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Sovereign investors from Kuwait and Singapore drive Zomato’s stock rally with increased stakes

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Zomato
Zomato

While Tiger Global, Ant Financial, and SoftBank have divested their holdings in Zomato, large sovereign investors from regions like Kuwait and Singapore have increased their stakes in the food delivery company, resulting in a surge of up to 160% in its stock price over the past year.

In August, the New York-based Tiger Global sold its remaining 1.44% stake in Zomato, making a full exit from the company. Masayoshi Son-led SoftBank followed in December, selling off its remaining stake in the Gurugram-based firm.

The Japanese investor divested its entire stake in Zomato for approximately $340 million, surpassing the $300 million investment it initially made in Blinkit, a company later acquired by Zomato.

Continue Exploring: SoftBank sells off 9.35 Crore shares of Zomato in block deal worth INR 1,127 Crore

In August 2022, Zomato issued new equity shares to the selling shareholders of the quick-commerce platform Blinkit as part of the acquisition deal. Subsequent to the transaction, Zomato negotiated a 12-month lock-in period for these shares, surpassing the statutory requirement of six months. Tiger Global and SoftBank were among the investors who acquired stakes in Zomato through their holdings in Blinkit.

Meanwhile, during the September quarter, Kuwait Investment Authority acquired 88 million shares in Zomato, and later augmented its stake by purchasing an additional 6.7 million shares in the October-December quarter, as per data obtained from the company’s shareholding pattern on the BSE.

Similarly, the sovereign wealth fund of the city-state, Temasek, already owned 169 million shares, representing around a 1.9% stake in Zomato.

Nevertheless, the Canada Pension Plan Investment Board (CPPIB) slightly decreased its stake in Zomato over the recent quarters.

Global brokerages have adjusted their investment outlook on Zomato, anticipating that the company’s upcoming phase of growth will stem from Blinkit.

“We believe food value is well captured in the current stock price, and further upside will largely be driven by the quick-commerce business. We now also expect profitability improvement to be gradual in the near-term and hence market focus will be on quick-commerce growth,” HSBC Global Research said in a note.

On January 5, it was reported that Zomato chose to maintain a separation between Blinkit and its food-delivery business, temporarily halting the integration with the main platform. The focus has shifted to developing the two verticals as distinct brands.

Continue Exploring: Zomato halts Blinkit integration, prioritizes development of super brands

Alongside sovereign funds, domestic mutual funds have augmented their holdings in Zomato, aligning with the prevailing trend of this investor category bolstering investments in emerging companies. As of December 31, mutual funds raised their ownership in the company from 10.56% to 12.34% over the preceding three months and from 5.72% by December 31, 2022.

Mutual funds have extended their investments to encompass other new-age firms like PB Fintech, the parent company of Policybazaar, Delhivery, Paytm, and Nykaa. Observers of the market attribute this shift to the 2022 correction witnessed in the stocks of these enterprises, coupled with divestments by foreign investors.

As per a report from ET on January 13, domestic investors have increased their ownership in One 97 Communications Ltd, the parent company of the financial services player Paytm, while SoftBank, one of its major investors, reduced its stake. Mutual funds held 4.99% in Paytm as of December 31, rising from 2.79% in the previous quarter. Concurrently, domestic retail investors in the payments company also elevated their stake to 12.85%, up from 8.73%.

PB Fintech, the parent company of Policybazaar that experienced a complete exit from SoftBank, witnessed heightened attention from mutual funds. As of December 31, domestic mutual funds escalated their holdings in PB Fintech to 10.28%, compared to 7.83% at the end of September.

By divesting its entire investment in PB Fintech for approximately $650 million, SoftBank achieved a remarkable 3.25-times return on its initial investment of around $200 million.

Similarly, mutual funds have amassed shares in the new-age logistics firm Delhivery and the omnichannel beauty and personal care retailer Nykaa, augmenting their stakes in the December quarter.

