PepsiCo India’s snacks segment records double-digit volume growth in Q1 CY24

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April 24, 2024

PepsiCo reported robust performance in India, with the snacks segment experiencing double-digit volume growth in the first quarter of CY24. The company’s global quarterly earnings, disclosed on Tuesday, highlighted a high-single-digit volume growth in the beverage segment within the Indian market.

The company also noted an increase in market share within the savory snacks segment, particularly in markets like India, during the first quarter that ended on March 23, 2024.

Discussing the progress of its Africa, Middle East, and South Asia (AMESA) business segment, the company reported a 4.5 percent increase in unit volume within the “convenient foods” category for the region. Notably, South Africa experienced high-single-digit growth, India saw double-digit growth, Pakistan observed mid-single-digit growth, while the Middle East faced a double-digit decline.

Continue Exploring: PepsiCo India diversifies Lay’s portfolio with launch of new sub-brand ‘Shapez’

Within the AMESA region, the company observed a 2 percent increase in beverage unit volume, largely driven by mid-single-digit growth in the Middle East and high single-digit growth in India and Nigeria. However, this growth was partly dampened by a double-digit decline in Pakistan.

“So far this year, our presence in the savory snack market has expanded in China, India, Brazil, Australia, and several other countries,” the company stated.

Continue Exploring: PepsiCo India appoints Jagrut Kotecha as new Chief

In March, Jagrut Kotecha stepped into the role of CEO of PepsiCo India, taking over from Ahmed El Sheikh, who concluded his seven-year tenure leading the India region.

Earlier this month, PepsiCo India disclosed its plans to invest INR 1,266 crore in setting up a new flavor manufacturing facility in Madhya Pradesh for the beverage segment. This marks the company’s second flavor manufacturing plant in India.

Continue Exploring: PepsiCo India to strengthen beverage production with new INR 1,266 Crore facility in Madhya Pradesh

Swiggy unveils ‘Smart Links’ to enhance restaurant visibility and boost orders

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April 24, 2024

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Swiggy, a foodtech major, has unveiled its latest marketing tool named ‘Smart Links.’ The new tool allows restaurants to seamlessly guide customers from their social media posts and advertisements straight to their menu pages on the food delivery app.

“Smart Links are personalised links that restaurants can distribute via their social media channels, guiding customers directly to their menu page on Swiggy. This ensures that when you come across enticing content on platforms like Instagram, you can effortlessly place an order from the featured restaurant without the hassle of searching for it on your food delivery app,” the company explained in a statement.

The foodtech giant stated that the new offering enables restaurants to harness their social media following and efficiently convert their online presence into sales. It further emphasized that the new tool assists restaurants in expanding their online presence, boosting order volumes, and ultimately enhancing revenue streams.

The IPO-bound company also stated that Smart Links provides restaurants with insights into customer behavior. Furthermore, they highlighted that the new product tracks user journeys post clicking on an advertisement.

Continue Exploring: IPO-bound Swiggy appoints Titan’s Suparna Mitra as independent director

“Through facilitating this tracking, Smart Links assist restaurant partners in evaluating the effectiveness of their social media campaigns more efficiently,” Swiggy explained. “This data empowers them to refine future campaigns, ultimately resulting in more streamlined and prosperous marketing strategies.”

According to the company, the Smart Links pilot has generated over 4 million menu sessions for over 35,000 restaurant partners to date.

“Smart Links will change the game by enabling restaurants to readily access and configure these links—a feature that Swiggy is personalising for free for all of its restaurant partners. This enables them to track each channel’s performance and compare it all in the owner app, which helps them market themselves more successfully, generate real orders, and learn more about their clients’ behaviour on social media and online platforms, according to Deepak Maloo, assistant vice president for supply at Swiggy.

This new offering comes as the foodtech company readies itself for its much-anticipated $1 billion public listing on the stock exchanges later this year. Just days ago, Swiggy became a public limited company, stating that the transition would facilitate fundraising from the public, including through an IPO.

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

Ahead of its market debut, the company has been optimizing and consolidating its operations. Last week, the foodtech leader merged Swiggy Mall with its quick commerce platform Instamart. Additionally, in March, Swiggy combined its premium grocery vertical, InsanelyGood, with Instamart.

As Swiggy’s plans for a public offering gain momentum, the US-based fund manager Invesco raised the company’s valuation by 19% to $12.7 billion earlier this month.

