Days before Swiggy filed its updated draft red herring prospectus (DRHP) with SEBI, its founder Sriharsha Majety and some of the investors sold shares worth INR 670 Cr.

On September 20, Swiggy’s cofounder and group CEO Sriharsha Majety sold 6,36,972 equity shares at INR 345 apiece to Torroz Fintech. He further sold 29,695 shares at the same price to Torroz Fintech on September 23. With the two secondary share selloffs, the CEO pocketed INR 23 Cr. 

Besides Majety, Torroz Fintech bought 4,326 Series B compulsorily convertible preference shares (CCPS) for INR 4.62 Lakh apiece from Swiggy’s investor Norwest Ventures Private Limited. The all-cash deal saw the former pay INR 200 Cr to the investment firm. 

According to Torroz Fintech’s website, the company offers curated investment opportunities in diverse financial securities in private markets and other markets. It claims to have an extensive network of private equity, wealth management, family offices, and high net worth investors. 

“Dive into the realm of private markets, where exclusive opportunities await discerning investors,” its website says. The company was founded by 4Sight Global Ventures’ directors Pratik Vaja and Rahul Kurup in 2022. 

Besides Torroz Fintech, Strootaay Unlisted Brokers bought 4.63 Lakh Series B CCPS of Swiggy from venture capital firm Elevation Capital for INR 439.12 Cr on September 11, according to the draft IPO papers. 

Chennai-based Strootaay Unlisted Brokers claims to offer investors a platform to invest in unlisted shares of late stage, pre-IPO companies. 

Meanwhile, another Swiggy investor, Ark India FoodTech Private Investment Trust, also sold 2.1 Lakh equity shares to Moksh Capital Partners 1 for INR 360 apiece on September 23. The total transaction size was INR 7.56 Cr.

Moksha Finance helps startups in securing seed stage funding, connects them with angel investors and venture capital firms, and also helps them go public. It has closed 5 deals in the last one year in varied sectors, according to its website.

The deals provided partial exits to the investors ahead of the IPO amid a high demand for unlisted shares of Swiggy. A number of HNIs and companies have acquired shares of Swiggy before the opening of its public issue. Most recently, angel investing platform BizDateup’s cofounders Jeet Chandan and Meet Jain announced that they picked up stakes in the startup for an undisclosed amount. 

Actor Madhuri Dixit, Amitabh Bachchan’s family office, and companies like Modern Insulators and Hindustan Composites also bought shares of the foodtech major ahead of the IPO.

Swiggy’s IPO will comprise a fresh issue of INR 3,750 Cr and an offer for sale of up to 18.53 Cr equity shares, as per the DRHP. However, the company also secured its shareholders’ nod earlier this month to increase the size of fresh issue to INR 5,000 Cr in the IPO.

CEO Majety will be selling up to 1.74 Mn equity shares in the IPO.

The post Swiggy’s Sriharsha Majety, Investors Sold Shares Worth INR 670 Cr Ahead Of IPO appeared first on Inc42 Media.

The All India Consumer Products Distributors Federation (AICPDF), which represents the distributors of fast-moving consumer goods (FMCG) distributors, has raised concerns over the delivery practices of quick commerce and ecommerce players in India.

The AICPDF has written to the road transport ministry and the health ministry, seeking an inquiry into the use of private vehicles by these companies for commercial deliveries, Business Standard reported.

The Federation pointed out that many quick commerce and ecommerce companies frequently rely on private vehicles for deliveries of food items, which is in violation of the Food Safety and Standards Authority of India (FSSAI) guidelines.

“These standards are critical to prevent contamination and ensure that consumers receive safe and hygienically-handled food. However, the widespread use of private-owned two-wheelers by delivery personnel raises concerns about the adequacy of these vehicles to maintain the required food safety standards,” the report quoted the AICPDF as saying in its letter to the health ministry.

