Brij Hotels, a collection of boutique hotels, has secured $4 million in its Series A funding round, co-led by the Manipal Education & Medical Group (MEMG) Family Office. Notable high-net-worth individuals such as Abhay Jain, Abhiroop Jayanthi (MD of Bain Capital), Rajendra Rao, and Prashant Deshpande have also participated in this latest round of financing for the company.
The company plans to utilize the proceeds to strategically expand and strengthen its presence in the competitive hospitality industry.
Established in 1991 by Udit Kumar and Anant Kumar, Brij is a portfolio of hotels that provide hyperlocal experiences, prioritizing sustainability. It underscores sustainability through the zero-kilometer concept, aimed at reducing environmental impact.
Udit Kumar and Anant Kumar, Co-Founders at Brij Hotels said, “At Brij Hotels, our commitment goes beyond providing luxurious stays; it extends to celebrating and empowering the heart and soul of our destinations – the local communities. The essence of our hospitality lies in using the original creative entrepreneurs and artisans, who preserve centuries-old traditions and sustainable practices. We are excited to have the support of investors like the MEMG Family Office, Abhay Jain, Abhiroop Jayanthi, Rajendra Rao, and Prashant Deshpande, who share our vision. With their backing, we’re not just expanding; we’re on a journey to become a unique storytelling and hospitality destination, offering an authentic, and well-designed experience that connects our guests with the rich heritage of each locale.”
Dr. Ranjan Pai, Chairman of the Manipal Education and Medical Group said, “Brij Hotels’ blend of luxury and local engagement is a refreshing take for the modern traveler. We believe that under the leadership of Udit and Anant, the Brij team is creating a unique company in leisure travel.”
As per the statement from the Delhi-based firm, it boasts a portfolio of eight functioning hotels situated in tourist hotspots. These establishments are designed to forge a seamless bond between luxury and local culture, underscored by a strong commitment to sustainability. Operating on an asset-light model, the company primarily enters into revenue-sharing arrangements with property owners.
Yousta, Reliance Retail’s youth fashion retail format, has launched its second store in Kolkata, as announced by a company official on social media. The store is located at Aurobindo Mall, Salkia.
“Hey Kolkata…Second fashion destination is now open at Aurobindo Mall, Salkia. Experience new age fashion shopping in your city,” said Ramyaraj Rath, assistant vice president – head of inventory, Reliance Retail, in a LinkedIn post.
Yousta’s first retail store in the city is situated on Jessore Road, Madhyamgram.
The stores boast modern tech-enabled designs and provide trendy fashion items at budget-friendly rates aimed at the youth demographic. Every product is priced below INR 999, with most falling below INR 499.
Additionally, the brand introduces fresh styles weekly through its ‘Starring Now’ collection, presenting the latest fashion trends as complete outfits paired with coordinating accessories.
In August 2023, Reliance Retail introduced its youth-centric fashion brand, Yousta, with the opening of its first store at Hyderabad’s Sarath City Mall. Presently, it boasts a network of over 17 stores spread across 15 states nationwide.
Apart from its physical retail outlets, the Yousta collection is also accessible online through Ajio and JioMart.
Reliance aims to roll out 200-250 stores of the value retail format in the coming years to directly compete with Tata Group’s Zudio chain.
Reliance Retail Ltd (RRL), the retail division of Reliance Industries Ltd., manages a diverse range of fashion and lifestyle brands, comprising Reliance Trends, Avantra by Trends, Azorte, Yousta, Fashion Factory, and Centro. Additionally, the company boasts a portfolio of more than 50 international brands, including Armani, Burberry, Diesel, Gas, Marks & Spencer, Superdry, Brooks Brothers, and Steve Madden.
At present, Reliance Retail runs an integrated omni-channel network encompassing more than 18,650 stores and digital commerce platforms catering to grocery, consumer electronics, fashion and lifestyle, and pharmaceutical consumption categories.
Contrary to expectations, the lifting of Covid-era mobility restrictions and the return to regular business hours for brick-and-mortar stores haven’t put a damper on online commerce. The surge in web commerce during the pandemic, driven by the convenience of contactless doorstep delivery, continues unabated.