In the first three quarters of the financial year 2023-24 (FY24), Swiggy recorded a loss of $207 million (INR 1,720 crore). Its net loss for the entire FY23 amounted to INR 4,179 crore.

Continue Exploring: IPO-bound Swiggy reports $207 Million loss in April-December 2023

Boba Bhai secures INR 12.5 Crore in seed funding led by Titan Capital and Global Growth Capital UK

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April 24, 2024

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Boba Bhai, a QSR brand renowned for its bubble tea and diverse food offerings, has secured INR 12.5 crore in seed funding. This investment round was spearheaded by Titan Capital, the venture fund led by the Snapdeal founders, along with support from Global Growth Capital UK.

The funding round also saw contributions from Arjun Vaidya, cofounder of V3 Ventures, Marsshot VC by the Razorpay founders, DeVC, Warm Up Ventures, Varun Alagh, cofounder of Mamaearth, and several others.

“We’re building the brand for today’s youth, who follow trends and crave new experiences. I’m confident that foreign cuisines, particularly Korean food, will find a significant market in India,” shared Dhruv Kohli, Founder of Boba Bhai.

Continue Exploring: From Ghee resurgence to K-Food craze: Godrej Food Trends Report 2024 spotlights culinary trends shaping India’s gastronomic landscape

Boba Bhai runs 25 outlets in cities such as Bengaluru, Delhi, Hyderabad, and Chennai, all of which are owned by the company.

Kohli mentioned that the fresh funds will facilitate their ambition to grow to 100 outlets within the upcoming 12 months. “Our strategy involves expanding into tier-1 cities within the next six months, followed by penetration into tier-2 and tier-3 cities.”

The company currently boasts an annual revenue run rate (ARR) of INR 24 crore, calculated based on its current performance, with an average monthly order volume of 50,000. Over the next 12 months, it aims to increase this to an ARR of INR 100 crore, as stated by him.

Nearly 70% of Boba Bhai’s orders originate from the company website and online platforms like Zomato, Swiggy, and ONDC, while the remaining 30% are from its physical outlets.

Kohli mentioned that the company plans to use the funds to incorporate cutting-edge technologies into its offerings and to expand its workforce.

The company employs around 200 people, including kitchen staff.

According to the company, Boba Bhai holds a significant market share of 90% in the bubble tea industry in cities like Bengaluru.

This funding round is in line with a larger trend wherein many homegrown food and beverage brands are drawing investments from early-stage institutional investors and affluent individuals.

Continue Exploring: Investor appetite grows for homegrown food and beverage startups as demand skyrockets

Examples include Haryana-based Pizza Wings, which secured $4 million in funding from Gruhas, a venture capital fund by Zerodha cofounder Nikhil Kamath, along with investments from angel investors such as Sujeet Kumar, co-founder of Udaan. Additionally, Burger Singh’s pre-Series-B round was led by Turner Morrison Ltd, with participation from Homage Ventures LLP. AKU’s, backed by Burger Co, raised funds from Vikram Bakshi, former managing director of a McDonald’s joint venture operating the chain’s outlets in North and East India. Furthermore, Wow! Momo Foods raised INR 350 crore in January from Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund.

Continue Exploring: Wow! Momo Foods secures INR 350 Crore funding led by Malaysia’s Khazanah Nasional Berhad, eyes aggressive expansion

Boba Bhai offers approximately 18 to 19 bubble tea flavors. In the coming weeks, it plans to introduce five to six new flavors and expand its dessert offerings.

Bipin Shah, a partner at Titan Capital, expressed, “The team’s dedication to customizing a variety of bubble teas to suit the diverse tastes and preferences of Indian consumers has rapidly propelled its popularity. We are delighted to collaborate with a brand that envisions establishing a significant food brand in India, backed by robust taste, demand, and efficient distribution.”

Continue Exploring: A-Listers Spice Up Their Portfolios with Bold Bets on India’s Booming F&B Startups

D2C snacks brand Adukale secures INR 11 Crore pre-Series A funding led by Force Ventures

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April 24, 2024

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Adukale, a D2C snacks brand, has secured INR 11 crore (around $1.3 million) in its pre-Series A funding. Force Ventures spearheaded the investment round, with contributions from Aanya Ventures and notable angel investors including Subrata Mitra and Radhika Pandit.

The startup will utilize the capital to invest in manufacturing and research and development (R&D). Additionally, a portion of the fresh proceeds will be deployed to scale up the number of physical outlets, expand the distribution network, and facilitate greater brand visibility.