In its complaint to the road transport ministry, the Federation said that the use of private vehicles raises significant safety concerns. It said that these vehicles may not be sufficiently insured or maintained to meet the standards required for commercial operations. 

However, this is not the first time that the AICPDF has expressed concerns about quick commerce. In August, it wrote to the Ministry of Commerce and Industry seeking a probe into the rapid growth of quick commerce. 

Raising concerns over the compliance of the quick commerce companies with the country’s FDI norms, it urged union minister Piyush Goyal to regulate quick commerce players to protect small retailers. 

Following this, the Department for Promotion of Industry and Internal Trade (DPIIT) referred the complaint to the Competition Commission of India.

While the ecommerce sector has grown by leaps and bounds over the past decade in the country, quick commerce has been seeing a rapid rise in popularity over the last 2-3 years, especially in metro cities. This has pitted the likes of ecommerce players like Amazon and Meesho against quick commerce players like Blinkit, Swiggy Instamart, and Zepto. 

However, both the sectors are also facing increasing regulatory scrutiny. While quick commerce companies are under the lens for not abiding by the rules mandating display of expiry and best before dates, the ecommerce players are likely to face the heat for flouting dark pattern regulations.

The post Distributors’ Body Flags Use Of Private Vehicles By Ecommerce, Quick Commerce Players appeared first on Inc42 Media.

Contract manufacturing startup Zetwerk plans to invest INR 500 Cr over the next two years to expand its manufacturing capacity for the renewables segment. 

Zetwerk cofounder and chief operating officer Srinath Ramakkrushnan told Economic Times that the startup is looking to expand in the offshore wind segment in the US and Europe.

“We have invested around INR 300 Cr over the last few years. We are looking at investing another INR 500 Cr over the next two years. This will be funded through our balance sheet in a mix of debt and equity,” Ramakkrushnan was quoted as saying.

Citing India’s target to reach 500 gigawatts of solar energy generation capacity by 2030, the cofounder said that Zetwerk sees the solar sector in India and the US as a multi-decade opportunity.

Founded in 2018 by Ramakkrushnan, Amrit Acharya, Rahul Sharma, and Vishal Chaudhary, Zetwerk connects vendors and suppliers with manufacturing companies for procuring industrial machine components

The comments come days after Inc42 reported that Zetwerk commenced preliminary discussions with investment banker JP Morgan and other banks. It is eyeing a public listing in the next two years.

Ahead of the proposed listing, Zetwerk has been aggressively ramping up its manufacturing capacity.

Earlier this year, the startup announced its foray into IT hardware and electric vehicle (EV) component manufacturing. Additionally, it set aside INR 1,000 Cr ($122 Mn) to invest in electronics manufacturing.

Zetwerk became a unicorn in 2021 and was last valued at $2.8 Bn. It has raised a total funding of over $700 Mn till date and counts the likes of Peak XV Partners, Lightspeed, Mars Growth Capital, among others, as its backers.

Zetwerk’s rival Infra.Market is also looking to file its draft IPO papers in December this year. Another competitor, Moglix is eyeing a public listing in the next two years.

The post Zetwerk To Invest INR 500 Cr To Expand Renewables Manufacturing Capacity appeared first on Inc42 Media.

CaratLane founder Mithun Sacheti and brother Siddhartha Sacheti, CEO of Jaipur Gems, have set up an investment firm Finqube Capital Private Limited looking to institutionalise their angel investments, as per sources familiar with the matter.

Registered in Chennai, Finqube will handle the duo’s investments in early and growth stage companies.

As per sources, the two investments by the Sacheti brothers, including their participation in listed gaming giant Nazara’s INR 900 Cr preferential rights issue as well as the investment in Ippopay are from the new firm, which could take on the shape of a family office or a corporate venture fund.

Mithun Sacheti declined to elaborate on Finqube Capital’s plans, and told Inc42 that there are no plans to launch a separate fund at the moment.

