Off-roll pickers employed by Dunzo, the fast-commerce startup supported by Reliance Retail, have recommenced their duties at seven dark stores in Bengaluru. This decision follows the disbursement of their salaries for the month of July. Previously, a number of these workers had declined to resume work due to the postponed payment of their wages. Nonetheless, given the unsettled atmosphere within the startup, a portion of these employees are actively considering alternative job prospects.
The report also points out that Dunzo maintains two distinct groups of workers: those directly employed by the company and others overseen by third-party staffing agencies. Typically, the third-party staff receive a monthly stipend ranging from INR 15,000 to INR 20,000.
A dark store situated in the Frazer Town vicinity of Bengaluru has been temporarily closed as it undergoes a transition to a partner store model.
Although Dunzo is in the final stages of negotiations to obtain funding of around $100 million from its current investors Lightrock and Lightbox, Reliance Retail has chosen not to partake in this particular funding cycle.
Dunzo has been contending with a liquidity challenge and had disclosed intentions to transition its operational approach from business-to-consumer to business-to-business through the “Dunzo for Business” model. Furthermore, owing to financial difficulties, the company had also ceased its Dunzo Daily service in the majority of cities, excluding Bengaluru.
During the month of April, Dunzo implemented a workforce reduction, resulting in approximately 300 employees being laid off. This accounted for roughly 30% of the company’s total workforce, and was undertaken as a component of its cost-reduction strategies.
Reliance Retail possesses a notable ownership share in Dunzo, while Google also holds a substantial stake as a major shareholder. As of May in the prior year, the quick commerce initiative had achieved a valuation of $757 million.
The company has been actively investigating diverse funding avenues and debt restructuring strategies in order to effectively handle its cash flow and financial commitments. Concurrently, reports indicate that Reliance’s JioMart has implemented alterations to its delivery partner cost structure, which has had an impact on the overall business of Dunzo Merchant Services.
The Comptroller & Auditor General (CAG) of India has brought attention to an instance of Radico Khaitan Ltd, the producer of 8 PM whisky and Magic Moments vodka, underpaying excise duty and taxes amounting to INR 1,078.09 crore to the Uttar Pradesh government.
“Assistant Excise Commissioner, Radico Khaitan Limited, Rampur failed to monitor consumption of input excise material shown in excise records vis-a-vis returns filed in Income Tax Department resulted in not detecting understatement of consumption of input excise material involving excise revenue of INR 1,078.09 crore (including interest of INR 482.34 crore) during the period 2013-14 to 2019-20,” CAG has said in the report.
The audit reviewed the records related to diverse materials like molasses, grain, and barley malt, which are utilized in the production of liquor.
The audit conducted a comparison between the consumption data of molasses, grain, and barley malt as reported by the taxpayer through legally required filings to the Income Tax Department (ITD) and the corresponding quantities documented in the records of the Assistant Excise Commissioner (AEC) at Radico Khaitan Limited in Rampur. Discrepancies were observed between the quantities declared in the records and returns submitted to the Income Tax Department and those recorded in the State Excise Department.
“The variations found in the consumed material indicate that the assessee had understated the consumption of inputs items in excise records, involving excise revenue of INR 595.75 crore on which interest of INR 482.34 crore was leviable,” CAG has said.
Radico Khaitan accounts for approximately 30% of the state’s excise revenue. Over the past 3-4 years, the excise revenue in the state has experienced a twofold increase.
In a regulatory submission on Tuesday, Radico Khaitan has stated its adherence to all legal obligations, encompassing the revenue laws of the nation.
“We have not received any notice of any irregularity in the matter,” the company has said.
GRM Overseas Limited, known as “GRM,” a prominent exporter of basmati rice and an emerging contender in the consumer staples domain, reaffirms its dedication to superior quality by unveiling a novel range of packaged goods. These products, including Besan, Daliya, Maida, Poha, and Sooji, are launched under the brand “10X Shakti.” The endeavor is conducted in collaboration with its subsidiary, GRM Foodkraft Pvt Ltd (GFK). These freshly introduced offerings will be conveniently available to customers through both General and Modern trade avenues, with a specific focus on leveraging various E-commerce platforms to ensure widespread accessibility.