Recent data from market research firms NielsenIQ and GfK India reveals that a wide range of products, spanning from basic snacks like cookies to big-ticket items like televisions and refrigerators, are being sold on ecommerce platforms at rates comparable to or even higher than during the lockdown period.
“This reflects a post-pandemic change in consumer behavior, particularly in metro areas, where online shopping is gaining popularity due to its convenience, variety and competitive pricing,” said Praful Babar, head of e-commerce for FMCG at NielsenIQ.
According to the data, sales across various FMCG categories experienced a notable increase in calendar year 2023 compared to the preceding year. For instance, NielsenIQ data revealed that the contribution of e-commerce platforms to impulse food sales, including chocolates, confectioneries, and salty snacks, rose from 3% in 2022 to 5% in 2023.
Regarding fabric care products such as washing powders/liquids, pre-post wash solutions, detergent cakes/bars, and blues, the contribution increased from 6% to 7% during the period under review. Similarly, for home cleaners designed for utensils, toilets, floors, and glass, the surge was from 10% to 11% in 2023.
According to industry estimates, the surge in these categories alone would have contributed an additional INR 3,000 crore to e-commerce business in 2023.
In the realm of electronic products, there was a 1-2 percentage point rise in e-commerce contribution in 2023 compared to 2022. Last year, e-commerce constituted approximately 33% of television sales, 20% of washing machines, 15% of refrigerator sales, and 10% of air conditioner sales. Researchers anticipate this trend of gradual increases in web commerce to persist in 2024.
According to NielsenIQ, the growth of the online channel for FMCG products is mainly fueled by consumption, whereas offline growth is influenced by both price and volume factors.
Mayank Shah, the vice president of Parle Products, mentioned that in specific categories like protein, health, and gourmet food, the contribution of e-commerce is significantly higher.
“Several smaller and premium brands are exclusively on ecommerce. In metroes, it’s quick commerce which is driving adoption,” he said.
According to GfK data, electronic and household appliances such as refrigerators, washing machines, and televisions experienced faster growth in the online channel compared to offline in 2023. Categories like frost-free refrigerators, front-loading washing machines, and televisions sized 55 inches and above have doubled their growth online compared to their respective categories offline.
“Traditionally, consumers prioritized pricing and mass-market options when shopping online. However, recent trends indicate a shift towards premium segments,” said Anant Jain, head of customer success – India at GfK.
In FMCG, the trend is similar. According to Babbar, the online volume growth of impulse food and fabric care at 47% and 32% respectively in metropolitan areas was four times higher compared to offline sales. Likewise, categories such as soft drinks, biscuits, packaged atta, and refined edible oils are also demonstrating notable volume growth.
To leverage this trend, Babar highlighted that FMCG brands and retailers are strategically investing in omnichannel presence to expand their market share.
“This includes optimizing their online presence, establishing robust online distribution networks, tailoring marketing strategies to cater to online shoppers, and ensuring seamless e-commerce experiences for consumers,” he said.
According to GfK, urban Indian consumers are increasingly relying on social media for their shopping requirements. Over 70% of smartphone and computer users now utilize their devices for online purchases. Additionally, more than half of urban consumers find shopping on social media enjoyable, largely due to targeted product recommendations from brands.
India is catching the attention of global players, as emphasized by Nykaa founder and CEO Falguni Nayar on Monday. She pointed out strong drivers such as the young, aspiring population, rising income levels, and resilient infrastructure and digital networks. Nayar conveyed her “optimism” and “confidence” about India’s future.
The self-made billionaire further remarked that recent incidents of corporate governance lapses in certain well-known startups will prompt investors to conduct more thorough scrutiny within the ecosystem. Additionally, they emphasized the importance of establishing a governance agenda early on in an entrepreneurial journey.
She stressed that compromising on governance due to a company’s growth trajectory or pursuit of size and scale is unjustifiable.
She added that Nykaa has maintained a strong stance on governance.
Nayar – the top boss at omnichannel beauty and fashion retailer Nykaa – said her entrepreneurial journey – which started at the age of almost 50 – has been “amazing” and advised aspiring entrepreneurs to be driven by their dreams and stay invested in their venture to create sustainable value over a long term.