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US online grocery sales slip in 2023, marking a 1.2% decline amidst reduced order frequency and economic challenges

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online grocery
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In 2023, the US online grocery market experienced a downturn, as indicated by a new report attributing the decline to a reduction in the frequency of orders placed by online shoppers.

Bricks Meets Click, a US consultancy that focuses on online shopping, and e-commerce grocery business Mercatus reported the online grocery market in the US finished 2023 with $95.8bn in total sales, down 1.2% compared to 2022.

The survey tracks the “order frequency among monthly active users,” and according to the researchers, this contracted for the second consecutive year in 2023. The average number of monthly online grocery orders completed declined by 6% compared to 2022, marking a continuation of the 4% decrease observed in the previous year.

In contrast, the unadjusted average order value (AOV) experienced a 3% increase overall in 2023 compared to the previous year, unaffected by price inflation. Each delivery method demonstrated year-on-year growth: delivery AOV saw a 3% rise, pickup increased by 2.6%, and “ship-to-home” experienced a 1.7% increase compared to 2022.

“These annual results show that 2023 was very challenging for grocery retailing as higher prices chipped away at household purchasing power even though inflation has slowed considerably since its peak in 2022,” said David Bishop, partner at Brick Meets Click.

“Despite the challenges, pickup continues to prove its appeal to shoppers, even without the benefits of expanded availability and/or aggressive promotions that aided delivery in 2023.”

Regarding the share of wallet, the online channel’s portion of overall grocery expenditure experienced a decline of 18 basis points in 2023, reaching 12.5%.

Excluding “ship-to-home”, which most US supermarkets do not offer, the combined pickup and delivery segments fared slightly better, falling six basis points compared to 2022 and finishing the year with a 10.4% share of total grocery spending.

Mark Fairhurst, global chief growth officer at Mercatus, said, “As Walmart grabs market share through its price leadership and omnichannel strategies, regional grocers find themselves in a precarious position.

“To remain competitive, they must intensify their efforts in improving customer engagement, offering tailored personalisation and building loyalty. This strategic shift is not just about weathering the storm of price inflation and intense competition, but about thriving in it.”

Continue Exploring: Grocery retailer The Organic World to expand nationwide with 100 stores by 2025

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Delhi’s iconic restaurants engage in legal tussle over ‘Butter Chicken’ and ‘Dal Makhani’ origins

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Moti Mahal and Daryaganj

The legal dispute for the culinary supremacy in creating renowned Indian delicacies like Butter Chicken and Dal Makhani has reached the Delhi High Court. Moti Mahal and Daryaganj restaurants are presently entangled in a legal conflict regarding the appropriation of the tagline “Pioneers of Butter Chicken and Dal Makhani.”

Moti Mahal has filed a lawsuit against the proprietors of Daryaganj restaurant, claiming that they are falsely implying a link between the two establishments, thereby misleading the public.

As per Bar and Bench, the lawsuit argues that Daryaganj is inaccurately establishing an affiliation with Moti Mahal, the initial branch of which was founded in Daryaganj.

Justice Sanjeev Narula, presiding over the case, has directed the proprietors of Daryaganj restaurant to submit a written response within a month.

For years, both restaurant chains have claimed that they invented Butter Chicken and Dal Makhani.

Moti Mahal attributes the genesis of these dishes to their founder Kundal Lal Gujral, contending that the global recognition of these culinary delights within Indian cuisine is a testament to Mr. Gujral’s gastronomic expertise.

However, Daryaganj contends that Kundal Lal Jaggi came up with the dishes, rejecting the lawsuit as “baseless.”

According to Bar and Bench, the lawyer representing Daryaganj argued that the original Moti Mahal restaurant was a joint venture between the predecessors of both parties—Gujral of Moti Mahal and Jaggi of Daryaganj—in Peshawar, Pakistan.

