Vaaree Co-Founders Pranav Arora, Garima Luthra, and Varun Vohra
The home furnishing startup Vaaree has successfully raised $4 million in a funding round with Surge by Peak XV (formerly known as Sequoia Capital India & SEA) taking the lead. Other notable participants in this funding round include PeerCapital, All In Capital, and Better Capital.
The startup announced that the funding will expedite their efforts to invest in recruiting talent and improving the user experience on their online platform.
Established in 2022 by Garima Luthra, Pranav Arora, and Varun Vohra, this Bengaluru-based startup, Vaaree, operates as an omnichannel home decor company. Their product range spans from kitchenware tailored for home chefs to bedding items that promise comfort and quality.
Commenting on the funding round, Co-Founder Vohra said, “We’ve got great traction and response online, and now we’re poised to make an even greater impact with our first physical store in Bengaluru. With the infusion of this latest round of funding, we’re set to catalyse growth across various fronts — from expanding our team to investments in cutting-edge technology and AI applications.”
According to him, this funding will empower Vaaree to focus on key aspects, including curation, merchandising, supply chains, and the development of seamless omnichannel experiences.
Within a year of its launch, the home furnishing and decor startup asserts that it has successfully delivered 150,000 products to households across India and expanded its offerings to over 20,000 products. Vaaree recently inaugurated its inaugural retail store in Bengaluru, showcasing a collection of 2,000 products.
At present, it showcases carefully curated lifestyle collections that are updated on a weekly basis.
The startup also includes notable investors in its roster, such as Kunal Shah, Arjun Vaidya, Vineeta Singh, Ghazal Alagh, Varun Dua, Manish Dugar, Anjali Bansal, Suhail Sameer, Prabhu Rangarajan, Mohan K, Ruchi Deepak, and more.
Based on a research report from Research Markets, the home decor market in India is projected to attain a value of $40.98 billion by 2028, with a compound annual growth rate (CAGR) of 4.14%.
Recently, the interior design startup Flipspaces secured $4 million in its Pre-Series B funding round, aimed at expanding its operations on the West Coast of the US and strengthening its technological infrastructure. Additionally, in March, Design Cafe reportedly obtained $4.8 million to facilitate its entry into new markets.
Mamaearth, the D2C unicorn, marked its debut on the Indian stock exchange NSE, opening with a nearly 2% premium. The shares were listed at INR 330, showing a listing gain of INR 6 from the issue price of INR 324.
Mamaearth’s shares debuted on the BSE with a flat listing at INR 324.
In the early hours of trading, Mamaearth shares reached INR 337.60 per share, but they later stabilized at INR 331.45 on the NSE. Presently, the company holds a market capitalization of $1.28 billion.
Honasa Consumer Limited (HCL), the company behind Mamaearth, allocated 2.36 crore equity shares to anchor investors, generating INR 765.2 crore in funds as a component of its initial public offering (IPO).
On its first day, the IPO received a tepid response, registering a subscription rate of only 0.13X. According to BSE data, the offering attracted bids for 36.25 lakh shares out of the 2.88 crore shares available. Interestingly, the segment designated for employees was oversubscribed by 1.98X by the close of the day, as employees bid for 67,344 shares against the 34,013 shares allotted.
On the final day of the public issue, the IPO saw significant oversubscription of 7.61X, primarily due to strong interest from qualified institutional buyers (QIBs). It garnered bids for 22 crore shares compared to the 2.89 crore shares on offer.
Early-stage investors have reaped substantial profits from the listing. At the highest listing price of INR 324, Snapdeal cofounders Rohit Bansal and Kunal Bahl are poised to achieve returns of nearly 101X on their initial investment, whereas actor Shilpa Shetty is anticipated to witness returns of 7.74X.
Within the group of angel investors involved in Mamaearth’s OFS segment, the standout beneficiary appears to be Rishabh Mariwala of Sharrp Ventures. At the highest listing price, he is expected to gain a substantial windfall of INR 181.23 crore, representing a return of over 53X on his initial investment of INR 6.05 per share. Following the sale, he will retain ownership of 34.2 lakh shares with a combined value of INR 110.81 crore.
Commenting on the startup’s stock market debut today, Prashanth Tapse, Senior VP Research Analyst at Mehta Equities, remarked that the flat listing aligns with the brokerage’s anticipated outcome.
“Though risky investors feel the price is good for long-term as the business model has high potential of growth, we would continue to remain cautious on Mamaearth on the back of the loss-making nature of the business, high portion of OFS, high competition with margin pressure, low promoter stake, and weak financials which suggest a cautionary stand as historical listings with high valuations have often faced post-listing challenges,” Tapse added.