However, as per incorporation documents of Finqube Capital Private Limited, the company has been registered as an investment firm for acquisition, investment purposes. It’s not yet clear what structure will be adopted by Finqube.

“This could be a private investment vehicle or a corporate venture fund backed by Jaipur Gems. The brothers are in the process of setting up teams for this firm,” sources close to the Sacheti family said.

It must be noted that Jaipur Gems is the legacy business set up by the Sacheti family in 1974. While the brothers joined this family business initially, Mithun went on to set up CaratLane as a new-age jewellery platform.

Siddhartha’s son Yash Sacheti is closely involved with Finqube and is the primary contact for the entity, as per MCA disclosures. Plus, according to his LinkedIn profile, Yash is currently the head of the Sacheti Family Office.

Notably, Mithun and Siddhartha are both active angel investors in Indian startups. Their portfolio includes investments in Ippopay, Bombay Shirt Company, Nazara and Oro. Besides investing with his brother in these startups, Mithun has separately backed home decor startup Arrivae, cybersecurity SaaS platform Securden, marketing tech startup Paperflite among others.

In February this year, Titan completed its acquisition of CaratLane, which gave Mithun a remarkable exit, netting returns of INR 4,621 Cr for his 27% stake.

Mithun has publicly stated his ambition to become a full time investor and is looking to add to his various investments across fintech, SaaS, gaming, ecommerce and other sectors.  He also said that he is keen on investing in startups in the INR 100 Cr-INR 200 Cr revenue range in the D2C category.

While Finqube Capital is yet to launch officially, Mithun is the general partner at Singularity Growth Ventures, which is backed by Madhusudhan Kela. The CaratLane founder is also an anchor investor or limited partner in early stage fund Xeed Ventures.

Sacheti Brothers Double Down On Investments

It looks like the Sacheti brothers are following the playbook created by Zerodha founders Nithin Kamath and Nikhil Kamath who set up Rainmatter Fund in 2016. Over the past few years, Rainmatter has invested in fintech, climate tech, media and agritech sectors. Rainmatter currently has a corpus of INR 1000 Cr

Besides Rainmatter, Nikhil announced the launch of WTF Fund to invest in entrepreneurs under the age of 25.

While Zerodha was a completely bootstrapped business, the Sacheti brothers have the experience of running a legacy family business for many decades.

“There is a similar trajectory, and Sacheti brothers could very well follow the Kamath brothers. Nithin and Nikhil Kamath were both active angel investors before they formally launched Rainmatter” a fintech founder turned VC manager added.

Modelled as a corporate venture fund, Rainmatter has deployed INR 400 Cr across various portfolio companies, mostly early-stage bets.

Sacheti has often talked about the need for more VCs with an operator or founder mindset as this allows them to take nuanced bets on startups.

Mithun’s exit from CaratLane is one of the largest in the Indian startup ecosystem for a founder, after Sachin Bansal and Binny Bansal made a huge windfall from the Walmart acquisition of Flipkart in 2018.

Sachin Bansal and Binny Bansal have gone on to become serial investors in many startups after their successful exit from Flipkart. Other entrepreneurs such as Freshworks CEO Girish Mathrubootham have also floated funds. Mathrubootham’s Together Fund largely invests in early stage SaaS startups.

Similar to the Sacheti brothers, Snapdeal founders Rohit Bansal and Kunal Bahl set up Titan Capital to manage their angel investments, which were being managed separately previously. Titan Capital has gone on to become an institutional VC firm with multiple funds, and has a SEBI-registered AIF licence for its growth-stage fund.

[Edited By Nikhil Subramaniam]

The post Exclusive: CaratLane Founder Mithun Sacheti Sets Up Investment Firm appeared first on Inc42 Media.

Listed jewellery retailer Senco Gold is reportedly in talks to acquire “struggling” online jewellery brand Melorra for INR 40 Cr to INR 50 Cr. 

