying sponsored, incentivized, or influencer reviews, while 46 percent stated that no e-commerce platforms had enabled such a feature.

Continue Exploring: Cash-on-Delivery remains top choice for Indian online shoppers, IIM-A survey finds

Amazon bolsters India marketplace with INR 1,660 Crore equity injection

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May 15, 2024

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The US parent company of Amazon Seller Services injected a fresh equity infusion of INR 1,660 crore ($199 million) into the company operating the Amazon marketplace in India, as per a regulatory filing.

As part of the fundraising, the Indian entity allocated 1.66 billion equity shares, each valued at INR 10, to Amazon Corporate Holdings Ltd and Amazon.com, Inc, as indicated in the filing by Amazon Seller Services on April 15.

This development builds on Amazon’s commitment to India, with investments of more than INR 1,000 crore into its local entities this year. In February, the marketplace entity received INR 830 crore, while in January, Amazon invested INR 350 crore in the entity operating its fintech unit, Amazon Pay.

Continue Exploring: Amazon India’s marketplace division sees INR 830 Cr investment from US parent

A request for comment made to Amazon went unanswered.

Amazon’s primary competitors in India, namely Flipkart and Meesho, are also in the process of raising new funds for their Indian operations. In January, Flipkart received a cash injection of approximately INR 924 crore in two installments from its affiliated entities located in Singapore. Additionally, it was reported last December that the company is in discussions to secure up to $1 billion, with its parent company Walmart pledging to contribute $600 million.

Meesho recently concluded a funding round amounting to $275 million, which included a combination of primary and secondary share sales. This initial round serves as the first portion of a larger financing endeavor totaling $600 million, which the Bengaluru-based company is actively pursuing.

Continue Exploring: Meesho secures $275 Million in first tranche of larger funding round

In a bid to compete with Meesho, Amazon India recently launched Amazon Bazaar, featuring low-priced, unbranded fashion and lifestyle products. This move enters Amazon into the low-priced ecommerce segment, where it competes with Flipkart’s Shopsy and Reliance Industries’ forthcoming platform named Ajio Street.

Continue Exploring: Amazon launches ‘Bazaar’ to target price-conscious shoppers with unbranded fashion & home products

Amazon has been prioritizing its cloud services division, Amazon Web Services, over its core ecommerce business. In June of the previous year, CEO Andy Jassy announced the company’s plans to inject an additional $15 billion into the Indian market, thereby increasing its total investments in the country to over $26 billion by 2030.

According to the latest available data, Amazon Seller Services saw a 3.4% rise in revenue to INR 22,198 crore for the financial year that ended on March 31, 2023. However, the net loss widened by approximately a third to INR 4,854 crore.

Safari Industries (India) PAT surges 13.4% to INR 43.19 Cr in Q4 FY24

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May 15, 2024

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Safari Industries (India) has reported a consolidated net profit of INR 43.19 crore in the fourth quarter ended March 2024. It noted a consolidated net profit of INR 38.08 crore in the same period in the previous fiscal year, as stated in a BSE filing.

In the fourth quarter of FY24, its total income surged to INR 370.48 crore, compared to INR 305.38 crore in the corresponding period of the previous year.

According to the regulatory filing, the company’s total expenses increased to INR 314.56 crore in Q4 FY24 from INR 255.80 crore in Q4 FY23.

Continue Exploring: Safari Industries raises INR 229 Crore in funding from Lighthouse’s AIF, eyes expansion in Indian luggage market

Cosmetics firm Colorbar aims to go public in three years amid strong market growth

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May 15, 2024

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Modi Enterprises is strategizing to make Colorbar, a cosmetics firm, publicly traded within the next three years. This move reflects their confidence in the strong growth potential of the Indian beauty and personal care sector. Samir K Modi, the managing director, outlined that Colorbar is projected to achieve a revenue of INR 1,000 crores in the upcoming fiscal year and is set to broaden its presence in international markets.

The company presently possesses and manages the Colorbar, 24Seven, and Modicare brands.

Modi stated that among these, Colorbar is experiencing the most rapid growth and will be the first to undergo an initial public offering, whereas 24Seven, currently incurring losses, is anticipated to achieve financial recovery by FY25.

Continue Exploring: Mars Cosmetics eyes doubling revenue this fiscal year, targets INR 400 Crore milestone

“Collectively, these brands yield approximately INR 3,000-3,500 crore in revenue. However, we anticipate Colorbar’s growth to reach 50% this year. Coupled with our strategy to expand exports to international markets, we believe Colorbar possesses the potential for even swifter growth,” remarked Modi.

