LT Foods Ltd on Thursday reported a 52.07% rise in consolidated net profit, amounting to INR 152.64 crore for the third quarter ending December 2023.
According to a regulatory filing by LT Foods, the owner of basmati rice brands Daawat and Royal, it reported a net profit of INR 100.37 crore in the corresponding period of the previous year.
During the quarter under review, revenue from operations increased by 9.17%, reaching INR 1,941.72 crore, compared to INR 1,778.47 crore in the corresponding period last year.
The company’s total expenses rose by 5.46%, reaching INR 1,757.67 crore.
The total revenue stood at INR 1,949.68 crore, reflecting a growth of 8.8 percent compared to the same quarter of the previous year.
Meanwhile, in a meeting held on Thursday, the board of LT Foods also granted approval for the issuance and listing of commercial papers amounting to INR 500 crore.
On Thursday, LT Foods’ shares concluded at INR 196.05 apiece on the BSE, reflecting a 4.01% decline from the previous closing price.
Swiggy, a leading on-demand convenience platform, is achieving a significant milestone in its nationwide expansion. Coinciding with India’s 75th Republic Day celebrations, Swiggy is now debuting its food delivery services in the island city of Agatti in Lakshadweep.
Being the first online food delivery platform to enter Lakshadweep, Swiggy will be introducing the convenience of food delivery to the locals while also ensuring tourists can experience food from the best local restaurants just the way they do back in their hometowns.
Swiggy’s entry into Agatti, a highly sought-after tourist destination, not only opens up new opportunities for local businesses but also provides visitors with the chance to savor the island’s unique flavors. Renowned for its exquisite tuna and seafood dishes, Agatti is poised to become a culinary haven easily accessible through Swiggy. The island boasts vibrant beachside shacks offering delectable cuisine, making it an unparalleled delight for food enthusiasts. Swiggy’s collaboration with local favorites and the introduction of Lakshadweep’s irresistible seafood ensure a smooth and enjoyable food ordering experience for both island residents and tourists.
“Swiggy has consistently strived to deliver unmatched convenience to its users. This expansion marks a significant milestone for us, as we become the first online food delivery service to make a foray in Lakshadweep. We are excited to partner with local restaurants and support them in expanding their businesses, while also creating income opportunities for the local youth,” said Sidharth Bhakoo, National Business Head, Food Marketplace, Swiggy.
Agatti Island goes beyond its gastronomic pleasures, radiating the hospitality of its amiable residents and earning acclaim as a top spot for scuba enthusiasts seeking an immersive experience. Recognizing the distinctive ecological setting of Lakshadweep, Swiggy has taken a deliberate stride toward environmentally friendly practices in the area, ensuring that all deliveries are executed solely through bicycles. This initiative not only ensures prompt and effective delivery but also contributes to preserving the ecological equilibrium of the region.
First-time Swiggy users in Agatti can relish a special launch offer, including a 50% discount, up to INR 100, and free delivery on their first orders.
Expressing his delight, Fazal Rahman, Swiggy Restaurant Partner and Head of City Hotel Lakshadweep, said, “We are thrilled to team up with Swiggy as they launch in Lakshadweep. This partnership is a fantastic opportunity for us to showcase the unique flavours of our island to a broader consumers. With Swiggy’s expansion, we are looking forward to reaching more customers, tourists, increasing our sales, and gaining national recognition for our culinary offerings than ever before.”
Mohammed Hamlersha, Swiggy Restaurant Partner and Head of AFC Lakshadweep, expressed enthusiasm, stating, “We eagerly embrace a culinary revolution with the introduction of Swiggy in Agatti Island, delivering a diverse array of flavors to local doorsteps. I am confident that it will enhance our delivery experience, providing the convenience of Swiggy where every bite becomes a celebration!”
With a phased expansion plan targeting key islands among the 36 that constitute Lakshadweep, Swiggy aims to empower local culinary talents and enhance experiences for residents and visitors alike.