The court is scheduled to revisit the matter on May 29. Until then, the lively debate over the “inventor of butter chicken and dal makhani” will continue.

Continue Exploring: Indian cuisine ranked 11th best in the world by TasteAtlas

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Akshayakalpa invests INR 15 Crore to establish state-of-the-art dairy ecosystem in Tamil Nadu

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Akshayakalpa Organic

Akshayakalpa Farms & Foods Pvt Ltd, operating under the name Akshayakalpa Organic, has invested INR 15 crore to create a new milk sourcing ecosystem near Chengalpattu in Tamil Nadu. This strategic initiative is anticipated to facilitate the company’s expansion into the rapidly growing organic food market in Chennai, reinforcing its position as an organic dairy producer and milk product manufacturer.

The new sourcing ecosystem encompasses a network of 100 organic farmers, chilling centers of varying capacities, and a recently established milk processing center. Additionally, it features extensive Research and Development (R&D) operations, including model farming units and associated facilities, situated in Pooriyampakkam village near Chengalpattu. Significantly, this marks the company’s second processing facility.

“We have been working for the past four years to develop the ecosystem here in Tamil Nadu. We have onboarded farmers from the region through various engagement initiatives during these years. We started the construction of the processing factory by the end of 2022. It is now ready with a capacity to process 40,000 litres of milk every day,” said Shashi Kumar, CEO & Co-Founder of Akshayakalpa Farms & Foods.

Identifying approximately 100 farmers, Akshayakalpa Organic actively collaborated with them over a period of 2-3 years to establish a robust organic production system. The company played a pivotal role in farm design, providing comprehensive financial support, veterinary services, and related assistance. Each participating farmer is responsible for producing milk both in the morning and evening, which is then stored in the dedicated chilling facility. The newly constructed processing center will handle the chilled milk, producing a range of dairy products, including milk, curd, and paneer, to meet the demands of the Chennai market.

Continue Exploring: Akshayakalpa Organic raises $12 Million in funding round led by A91 Partners

At present, the company is sourcing approximately 4,000 liters per day from the group of around 100 farmers.

“In the next one year, we would like to increase the production capacity to 15,000-20,000 litres a day. We plan to achieve this by significantly increasing the number of farmers as also making the existing farms bigger,” said Kumar.

The local facility, equipped with the new sourcing system and processing unit, is poised to fulfill the entire demand for Chennai. Previously, the company catered to the Chennai market from its initial unit located in Tiptur within the Tumkur region of Karnataka.

According to him, the current sales volume in Chennai stands at approximately 5,000 liters, solidifying the company’s position as the primary supplier of organic milk in the city. Additionally, he emphasized that on a national scale, they proudly hold the title of the largest organic milk producer in India, boasting a daily production of 90,000 liters from their cluster in Tiptur.

The company is presently concentrating its efforts on three key markets: South Chennai, Bengaluru, and Hyderabad, boasting a customer base exceeding 60,000. Additionally, it extends its reach by selling long-shelf products in Pune, Mumbai, and the National Capital Region.

In the fiscal year 2023, the company recorded a revenue of INR 195 crore and anticipates concluding the current fiscal year with a revenue of approximately INR 300 crore.

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Wendy’s appoints former PepsiCo executive Kirk Tanner as new CEO

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Kirk Tanner
Kirk Tanner

Wendy’s has appointed Kirk Tanner as its President and CEO. Tanner, who previously held the position of CEO for North American Beverages at PepsiCo Inc., brings over three decades of expertise in beverages, snacks, and foodservice, as stated in a press release.

Tanner assumes the role previously held by Todd Penegor, who is departing Wendy’s after more than a decade in senior positions. Additionally, Tanner will be joining Wendy’s board of directors.

During his tenure at PepsiCo, Tanner managed the $26-plus billion business unit, representing approximately 30% of the brand’s total business. Before this role, Tanner was responsible for overseeing PepsiCo’s global foodservice division.