As per a report by Redseer, India’s beauty and personal care market is poised to exhibit the most rapid expansion among similar nations, boasting a compound annual growth rate of 10% from 2022 to 2027. This surge is anticipated to elevate the market size from its current $19 billion to $30 billion.

Continue Exploring: Kylie Jenner’s Kylie Cosmetics launches in India in collaboration with House of Beauty

Colorbar reported a revenue of INR 530 crore in the fiscal year 2024. Over the subsequent three years, it is projected that exports will account for 10-15% of Colorbar’s overall cosmetics business, he mentioned.

Regarding Godfrey Phillips India, the primary enterprise of Modi Enterprises, announcing intentions to divest from 24Seven, Modi clarified that he personally is not actively seeking to sell the business. He emphasized that the ultimate decision will be made by the board.

Last year, the 24Seven business experienced a growth of 19%, boasting a total of 157 stores. Plans are underway to open at least 100 additional stores within this fiscal year.

Continue Exploring: Godfrey Phillips explores sale of 24Seven grocery chain to major retail players

Quick commerce grabs 35% share of FMCG online sales in FY24, doubling within a year

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May 15, 2024

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Major consumer goods companies like Hindustan Unilever (HUL), Dabur, Adani Wilmar, and Parle Products reported that the contribution of quick commerce to their overall e-commerce sales surged to 35% in FY24, nearly doubling within a year.

Executives stated that quick commerce not only boosted overall e-commerce for these companies but also propelled growth in the broader fast-moving consumer goods (FMCG) industry.

In FY23, quick commerce contributed 15-18% to overall sales.

Since the pandemic, FMCG companies have consistently reported the fastest sales growth from e-commerce, followed by modern trade or grocery retail chains, and then general stores or kiranas. This trend has accelerated in FY24.

This shift has prompted Walmart-backed Flipkart to plan its entry into the quick commerce market.

Continue Exploring: Flipkart challenges Zepto and Blinkit with quick commerce expansion

Parle Products Vice-President Mayank Shah remarked that the pace of change has been surprising, with consumers readily accepting the additional convenience fee. Quick commerce companies like Zepto, Swiggy, Blinkit, and BB Now are encouraged to expand into new markets.

“Even the heavy spending on discounts has decreased somewhat. Time has become a premium for people,” he said.

Social commentator and brand specialist Santosh Desai observed that quick commerce has reached a stage of normalization, with people increasingly avoiding planning their purchases in advance.

“For an increasing number of consumers, the convenience fee for quick commerce is much lower than the hassle of planning a shopping trip or ordering in advance,” he said. “It’s a new value equation in their lives.”

Zomato announced in its earnings release on Monday that it is swiftly expanding its Blinkit quick commerce business, targeting 1,000 dark stores (warehouses from which goods are shipped to consumers) by March 2025, up from 526 as of the March quarter.

Continue Exploring: Blinkit’s Q4 FY24 revenue hits INR 769 Crore; loss narrows to INR 37 Crore

It was mentioned that while Blinkit currently operates in 26 cities, the expansion efforts are primarily concentrated on the top eight cities, including Bengaluru, Mumbai, and Hyderabad.

Earlier this month, Dabur India’s Chief Executive, Mohit Malhotra, informed analysts that quick commerce is contributing approximately 30% to the company’s e-commerce business.

“And we aim to collaborate with Swiggy, Zomato (Blinkit), Zepto — as they continue to expand into various urban areas across India. This presents a significant opportunity,” he said.

The sales growth via e-commerce for FMCG companies has been two to three times greater than that of modern trade.

Continue Exploring: D2C brands shell out 30-45% commission for quick-commerce platform listings

As an example, Tata Consumer Products experienced a 35% growth in e-commerce sales, in contrast to a 9% increase in modern trade. While the contribution of modern trade to overall sales remained stagnant at 14% for the company, the contribution of e-commerce rose from 9% in FY23 to 11% in FY24.

Angshu Mallick, the managing director of Adani Wilmar, emphasized that quick commerce is fueling the growth of the overall e-commerce segment for FMCG. “In fact, there are consumers now placing orders every half an hour. Our top-selling items in quick commerce include packs of mustard oil, sunflower oil, and atta,” he noted.

In its most recent investor presentation, Nestlé reported that the contribution of e-commerce to domestic sales has increased fivefold over the last five years — from 1.3% in 2018 to 6.8% as of March 2024 — propelled by “significant growth in quick commerce.”