Sources told Livemint that the valuation has yet to be finalised and the deal size could also change. Another source reportedly said that due diligence is currently underway and the transaction would materialise upon “satisfactory completion of the process”. 

As per the report, Melorra has held talks with multiple buyers in recent months for a potential acquisition. 

Meanwhile, the acquisition will help the Kolkata-based jewellery retailer shore up its presence in the ecommerce space. 

Founded in 2016 by Saroja Yeramilli, Melorra sells lightweight and fashionable gold and diamond jewellery via its online platform. The company claims to deliver products in India as well as the US, the UK, Europe and the UAE. 

Backed by the likes of Lightbox, Norwest Ventures, 100Unicorns and Value Quest, Melorra has raised more than $88 Mn to date. Despite raising big funds, the company continues to be a loss-making venture. 

The Bengaluru-based startup saw its losses surge 73% to INR 106.7 Cr in FY22 against INR 61.4 Cr in FY21. Meanwhile, sales grew 363.6% to INR 364.4 Cr in FY22 from INR 78.6 Cr in FY21. 

The company is yet to file its financial statements for FY23 and FY24. Such has been the funding crunch at the company that it reportedly raised a bridge round of $1.1 Mn from existing investors in June this year at a tenth of its erstwhile valuation. 

The company was estimated to be pegged at $120 Mn during its last funding round in 2021. There have also been reports that the company has stopped paying salaries to its employees.

It competes with Tata-owned CaratLane and BlueStone in the Indian online jewellery landscape. The report of a likely funding has come at a time when many of Melorra’s rivals have raced ahead of it. Tata-owned Titan acquired an additional 27.18% stake in CaratLane for INR 4,621 Cr at a nearly INR 17,000 Cr valuation in August 2023, giving hefty exits to its cofounder. 

Meanwhile, BlueStone is lining up plans to list on the bourses and raised INR 920 Cr as part of its pre-IPO round from the likes of Peak XV and Prosus earlier this year. Last month, Giva raised INR 100 Cr in an extended Series B round from Premji Invest. 

The post After Raising $88 Mn, Melorra May Sell For Pennies On The Dollar appeared first on Inc42 Media.

Two years after acquiring a majority stake in D2C feminine hygiene startup Sirona, content-to-commerce major The Good Glamm Group has now announced the complete acquisition of the startup. 

In a statement, the company said that content-to-commerce finalised the deal at INR 450 Cr ($60 Mn) for the remaining 49.42% stake in the company, giving an all-cash exit to founders Deep and Mohit Bajaj.

Notably, The Good Glamm Group last invested INR 100 Cr in Sirona in December 2021 through primary and secondary investments. This investment was made against a 41.15% stake in Sirona. 

The company later further increased its stake in the femtech startup to 50.58% by the end of FY23 for an undisclosed amount.

Interestingly, both the cofounders stepped down from their active roles in Sirona earlier this year. The latest deal will see the cofounders resign from their respective roles as active directors. 

Besides, per The Good Glamm Group, the transaction will benefit Sirona’s employees through accelerated ESOP vesting. 

“It hasn’t been an easy road—bootstrapping, overcoming fundraising challenges, breaking taboos, and dealing with copycats – we have seen it all. This all-cash acquisition feels like validation for all the hard work,” Deep said. 

Founded in 2015, Sirona sells female hygiene products such as herbal pain relief patches, period stain remover, oxo-biodegradable sanitary napkins and menstrual cups.

The femtech startup is said to have tripled its revenues since 2022. Meanwhile, Sirona is yet to disclose financial results for fiscal 2023-24 (FY24).

In its last financial filing with the MCA, the feminine hygiene startup’s net loss went up 97% to INR 33.10 Cr in FY23 from INR 16.83 Cr a fiscal ago. Operating revenue grew 81% to INR 75.28 Cr during the fiscal under review from INR 41.51 Cr in FY22. 