“We are thrilled to welcome an executive of Kirk’s caliber to the Wendy’s team,” Nelson Peltz, chairman of the Wendy’s board, said in the press release. “Kirk is a proven operational leader whose customer-centric mindset and broad experience positioning and growing some of the most well-known global brands make him the ideal candidate to lead Wendy’s into its next phase of growth and expansion.”

“I am honored to have the opportunity to lead this iconic brand at such a pivotal time in the industry,” Tanner added. “I am energized by the future potential and expansion opportunities for the business. I look forward to working with the talented Wendy’s team and franchisees to drive future growth and success.”

Wendy’s, along with its franchisees, manages a global network of 7,000 restaurants.

Continue Exploring: Rebel Foods unveils Wendy’s first airport dine-in store in Bengaluru

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Craft beer producer Sprecher Brewing makes bold move into energy drinks with Juvee acquisition

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Juvee

Sprecher Brewing Co, a US-based producer of craft beer and soda, has expanded its product portfolio by entering the energy drinks market through the acquisition of Juvee from the gaming and lifestyle brand, 100 Thieves.

Launched in 2022 by 100 Thieves’ CEO Matthew Haag and co-founder Sam Keene, Juvee was crafted with the aim of boosting energy, elevating mood, increasing focus, and improving overall well-being.

The current staff members of Juvee will integrate into the Sprecher team, with Sam Keene assuming the position of Chief Marketing Officer. In this role, Keene will be responsible for overseeing the complete spectrum of Sprecher beverages, encompassing both craft beers and craft sodas.

As a result of the acquisition, Juvee’s production, bottling, and warehousing operations will be moved to Sprecher’s headquarters in Greater Milwaukee, Wisconsin, USA.

Sprecher Brewing’s CEO, Sharad Chadha, said, “This is another exciting step for our company, which started in 1985 as a craft brewery, expanded into an award-winning soda producer, and since 2020, has added five other soda brands and an all-natural category”.

“It continues our company’s aggressive growth strategy. The energy drink category is hugely popular, and when we connected with Juvee’s co-founders, it quickly became apparent that this was the perfect brand for us to enter into this competitive space.”

Keene added, “We’ve experienced incredible growth since Juvee’s launch, and this acquisition will help the brand reach more of our passionate consumers while also introducing them to the full family of Sprecher beverages. I’m thrilled for Juvee to find a new home at Sprecher and ready to bring the same energy to the company’s marketing team.”

Terms of the transaction were not disclosed.

Continue Exploring: Radiohead Brands makes a bold move into energy drinks market with Hustle

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JioMart reports 3X surge in seller base, expands non-grocery offerings, and achieves record revenue in Q3

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JioMart

JioMart, the e-commerce platform of Reliance Retail, reported a threefold increase in its seller base in the December quarter results posted on Friday.

Expanding beyond its primary focus on groceries, JioMart is actively striving to increase the presence of non-grocery categories on its platform.

Dinesh Taluja, CFO and corporate development, Reliance Retail in the earnings call on Friday said, “We are also focusing on increasing the share of non-grocery categories.”

He mentioned that JioMart has experienced notable success in categories like fashion, lifestyle, and electronics. Although these categories make a relatively modest contribution to the overall Gross Merchandise Value (GMV), their performance has been exceptional, and consumer adoption of these categories on the platform is steadily rising.

Furthermore, Taluja highlighted that JioMart observed a significant increase in order values for groceries, describing it as a ‘substantial and positive uptick.’

In its ongoing efforts to expand its catalog, the e-commerce platform announced an 84% year-over-year increase in its option count during the September to December quarter.

For the third quarter, Reliance Retail reported a record-high revenue of INR 83,063 crore, reflecting a significant 22.8% year-over-year increase. The net profit for the quarter stood at INR 3,165 crore for the retail giant.

