Swiggy’s food delivery sales soar 17%, hits $1.43 Billion GMV in first half of FY24: Prosus

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November 29, 2023

Swiggy’s investor Prosus, in its financial filing, highlighted a significant milestone for Swiggy’s core food-delivery business. The platform experienced a robust 17% growth, delivering a noteworthy gross merchandise value (GMV) of $1.43 billion in the first half of FY24.

“This was led by a rise in transacting users that drove double-digit order growth and inflation in AOV,” Prosus said.

“Core food-delivery EBITDA losses in 1H24 shrunk 89 per cent, led by improvements in contribution margin and operating leverage. In combination, this reflects customer willingness to pay for convenience and restaurant willingness to advertise for growth,” it added.

Prosus, with a 32.7% stake in Swiggy, reported a decrease in trading losses to $208 million.

Trading losses in the first half of the previous year were $321 million.

The company further stated that its quick-commerce business achieved rapid advancement, attributing the growth in orders to increased customer adoption. Additionally, basket sizes demonstrated notable expansion, surpassing the rate of inflation.

The company reported a 19% increase in Instamart’s store count by the end of June, contributing to a substantial 63% growth in its Gross Merchandise Value (GMV).

“With the platform focused on gaining scale and moving towards profitability in the 25 cities where it operates, Instamart’s first-half contribution losses fell by around 75 per cent,” Prosus stated.

“Broader product selection, densification of the store network and faster delivery times have continued to aid customer acquisition and retention,” it added.

Last month, US-based investment company Invesco elevated Swiggy’s valuation to about $7.85 billion.

In May, Invesco reduced Swiggy’s valuation within its holdings to approximately $5.5 billion.

According to a newly-published disclosure, Invesco said that “it considers the valuation of similar public companies as a factor when reassessing the value of its private investments”, reports TechCrunch.

PMGKAY gets 5-year extension: Cabinet allocates INR 11.8 Lakh Crore for free foodgrain distribution

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November 29, 2023

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The Union Cabinet has given its nod for the continuation of the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY), ensuring the provision of free foodgrain to the economically disadvantaged for an additional five years, with a budgetary allocation of INR 11.8 lakh crore.

Addressing a press conference, Union Minister of Information and Broadcasting, Anurag Thakur, stated on Wednesday that the Centre is extending the PMGKAY scheme. The initiative will provide 5 kg of free foodgrain per month to 81 crore impoverished people for another five years, starting from January 1, 2024.

The Minister also announced that PM Janman scheme has been approved which will cost INR 24,100 crore out of which INR 15,300 crore will be funded by Centre and remaining by states.

The scheme will provide basic facilities including housing, road connectivity, piped water, mobile medical units, solar street lighting, mobile towers.

The scheme will be implemented in 18 states and is expected to benefit 28,16,000 tribals.

Thakur also said that proposal for setting up the 16th Finance Commission has been been cleared and the terms of reference include share of central taxes between Centre and states.

The 16th Finance Commission will be for the period of five years from April 1, 2026-31.

He said there will no shortage of funds or food for Garib Kalyan Anna Yojana for over five years. The scheme will cost the government nearly INR 11.8 lakh crore over the next five years, but he emphasised that this amount is not a fixed number.

Thakur referred to this is an effort by the Prime Minister to ensure the poor people have food security and don’t have to worry about their basic needs.

Nestle bets big on Asia: Eyes significant coffee market growth in India and China

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November 29, 2023

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Nestle SA views India and China as crucial coffee markets, expressing optimism about the potential for significant growth in coffee consumption in these highly populous nations, as stated by the global head of strategy.

“We have a really strong footprint in Asia and we are really bullish about those markets that have very low per capita consumption,” Philipp Navratil, head of Nestle’s coffee strategic business unit, said in an interview in Vietnam’s Dak Lak province. “China is really a big focus, and India is a big focus.”

In Asia, Nestle is involved in instant coffee activities, particularly in Vietnam, the largest producer of robusta beans globally. Earlier this year, futures for this variety in London reached a record high due to concerns about supply constraints. The impending El Niño is anticipated to result in drier conditions in the coffee-growing regions.

According to Navratil, the Philippines and Thailand hold strategic importance as key markets for the Swiss company specializing in Nespresso and Nescafe, encompassing both soluble and ready-to-drink products. Additionally, he highlighted Pakistan and Africa as other regions poised for significant growth in consumption.

“In India, China, sub-Saharan Africa, there’s 4 billion people that drink less than 20 cups per year” on average, Navratil said. There’s an opportunity “to really build coffee markets out of those huge populations,” he said.