As for the Good Glamm Group, net losses ballooned to INR 917 Cr in FY23, up 153% from the INR 362.5 Cr it incurred in FY22. The startup’s revenue increased 2.8X in FY23 and operating revenue stood at INR 603 Cr, up 185% YoY. 

The post The Good Glamm Group Buys Out Remaining Stake In Femtech Sirona For INR 450 Cr appeared first on Inc42 Media.

Offline mobile payments startup ToneTag is reportedly in early-stage discussions with Mumbai-based venture growth investor Iron Pillar to raise at least $50 Mn (about INR 420 Cr) in a mix of primary and secondary share sale. The funding round will also see new investors join the startup’s cap table.

“Iron Pillar may co-lead the round along with other investors, with whom talks have begun,” Economic Times reported quoting a source. 

As per the report, the funding round will see a primary capital infusion of $30-$35 Mn. The transaction is also expected to see the startup’s valuation more than double from its last valuation of $100 Mn.

ToneTag declined to comment on Inc42’s queries on the development. 

Founded in 2013 by Vivek Singh and Kumar Abhishek, ToneTag offers audio-based authentication and proximity payment solutions for online and offline commerce. It also develops integrable software to deploy voice-based digital payment systems. The startup has raised a total funding of over $10 Mn till now from investors like Amazon, Mastercard and Elevate Innovation Partners.

Last year, Iron Pillar closed its ‘Iron Pillar Fund II series’ of funds at $129 Mn. The VC firm had plans to invest in Series B and Series C stage SaaS startups operating in India.

Since then, the firm has made one investment in supply chain and logistics SaaS startup Pando. The US-based startup, which operates out of Chennai, raised $30 Mn in its Series B round back then.

Founded in 2016, Iron Pillar offers growth capital and assistance to enterprise tech and consumer tech startups to expand globally. It mainly leads Series B and C funding rounds and later doubles down on the breakout businesses with 5X to 10X of its initial investment. Its portfolio features startups like BlueStone, Curefoods, FreshToHome, Uniphore, and Skill-Lync. 

The development comes at a time when startup funding is on the rise. Indian startups cumulatively raised $8.7 Bn across 766 deals in the first nine months of the ongoing calendar year. This was a 20% increase from the $7.2 Bn raised via 691 deals in the same period last year.

The post Amazon-Backed Fintech Startup ToneTag In Talks To Raise $50 Mn appeared first on Inc42 Media.

Two months after listed logistics giant Delhivery approved 6.15 Lakh equity shares, the company has announced the allotment of 8.6 Lakh equity shares, under its employee stock option plans. 

In an exchange filing on October 9 (Wednesday), Delhivery said it has received approval from its board to allot 8,63,645 equity shares of face value INR 1 each.

“The stakeholders’ relationship committee of Delhivery Limited (‘Company’) on Wednesday, October 09, 2024, approved the allotment of a total of 8,63,645 (Eight Lakh Sixty‐Three Thousand Six Hundred Forty‐Five Only) equity shares of face value Re. 1/‐ each fully paid up against the exercise of vested options, Delhivery said in its filing. 

Of these, 1,21,545 equity shares are allotted under Delhivery employee stock option plan 2012 (ESOP 2012) and 3,50,000 equity shares under Delhivery Employee Stock Option Plan II 2020 (ESOP II 2020). 

The remaining 3,92,100 equity shares were allotted under Delhivery employee stock option plan III 2020 (ESOP III 2020).

“The equity shares so allotted shall rank pari‐passu with the existing equity shares of the company in all respects,” the company’s filing said.

Under the ESOP 2012, the startup has set the exercise price at INR 0.1 for 1,500 stock options, INR 1 for 22,900 options, INR 16.28 for 815 options and INR 29.85 for 96,330 stock options. 

Delhivery under ESOP II 2020 has fixed the exercise price at INR 0.10 for 3,50,000 stock options and INR 0.10 for 3,92,100 stock options under ESOP III 2020. 