Nayar sees a lot of headroom for growth in beauty, personal care and fashion business in India and is optimistic about the future.
“At one point we say it is a long-term opportunity. It is evident from how the income levels have lifted throughout our country, that growth and infrastructure in the country are visible…Young people are energised with what they can do,” she said adding government policies too have been supportive and acted as enablers for overall growth.
According to her, as all these essential ingredients – rising consumption, entrepreneurship, physical and digital infrastructure — come together, India is being noticed by global players.
“What Nykaa has seen is that most of the global beauty company CEOs have visited us in recent times… it has been amazing to see how the global CEOs and chairmen of top ten beauty companies have all been in our country wanting to do more. That is what is telling us that the world has an interest in working with India. And the future is bright,” she said.
She advised entrepreneurs to brace for the long run, and be energised by their dream of building a strong venture.
“I have always told entrepreneurs ‘love what you do’….the journeys have to be long…I have always said more than 10 years-plus…to be able to reach your destination…and create value that is sustainable,” she said.
Nayar said the rising incomes and economic growth augur well for the beauty and fashion business in India. She added that consumption in these categories will only rise, going forward.
“In beauty and fashion, the per capita consumption in India is so low that it has to be going up, multifold, with new gains in income that we are seeing. We have seen this journey in China too. India is today where China was 15-16 years ago. And it just went through a consumption boom in all categories, particularly the beauty and fashion segments. So we are very confident that it is going to be repeated in India,” she said.
Nayar who is attending the ongoing ‘Startup Mahakumbh’ said the mega-event is an “amazing showcase” of India’s innovation, to the younger generation.
“The organisers have been able to bring together young innovators from many industries and it will be a delight for visitors to see the kind of innovation sweeping India,” she said.
The start-up ecosystem in India has always focused on consumers and solving their needs, through innovation.
“That is how they brought solutions that allowed new industries to flourish…today we see that the size and scale of startups is immense. Most of the startup companies have millions of customers,” she said.
Entrepreneurship, she said, is about risk-taking and being resilient through the ups and downs of the entrepreneurial journey.
“So sometimes emotion is positive but the journey is mixed and you have to be able to go through ups and downs of the journey and have that energy each day to move forward and reach your destination,” she said.
On the cases of corporate governance and regulatory lapses in the Indian startup ecosystem, Nayar emphasised that governance has to be at the core of operations.
“I think the companies also will learn their lesson that there cannot be compromises on governance…compromising on governance, because you’re growing or because you’re going after size and scale…that is not a justification for not following the rules. If the industry has rules laid out, then the companies have to follow them,” she said.
Donear Industries is gearing up to launch 50 exclusive brand outlets (EBOs), with a particular focus on showcasing its newly introduced neo-stretch fabric, as revealed by Rajendra V. Agarwal, the company’s managing director.
Presently, within the Donear Group, three flagship companies drive operations: GBTL, OCM Private Ltd, and Donear Industries. These entities oversee five nationally acclaimed brands along with approximately 10-12 luxury brands, serving a wide-ranging consumer demographic throughout India.
“This year, we will be launching two new retail formats – specialty stores and multi-brand outlets. Specifically curated for menswear, the specialty stores will feature a comprehensive range of products crafted from our four-way stretch fabric.
“Apart from this, we will be establishing a chain of MBO stores under the Donear Group umbrella. These outlets will serve as one-stop destinations, showcasing collections ranging from premium luxury fabrics to general apparel,” he further added.
Over the next two years, the company plans to inaugurate 50 Exclusive Brand Outlets (EBOs) and Multi-Brand Outlets (MBOs), each spanning between 600 to 1,000 square feet, utilizing a franchise format.
“This is a very asset-light model. But by and large put together the investment by a franchisee as well as the company, the one-year turnover investment is there,” he asserted.
“We will be initially targeting the West Zone and North Zone as we have a strong footprint there,” he further added.
Under Donear Industries Ltd., the company currently manages more than 450 D’Cot stores, which operate under a value format. These stores specialize in offering casual trousers, shirts, and various accessories.
“D’Cot is an independent profitable retail business where we are clocking around INR 200 crore business,” he said.