Continue Exploring: JioMart announces MS Dhoni as brand ambassador, sets stage for grand festive campaign

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Following CCPA notice, Amazon removes ‘Shri Ram Mandir Ayodhya Prasad’ sweets from listings

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Shri Ram Mandir Ayodhya Prasad

After getting a notice from the Central Consumer Protection Authority (CCPA), Amazon has removed sweets sold under the name ‘Shri Ram Mandir Ayodhya Prasad’.

The products include ‘Ghee Bundi Ladoo‘, ‘Khoya Khobi Ladoo’, ‘Raghupati Ghee Ladoo’, and ‘Desi Cow Milk Peda’, reports Moneycontrol.

Continue Exploring: CCPA issues notice to Amazon for selling sweets as ‘Prasad’ from Ayodhya Ram Temple

“We have received a communication from the Central Consumer Protection Authority regarding misleading product claims by certain seller(s) and investigating them for violations. In the interim, we are taking appropriate action against such listings as per our policies,” an Amazon spokesperson was quoted as saying.

The company further emphasized that Amazon.in operates as a third-party marketplace, wherein sellers, and not Amazon, are responsible for listing and selling products to customers in compliance with Indian laws and Amazon’s policies.

The Central Consumer Protection Authority (CCPA) issued a notice, stipulating that Amazon provide a response within seven days regarding the retail of sweets on amazon.in under the label ‘Shri Ram Mandir Ayodhya Prasad’.

If the company fail to reply within the allotted time, the Consumer Protection Act of 2019 will trigger mandatory actions, the report mentioned.

On January 22, the ‘Pran Pratishtha’ ceremony of Ram Lalla will take place in the newly-built temple. Idols of elephants, lions, Lord Hanuman and Garuda (‘vahana’ of Lord Vishnu), have been installed at the entrance gate of the Ram Temple.

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From Nihang Singhs to ISKCON: Diverse community kitchens unite in Ayodhya ahead of Ram Temple event

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Langar

Community kitchens, ranging from those organized by Nihang Singhs and ISKCON to temple trusts across the country and local residents in Ayodhya, are actively providing ‘langar’ meals to devotees in anticipation of the upcoming consecration ceremony of the Ram Temple.

Devotees heading to the holy city can relish freshly cooked hot meals at various community kitchens, operational at every nook and corner of the city. Khichdi, aloo puri, kadhi chawal, achar, and papad constitute the common menu at these langars, while the supply of hot tea offers respite to pilgrims amid the bone-chilling cold.

Continue Exploring: Ayodhya set to welcome India’s first veg-only 7-star hotel

On Friday, a group of Nihang Sikhs, led by Baba Harjit Singh Rasulpur, arrived in Ayodhya to conduct a two-month ‘Langar sewa’ at the Char Dham Mutt for the pilgrims arriving here to pay obeisance to Ram Lalla in the newly-constructed temple.

“I am the eighth generation of Baba Fakir Singh and want to highlight the sacrifices of Nihangs among Ram devotees,” said Harjit Singh, a member of the Nihang Sikh group.

“This langar is a tribute to the struggle launched by our ancestors for the construction of the Ram temple in Ayodhya. The service will go on for two months,” Harjit said. The Mahavir Temple trust of Patna is running the ‘Ram ki Rasoi’ community kitchen.

“Over 10,000 devotees are fed hot meals here in a day, the number is expected to jump when more people will visit the temple once it is opened for public after the Pran Pratistha ceremony. The expenses are funded by the Mahavir temple trust and people from across the country have been sending donations, both monetary as well as raw material,” a ‘sevadar’ at the kitchen said.

ISKCON is welcoming pilgrims coming to Ayodhya with lunch prasad along with distribution of Vedic literature.

“ISKCON welcomes all the pilgrims coming to Ayodhya for the darshan of Lord Sri Ram. Daily 5,000 pilgrims are being served lunch prasad along with the distribution of Vedic literature and ‘sankirtan’ by devotees of different nationalities,” said Yudhistir Govinda Das, spokesperson, ISKCON India board.