These products are commonly enjoyed essentials throughout the nation and have been carefully designed to elevate the everyday experiences of customers, delivering convenience, excellence, and dependability. This ethos resonates harmoniously with GRM’s established heritage.
Atul Garg, MD, expressed, “We are excited to introduce these new additions to our ’10X Shakti’ product lineup, as part of our ongoing efforts to expand our domestic branded business and establish ourselves as a prominent and independent consumer staples organization. These high-quality offerings reaffirm our commitment to providing households with trustworthy and nutritious products, ultimately enhancing the lives of our valued customers. We have meticulously developed this new product range to ensure it perfectly meets the evolving needs of modern households. This marks a significant and progressive stride for our domestic branded business, and we are confident that these new products will be warmly received by our customers, further solidifying our brand’s presence and reputation in the domestic market. We remain steadfast in our ability to position ourselves as the dominant and dependable standalone consumer staples brand in the country.”
In an ever-evolving food industry landscape where innovation and quality reign supreme, a new star is rising – the illustrious brand known as Zappfresh. Since its inception in 2015, this brand has not only grown steadily but has also been redefining the way we approach meat and poultry. Beyond being a mere purveyor of these products, Zappfresh is an embodiment of modern gastronomy, driven by a commitment to freshness, transparency, and convenience. The brand’s journey from its humble beginnings to its current acclaim underscores the profound impact of passion, vision, and a deep understanding of consumer preferences.
A Fresh Approach to Meat Procurement:
At the heart of Zappfresh’s ethos lies a devotion to freshness that is second to none. In a world where discerning consumers seek not only flavor but also ethical sourcing, Zappfresh has answered the call. Deepanshu Manchanda, the Founder and CEO of Zappfresh, reveals in an exclusive interview with SnackFax, “10-15 million people who reside in the tier 1 cities have a certain lifestyle, want to splurge on food and do better in terms of whatever they do.” He identifies this group of people as the target audience for Zappfresh.
Deepanshu Manchanda, Founder and CEO of Zappfresh
“More than a brand, we are a supply chain,” Deepanshu adds. In response to questions about sourcing, he explains that Zappfresh acts as a link between the producer and the consumer. The unique aspect here is that the producers are none other than farmers who raise high-quality meat. This distinctive approach means that Zappfresh’s journey begins at the source—the farms. It establishes direct partnerships with a network of trusted farms, ensuring that the meat and poultry offered are of the highest quality and sourced responsibly. By maintaining this direct link to the supply chain, Zappfresh guarantees that every cut of meat is a testament to its commitment to traceability, sustainability, and animal welfare.
From the farm to the table, the brand lays bare the journey that each piece of meat undertakes. Detailed information on sourcing, processing, and handling practices is provided, empowering consumers with knowledge that fosters a deeper connection between what they eat and the values they uphold. This high level of transparency not only builds trust but also underscores the brand’s dedication to delivering unadulterated, premium-quality products.
Convenience Meets Quality:
In a fast-paced world where time is a precious commodity, Zappfresh addresses a crucial need: convenience. Recognizing that today’s consumers seek quality without compromise, Zappfresh has redefined the meat-buying experience. Through its user-friendly online platform, customers can effortlessly browse through a wide array of choices, from succulent cuts of beef to marinated chicken delicacies. The convenience extends to doorstep delivery, eliminating the need for arduous trips to the butcher shop. This seamless integration of quality and convenience positions Zappfresh as a trailblazer in catering to the needs of the modern epicurean.
Culinary Creativity as a Driving Force:
Zappfresh’s journey is far from ordinary; it is an odyssey that celebrates culinary innovation. Beyond traditional offerings, the brand embraces creativity by offering an assortment of marinated meats and pre-seasoned delights that cater to diverse tastes. Whether it’s the aroma of tandoori chicken or the succulence of barbecue ribs, Zappfresh transforms home cooking into an extraordinary culinary adventure. The brand’s commitment to delivering not just meat, but an experience, resonates with today’s adventurous and discerning food enthusiasts.