For the company’s B2C segment, the year-on-year growth currently stands at 5-10 percent.
“We are clocking EBIDTA in the range of 9-11 per cent and post depreciation and interest, we have a surplus of 5-6 per cent. We have a total business turnover of around INR 1,700 crore. On average, we have a cashflow of around INR 70-80 crore every year, out of which INR 20-30 crore is required for existing business and we use INR 50 crore for our expansion projects,” he explained.
Additionally, within the next 2-3 years, the company intends to venture into the rugs and carpets business by establishing a greenfield facility in Jammu, covering an area of 10 acres.
“We would require more land, so we are in the process of that acquisition,” he concluded.
Beauty and lifestyle e-commerce platform Nykaa‘s CEO and founder, Falguni Nayar, has stated that by 2027, fashion, general merchandise, and groceries will collectively constitute two-thirds of the Indian e-commerce market. Nayar highlighted that presently, fashion ranks as the second-largest online category, trailing only electronics.
“By 2027, it is expected that fashion, grocery, and general merchandise will capture two-thirds of the e-commerce market- showing large potential and room to grow.”
Nayar said that in today’s phygital (physical plus digital) world- understanding consumer patterns, behaviours and preferences is paramount in order to solve consumer concerns.
“When you peel back the onion on why consumers shop across e-commerce marketplaces & quick commerce vs offline stores- their motivations become clear,” she said at Startup Mahakumbh 2024.
D2C (direct-to-customer) brands have the advantage of being quick-to-market and agile to adapt to changing trends – all while solving real consumer problems, she said.
“Of the new D2C brands over the last few years – 44 per cent have emerged in fashion & beauty,” she said.
As the world’s 5th largest economy, set to become the 3rd largest by 2030, she said the Indian economy is a canvas of boundless opportunities, and “the startup world is its vibrant palette, painting the landscape with bold strokes of creativity and ingenuity”.
The seasoned entrepreneur said that the country is witnessing an unprecedented surge in entrepreneurial activity, fueled by a generation of dreamers and doers who dare to challenge the status quo.
Nayar said, “We stand at the precipice of a new era in the Indian economy, one driven by innovation, resilience, and the indomitable spirit of entrepreneurship”.
“When you compare India to our counterparts, India is where China was 15 years ago. It is at this critical juncture where we notice a shift in consumption behavior. Given the S curve of the expected increase in per capita income from $2500 today to $5500 by 2030 – similar to China’s trends, we anticipate the BPC (beauty and personal care) per capita spend to go from $15 today to $50 by 2030. As a reference, Nykaa’s BPC spend is currently $80 vs the country’s average BPC spend of $15.”
Advising young startups and aspiring entrepreneurs, she said that one should remember that success is not measured solely by profit margins or market share. “It is measured by the lives you touch, the communities you uplift, and the legacy you leave behind. Let us embrace the spirit of innovation, collaboration, and inclusivity that defines our nation’s entrepreneurial landscape”.
Nykaa began with a dream to enable consumers to step into the spotlights of their lives, she added.
Malabar Investments, an India-focused investment fund, is in talks with early-stage backers of Mumbai-based Sugar Cosmetics, as reported by ET. They are discussing acquiring a stake in the company for INR 80-100 crore in a secondary transaction, according to sources familiar with the matter.
Should the deal be formalized, it is anticipated to value Sugar Cosmetics at around INR 2,900 crore (approximately $350 million). This transaction might involve partial exits from Sugar Cosmetics’ early investors, such as RB Investments and India Quotient, as well as some angel investors and family offices, according to the individuals mentioned previously.
“It is a part of a larger secondary sale exercise… Malabar Investments has held detailed discussions with the company and the investors to enter Sugar’s cap table,” one of the persons said.
In a secondary deal, the transaction occurs between existing and incoming investors, and the cash does not flow into the company itself.
Another source mentioned earlier expressed that the omnichannel beauty retailer is interested in attracting an investor like Malabar Investments, known for acquiring stakes in companies that would pursue an initial public offering (IPO) in the near future.
“Malabar Investments coming in could pave the way for other pre-IPO investors to also come in… the broader contours are being finalised,” the person said. “A term sheet has been prepared but the proportion of which investor gets what exit is still being decided.”