Alpha Wave-backed B2Cecommerce startup DealShare’s net loss crossed the INR 500 Crore mark in the financial year ending March 31, 2023. Experiencing a 14% rise, the startup’s loss amounted to INR 502.7 Crore in the financial year 2022-23 (FY23), up from INR 440.7 Crore in the preceding fiscal year.
Established in 2018 by Sourjyendu Medda, Vineet Rao, Sankar Bora, and Rajat Shikhar, DealShare operates as a marketplace for the purchase of groceries and vegetables. However, the startup has been facing a financial crunch for some time now.
The company’s operating revenue witnessed a marginal 5% growth, reaching INR 1,963.5 Cr in FY23, up from INR 1,863.5 Cr in the previous fiscal year.
The startup generates its main source of revenue by selling grocery products to customers, obtaining them from wholesalers.
Including other income, DealShare’s total revenue for the year under review grew to INR 2,054.9 Cr from INR 1,899.5 Cr in FY22.
DealShare’s Investment Focus: Procurement and Expenses
In the fiscal year 2022-23, DealShare experienced a surge in total expenditure, surpassing the growth in its operating revenue. The overall expenditure rose by 9%, reaching INR 2,577.6 Crore, compared to INR 2,340.3 Crore in the preceding fiscal year.
As a marketplace, the startup primarily invested in acquiring finished goods, with its procurement expenses increasing by 6% to INR 2,079.8 Cr in FY23 compared to INR 1,969.8 Cr in the preceding fiscal year.
Employee expenses witnessed an 85% increase, reaching INR 219.2 Cr in the reviewed year. In FY22, the startup allocated INR 118.3 Cr towards employee benefit expenses. Notably, the company downsized around 100 employees, constituting 6% of its workforce, last year. Subsequently, in September of the last year, an additional 130 employees were laid off, attributed to a change in the business model.
In FY23, DealShare allocated INR 106.6 Cr for logistics and transportation costs, mirroring its expenditure in FY22.
Employee Layoffs and Operational Changes at DealShare
DealShare has been making headlines for unfavorable reasons over the past year or so, ranging from layoffs to the departure of cofounders. Despite having secured $390 Mn in funding to date and achieving a valuation of $2.7 Bn, the startup is currently grappling with a capital shortage, a consequence of the prevailing funding challenges and its significant cash burn.
Consequently, the company has let go of more than 220 employees in two separate rounds of layoffs. Additionally, last year, the startup ceased its operations in Maharashtra and certain areas of Hyderabad.
The unicorn also decided to close down its B2B business, focusing solely on the B2C vertical.
Amid these developments, it also saw three of its co-founders – Sourjyendu Medda, Vineet Rao, and Sankar Bora – step down from their individual roles. Now, Rajat Shikhar is the only co-founder associated with DealShare.
IPO-bound food and grocery delivery major Swiggy has initiated another round of layoffs to streamline costs and pursue profitability, according to sources in the know.
According to a report from ET, Swiggy is planning to reduce its workforce by 6%, impacting 350-400 employees across teams such as technology, call center, and corporate roles.
The sources informed that the layoffs will take place gradually in the upcoming weeks, in accordance with ongoing discussions and instructions provided to senior leaders within the company.
While Swiggy’s food-delivery business is profitable, insiders reveal that the company has been burning cash on its grocery unit, Instamart. In an effort to enhance its financial performance before entering the public markets, the Bengaluru-based company is actively optimizing various aspects to reduce costs.
Swiggy is now part of a growing list of prominent internet companies, such as Paytm in digital payments and Flipkart in ecommerce, that have reorganized their teams to reduce expenses in response to an extended downturn in the technology sector.
Zomato, a major player in the foodtech sector, has received approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator, effective January 24, 2024.
In an exchange filing on Thursday (January 25), Zomato said, “we wish to inform that ZPPL (Zomato Payments Private Limited) has been granted certificate of authorisation dated January 24, 2024, from the Reserve Bank of India (“RBI”) to operate as an ‘Online Payment Aggregator’ in India.”
In 2021, the foodtech major announced the incorporation of ZPPL, a wholly owned subsidiary designated to operate as a payment aggregator and issuer of prepaid payment instruments.