From Emerging to Established: A Promising Trajectory
As Zappfresh continues to captivate palates and redefine culinary norms, its emergence as a prominent brand in the food industry is undeniable. The fusion of ethical sourcing, transparency, convenience, and innovation has struck a chord with consumers who demand both quality and experience. With an unwavering commitment to these principles, Zappfresh’s journey is not only a testament to its pioneering spirit but also an inspiration to the broader food industry. As the brand carves its legacy, one delicious morsel at a time, it invites us all to savor not just the flavors, but the values that make Zappfresh an emblem of excellence in the realm of food. In a world where food is more than sustenance, Zappfresh stands as a beacon of culinary delight, embodying the essence of a culinary odyssey that is set to redefine the future of meat consumption.
Watch our exclusive interview with Deepanshu Manchanda here:
An increased market demand for pulses has prompted dal mills to expand their processing capacities, aiming to accommodate higher retail consumption during the upcoming festive months.
Industry insiders have reported that dal mills have bolstered their processing capacities and procurement efforts in response to a surge in retail market demand for pulses.
All India Dal Mill Association secretary Dinesh Agrawal said, “Consumption of pulses has gone up and this has given a fillip to processing activities in dal mills. Mills have increased processing to cater to rising demand. But spike in rates of tur and urad has hiked the operative cost.”
Dal mills have indicated that the demand for pulses in the retail market is anticipated to remain strong during the festive season.
The price of tur dal has surged from INR 115 per kg to INR 130 per kg, while urad has risen from INR 90 per kg to INR 100 per kg. Similarly, chana has increased from INR 60 per kg to INR 70 per kg, and moong now ranges between INR 90 and INR 100 per kg, up from INR 85 per kg.
Madhya Pradesh serves as a significant hub for dal mills, hosting approximately 700 mills within the state, of which 160 are situated in Indore.
The All India Dal Mill Association has called for the exemption of the 1.70% mandi tax on pulses procured from other states for processing purposes.
The association president Suresh Agrawal said, “Madhya Pradesh government has exempted tur from mandi tax and we are demanding the government to extend exemption on all other pulses like urad, moong, masoor and matar. Exempting pulses purchased for processing purposes will give a boost to mills and increase their competitiveness in the market.”
During their annual general meeting on August 20, the association members appealed for a waiver of mandi tax and urged the government to prioritize mills when it comes to importing pulses.
Additionally, the association put forth the idea that the National Agricultural Cooperative Marketing Federation of India, which is the apex organization responsible for marketing cooperatives dealing with agricultural produce in India, should accord precedence to dal mills when it comes to selling pulses, given that these mills procure pulses for processing.
Despite the easing of inflation, a majority of Indians still find high-priced large consumer product packs unaffordable.
According to data from the retail intelligence platform Bizom, sales growth in high-value packs within FMCG categories contracted in July compared to the previous year. With the festive season approaching, consumers opted for lower and mid-priced packs due to the larger pack prices exceeding their expectations.
“When the price of a pack rises above a certain psychological threshold – say a INR 100 pack becomes INR 110 – then it’s difficult to get consumers to purchase these packs. Moreover, e-commerce and quick commerce, where consumers make impulse purchases of small-and-mid-priced packs, continues to grow faster than modern trade where high-value packs are usually bought,” said Mayank Shah, senior category head at Parle Products.
He further mentioned that consumers accept reductions in product quantity because it doesn’t lead to additional expenses for them.
Within packaged foods, sales of high-value packs experienced a 1% decrease, whereas mid-and-low-priced packs exhibited a growth of 0.5%, as depicted in the graphic. In the confectionery segment, consumers transitioned to mid-priced packs, resulting in a growth of 4.6%, while high-value packs encountered a decline of 4.7%. Similarly, in branded commodities, the growth of both high-value and mid-priced packs slowed down, as consumers shifted towards smaller packs, which saw a growth of 4.7%.
During the past two years, as inflation surged, high-value packs bore the brunt of escalating costs, whereas for low-unit packs, where adjusting prices is more limited, companies turned to reducing product quantities.
“Shifting to small-or-mid-price packs pinches consumers less on their pocket,” said Shah, who added that getting volume growth back is a challenge.
Although companies have conveyed the advantages of reduced raw material costs to consumers by augmenting the quantity in lower and medium-priced packs and decreasing prices for high-value packs, consumers still perceive a psychological barrier to the pricing of the latter. Even though the cost pressures have diminished due to a decline in edible oil prices, Shah noted that the costs of wheat, a crucial ingredient in biscuit production, remain elevated.