RB Investments, an early supporter of the company since 2017, currently holds over 10% stake in Sugar Cosmetics, as per Tracxn data. Meanwhile, India Quotient holds approximately 11% stake.
Founded by former McKinsey executive Sumeet Nagar, Malabar Investments sees this potential deal as an opportunity to expand its portfolio with another consumer company. The firm has a history of supporting consumer-focused startups like Boat, Bombay Shaving Company, and Ixigo. Malabar Investments primarily focuses on investing in small and mid-sized public companies.
Sugar Cosmetics, established by the wife-husband duo Vineeta Singh and Kaushik Mukherjee, commenced its journey as an online-first direct-to-consumer (D2C) beauty brand before branching out into offline channels.
According to Tracxn data, the couple retains a 25% stake in Sugar Cosmetics, with investment fund A91 Partners holding 20.8%. Early-stage venture firm Elevation Capital maintains an 11% stake in the company.
Among the company’s other investors are L Catterton, which spearheaded a $50 million funding round for Sugar in May 2022. Additionally, Anicut Capital and the family offices of Pawan Munjal from Hero Group and Ajay Shriram from DCM Shriram are also investors in the company.
Queries to Malabar Investments, RB Investments, and India Quotient remained unanswered.
A spokesperson for Sugar Cosmetics said, “In the recent past, we have received strong interest from domestic and global private equity funds for equity investments in the organisation.”
The person added, “However, given that the company turned profitable in December of last year, there is no requirement for primary investment at present. In light of this, a few funds have engaged in conversation to actively explore the possibility of joining our cap table as shareholders via a secondary stake purchase.”
The spokesperson also mentioned that although a secondary purchase offer has not been finalized yet, it is expected to be “at a price higher than the company’s previous primary raise price.”
In May 2022, Sugar Cosmetics secured primary funds from L Catterton at a valuation of INR 3,000 crore.
“We also look at this opportunity to provide a significantly meaningful exit to some of our earliest investors…,” the spokesperson said.
Sources mentioned that the company has also engaged in discussions regarding raising fresh capital; however, these plans have been postponed for the time being.
“Sugar has been one of the first movers in the youth-focused colour cosmetics category, and has created a hold in that segment but with newer players entering the market it is becoming very competitive,” a person aware of the deal talks said.
In FY23, the company recorded an 89% year-on-year growth in operating revenue, reaching INR 420 crore. However, it is anticipated that the growth rate will moderate to 35-40% in the current fiscal year.
“Sugar is also prioritising profits over revenue growth as it aims for an IPO in the next two to three years,” the person cited earlier said, requesting not to be named.
As per the same source, the company is projected to surpass INR 500 crore in revenue for FY24, while maintaining a negative EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of under 12%.
In recent years, Sugar has expanded its offerings by venturing into the low-cost cosmetics segment with its sub-brand, Sugar Pop, as well as introducing accessories and merchandise under the Sugar Merch Station brand. Additionally, in 2023, the company forged a joint venture with Bollywood actor Kareena Kapoor to introduce a skincare brand named Quench Botanics.
Third Wave Coffee, a Bengaluru-based coffee QSR chain, has appointed Rajat Luthra, the former CEO of KFC India and Nepal, as its new CEO.
The startup additionally announced that its current CEO, Sushant Goel, will transition from his current position to become a member of the board.
The management change will become effective from Q1 FY25.
Established in 2016 by Sushant Goel, Ayush Bathwal, and Anirudh Sharma, Third Wave Coffee asserts its presence with 100 outlets across India. The startup mentioned in the statement that Goel would continue to steer its strategic course and spearhead new initiatives.
Commenting on the development, Goel said, “The brand is ready to embark on its next leg of growth. Now, as I transition to the board, I am excited to continue contributing towards our vision and growth from a different vantage point.”
With nearly thirty years of experience in the FMCG and QSR sectors, Luthra brings a wealth of expertise to the table. Over the past decade, he has served as CEO of KFC in India and Nepal.
The rejig comes months after Third Wave Coffee raised $35 Mn in its Series C funding round from private equity firm Creaegis and existing investors, including WestBridge Capital and Udaan cofounder Sujeet Kumar.