Zomato Payments was established with an initial subscription of 10,000 equity shares, each valued at INR 10, aggregating to INR 1 Lakh. The company was incorporated with an authorized share capital of INR 20 Cr.
The company, actively engaging in a series of innovative experiments, is set to benefit from this development as it expands its range of offerings. Last year, Zomato introduced its proprietary Unified Payments Interface (UPI) service for both peer-to-peer (P2P) and merchant transactions. Nevertheless, around July of the same year, reports surfaced indicating that the company had temporarily halted the onboarding of new users onto the Zomato UPI platform.
In the meantime, Zomato has rolled out several additional features and services in an effort to bolster its revenue.
While Zomato has seen success in boosting its revenue and take rate for its food delivery business through measures like the introduction of a platform fee, the company is also reinforcing its commitment to the quick commerce vertical Blinkit. Notably, Zomato made a strategic move into the logistics space last year, unveiling a swift parcel delivery service for merchants through the introduction of a new app called Xtreme.
Building on this momentum, Zomato attained profitability in the current fiscal year and recorded two consecutive quarters of positive net income. The company’s stocks experienced a remarkable surge, with over a 100% increase in value in 2023.
This year, the company’s shares have seen a 9.9% gain, concluding the last trading session at INR 136 on the BSE.
Vedant Fashions, the proprietor of Manyavar, reported a 4.8% surge in its consolidated net profit for the third quarter (Q3) concluding on December 31, 2023. As per a regulatory filing, the company disclosed a consolidated net profit of INR 157.71 crore, marking an increase from INR 150.35 crore reported in the same period of the preceding fiscal year.
As per the BSE filing, the revenue from operations in Q3 FY24 rose to INR 474.45 crore, compared to INR 441.42 crore in Q3 FY23.
The company’s total expenses in Q3 FY24 increased to INR 278.02 crore, up from INR 249.47 crore in the same quarter of the preceding fiscal year.
Vedant Fashions Limited is primarily engaged in the production, trading, and retail of ready-to-wear Indian wedding and festive attire for men, women, and children. The company operates under various brand names, including Manyavar, Mohey, Mebaz, Twamev, and Manthan.
Furthermore, Vedant Fashions currently holds complete ownership of Manyavar Creations Private Limited (MCPL), a subsidiary dedicated to the trade of ready-to-wear Indian wedding and celebration attire, along with associated accessories for men, women, and children.
Chai Sutta Bar, a popular tea chain, has announced the introduction of its new tea brand, Maatea. Expanding its horizons, the brand is set to provide tea enthusiasts with a unique experience of savoring homemade tea.
The company has started its first venture in Indore, Madhya Pradesh, with plans for gradual expansion into Rajasthan and Chhattisgarh. Maatea places a strong emphasis on the purity and quality of its tea leaves, ensuring a processing method that excludes any incorporation of special ingredients or additives. It distinguishes itself from competitors by prioritizing the provision of natural, high-quality tea at an affordable price.
Reflecting on the launch, Anand Nayak, Co-Founder, Chai Sutta Bar, said, “We observed a significant demand for the taste of homemade tea, and that insight led us to the inception of Maatea. Our goal is to provide a unique and high-quality tea experience that stands out in the market. With Maatea, we aim to elevate the tea-drinking experience by offering natural, high-quality tea without the unnecessary additives and colors found in other brands.”
Anubhav Dubey, Co-Founder, Chai Sutta Bar, expressed his enthusiasm, stating, “With over 500 orders and positive customer feedback, Maatea has swiftly become the preferred choice for tea lovers. Our dedication to purity and quality sets us apart; each tea leaf undergoes processing without the addition of special ingredients or additives.”
“Quality is our top priority when it comes to tea leaves. Our modern packaging unit, equipped with iron and fiber segregators, ensures the highest standards of quality. The zero-human interface in our packaging process maintains the integrity of the tea leaves, providing customers with an unmatched tea-drinking experience,” added, Rahul Patidar, Director, Chai Sutta Bar.