Continue Exploring: Ayodhya becomes hub for FMCG companies and food service chains ahead of Ram temple consecration

The first phase of the Ram temple in Ayodhya is nearing completion and Prime Minister Narendra Modi will take part in the consecration of the Ram Lalla idol on January 22

In 2019, the Supreme Court issued a landmark verdict, resolving a century-old temple-mosque dispute. The decision supported the construction of a Ram temple at the contested site and mandated the allocation of an alternative five-acre plot for the mosque. Ayodhya is now adorned in preparation for the ‘Pran Prathishtha’ ceremony. The flyover streetlights showcase artistic representations of Lord Ram, featuring cutouts of bow and arrow, while ornamental lamp posts are adorned with designs inspired by the traditional ‘Ramanandi tilak’.

Residents who are excited about the economic growth unfolding in the temple town are also coming together to provide complimentary meals to devotees.

“Lord Ram has blessed us with new means of livelihood which will continue for the rest of our lives. For two months, we are offering free food at our restaurant. We are also constructing new guest houses for the pilgrims,” said Brakesh Shukl, owner of a dhaba near Asharfi Bhawan.

Meanwhile, Gauri Shankar Sewa Dal from Chandigarh is heading to Ayodhya to run a one-month-long langar service. Pritam, a member of the religious organisation, said, “We will serve makke ki roti and sarson ka saag. Our langar will start from January 23, a day after the consecration ceremony and will go on for a month.”

Gearing up for the big day, the city is decked up with saffron flags and huge cutouts of Lord Ram that have been placed on the median of the Ram Path while continuous chants of ‘Siya Ram’ and ‘Jai Siya Ram’ can be heard everywhere, being played on loudspeakers installed at temples in the vicinity. Ramlilas, Bhagwat Kathas, Bhajan sandhyas and cultural programmes are being held at different places across the city. The banks of the Saryu river where thousands flock every evening for the aarti have also been decked up.

Some of the trees on Dharm Path near the Lata Mangeshkar Chowk have been decorated with special pieces made with inverted baskets and lights, adding to the aesthetic feel of the revamped holy city.

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Delhi’s meat and fish shops to remain closed on Jan 22 in honor of Ram Temple consecration

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Red Meat - Inflammation
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Delhi Meat Merchant Association general secretary, Irshad Qureshi, has appealed to all meat and fish traders in Delhi to suspend their business operations on January 22 in observance of the consecration ceremony of the Ram temple in Ayodhya. Qureshi emphasized that the primary goal of this appeal is to promote unity and harmony between the communities, with the aim of bringing people together during this significant occasion.

He stated that all slaughterhouses in Delhi, along with shops selling meat and fish, have been urged to keep their businesses closed for the day, respecting the sentiments of the people for the “pran pratishtha” ceremony in Ayodhya.

“We have made an appeal to all slaughter houses and meat and fish sellers to close their shops on January 22 to show respect to the celebration of our Hindu brothers and sisters on the occasion of Ram temple inauguration,” Qureshi said.

Closing the business for a day would not significantly affect the traders, he emphasized, asserting that the sentiments of both communities should be acknowledged. Additionally, numerous restaurants in Delhi’s Connaught Place have announced their decision not to offer non-vegetarian dishes to customers on January 22. Amit Gupta, joint secretary of the New Delhi Traders Association (NDTA), mentioned that several establishments in Connaught Place have committed to serving vegetarian food on the day of the “pran pratishtha” ceremony in Ayodhya.

The “pran pratishtha” ceremony in Ayodhya will take place on January 22 in the presence of Prime Minister Narendra Modi and will be attended by many VVIPs.

Continue Exploring: Liquor outlets to remain shut in Uttar Pradesh on January 22 for Ram Temple ceremony

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