Established in 2016 by a husband-wife team, Mamaearth has grown to encompass a diverse portfolio of brands within its parent company, Honasa Consumer. The startup presides over four beauty and personal care brands, namely The Derma Co., Ayuga, Aqualogica, and Dr. Sheth’s.
Mamaearth has announced that the funds raised from the fresh issue will be allocated towards bolstering marketing endeavors, amplifying brand presence, setting up new exclusive brand outlets, and extending the network of BBlunt salons.
Mother Dairy is contemplating the establishment of a new facility in Maharashtra, earmarking an investment of approximately INR 500 crore for the production of milk and value-added dairy products. This initiative aligns with the company’s overarching investment strategy, which encompasses an outlay of around INR 700 crore in the coming years.
Mother Dairy, a prominent player in the dairy industry, operates as a fully owned subsidiary of the National Dairy Development Board. In addition to its extensive range of milk and dairy products, Mother Dairy has gained recognition for its Dhara brand of edible oils. Furthermore, under the Safal brand, the company offers a diverse array of products such as fresh fruits, vegetables, frozen vegetables, snacks, pulses, and concentrates, catering to a wide spectrum of consumer needs.
Manish Bandlish, Managing Director, Mother Dairy said, “We have recently got a nod from our board for investments of about INR 700 crore which will be made over the next few years.”
The company will be making significant investments to expand its manufacturing capabilities.
“We are in the advanced stages of land procurement to set up a new plant in Nagpur, Maharashtra. This plant will manufacture dairy and value-added dairy products. We will be making investments of about INR 500 crore in setting up this plant. This will become a hub for us to serve Western and Southern regions,” he added.
Last year, the company boosted its manufacturing capacity by 20-25% in the dairy and value-added dairy products segment. The upcoming plant is anticipated to provide an additional 15-20% increase in the company’s capacity within this segment.
“In the food processing segment, we are also looking at setting up a new plant in Karnataka,” Bandlish added.
During the fiscal year 2023, Mother Dairy witnessed a revenue increase of approximately 17%, reaching INR 14,500 crore.
“Last year, the growth was significant from the revenue perspective. We saw 16-17 per cent volume growth. During this fiscal, the summer was impacted due to unseasonal rains. However, post August we are seeing handsome growth rates,” he explained.
Bandlish added that post-August, the company has seen an uptick in sales even for seasonal categories such as ice creams. “In the current festival season too, one is witnessing strong consumption trends,” he added.
The company has stated that it possesses a robust lineup of innovations spanning various categories, including bakery, ice creams, paneer, and other value-added products.
“We have announced plans to launch 100 new products over the next three years and we are on track to achieve this goal,” he added.
Radico Khaitan, an Indian liquor manufacturer, announced a 19.4% increase in its second-quarter profit on Monday, attributed to robust demand for its high-end brands.
The consolidated net profit for the three months ending on September 30 increased to 618.7 million rupees ($7.4 million) from 518.2 million rupees compared to the same period last year.
Over the past year, the company has placed a growing emphasis on the expansion of its premium category, known as ‘Prestige and Above,’ targeting a consumer demographic that remains largely unaffected by inflationary pressures.
The premium segment’s sales, encompassing products like Magic Moments vodka and Jaisalmer gin, surged by almost 22% to reach 2.8 million cases during the period from July to September. This segment represents nearly 41% of the overall sales and contributes to over half of the total revenue.
In contrast, the sales of its lower-priced segment declined by 16.5% to reach 3.2 million cases.
The revenue increased by 23.1% to reach 37.15 billion rupees for the quarter.
“We expect demand momentum to improve with the upcoming festive season,” Chairman and Managing Director Dr. Lalit Khaitan said in a statement.
At the same time, analysts noted that prices for Extra Neutral Alcohol, a crucial ingredient in liquor production, have increased due to elevated grain prices, while other input costs like those for glass, paper, and packaging have decreased.
As a result, the company experienced a 15.4% surge in its raw material costs, leading to a 23% rise in total expenses, amounting to 36.32 billion rupees.
Radico Khaitan is the first major listed Indian liquor company to report its results. Rivals United Spirits and United Breweries will report their results later this week.
Radico Khaitan’s shares concluded 1.3% lower prior to its results. Year-to-date, they have surged by 28.7%, contrasting with a 22% increase in United Spirits and a 6.5% decrease in United Breweries.
In October, the price of a thali decreased due to the declining costs of tomatoes and potatoes, contributing to greater affordability in food, as per the most recent report from Crisil.