Based on the stock’s closing price on Wednesday, the total value of the new allotted stocks translates to INR 35.8 Cr. 

Following the allotment of the aforementioned shares, the paid-up share capital of Delhivery increased to INR 74,09,01,946 from INR 74,00,38,301, it reported 

Meanwhile, shares of Delhivery closed at INR 414.75 in the last trading session and opened at INR 420.95 on Thursday. 

Founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati, Delhivery is a transportation, supply chain and logistics company. The logistics giant competes against the likes of Xpressbees, Blue Dart, Flipkart’s Ekart Logistics and Amazon Shipping. 

Notably, the recent ESOP expansion comes right after a month of Delhivery approving the allotment of 6,15,930 equity shares of face value INR 1. Besides this, it allocated 63,538 stock options to eligible employees on September 02. 

The post Delhivery Expands ESOP Pool With Allotment Of 8.6 Lakh Equity Shares appeared first on Inc42 Media.

In another move to diversify beyond the grocery segment, Zomato-owned Blinkit is now preparing to roll out a cafe feature to deliver snacks and beverages.

According to Mint, the feature will be launched in pilot mode in select cities later this month, with quick deliveries for fast-moving snacks such as samosas and sandwiches. 

Blinkit will reportedly also add items that require preparation time like pasta and noodles, depending on demand for such deliveries.

The offering will compete directly with Zepto Cafe, as well as Swiggy’s ‘Cafe’, which was launched to deliver snacks and beverages in 15 minutes in select areas of Bengaluru.

For now, Swiggy Cafe has curated a few beverage options such as coffee, milkshakes, and protein bars from brands like Blue Tokai and The Whole Truth.

Zepto took the lead in quick snack deliveries with the launch of Zepto Cafe in Mumbai in 2022. It adopted a hybrid approach to deliver branded pre-made food items with non-branded items. 

Zepto claims that this addition helped boost average order values, as users were likely to order tea, coffee, and snacks along with groceries. It’s not clear how much revenue Zepto earned from the Cafe vertical. 

Over the last six months, quick commerce players have expanded operations and diversified their catalogue to meet growing consumer demand. Pretty much all platforms including Swiggy Instamart and the new Flipkart Minutes have entered into categories such as electronics, beauty, pet care, toys and smaller household appliances.

In the case of Blinkit, the additions resulted in gross order value (GOV) surging 130% to INR 4,923 Cr in Q1 FY25 from INR 2,140 Cr in the corresponding quarter last year. Sequentially, it increased by 22.2% from INR 4,027 Cr in Q4 FY24.

Currently, Blinkit operates 639 dark stores across the country, with the average daily GOV per store rising to INR 10 Lakh, compared to INR 6 Lakh from 383 stores previously. The company aims to scale the number of dark stores to 2,000 by the end of 2026 while maintaining profitability.

As per analysis by brokerage CLSA, the gross order value of major quick commerce players like Blinkit, Zepto and Swiggy Instamart is expected to reach $10 Bn by the financial year 2025-26 (FY26) thanks to the expansion beyond grocery and into Tier 2 and 3 markets. 

The post Blinkit Set To Launch ‘Cafe’ For Quick Snack Deliveries appeared first on Inc42 Media.

The Indian startup ecosystem and public market are abuzz with anticipation of one of this year’s most awaited IPOs, Swiggy. However, as analysts and investors dive into the company’s prospects in a market otherwise dominated by its rival Zomato, they are seemingly getting cold feet. 

The reason? Well, for one, the Swiggy IPO currently raises two major concerns — a high valuation and hefty losses on the books. On top of this, the foodtech platform is now set to increase its IPO size as well. For the uninitiated, Swiggy has received the shareholders’ approval to increase the size of its fresh issue to INR 5,000 Cr from an earlier INR 3,750 Cr.