Established in 2009 by Nagaratna Ravindra, Malathi Sharma, and MS Ravindra, Adukale operates as an omnichannel snacking brand, offering a range of namkeens, blended spices, and instant food items. With a lineup surpassing 75 products, the startup runs over 20 ‘Adukale Experience Stores’ throughout Bengaluru and Mysore.

In addition to its own website, Adukale distributes its products through traditional and modern trade channels, as well as across various ecommerce and quick commerce platforms.

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

“This investment underscores the brand’s growth potential as a top omnichannel player in its category, showcasing confidence in its future direction. The secured funding will be instrumental in expanding our brand’s channel presence, enhancing visibility, and fostering deeper engagement with our target audience,” stated Vinay Gopinath, Chief Growth Officer at Adukale.

Regarding the fundraise, Karthik Bhat, founder of Force Ventures, remarked, “Our partnership with Adukale reflects a mutual aspiration to lead the traditional snacks category by 2025 and to serve as stewards of Karnataka’s culinary legacy, showcasing it on a global platform.”

This comes at a time when the homegrown D2C snacking space is witnessing intense competition due to the emergence of a number of new startups. Companies like TagZ Foods, Beyond Snacks, and Gladful are creating a niche and catering to a wide variety of customers.

These brands target the Indian snacking market, which, according to reports, is forecasted to reach a staggering size of INR 95,521 Cr by 2032. This presents a significant opportunity for both established players and newcomers in this rapidly expanding sector.

Consequently, the sector has attracted considerable attention from investors. Numerous venture capital and private equity firms have recently supported emerging players within the ecosystem.

In December last year, Farmley secured $6.7 million in its pre-Series B funding round, led by BC Jindal Group. Before that, in November, snacks startup PatilKaki secured funds in a round led by Cap70 Angels.

Continue Exploring: Farmley raises $6.7 Million in a pre-Series B round led by BC Jindal Group

Indus Valley to invest INR 40 Crores in R&D to drive product innovation

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April 23, 2024

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Indus Valley, a seller of organic and natural beauty products, announced on Tuesday its plan to invest INR 40 crores in marketing and research. This strategic move aims to enhance the brand equity of its flagship product.

Through this investment, the brand aims to boost the visibility of its flagship product, ‘Organic Gel Hair Colour,’ via nationwide advertising and awareness campaigns. Additionally, the company plans to expand into South Indian markets by partnering with influencers, utilizing vernacular advertising, and introducing customized packaging.

Continue Exploring: D2C brand Nat Habit hits INR 100 Crore annual revenue milestone, eyes further growth in beauty and wellness market

A portion of the investment will also be allocated to Research and Development (R&D) initiatives focused on personal care and beauty products, aiming to meet the specific needs of Indian consumers by harnessing scientific insights.

Shyam S. Arya, Founder & CEO of Indus Valley, stated, “We have an aggressive roadmap designed for the Indian markets, with particular emphasis on our flagship products, which have achieved immense success globally. We are deeply committed to producing skin and hair care products specifically suited for Indian conditions, enhancing the experience of our Indian clients.”

Continue Exploring: BIA Brands bolsters skincare portfolio with acquisition of Asa Beauty

Magicpin to expand workforce with 250 new hires over next 6 months

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April 23, 2024

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Magicpin, a hyper-local e-commerce company, plans to hire over 150 professionals for its sales and acquisition team, as well as 100 people for the ‘ONDC-magicpin Street Bites’ project.

The initiative, co-financed by ONDC, seeks to deploy ‘ONDC-magicpin Street Bites’ teams to support street food vendors, utilizing a third-party payroll system for facilitation.

“magicpin plans to hire over 150 professionals into its workforce as part of a strategic expansion for its sales & acquisition team, reiterating its commitment to fostering innovation & broadening its merchant network,” the business stated.

The new hires will increase the total workforce to over 550, not including the collaborative team of 100 individuals who will be recruited for the ONDC project.

Continue Exploring: Magicpin ventures into logistics aggregation with launch of ‘Velocity’ platform

The company emphasized that the upcoming hires will play a pivotal role in propelling growth and revenue across vital sectors such as fashion, fine dining, beauty, QSR, and budget eateries. Through this hiring drive, magicpin aims to bolster its footprint in various localities, fortify partnerships with businesses, and augment direct revenue channels within the offline sector.