The cost of a vegetarian thali dropped by 5% compared to the previous year and 1% sequentially, while non-vegetarian thali prices reached their lowest point in more than a year.
“The cost of non-veg thali declined faster as the price of broiler (~50% share in the thali cost) softened an estimated 5-7% on-year on a high base,” said Crisil.
In October, a vegetarian thali was available at a price of INR 27.5, while a non-vegetarian thali cost INR 58.4.
Tomato prices saw a 38% reduction in October compared to the same period last year, while potato prices dropped by 21%.
Fuel expenses were also reduced due to the government’s decision to provide a subsidy on LPG cylinders. The price of an LPG cylinder has now decreased to INR 903 from its previous rate of INR 1,053.
Nevertheless, Crisil anticipates a potential price increase in November, especially if onions, constituting 10% of the thali cost, experience a surge in prices. During the first week of November, onion prices were 75% higher compared to the previous month.
During October, onion prices acted as a deterrent, preventing thali prices from experiencing a more significant decrease.
“Further decline in thali prices was capped by a rise in onion prices in the second half of the month to INR 40/kg on average from INR 34/kg in the first half, trading 25% higher on-year in the second half owing to a lower kharif output estimated in 2023,” it stated.
Bikaji Foods International Limited (Bikaji), a manufacturer of ethnic snacks, announced on Monday a 46% increase in its profit after tax (PAT) for the quarter ending on September 30, 2023. According to the company’s regulatory filing, the PAT for this quarter stood at INR 59.8 crore, compared to the INR 40.9 crore recorded during the same period in the previous fiscal year.
In Q2 FY24, the company’s revenue from operations increased by 5.5% year-on-year (YoY) to reach INR 608.7 crore, surpassing the INR 577 crore in revenue recorded during Q2 FY23.
According to the BSE filing, the company’s total expenses for Q2 FY24 amounted to INR 539.4 crore, marking an increase compared to the INR 526.8 crore in total expenses incurred during the corresponding period in the previous fiscal year.
Bikaji Foods reported a YoY EBITDA growth of 36.5%, reaching INR 87.7 crore, resulting in a margin of 14.4%, which represented a YoY increase of 330 basis points (bps) and a QoQ increase of 80 bps. This improvement was attributed to enhanced operating efficiency, a more favorable product mix, and the positive impact of lower raw material costs, as compared to the EBITDA of INR 64.2 crore in the previous period.
Deepak Agarwal, managing director of the company said, “Our steadfast commitment to improve profitability has successfully helped us achieve record EBITDA. A key aspect contributing to our success this quarter has been the enhanced operating efficiencies we’ve implemented across our operations. This has helped us to position for further growth and advancement across various markets. With festivities around the corner, we are confident and optimistic about the upcoming quarter.”
While Zomato’s loyalty program Gold, which underwent a relaunch in January this year, continues to boost the company’s sales, analysts and experts suggest that adjustments may be necessary to mitigate its impact on the company’s profitability. They emphasize that while loyalty programs are vital for retaining customers, it’s equally important for the program’s financial viability to be sustainable in the long term.
The programme is attractive and may help the company win the market share game… but it needs to be accretive on the margins after a point,” commented an analyst based in Mumbai.
In the company’s earnings report for the September quarter, released on a Friday, Zomato’s Chief Financial Officer, Akshant Goyal, revealed that Gold members accounted for 40% of Zomato’s gross order value (GOV) for food delivery.
However, “a Gold order is less profitable than a non-Gold order due to the impact of programme benefits,” he had said. “The delivery charges paid by the customer are almost negligible (due to the free delivery benefit for orders above a certain value),” Goyal had noted in Zomato’s letter to its shareholders.
In the quarter ending on September 30, the company disclosed a net profit of INR 36 crore, marking a notable rise from its previous quarter ending in June when it achieved its first-ever quarterly net profit, which amounted to INR 2 crore.
“There is some assurance in the fact that loyal customers are ordering and are ordering more… but it is important that drag on food delivery margins does not turn into value eroding,” said an analyst. “I’m sure the company has plans to turn some levers that could increase margins from Gold customers without affecting the growth… That’s where the focus is required.”
The analyst emphasized that the company’s strategy of using discounts to promote Gold adoption resulted in a membership increase that exceeded their initial expectations.
“The adjusted ebitda (earnings before interest, taxes, depreciation and amortisation) margin for food delivery expanded marginally in Q2 compared to Q1 (from 2.5 to 2.6 percent)…this was likely to come in higher if not for the added discounts,” the person said.
Swiggy, a competitor of Zomato, offers its own subscription service known as Swiggy One, which offers advantages within the food industry. These benefits also apply to their quick commerce platform, Instamart. However, Zomato Gold benefits are not applicable to their quick commerce division, Blinkit.