Besides, as per its DRHP, the IPO also comprises an offer for sale (OFS) component of 18.53 Cr equity shares. Together, this could increase the startup’s total IPO size to more than INR 10,000 Cr, expected to be around $1.5 Bn. 

Swiggy is also eyeing a valuation of $15 Bn, which is higher than the $7 Bn valuation at which Zomato went public. Though the initial response to Zomato’s IPO was great, the stock was under significant pressure in the next one year. 

While it is true that business-specific reasons and an overall negative market sentiment adversely impacted Zomato’s market performance, in Swiggy’s case, the concerns cannot be completely brushed off.

However, amid all the buzz and scepticism enveloping the prospect of this IPO, one factor is clear – public market investors would not like to miss the opportunity to ride on the food delivery or quick commerce growth bandwagon.

If we look back to when Zomato was listed in 2021, the Indian investors were new to the concept of food delivery and its overall potential. However, several significant developments have happened since then in the food delivery ecosystem. 

Besides, quick commerce has now entered the delivery realm to change the rules of the ecommerce game, and Swiggy’s Instamart is definitely one of the top industry players.

Despite tailwinds, Swiggy has some humongous challenges to deal with before it starts marching towards the IPO street where its competitor, Zomato, has already established its dominance with a $28 Bn market cap and much stronger fundamentals.

Swiggy Vs Zomato: An Apple To Apple Comparison

The Indian food delivery space is currently a duopoly with Zomato holding about a 55% market share and the rest being cherished by Swiggy. While quick commerce has become a major driver of their businesses in the recent past, food delivery continues to be the biggest contributor to their top lines.

However, IPO-bound Swiggy is far behind its listed rival. Swiggy’s food delivery gross order value (GOV) stood at INR 24,717 Cr in the financial year 2023-24 (FY24), while Zomato clocked INR 32,224 Cr. Zomato also saw stronger growth in FY24, with its GOV rising by 20% year-on-year (YoY), compared to Swiggy’s 15% YoY increase.

In the June quarter (Q1) of FY25, Zomato’s food delivery GOV stood at INR 9,264 Cr, while Swiggy’s stood at INR 6,808.3 Cr. In Q1, Zomato also had a higher average monthly transacting customers at 20.3 Mn users compared to Swiggy’s 14.03 Mn.

Despite the wide gap between Swiggy and Zomato, what makes Swiggy a great bet? “Swiggy will do well in the IPO considering investors have high hopes on quick commerce business,” Umesh Chandra Paliwal, cofounder and CEO of UnlistedZone said, adding that Zomato’s success today is also mainly due to the quick commerce business, Blinkit. UnlistedZone is an unlisted share trading platform. 

Besides, Brokerage Bernstein also acknowledges that quick commerce has become the dominant force in India’s ecommerce structure. 

However, Swiggy is trailing behind Zomato in this area, too.

Notably, in FY24, Swiggy posted a GOV of INR 8,068.6 Cr in quick commerce, up over 57% YoY. Meanwhile, Zomato’s Blinkit clocked INR 12,469 Cr in FY24 GOV, up 93% YoY. This was despite an equal number of dark stores at around 520 at the end of FY24.

It is imperative to mention that the two delivery giants face stiff competition from Zepto in the quick delivery space. Meanwhile, Zomato is way ahead of Swiggy in the going-out segment.

HSBC Global Research recently noted that Swiggy has slightly outperformed Zomato in average order value (AOV) in food delivery over the past year, likely due to its stronger presence in cities like Mumbai and Bengaluru. In FY24, Swiggy’s AOV for food delivery was INR 427.8, and it rose to INR 436 in Q1 FY25, compared to Zomato’s AOV of INR 420.2 and INR 425 during the same periods.

Overall, while an apple-to-apple comparison of the two businesses is necessary, Bernstein notes that “the debate on Zomato vs Swiggy is beyond comparing metrics.”