Besides quick commerce, Jawa noted that even beauty commerce and marketplaces are expanding for HUL within the overall e-commerce sector.

Continue Exploring: Quick commerce platforms Blinkit and Zepto expand into e-commerce, targeting fashion, beauty, electronics, and more

Meat delivery startup Zappfresh gears up for IPO with transition to public entity

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May 14, 2024

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Zappfresh, a Delhi-NCR based meat delivery startup, has undergone a significant transformation, now positioning itself as a publicly traded company in preparation for its upcoming initial public offering (IPO).

In a filing submitted to the Ministry of Corporate Affairs, the startup stated that it has transitioned from a private limited company to a public limited company, indicated by the removal of “Private” from its registered name, previously recorded as “DSM Fresh Foods Private Limited”.

With this move, the company aims to list its equity shares on the stock exchanges via an IPO.

According to the filing, “The Board of Directors has sanctioned the adoption of a new set of Articles of Association, replacing and excluding the existing Articles of Association of the company. The Board has also sanctioned the amended Memorandum of Association of the Company.”

It’s worth mentioning that for any company aiming to enter the public market, shedding the private label is crucial. Swiggy, one of the notable startups, followed the same path before its IPO, transitioning from ‘Swiggy Private Limited’ to simply ‘Swiggy Limited’ by removing the word ‘Private’ last month.

Continue Exploring: Swiggy transitions to publicly traded company ahead of $1 Billion IPO

Zappfresh, established in 2015 by Deepanshu Manchanda and Shruti Gochhwal, delivers farm-fresh meat to customers within 90 minutes. Presently, it operates in Delhi-NCR and Bengaluru.

As part of its IPO plans, the startup has proposed a rise in its authorized share capital from INR 1.11 Cr to INR 25 Cr. Additionally, it unveiled bonus shares at a ratio of 725 equity shares for every 1 equity share held by the shareholders.

Additionally, the startup has put forward the nomination of Suman Chaudhary, who serves as the director of Navdeep Marketing, as an Independent Director for a five-year term. Moreover, Manchanda is slated to assume the position of Chairman and Managing Director of the Company, starting from May 8, for a duration of 5 years.

This development comes after more than six months since the startup secured a $4.3 Mn funding round from Ah! Ventures, HT Media, Unity SFB, and Heifer Impact. During that period, the company aimed to utilize the funds for acquisitions, expansion initiatives, and infrastructure enhancements.

Continue Exploring: ZappFresh raises $4.3 Million in latest funding round, sets sights on market expansion

While it has not yet revealed its total revenue for FY24, the startup had set a target of INR 300 Cr by the end of the financial year 2023-24 (FY24), with INR 70 Cr in revenue anticipated from Bengaluru alone.

It competes with players such as Licious, Fresh2Home, and others in the rapidly growing direct-to-consumer (D2C) meat delivery sector. As per a RedSeer report, the online meat market in India is projected to reach $80-85 Bn by 2024.

Continue Exploring:: ZappFresh bolsters growth strategy with acquisition of Dr. Meat, sets sights on Bengaluru market

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

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May 14, 2024

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Rajneesh Raman, Swarup Bose & Arbind Jain, Co-Founders, Celcius Logistics

Celcius Logistics, a startup specializing in cold chain solutions, has secured INR 40 crore ($4.7 million) in a Pre-Series B funding round led by its existing investor IvyCap Ventures.

Mumbai Angels and Caret Capital also participated in the round.

The company plans to utilize the fresh capital to enhance its transportation management system (TMS) and warehouse management system (WMS), thereby reinforcing its cold storage capabilities.

At present, the platform boasts 4,000 vehicles, 107 cold storage facilities, 27 distribution centers, and 200 hyperlocal riders spread across the country.

Moreover, the company’s new business vertical is slated to launch in 17 cities within the coming month, with a portion of the funds earmarked for this expansion.

This development comes a year after the startup raised INR 100 crore in a Series A funding round led by IvyCap Ventures in April 2023.

Continue Exploring: Cold chain provider Celcius Logistics bags INR 100 crore in funding round led by IvyCap Ventures

Swarup Bose, the Founder and chief executive of Celcius Logistics, stated, “With this new funding, our goal is to expand our footprint and address the demand-supply disparity within the cold supply chain. Our transportation and warehousing systems promote transparency and operational efficiency, ensuring adherence to quality standards in the cold chain logistics sector.”