In a joint statement, Westbridge Capital and Creaegis said, “As Sushant transitions to his new role on the board, we are confident that his guidance and strategic insights will continue to steer us towards even greater success… Together, under Sushant’s continued guidance and Rajat’s leadership, we are poised to embrace new opportunities and drive the company to new heights.”
Third Wave Coffee rivals brands such as Blue Tokai and Slay Coffee, while also contending with global giants like Starbucks and Tim Hortons.
As an FMCG brand, it also competes with various direct-to-consumer coffee brands, including Rage Coffee and Sleepy Owl.
Recently, Third Wave Coffee underwent a restructuring exercise, resulting in the layoff of around 10% of its workforce, despite having raised funds just months prior.
When seeking a nutritious and delightful breakfast option, Dosa stands out without fail. Crafted from a batter of fermented rice and urad dal, this iconic dish, known as Dosai in South Indian cuisine, is expertly cooked on a non-stick pan with just a touch of oil or ghee. Whether it’s the classic Paper Dosa or the innovative Paneer Dosa, the versatility of this dish has led to over a hundred enticing variations available today.
In a recent achievement, this dish secured a Guinness World Record when a colossal 123-foot-long Dosa was meticulously crafted in Bengaluru. This culinary feat was accomplished by a team of 75 chefs from MTR Foods in collaboration with Lormann Kitchen Equipment, marking a highlight of the company’s centenary year celebrations at the Bommansandra plant in Karnataka. Surpassing the previous record of 16.68 meters (54 ft 8.69 in), this monumental Dosa measured an impressive 37.5 meters in length.
Chef Regi Matthew, who acted as the head chef, also uploaded a video on his social media and captioned it as, “M thrilled to announce a historic milestone at MTR! Proudly celebrating the 100th year anniversary with a Guinness World Record title for the longest dosa, measuring an incredible 123.03 feet! This monumental achievement took place at the MTR Factory in Bengaluru on March 15th, 2024.”
Chef Matthew also thanked the M S Ramaiah College of Hotel Management, whose students took part in this event and wrote, “Here’s to a century of tradition, flavour, and breaking records!”
Crafted with their distinctive red rice batter, this Dosa stands as a testament to innovation and perseverance, marking the longest in its lineage. Months of meticulous effort and strategic planning preceded its creation. The dedicated team behind this culinary marvel comprised seasoned food experts and culinary school personnel, who endured approximately 110 unsuccessful trials before achieving this remarkable feat. Following the record-setting moment, the colossal Dosa was generously shared among local school students, residents in the vicinity, and MTR employees. This ambitious endeavor was meticulously executed under the expert guidance of MTR’s Cuisine Center of Excellence.
Zomato CEO Deepinder Goyal on Monday advised entrepreneurs to be led by passion and drive while building the company of their dreams, and cautioned that starting a venture with the sole desire of making money won’t work and may lead to “bad governance calls”.
Speaking at the Startup Mahakumbh event, Goyal spoke candidly about how his own company prefers to be always paranoid to stay ahead. Complacency should not kick at any point of time, he asserted.
“I see a lot of founders starting a lot of companies, and I ask them why did you start this company, and the answer is ‘I want to make a lot of more money’…I don’t think that works because that leads to bad governance calls… that’s not the purpose with which you should start a company,” he said while addressing a packed hall.
He advised aspiring and new entrepreneurs, “You should be so passionate about something, you should be willing to risk your life for it, only then you are able to build a company of your dreams.”
“That’s the only piece of advice I have… do it with passion, don’t do it for money,” he said during a fireside chat with Info Edge founder Sanjeev Bikhchandani.
Bikhchandani advised entrepreneurs and startups to be frugal and hands-on, and always connected to the market and consumers.
Goyal emphasised that continuous innovation is “must” for businesses, as no business model can survive for more than a decade or two without innovation.
Further, he said that anyone looking to start a company and turn an entrepreneur with an objective of being “comfortable” and “happy” would be making a “wrong choice”.
“You have to learn to handle the stress to succeed. The only way to lose is to quit…if you can survive, you’ll win,” he advocated.
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