Bikano director Manish Aggarwal said, “We are focusing more on low-price packs as they are the best-selling product range.”
The festive season is expected to boost sales. “We continue to see stronger traction of discretionary across urban whereas we see strong traction of home care products across rural. With beverages, we see the end of season and hence a drop in sales across both urban and rural markets as consumption shifts towards a higher share of smaller packs. With input prices continuing to go down, we expect the upcoming festival season to trigger higher consumption,” said Bizom’s chief of growth & insights Akshay D’Souza. The FMCG industry posted flat year-on-year sales growth in July.
The menu at Tokyo Matcha Bar offers a variety of matcha-infused teas and lattes.
A cloud kitchen centered around Matcha has recently been launched in the Bandra neighborhood of Mumbai. Building on the success of their previous endeavor, Ritual Daily Coffee, this new project is distinct for its exclusive focus on the use of Matcha as a key ingredient.
This marks the inaugural occasion where this delivery brand has opted to concentrate solely on a solitary ingredient for its menu offerings.
Gradually, it has evolved into an irresistible fusion with beverages enriched by matcha, deriving inspiration from Japanese nuances. This delivery kitchen has now been introduced on the Swiggy platform.
The core essence of Tokyo Matcha Bar revolves around delivering matcha products of the utmost quality.
Initiated by the dynamic duo of Meher Kohli and Rahul Ramnani, this endeavor involves the direct importation of ceremonial grade matcha from Tokyo, a renowned source synonymous with unparalleled quality.
Through this meticulous approach, customers are assured an authentic and unforgettable matcha experience – a sentiment that gains even more significance as the upcoming rainy season approaches.
The menu at Tokyo Matcha Bar offers a variety of matcha-infused teas and lattes, such as Matcha Vanilla Bean Latte, Matcha Honey Latte, Matcha Milk Tea, and Himalayan Pink Salt Matcha. For those seeking refreshing options, the Frappes selection includes choices like Matcha Frappuccino, Sea Salt Matcha Frappuccino, and Salted Caramel Matcha Frappuccino.
Catering to those in search of revitalizing beverages, they provide alternatives such as Valencia Orange Matcha, Tropical Matcha, Wild Berry Matcha Iced Tea, and Fresh Lime Matcha.
Moreover, coffee enthusiasts can delight in enduring classics like Tokyo’s Americano, Tokyo’s Cappuccino, and Tokyo’s Latte.
Renowned for its myriad health benefits, matcha’s advantages are preserved meticulously in every item offered by Tokyo Matcha Bar.
Through the use of ceremonial grade Matcha, the brand cultivates a daily ritual that fosters holistic well-being while upholding an unparalleled flavor experience.
Tokyo Matcha Bar is establishing an authentic wellspring of delight for matcha aficionados and connoisseurs of exquisite teas across India.
Delhi-based Burgrill has announced its intention to initiate its inaugural external fundraising round, with the goal of accelerating its growth and expansion plans.
The bootstrapped brand has created a niche for itself in the mass-premium category through a focus on innovation & customization.
Ankur Madan, CEO & Co-Founder, Burgrill, said, “We’re thrilled to embark on this exciting journey as we seek to funding to fuel our expansion and enhance the Burgrill experience for our customers. This funding will enable us to introduce Burgrill to new markets, enhance our menu offerings, and invest in technology to further elevate our customer interactions. Client Associates Investment Banking team is advising us on this transaction.”
Burgrill’s swift ascent to prominence is attributed to its introduction of an innovative dining concept that seamlessly blends the timeless allure of a traditional burger eatery with contemporary culinary methods, placing a significant focus on tailored dining encounters. Featuring delectable gourmet burgers, meticulously crafted using top-tier ingredients and inventive flavors, Burgrill has garnered a devoted community of culinary aficionados and epicureans. The brand presents an unparalleled menu boasting an equal array of vegetarian and non-vegetarian choices, spanning burgers, wraps, subs, and salads, thereby catering to diverse preferences.
The secured funds will play a pivotal role in bolstering essential endeavors such as expansion, encompassing the launch of fresh flagship outlets in bustling locales to captivate a broader clientele. Additionally, the funding will fuel menu enhancements and the seamless integration of technology within the brand’s operations.
It is also planning to expand its team of culinary experts, marketing professionals, and operations specialists to support its growth trajectory.