Vikram Gupta, founder and managing partner of IvyCap Ventures, remarked, “The team’s dedication to digitizing the cold chain industry is admirable, and we are confident that the new investment will expedite their growth trajectory, benefiting stakeholders across the nation.”

Established in 2020 by Swarup Bose, Rajneesh Raman, and Arbind Jain, Celcius Logistics counts Zepto, Zomato, Maersk, Prabhat Dairy, Baskin Robbins, Vadilal, Domino’s, Keventers, and Godrej Agrovet among its clientele.

Celcius provides users with a digital platform for accessing end-to-end supply chain solutions. The platform streamlines bookings and consolidates all data into a unified system.

Its goal is to expand its reach to more than 500 cities by the following year, facilitating manufacturers in selling their perishable products.

The startup asserts that it has transported over 125,000 tons of perishable goods across multiple sectors such as dairy, fresh agricultural produce, pharmaceuticals, fruits, seafood, and vaccines. With operations spanning over 350 cities in India, Celcius has expanded into cross-border trade, facilitating the export and import of exotic fruits and seafood.

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

Pringles launches first-ever puffed snack ‘Pringles Mingles’ in tubeless packaging!

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May 14, 2024

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Pringles, a brand under Kellanova, has introduced its first-ever puffed crisps called Pringles Mingles. This new product marks a shift from their iconic tube packaging to a bagged snack.

Pringles Mingles, an entirely new product for the brand, offers a crispy, light, melt-in-the-mouth snacking experience.

Each bite-sized puff combines two Pringles flavors in a unique bowtie shape. Launching in three varieties, the new line includes Cheddar & Sour Cream, offering hints of buttery cheddar cheese and tangy sour cream; Sharp White Cheddar & Ranch, featuring aged white cheddar with buttermilk and herb ranch notes; and Dill Pickle & Ranch, blending zesty dill pickle with creamy, herby ranch flavors.

Continue Exploring: Kellogg’s spices up snack aisles with new ‘Pringles Hot’ lineup, featuring fiery flavors!

Mauricio Jenkins, US marketing lead for Pringles, stated, “Our iconic Pringles can is a core part of our identity and it’s here to stay. However, we continuously seek innovative ways to satisfy our fans’ evolving cravings. This puffy, airy snack offers a fresh way to enjoy Pringles, and its easy-to-share packaging makes it perfect for sharing with friends and family, whether at home for movie night, at a party, or on the go.”

This latest release adds to a series of recent innovations from Pringles. In February, the brand introduced five new spicy flavors. In January, Pringles enhanced the sustainability of its classic tube by replacing the bottom with a paper-based alternative. Last August, they launched a new ‘Everything Bagel’ flavor, and in June, they debuted chips made from sweet potato and multigrain.

Pringles Mingles will hit the shelves of retailers across the US later this year.

Continue Exploring: Pringles heats up snack time with two new spicy flavors in Australia and New Zealand

IKEA teams up with Rhenus to boost online presence and delivery efficiency in Delhi-NCR

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May 14, 2024

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IKEA, the Swedish furniture giant, has collaborated with Rhenus, a global logistics player, to bolster its online presence and facilitate deliveries to customers in Delhi-NCR.

IKEA said that it has inked a MoU with Rhenus to “elevate the home delivery experience” for clients in the Delhi-NCR region.

This move aims to support the growth of IKEA’s e-commerce expansion and ensure faster and sustainable deliveries to customers in the region, as stated in a statement.

As part of this collaboration, Rhenus will establish a warehouse facility capable of storing and fulfilling over 7,000 products. The warehouse is expected to go live early next year, the company stated.

The company stated that this initiative will guarantee smooth doorstep delivery to customers in the Delhi-NCR region, representing a notable milestone in IKEA’s expansion in India. Furthermore, the company added that this move would empower it to fulfill the majority of orders within a 24-hour timeframe.

Continue Exploring: India tops Ikea’s investment priority list, says CEO Jesper Brodin, highlighting rapid development and market potential

“Our collaboration with Rhenus spans decades. Bringing their knowledge and expertise in growing IKEA in other global countries to our operations in India is an exciting opportunity for both,” said Saiba Suri, IKEA Country Customer Fulfilment Manager.

Suri elaborated, stating, “Our aim is not only to expand but also to craft a customer experience that prioritizes sustainability and community well-being. IKEA is thrilled to mark its initial presence in Delhi NCR in partnership with Rhenus.”