“We are developing a robust locality framework to systematically bring the entire country online. Our goal is to boost the online visibility of diverse businesses in the top 60 localities nationwide, beginning with local establishments like small mom-and-pop stores in sectors such as food, fashion apparel, furniture shops, opticians, and even toy stores,” stated Anshoo Sharma, CEO and Co-founder.

The company aims to achieve break-even by the year 2024.

Furthermore, magicpin will lead the ‘ONDC-magicpin Street Bites’ initiative in collaboration with ONDC (Open Network for Digital Commerce), involving the recruitment of over 100 dedicated staff over the next six months.

“A vendor will be selected based on their responsiveness and ability to adhere to safety protocols and technology. The project’s objective is to enlist 500 FSSAI-accredited street vendors in Delhi and Lucknow within the next 3-6 months,” the statement outlined.

Continue Exploring: ONDC surpasses 7.1 Million orders milestone in February since inception last year

D2C brand Nat Habit hits INR 100 Crore annual revenue milestone, eyes further growth in beauty and wellness market

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April 23, 2024

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Nat Habit, a D2C beauty and wellness brand, has surpassed the INR 100 crore milestone in terms of its annualized revenues for the fiscal year 2023-2024.

After securing $10.2 million in December, the brand has been enhancing its online marketplace presence and concentrating on expanding its product portfolio.

Continue Exploring: D2C beauty brand Nat Habit bags $10.2 Million in Series B funding, eyes 4x growth

“We concentrated on expanding our product portfolio and working to strengthen brand penetration, which drove this growth. We have found that our all-natural goods are well received by our customers. Our footprint across all online channels, including marketplaces, has also been growing,” said Swagatika Das, Nat Habit’s Co-Founder.

The brand is also striving to achieve EBITDA profitability within the next 17-18 months.

“We are committed to redefining the category by harnessing the true potential of natural ingredients. Unlike relying on contract manufacturers, we have established our own manufacturing setup. Our vision is to be the forefront of the category with our ‘Fresh Ayurveda’ proposition,” she elaborated.

Approximately 55% of the brand’s revenue originates from its proprietary D2C site, while the remaining portion is generated from e-commerce marketplaces.

The brand is currently in the final stages of solidifying its offline strategy.

“We’ve been proceeding methodically, starting with our own D2C site. After extending the shelf life of our products from 3-4 months to 5-6 months, we expanded to selling on marketplaces. Now, we’re advancing further by stocking our products in marketplace warehouses for quicker replenishment cycles of 5-7 days. Similarly, for our offline strategy, we’ll collaborate with partners who grasp our value proposition and can facilitate swift replenishment,” she clarified.

The startup is broadening its footprint in both hair care and bolstering its skin care lineup. The majority of its business stems from top-tier cities and metropolitan areas.

“Currently, approximately 30% of our business is derived from smaller cities and tier-2 markets,” Das elaborated. “We anticipate rapid growth in this segment as we intensify our efforts to enhance brand awareness.”

Continue Exploring: D2C skincare brand Foxtale secures $14 Million in funding led by Panthera Growth Partners

Tata Consumer Products Q4 net profit dips 19% to INR 217 Crore despite revenue growth

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April 23, 2024

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Tata Consumer Products Ltd, the parent company of Tetley tea and Ching’s Secret noodles brands, recorded a net profit of INR 217 crore for the fiscal fourth quarter, marking a 19 percent decrease from the year-ago period.

The company’s revenue increased by 8.5 percent to INR 3,927 crore in the three months ended March 31, as stated in an exchange filing on April 23.

While revenue aligned closely with expectations, profit fell short of estimates. An average of six brokerages polled anticipated a year-on-year revenue growth of 4.8 percent to INR 3,989 crore. The bottom line was projected to increase by 13.4 percent to INR 329 crore.

The EBITDA margin stood at 16 percent, marking a 190 basis points increase.

Continue Exploring: Tata Consumer Products eyes further acquisitions after Capital Foods and Organic India deals

“Our sales and distribution network in India has been strengthened, and as of March 24, we had 4 million outlets worldwide. In every town with a population of one million or more, we divided the routes, and the assortment and growth significantly improved. We are expanding into more rural areas and tightening our focus on Rurban areas. Alternative channels, such as contemporary trade and e-commerce, have seen tremendous growth and are still very powerful growth drivers,” remarked Tata Consumer Products’ CEO and managing director, Sunil D’Souza.

The India Packaged Beverages division achieved a 2 percent increase in revenue. Maintaining its market leadership in tea within the E-commerce channel, the company sustained its position. Additionally, coffee demonstrated robust performance, achieving a remarkable 45 percent revenue growth for the quarter.