According to a research note from UBS Securities dated October 4, Zomato has recaptured the majority of the market share it had lost to Swiggy since the relaunch of its loyalty program, as evidenced by data from the first six months of 2023. The report highlighted that in the latter half of the 2022 calendar year, Zomato experienced a decline in market share to Swiggy. This was primarily due to the suspension of the Gold program and Zomato’s increased emphasis on profitability.
In order to promote Gold adoption, Zomato has employed a strategy of offering the subscription at discounted rates. However, the company has mentioned that this strategy is likely to undergo modifications. During the analyst call following the earnings report on Friday, Goyal suggested that the rate of membership growth for Gold was anticipated to decelerate.
As of September 30, the company disclosed a Gold membership count of 3.8 million, a significant increase from the 2 million reported in the previous quarter. In contrast, Swiggy One’s subscriber base was reported to be in the “low-single-digit millions” as of late August, according to an informed source.
“Zomato Gold is a fairly new programme, and the idea is to keep the programme affordable for our customers and make sure they are loyal to our platform,” Zomato’s CFO said. “We expect the pace of increase in gold membership to slow down from here on… These are usually the more frequent customers who want to become members, so from here on that pace will slow down.”
The company acknowledged that its cost per order for Gold customers was elevated due to various factors, including increased delivery expenses stemming from longer average delivery distances, priority service provided to Gold members during peak hours, and the additional costs associated with the no-delay guarantee benefit. To stimulate Gold membership adoption, Zomato has been offering the subscription at reduced rates, some as low as INR 49 for a three-month period to select customers.
“I think one (aggressive Gold pricing in response to competition) is past and the other (contribution margin from Gold expected to improve) is the future. From here on, we expect the delta in margin between a gold and non-gold order to reduce,” Goyal said. “I think we have a good handle on those things by now, and hence we can be sharper in terms of pricing more effectively going forward.”
Burger Singh is all set to enter the South Indian market, marking an exciting expansion into a region celebrated for its diverse culinary traditions.
The restaurant chain plans to open 20 outlets in South India, along with 30 new restaurant locations in the northern and central regions of the country.
With these openings, Burger Singh anticipates achieving a revenue projection of INR 1500 million ($18 million) for the fiscal year 2023.
Burger Singh Co-Founder Rahul Seth said, “We are not only actively looking to partner with enterprising young entrepreneurs, but are also looking forward to significantly investing in the region to expand into newer geographies and cities.
“This is part of the larger Burger Singh pan-India expansion strategy, ensuring we expand not only into existing tier 1 cities but also into tier 2, 3, and 4 cities where we have a product and market fit advantage.”
Burger Singh is also reportedly gearing up to raise $10 million in its Series B funding round in the upcoming quarter.
In July 2022, the company successfully secured $3.6 million through a Series A funding round.
Burger Singh Founder and CEO Kabir Jeet Singh stated, “We are eagerly venturing into south India, presenting our unique range of Indianised burgers to a fresh audience. Burger Singh has always aimed to elevate the humble burger into a culinary delight.
“We look forward to continuing this legacy and winning the hearts of our patrons in this dynamic region.”
Founded in 2014, Burger Singh boasts a presence in over 150 establishments spanning various cities, such as Ahmedabad, Amritsar, Chandigarh, Delhi-NCR, Dehradun, Jaipur, Jammu, Lucknow, Jhansi, and Nagpur.
Furthermore, the brand has expanded its global footprint with the establishment of three outlets and one food truck in London, United Kingdom.
Homegrown FMCG major Emami Ltd reported a steady profit after tax of INR 180 crore for the second quarter ending on September 30, 2023. This marks no significant deviation from the net profit of INR 180.13 crore the company disclosed in the regulatory filing for the same period the previous year.
Nevertheless, Emami witnessed a 6.28 percent increase in revenue from operations, reaching INR 864.87 crore for the quarter, a notable upturn from the INR 813.75 crore reported in the corresponding period.
During the September quarter, the company experienced a 2.07 percent growth in total expenses, amounting to INR 631.20 crore.
The total income for the quarter under review registered a 2.36 percent increase, reaching INR 875.98 crore.
Emami saw a significant boost in gross margins during the September quarter, expanding by 350 basis points to reach 70.1 percent. This improvement was attributed to reduced raw material costs and strategic price adjustments, as stated in the company’s earnings report.
“EBITDA soared to INR 234 crore, showcasing an impressive 20 per cent growth, with margins at 27 per cent, an increase of 300 basis points,” the company said.