Innovist raises $7 Million in series A funding led by Amazon Smbhav Venture Fund

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November 29, 2023

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Innovist, the overarching organization behind direct-to-consumer (D2C) brands Bare Anatomy and Chemist at Play, secured $7 million in its Series A funding round, with Amazon Smbhav Venture Fund taking the lead.

Several investors, including 72 Ventures, the family office of Nykaa founder Falguni Nayar, and former KKR India head Sanjay Nayar, as well as Accel India and Sauce.vc, were reported to have participated in the funding round, according to multiple media sources.

According to the reports, the startup plans to utilize the newly acquired funds for product innovation, expanding its market presence, and strengthening its team.

Established in 2018 by Rohit Chawla, Sifat Khurana, and Vimal Bhola, Innovist specializes in personal care products. Presently, it operates three brands – Bare Anatomy, Chemist at Play, and SunScoop. The startup employs an omnichannel approach for the distribution of its products.

Last year, Innovist secured $3.5 million in its pre-Series A funding round, led by Accel Partners and 72 Ventures, building on the $2.5 million it had raised in 2021.

Including the latest round, the total amount of funding raised by the startup is estimated at over $13 million.

Innovist competes with the likes of WOW Skin Science, mCaffeine, Mamaearth, and numerous other personal care D2C brands in the country.

In 2021, Amazon launched its first $250 million venture fund, the Amazon Smbhav Venture Fund, with the intention of investing in early-stage Indian startups. Until earlier this year, the fund had already invested in five companies across sectors such as financial services, healthcare, and consumer tech.

In May, the D2C menswear startup XYXX secured $13.5 million in its Series C funding round, with leading participation from the Amazon Smbhav Venture Fund. Other companies in the fund’s portfolio include The Good Glamm Group, M1 Xchange, Fitterfly, and more.

According to analysis, the ecommerce landscape in India is anticipated to become a $400 billion opportunity by 2030. Within this, the beauty and personal care market is projected to reach $28 billion, experiencing a Compound Annual Growth Rate (CAGR) of 27% from 2022 to 2030.

TRG stakeholders approve £506 Million buyout by Apollo Global Management

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November 29, 2023

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The shareholders of The Restaurant Group (TRG), a British chain of restaurants and pubs, have approved the proposed acquisition by Apollo Global Management, a US-based private equity company.

The deal garnered approval from 93.5% of shareholders, leading to the company’s transition to a private entity.

In a statement, the group said, “In total, at the court meeting, 93.46% by value of scheme shareholders (as against a threshold of 75%) and 75.59% in number (as against a threshold of at least 50%) voted to approve the scheme. In total, at the general meeting, 93.53% by value of TRG shareholders (as against a threshold of 75%) voted to pass the special resolution to implement the scheme, including the amendment of TRG’s articles of association.”

The announcement of the transaction, valued at £506 million ($620 million), was made in October 2023.

Apollo committed to providing TRG stakeholders with a cash payment of 65 pence per share, representing a 34% premium over the stock’s closing price of 48 pence per share on October 11, 2023.

The anticipated closing date for the deal is December 21, 2023.

At the time of the deal’s announcement, TRG chairman Ken Hanna said, “As a result of ongoing positive management actions and the margin accretion plan we announced in March this year, the group has recovered well from the challenges of the pandemic and the cost of living crisis. This is evidenced by the continued strength of our trading performance versus the broader hospitality sector and the share price increasing 55% this year.”

As reported by Reuters, the agreement comes in the wake of financial instability at TRG, leading to demands for a change in leadership from both activist investors and shareholders.

It is reported that Apollo has been contemplating TRG for an extended period.

TRG’s portfolio includes brands such as Wagamama, the Brunning & Price pub chain and a concessions business. The company has more than 400 restaurant sites in the UK.

In September 2023, TRG agreed to sell its loss-making leisure unit to the Big Table Group.

The sale included restaurant brands Frankie & Benny’s and Chiquito. The business had 75 eateries after TRG closed 40 of its sites during 2023 following weak business.

Saltbae Burger’s global expansion continues with a 24/7 restaurant at Istanbul Airport

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November 29, 2023

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Saltbae Burger, a brand owned by Turkish chef and entrepreneur Nusret Gökçe, has announced the opening of its restaurant at iGA Istanbul Airport.

This marks a significant milestone in the brand’s initiatives to extend its global footprint within the next three years, leading up to 2026.