Established in 2016, Burgrill emerged as the brainchild of three ardent food enthusiasts. Their vision was to tap into an underserved niche within the fast-food sector, introducing healthier alternatives and pioneering this concept in India. Within the span of eight years, the brand has expanded its presence to include 49 outlets across over 22 cities in the country. Looking ahead, the brand’s ambitions involve the launch of 40 additional CoCo stores nationwide. Its stronghold lies in the northern regions of India, and it aspires to make a significant imprint on key metropolitan areas within the next 4-5 years. Despite a bootstrapped journey, Burgrill has achieved an impressive brand revenue of over 45 Crores, showcasing strong double-digit EBITDA margins and a robust year-on-year growth rate of 50%.
This partnership will enable Arla to supply its products to the food and nutrition markets in China.
Arla Foods Ingredients and Zhongbai Xingye Food Technology have entered into a distribution agreement. This partnership will enable Arla to supply its products to the food and nutrition markets in China.
As of 2021, Zhongbai has become a subsidiary of the Brenntag Group, a company specializing in the distribution of chemicals and ingredients, following its acquisition.
The partnership is believed to strengthen the extensive connection between Arla and Zhongbai, which has developed over a period of more than 15 years. Throughout this time, they have notably expanded their influence within the Chinese market.
The recently formed accord centers around three primary domains: infant nutrition, where the collaboration aims to assist manufacturers in augmenting the nutritional content of formulas and items designed for infants and toddlers; performance nutrition, where the agreement identifies opportunities for expanded presence in China’s performance nutrition sector, encompassing sports nutrition, nutritional offerings for seniors, and dietary supplements; and lastly, the realm of food and beverage.
The partnership involving both firms encompasses the establishment of a shared Innovation & Application Center located within Zhongbai’s Beijing facility. This center, functioning as a central point for devising formulations customized for the Chinese market, will undergo expansion to incorporate supplementary capabilities for developing products that cater to the distinct requirements of the local market.
Luis Cubel, commercial director of Arla Foods Ingredients, said, “Demographic changes in China have increased the demand for high-quality products, particularly in the infant nutrition and performance nutrition spaces. This agreement will help us adapt, and make our offering to Chinese markets even stronger. Zhongbai offers a wealth of expertise and local knowledge, and over the past 15 years, it’s been an incredibly productive partnership for both companies. We’re hugely excited about this new opportunity to co-operate even further, and to continue to invest in one of the world’s most important nutrition markets.”
Michael Friede, CEO of Brenntag Specialties, said, “This is an agreement that builds on some very solid foundations. We have a great working relationship with Arla Foods Ingredients, whose expertise, capacity and understanding of market needs has helped both companies grow in China. There’s still potential for major expansion, particularly in key segments like performance nutrition. We’re looking forward to working together to take the opportunities that lie ahead as two market leaders are joining hands for future growth in a highly attractive specialities market.”
Differences among shareholders regarding the degree of Dunzo’s valuation decrease are currently hindering the acquisition of fresh financing for the distressed quick commerce startup.
People familiar with the negotiations have stated that Reliance Retail, holding the largest stake of 26% in Dunzo, opposes the notion of reducing the startup’s valuation by almost 50% in an upcoming funding arrangement orchestrated by a consortium of current investors.
This substantial reduction would result in a noteworthy depreciation of value for the telecom-to-retail conglomerate’s $200-million investment, which was injected into Dunzo as part of a $240-million funding round in January 2022, as mentioned by the sources.
At that time, the financially strained startup, which also boasts Google among its investors, held a valuation nearing $800 million.
The extent to which Dunzo can secure additional capital through its vigorous endeavors will now hinge upon the unanimous consent of all its investors to accept a decreased valuation, as stated by the sources.
The significant decline in the consumer business of the Bengaluru-based company, which was at its peak during the investment by Reliance Retail last year, has been the catalyst for the ongoing reduction in Dunzo’s valuation.
“There is a soft commitment of multiples of tens of millions for Dunzo, but for these conversations to close, the valuation needs to be finalised, and with Reliance Retail’s cash, the total pool can be widened, which the firm needs on priority,” said one person aware of discussions.