In the same quarter, the Kolkata-based company reported a notable 4 percent growth in its domestic business, with a 2 percent increase in volume. This growth was primarily fueled by distribution channels targeting urban markets, such as modern trade and e-commerce, as stated by the firm.
Its international business also “expanded by 12 per cent during the quarter, delivering a constant currency growth of 16 per cent, primarily attributed to robust performances in the SAARC and MENAP regions,” it added.
“Despite macroeconomic challenges, we achieved a 6 per cent revenue growth. Notably, our gross margins expanded by 350 basis points, showcasing our operational excellence. EBIDTA soared by 20 per cent, with margins expanding by 300 basis points, underscoring our dedication to value and quality,” Emami Vice Chairman and Whole-Time Director Mohan Goenka said.
At the same time, the company’s board deliberated on and sanctioned the distribution of the initial interim dividend, amounting to 400 percent or INR 4 per equity share, based on an equity share value of INR 1 each, for the financial year 2023-24.
“With the government’s support creating favourable conditions in rural markets, we’re poised for a strong second half, amplifying our market presence,” Goenka said.
On Monday, Emami Ltd’s shares concluded the trading session 2.15 percent up at INR 520.60 each on the BSE.
Kashee Milk Producer Organization announced on Monday that it is set to achieve a turnover of INR 200 crore by the end of the 2023-24 financial year, a significant achievement within just two years of operation. This success is largely supported by the increased participation of women milk farmers. According to Chief Executive Manvir Singh, this projected turnover signifies a substantial six-fold increase in revenue for the organization. Initially recording a topline of INR 37 crore during its first full year in operation in 2022-23, which began on March 9, 2022.
“We have silently become an army of rural women milk famers determined to become the harbinger of the dairy sector. In the process we have witnessed a rise of over 2,000 lakhpati didis so far and by the end of the year the number will cross 3,000 – thanks to the fast-growth attributed to the fair and transparent procurement price paid to the members,” he said.
He added, “One of our members has earned over INR 30 lakh for her milk contribution in 18-19 months of our operations, he pointed out. “We have set a target of INR 300 crore for the next financial year. In addition to bulk milk sales, we will foray into packed products with Kashi flavor.”
The establishment of the Kashee Milk Producer Organization received backing from the National Rural Livelihood Mission (NRLM) and the UP State Rural Livelihood Mission (UPSRLM), along with technical guidance from NDDB Dairy Services (NDS), a subsidiary of the National Dairy Development Board (NDDB).
Singh also praised the comprehensive role that NDDB, led by Chairman Meenesh Shah, is playing in advancing the dairy sector’s development in the region.
KMPO chairperson Shrimati Sarita Devi said “from our total revenue, 90 per cent was given to member farmers last year in terms of milk price and incentives and going by the same norms, INR 180 crore would have been transferred in the accounts of women dairy kisans, spread over five districts of the region during this financial year.”
“At present, our peak milk collection has touched a high of 1.15 lakh liters a day and in the next few months we will become an organization with an annualized per day average collection of one lakh liters of quality milk for the benefit of consumers.
“Next year we will expand our milk collection to Varanasi and Bhadohi districts, adding at least three hundred more villages to our network apart from expanding in the five districts of Balia, Gazipur, Mirzapur, Sonbhadra and Chandauli,” Sarita Devi said.
Members receive their milk payments in three monthly cycles, directly deposited into their bank accounts. They also have access to a mobile application that allows them to monitor the quantity and quality of their milk in real-time, providing information on their earnings every 10th day of the month.
Furthermore, the organization is offering members assistance with fodder, feed, and veterinary care to fulfill its mission of empowering rural dairy producers to become catalysts for change, as stated by Manvir. He also mentioned that with NDDB’s backing, KMPO is actively working on establishing 100 biogas plants within its service area to meet household fuel needs.
“We are proud to be associated with this women milk producers’ army for we know a determined lot will be good for the prosperity and progress of the region,” he said.
Several dairy projects are in progress within the area, encompassing the creation of connections for the region’s procured milk through its affiliate, Mother Dairy, Delhi. This includes the successful revival of the previously struggling Dugdh Utpadak Sahakari Sangh Plant (Parag) in Banaras and the installation of a large-scale biogas facility at Parag’s site. This initiative not only generates extra income for farmers but also assists in fulfilling the energy requirements of the processing unit.
The Banaras Plant operated by Parag stands out as a significant success story, achieving a utilization rate of 90 percent. It’s playing a vital role in revitalizing the dairy sector in the region by establishing an enhanced marketing and distribution network. This is supported by appealing eco-friendly packaging and quality products, not just within the region but also in areas beyond.
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