Situated in the airport’s premium area, Saltbae Burger will operate 24/7, offering its distinctive burgers, snacks, and beverages.

The restaurant brand said in a statement, “Saltbae Burger’s menu will elevate the dining experience throughout the airport and make the food quality that Nusr-Et is well known for accessible to a more mainstream audience.

“Whether in a hurry or seeking a moment of indulgence, the inviting bar and seating area accommodate every pace. Crafted with the finest ingredients and offering tantalising bites, Saltbae Burger’s commitment to excellence is evident in every dish.

“Chef Nusret Gökçe’s dedication to culinary brilliance shines through, with every aspect of the burger menu creating a memorable dining experience.”

Nusret Gökçe is also the proprietor of the Nusr-Et Steakhouse brand.

Nusr-Et Steakhouse is established both in the United States and various other regions worldwide.

It runs 29 establishments spanning seven countries and 13 cities, including Abu Dhabi, Ankara, Beverly Hills, Bodrum, Boston, Dallas, Dubai, Istanbul, Las Vegas, London, Miami, Mykonos, and Riyadh.

The Guardian reported that in June 2023, the Saltbae Burger in New York City closed its doors, only three years after its initial opening.

The restaurant commenced operations in Manhattan in February 2020, mere weeks before the onset of the Covid-19 pandemic.

Actor Akshara Singh announced as brand ambassador for Citykart’s 100th mall in Bihar

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November 29, 2023

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Citykart, a leading value fashion retailer in India specializing in family fashion across tier-II, tier-III, and tier-IV cities, proudly announces the appointment of Bhojpuri sensation Akshara Singh as the face of their 100th shopping mall in Bettiah, Bihar. Known for her roles in films like “Tabadala,” “Shubh Ghadi Aayo,” and “Dabang Damad,” Akshara Singh brings a touch of glamour to the celebration.

Citykart has continuously broadened its retail footprint throughout Northern India, reiterating its dedication to delivering budget-friendly and fashionable family attire. The inauguration of the 17,000 sq. ft store in Bettiah represents a substantial stride for the brand, symbolizing a noteworthy milestone in its journey since 2016.

With the objective of becoming a central hub for fashion and style, this extensive store provides a varied selection of clothing, accessories, and household items. As Citykart persists in its upward trajectory, this landmark establishment in Bettiah, the second in the city and the 35th in Bihar, underscores the brand’s commitment to ensuring fashion is within reach for everyone.

Vikas Jodhani, Cluster Manager, Bihar, Citykart Retail said, “Opening our largest-ever shopping mall in Bettiah is a moment of pride. It showcases our rapid expansion and our commitment to bringing fashionable and affordable clothing to residents of tier-II, tier-III, and tier-IV cities in Northern India.”

Akshara Singh, reflecting on her association with Citykart, said, “Being part of Citykart’s milestone moment in Bettiah, Bihar, is an honor. The brand’s commitment to affordable and stylish family fashion resonates with me. I invite everyone to explore Citykart’s wide range of fashion and join in the joy of fashion with the Bettiah community.”

Transforming into a preferred destination for festive and wedding shopping, Citykart Retail launches enticing promotions alongside a winter collection. Striving to attain noteworthy sales figures during the festive season, the brand plays a pivotal role in generating employment for 700-1000 individuals, experiencing substantial growth in tier-II, tier-III, and tier-IV cities.

Livpure records 70% e-commerce growth in H1 FY24, solidifying its position as a premier choice in the water purifier market

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November 29, 2023

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Livpure has reported a groundbreaking 70% growth in the E-commerce sector during the first six months of FY 24, solidifying its position as a premier choice among the top-branded water purifiers in India. This significant surge underscores Livpure’s unwavering commitment to excellence and consumer satisfaction, showcasing its resilience and resonance in the market.

During the festive season, Livpure has achieved an impressive 50 percent overall growth in the first half of the financial year, showcasing the brand’s strong presence in the market. The notable accomplishment in the E-commerce sector, encompassing Water Purifiers and Sleep-related products, emphasizes Livpure’s ability to address the changing needs of online consumers seeking quality-driven solutions.

General Trade also achieved significant success, with a robust 40 percent growth, further strengthening Livpure’s broad appeal. The Chimney range, introduced just three months ago, quickly attained a top-four position on Flipkart, highlighting its rapid acceptance among consumers. During the festive sale, Livpure secured the No. 1 volume position among branded water purifiers, emphasizing its dominant market presence and the trust consumers have in the brand.