Maatea complies with FDA standards, solidifying its status as an FDA-approved chai brand. Chai Sutta Bar expressed their confidence in the brand’s potential to expand globally, stating, “With the products we’ve developed since day one, we have the potential to export them to the international market.”
The brand plans to extend the reach of its premium tea to a larger audience by presenting it at an attractive price point of INR 450.
The Indian hotel-booking firm, backed by Softbank Group Corp., is reportedly in the process of securing funds to fuel its expansion efforts and alleviate debt. Individuals familiar with the matter, who preferred to remain anonymous as the details are not public, revealed that Avendus Capital Pvt. is guiding the company in its fundraising endeavors.
Founded by Ritesh Agarwal, Oyo filed for an initial public offering for the second time in March, reducing the target amount to be raised by about two-thirds. Despite the travel market’s improvement from the pandemic-era trough, Oyo, valued around $10 billion as India’s Airbnb, is yet to decide on the IPO’s timing.
Talks are still ongoing, and Khazanah can choose not to invest, as mentioned by insiders. Concurrently, Oyo is in discussions with other investors for the fundraise, as indicated by the same sources. Oyo reported a net loss of 13 billion rupees ($156 million) for the twelve months ending March 2023.
Khazanah and Oyo representatives did not reply to emails requesting comments. Likewise, a spokesperson for Avendus opted not to provide a comment.
Khazanah has been increasing its investment activities in India, focusing on banking companies such as logistics provider Xpressbees and the fast-food chain Wow! Momos.
Edrio, the athleisure wear brand that is a part of the North Indian textile conglomerate Oswal Group, has unveiled its first physical store in the country, marking its debut in the offline market, as shared by a company official on social media.
Located at Nexus Mall in Amritsar, Punjab, the store will showcase the brand’s latest athleisure wear collections.
“Today is the day we’ve all been waiting for – the grand launch of our first Edrio retail store at the fabulous Nexus Mall, Amritsar. The excitement was contagious, and it truly warmed my heart to witness so many of you diving into the Edrio spirit,” said Rakhi Oswal, director of Edrio in a LinkedIn post.
“The collections are handpicked, and each outfit is a reflection of your unique style- functional yet trendy. Behind this milestone, a huge shout out to the incredible team that made it happen,” she added.
Established in 2021, the lifestyle brand operates as a direct-to-consumer (D2C) entity, retailing through its website and various other e-commerce platforms.
Oswal Group, established in 2003, traces its origins back to its parent company, the 70-year-old Vardhman Group. The company specializes in the manufacturing of yarns, fabrics, garments, and dyeing. In 2014, Oswal Group also diversified its interests by venturing into the real estate sector.
The recently acquired funds will be utilized for various purposes, such as advancing the supply chain, expanding the team, and integrating technology across different sectors, as stated by Sumit Jasoria, the Co-Founder and CEO of Newme.
Additionally, a part of the funds will be dedicated to hiring more leadership roles in order to scale up operations.
Established in 2022 by Jasoria, Shivam Tripathi, Vinod Naik, and Himanshu Chaudhary, Newme provides fashion wear for women aged 16-24, offering a range of products including tops, bottoms, dresses, and more.
Jasoria emphasized that the primary focus of the startup is to leverage technology for business scalability. Additionally, the goal is to enhance the offline presence for widespread expansion throughout India.
“We want to launch more categories for women, and once we boost our supply chain in India, we will start working on offering fashion solutions for GenZ men as well. However, we will look at it only after 2-3 years” he added.
The startup competes with brands such as Absolute Brands, Snitch, Styched, Virgio, and others.
Among its rivals, Absolute Brands successfully raised $2.5 million in its recent seed funding round. The funding will be utilized to enhance its offline retail presence, particularly for its initial brand, Big Hello, and to invest in technological innovation for the development of an omnichannel presence.
Earlier, in December last year, Snitch secured INR 110 crore in a Series A funding round to scale up its talent and technology, as well as to build an offline retail strategy.
According to a report, the fashion and apparel segment is projected to reach a market size of $112 billion by 2030, with a 24% Compound Annual Growth Rate (CAGR).
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