During the quarter, Nourishco (RTD business) experienced a revenue surge of 13 percent, contributing to a robust FY24 growth of 33 percent. The company bolstered its sales and distribution infrastructure, extending its total reach to 4 million outlets as of March 2024. Moreover, the company expanded its reach by adding over 1300 distributors in FY24, predominantly targeting Rurban markets.

Tata Consumer Products Limited concluded the day at INR 1173.25 on BSE, marking a 0.07 percent increase from the previous day’s closing price.

Continue Exploring: Tata Consumer Products’ Q3 net profit slides 17% to INR 301.5 Crore, revenue up 9%

P.F. Chang’s continues Indian expansion with second restaurant opening in Gurugram’s CyberHub!

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April 23, 2024

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P.F. Chang’s, the American casual dining restaurant chain, has opened its second location in Gurugram, marking its second venture in the country just three months after its debut.

Situated within Gurugram’s bustling DLF CyberHub, the new 140-seat restaurant adds to the vibrant array of dining and retail options in the area.

Rafik Farouk, Senior Director of Global Business Development at P.F. Chang’s China Bistro, shared on LinkedIn, “Exciting developments are underway at P.F. Chang’s! Let’s extend our congratulations to the team and our partners on the launch of their second restaurant in India, situated at DLF CyberHub.”

In India, P.F. Chang’s operates under a franchise agreement with Gourmet Investments Pvt. Ltd., a restaurant brand associated with the Bharti Group. The first Indian outlet opened its doors in January 2024 at One Lodha Place, Lower Parel, Mumbai.

Farouk added, “This latest achievement signifies P.F. Chang’s ongoing expansion efforts in India, as we introduce our globally renowned brand, authentic recipes, hospitality, and culinary principles to new regions within the country. We eagerly anticipate substantial growth in various other Indian cities in the future.”

Continue Exploring: Haldiram’s Nagpur delights Bengaluru with latest restaurant in Malleshwaram

Gourmet Investments has carefully selected a range of international brands, including PizzaExpress, Chili’s, and Ministry of Crab, and currently manages 35 restaurants across India in key cities such as Mumbai, Pune, Delhi-NCR, Bengaluru, Hyderabad, and Chennai.

According to Forbes India, P.F. Chang’s is currently planning to expand into the major metropolitan cities within the next 18 to 24 months, strategizing for its growth.

Founded in 1993 and based in Arizona, P.F. Chang’s has gained acclaim for its mastery of Asian cuisine. Today, the restaurant chain boasts a global footprint, with operations spanning across more than 20 countries and a network of 300 restaurants worldwide, according to the company’s official website.

Continue Exploring: Actress Rakul Preet Singh teams up with Curefoods to debut ‘Arambam’ restaurant in Hyderabad

United Colors of Benetton unveils its largest store in Andhra Pradesh

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April 23, 2024

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United Colors of Benetton, the Italian fashion brand, has inaugurated its largest store in the state of Andhra Pradesh, as announced by an industry official on social media. Located at PVP Mall in Vijayawada, the store boasts a sprawling retail space of 3,000 square feet.

In a LinkedIn post, Rohit Jhamnani, the managing director of K J Fashions & Designers, expressed his excitement, stating, “Excited to share the news of the grand opening of the largest Benetton store in Andhra Pradesh, situated at PVP Mall, Vijayawada.”

K J Fashions & Designers holds the master franchise and distribution rights for Benetton in Andhra Pradesh, Telangana, and Kerala.

Continue Exploring: Tata Group eyes expansion with potential stake purchase in Fabindia’s apparel business

Apart from showcasing the brand’s renowned vibrant clothing, footwear, and accessories for men, women, kids, and newborns, the store also highlights Benetton’s latest Spring-Summer 2024 collection.

Founded in 1965 by Luciano Benetton, the Benetton Group inaugurated its first store in Veneto, Italy’s Northern region. Four years later, in 1969, the company expanded beyond Italy, unveiling its first international store in Paris. Presently, according to Pentagram.com, it manufactures over 150 million garments annually for distribution across more than 6,000 Benetton outlets spanning 120 countries.

Benetton entered the Indian market in 1991 and currently runs more than 400 stores spread across over 100 cities nationwide.

In 2022, the retailer stepped into the metaverse by introducing PlayChange, a platform accessible via the online game creation system Roblox.

Continue Exploring: Apparel exports set for 8-9% growth in FY2025: ICRA

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