Rakesh Kaul, Managing Director for Livpure, stated, “The festive season has always been a crucial period for us, and this year’s outstanding 70 percent growth in the E-commerce sector validates the trust consumers place in Livpure. Our strategic focus on delivering quality water purifiers and related products has resonated well with customers, reflecting in our robust performance across multiple segments.”

Livpure’s commitment to innovation, quality, and customer satisfaction remains a driving force behind its rise in the market. As the brand widens its product portfolio and reinforces its presence across diverse channels, Livpure remains steadfast in delivering dependable water purification solutions to consumers.

United Breweries unveils Heineken Silver Draught Beer, setting a new standard for crafted refreshment in India

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November 29, 2023

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United Breweries, a significant beer manufacturer and a subsidiary of the Amsterdam-based HEINEKEN group, is launching Heineken Silver Draught Beer in India.

For the first time, Heineken is launching draught beer in the Indian market, with the aim of providing consumers a premium, smooth-tasting beverage tailored for social occasions.

During the first launch phase, Heineken Silver Draught Beer will be accessible in upscale bars and pubs throughout Mumbai, Thane, and Pune in Maharashtra. There are plans for expansion into Karnataka in the fiscal year 2024.

“We are thrilled to introduce Heineken Silver Draught Beer to the discerning consumers in India, aligning with our commitment to cater to evolving preferences. In response to consumer insights, we recognise the demand for a superior and refreshing beer experience,” said Vivek Gupta, MD and CEO, United Breweries Ltd , a part of the HEINEKEN company.

Heineken Silver, a malt brew made entirely from natural ingredients, delivers a pleasantly refreshing, smooth, and easily enjoyable lager featuring a crisp, subtle finish. This particular variant has already received significant acclaim in our international markets, and we are confident that it will strike a chord with the emerging generation of beer enthusiasts in India, he emphasized.

Formulated by experienced master brewers using exclusively natural ingredients, including Heineken’s A-yeast and 100 percent malt, Heineken Silver Draught Beer features the freshest and smoothest taste. The company asserts that this guarantees an elevated drinking experience, providing discerning consumers with an unparalleled, perfectly balanced blend of taste and freshness.

Jacqueline Van Faassen, Head of International Premium Portfolio at Heineken India, said, “The introduction of Heineken Silver Draught Beer in India marks a significant expansion of our product portfolio, offering consumers a unique and refreshing world class drinking experience deeply rooted in Heineken’s brewing legacy and expertise.”

Zomato stocks rally over 4%, market cap surpasses INR 1 Lakh Cr amidst block deal buzz

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November 29, 2023

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The stocks of the foodtech giant Zomato experienced a notable rally, climbing over 4% to reach the day’s peak at INR 119 on the BSE during Wednesday’s session. This surge propelled the company’s market capitalization beyond INR 1 lakh crore.

Zomato witnessed a surge in its shares following a trading activity where the company’s stocks were transacted at an average price of INR 112 per share, resulting in a total transaction value of INR 3,326 crore.

The participants involved in the transaction, including both buyers and sellers, remain unknown at this time.

Nevertheless, according to reports, Alipay Singapore Holding, a subsidiary of the Chinese e-commerce giant Alibaba’s affiliate, Ant Group, was exploring the sale of its complete 3.44% stake in the online food delivery company through a block deal.

Zomato shares began trading with a 2% increase, opening at INR 116.15 compared to the previous day’s closing price of INR 113.80 on the BSE following the block deal buzz.

In recent months, Zomato witnessed foreign institutional investors (FIIs) selling stakes as the one-year lock-in period for investors who obtained shares through the company’s initial public offering (IPO) came to an end.

Last month, it was reported that Japanese tech investor SoftBank planned to offload a 1.1% stake in Indian foodtech major Zomato for at least INR 1,023.6 crore ($123 million). In August, the tech investor sold 1.16% of its stake in the foodtech major for a cumulative sum of INR 947 crore.

In August, investment firm Tiger Global also exited the foodtech giant Zomato by selling 12.24 crore shares worth INR 1,123 crore, amounting to a 1.44% stake.

Zomato reported its second consecutive profitable quarter, with profit after tax surging to INR 36 crore during the September quarter of the financial year 2023-24 (FY24). This was an 18-fold increase from PAT of INR 2 crore in the preceding quarter.

Meanwhile, Zomato and Swiggy, the duo, reportedly received notices for a cumulative goods and services tax (GST) worth around INR 1,000 Cr, which is the 18% tax levied on the total amount collected by them as delivery fees ever since they started offering food delivery services.

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