Situated in Gurugram, the facility spans 150,000 square feet and boasts excellent connectivity for inbound movements via rail, road, and air. According to the company, it will fulfill hundreds of orders daily and also create numerous job opportunities, fostering a diverse and inclusive workspace while implementing industry-leading sustainable practices.

Continue Exploring: Ikea expands reach with online doorstep deliveries to 62 new districts in India; plans e-commerce launch in Delhi-NCR within a year

Rhenus India Regional CEO, Vivek Arya, remarked, “As our partnership with IKEA extends beyond Europe to a global level, it underscores our mutual dedication to excellence, innovation, and sustainability. This new warehousing endeavor in India signifies more than just operational growth; it represents a bold stride toward fostering a more inclusive and diverse global footprint.”

In August 2018, IKEA inaugurated its maiden retail outlet in India located in Hyderabad. Presently, it operates three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with two city stores in Mumbai. The company intends to venture into the Delhi-NCR region with two expansive shopping centers featuring integrated IKEA outlets in Gurugram and Noida. The Gurugram project is anticipated to debut by the coming year.

Continue Exploring: Ikea unveils first-ever B2B furniture collection with launch of Mittzon

CYK Hospitalities strengthens its leasing portfolio for QSR brands

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May 14, 2024

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Simranjeet Singh & Pulkit Arora, Directors at CYK Hospitalities

CYK Hospitalities, an end-to-end F&B consultancy firm, has announced notable strides in reinforcing its leasing portfolio for Quick Service Restaurant (QSR) brands in the past three months. With the rapid urbanization in India, the QSR sector has experienced a remarkable surge, witnessing the rise of several local and international players expanding nationwide. Anticipating these trends, CYK Hospitalities has positioned itself as a pivotal facilitator in the growth and expansion of QSR brands, strategically placing them amidst the right audience in prime locations.

Expressing his perspective on the industry’s expansion, Simranjeet Singh, Director of CYK Hospitalities, remarked, “India’s swift urbanization has led to remarkable growth in the QSR sector in recent years. This surge is propelled by the emergence of local brands alongside the influx of international chains. Nonetheless, to ensure the success of these brands, securing an ideal location with the right target demographic is paramount. This is where our leasing expertise becomes indispensable.”

Continue Exploring: CYK Hospitalities facilitates Sassy Desserts’ first store opening in Panipat

With expertise in location mapping, legal documentation, and lease finalization, CYK Hospitalities has been pivotal in facilitating the expansion of QSR chains into multiple locations, spanning Delhi, Bengaluru, Gurugram, and Agra. Leveraging its proficiency, the firm has aided over 30 brands within three months to inaugurate outlets in a range of formats, including metro stations, highways, malls, and beyond.

In recent collaborations, CYK Hospitalities partnered with renowned entities in the F&B sector, including The Waffle Company, Burger King, Rage Coffee, Samosa Singh, Mad Over Donuts, Ab Coffee, Bistro 57, K se Kulcha, G.O.A.T (Gelato Brand), Dohful Cookies, and Schmitten Chocolates.

Continue Exploring: CYK Hospitalities spearheads the expansion of My Bar Headquarters into Agra

Expanding its portfolio, CYK broadened its scope to include beauty brands, with Lovechild by Masaba being a notable standout success.

Pulkit Arora, Director at CYK Hospitalities, comments, “The QSR industry in India has undergone significant evolution, with a notable 17% growth reflecting shifting food trends and urban expansion. Globally, strategic leasing stands as a linchpin for QSR triumph, providing coveted locations that drive both profitability and customer interaction. At CYK Hospitalities, our dedication lies in empowering clients with bespoke leasing solutions that unlock premium locations and enhance profitability. Our unwavering commitment to excellence ensures our position at the forefront of shaping the future landscape of the F&B industry.”

Continue Exploring: Gurugram-based CYK Hospitalities sets sights on international expansion, enhancing global reach

Sharing her experience collaborating with CYK Hospitalities, Nidhi Singh, Co-founder of Samosa Singh, remarked, “CYK Hospitalities’ leasing expertise has been crucial in pinpointing optimal locations for our brand in Bengaluru. Their insightful guidance and meticulous research are truly commendable. We look forward to a mutually beneficial and enduring partnership with them!”

In addition to leasing, CYK Hospitalities provides a comprehensive array of services encompassing concept development, market research, competitor analysis, menu design, chef recruitment, standard operating procedures, recipe creation, food costing, ambiance and setup consultation, logo and packaging design, as well as branding services.

Continue Exploring: CYK Hospitalities spearheads launch of Nagari restaurant, elevating Agra’s culinary scene

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