Over the past few weeks, Dunzo has been in contact with several family offices, including Premji Invest and Kiran Mazumdar-Shaw of Biocon, among others, aiming to establish a new group of investors. The company has been extensively involved in pursuing additional capital, even at a substantial reduction in valuation, as it is facing urgent deadlines to settle unpaid salaries and vendor obligations, according to several informed individuals.
A representative from Premji Invest declined to provide any comments, and emails sent to the office of Mazumdar-Shaw yielded no response. Email queries to Reliance Retail and Dunzo also remained unanswered.
“Beyond the immediate fundraise, Dunzo will likely need further clarity from Reliance on its long-term plans for the company. There is some hope that Reliance will step in, given their retail experience and ecommerce ambitions,” said Satish Meena, an ecommerce analyst.
Dunzo has encountered challenges in raising capital in recent instances before. It was reported on July 18 that the company had managed to secure only approximately $45 million out of the intended $75 million funding through convertible notes. Despite actively seeking equity investment opportunities since late last year, the efforts did not yield results, as stated by several individuals familiar with the situation.
In recent weeks, the financial challenges at Dunzo have worsened, as reported by insiders. Last week, the company faced difficulties in maintaining operations at all its Bengaluru dark stores due to delays in payments to its dark store workers, also known as pickers, according to sources.
“It (Dunzo) has been rotating the operation of dark stores. (They) keep shutting some stores when others are open, with delivery workers stepping in to help run stores,” the people cited said.
Bengaluru, where Dunzo is headquartered and holds its largest market presence, currently remains the sole city with a limited number of operational dark stores, following a significant downsizing of its B2C vertical, Dunzo Daily. This shift in scale is also evident in the range of services offered. In central Bengaluru, for example, several densely populated areas no longer have access to “instant delivery,” which used to take 20-35 minutes. As a result, users are left with the “no rush” option, which can extend to a delivery time of 75 to 90 minutes. Meanwhile, the company’s operations in other cities are now exclusively managed through partner stores.
Sources aware of the troubles said they have been in the making since at least the beginning of 2023. “There were several internal discussions at the start of the year on whether Dunzo should just wind up from all other cities and be in Bengaluru, where it has a chance to become profitable. However, the company kept managing its issues, while hoping new money would come soon, which led them to raise more debt,” said one of the people cited above. “That really is the main problem, looking back.”
In the midst of the ongoing financial constraints, Dunzo has been experimenting with increased order values to qualify for free deliveries, along with a comprehensive revision of fees for its pick-and-drop services and other offerings.
“I think the numbers that have come out from Blinkit and Zepto give some hope of profitability in the quick commerce space. However, the model has to be pursued for a while, and Dunzo has to survive (for that). A valuation cut in this environment might be inescapable,” Meena said.
A key issue for Dunzo, to start with, is to pay its staffers. “The vendor dues, honestly, have been there for a few months before it became public, but right now, the salary dues are the main concern,” said a person aware of matters.
Another person said the new funding is to “just survive” the current spate of problems and figure out a stable future — albeit, at a much smaller scale.
On July 20th, it was reported that the company had postponed salary payments for both June and July, with the intention to disburse them in September, along with the August salaries. Additionally, over the past eight months, Dunzo has also laid off nearly 400 employees.
The fast-paced commerce entity is currently dealing with legal notifications from Google India, Facebook India Online Services, Koo, Glance, and various other entities due to unpaid vendor dues. Estimates suggest that the accumulated vendor debt amounts to approximately INR 11.4 crore.
“At this point, most people are looking to move on… not getting salaries is as good as not having a job, and even full and final settlements of those being laid off are being pushed to the end of the year,” expressed an employee.
Receiving a fresh funding injection from any group of investors would provide Dunzo with the opportunity to renegotiate its debt agreement.
On August 15th, it was reported that Dunzo engaged in discussions with its creditors to reconfigure the credit conditions, aiming to access a portion of the funds currently held in its bank account.
Compounding its challenges, Reliance JioMart, the principal client of Dunzo Merchant Services (DMS), reduced the compensation for final-mile deliveries in June. This decision by JioMart, constituting a significant portion of DMS’ overall operations at 30-40%, resulted in a reduction of gross margins for DMS stemming from its services provided to JioMart. In cities like Bengaluru, this adjustment has led to a contraction of gross margins ranging between 50-75%.
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