To understand the two businesses one needs to appreciate the divergent business philosophies – build vs buy, super app vs super brands, innovator vs operator, it said in a report. 

The brokerage added that both companies have had different approaches leading to different outcomes in terms of market share, growth and profitability.

“Swiggy has a super app which bundles food delivery and quick commerce. The loyalty program is common – Swiggy One. This allows a stronger frequency (4.5X) at a lower monthly transactional user (MTU) (about 12 Mn). Zomato operates at a lower frequency (3.5X) but a higher base (20 Mn MTU). Both are solving for different outcomes – Swiggy solves for superior LTV/CAC (and higher profitability). Zomato has expanded through aggressive new user acquisition,” as per Bernstein analysts.

Meanwhile, Prashanth Tapse, senior VP (research) at Mehta Equities, believes that Swiggy and Zomato will upscale their business models going ahead.

“Today, they are not just online food delivery companies. Going forward, they will be platforms connecting customers in many other businesses. If we look globally, food delivery companies like DoorDash and Uber Eats have significantly changed their business models to foray into several other segments. So, going forward, a similar thing will happen with Swiggy and Zomato. In the next three 3-5 years, they will have many other business models where the valuation is getting higher,” Tapse said.

So, Who Should Invest In Swiggy?

At a time when Swiggy is faced with a valuation problem, Paliwal sees Zomato, too, sitting on a high valuation — while other experts view it as a new normal.

To draw an analogy, Ola Electric’s IPO had a high valuation that equally made market experts raise eyebrows. Its INR 6,000 Cr public offering at a $4 Bn valuation was well-subscribed but saw a muted listing.

Meanwhile, Swiggy’s current valuation is still lower compared to Zomato, which is also a direct reflection of the latter’s outperformance in all business verticals.

On the other hand, Mehta Equities’ Tapse believes that only long-term investors should invest in the IPO of Swiggy.

“For long-term investors, both Swiggy and Zomato should be in their portfolio. However, investors should invest in these kinds of businesses treating them as startups only and not big tech companies… there can be ups and downs in these businesses in terms of profitability,” Tapse said.

In addition, the analyst anticipates Swiggy to achieve profitability in the coming months on the back of a sustainable platform fee. In all its glory, Swiggy can also emerge as a multi-bagger, despite falling behind its closest competitor Zomato, analysts believe.

“However, short-term trades will burn hands,” Tapse concluded. 

Amid debates, discussions, concerns and opportunities, Swiggy’s unlisted shares are trading at INR 485-INR 515 zone in the grey market. Two months ago, its shares were trading at INR 425 apiece.

To sum it all up, analysts see enough demand in the market for Swiggy’s IPO. However, a valuation discount will only increase the interest for its much-anticipated public offering.

[Edited By Shishir Parasher]

The post Can Swiggy Replicate Zomato’s Success On The Bourses? appeared first on Inc42 Media.

Amazon India has partnered with Startup India to undertake multiple initiatives to empower startups to build and grow their businesses via ecommerce. 

“Amazon will collaborate with Startup India to enable eligible startups to tap into opportunities in ecommerce by registering on Amazon India’s marketplace through a dedicated page on the Startup India portal,” the ecommerce giant said in a statement.

The company said that it will provide dedicated onboarding experience, along with mentorship from Amazon leaders, go-to-market support and logistics guidance to the startups.

Amazon said it also aims to empower women entrepreneurs via its ‘Saheli’ program by partnering with Startup India. The Saheli programme aims to support women entrepreneurs by providing a platform to showcase their locally made products.

“The collaboration will drive a high-impact learning program designed to fuel the ecommerce journeys of eligible women led small and medium businesses in India,” the statement said.

Additionally, Amazon will also help in creating awareness about the Bharat Startup Knowledge Access Registry (BHASKAR) initiative, a digital platform for startups, launched by the central government to facilitate growth of the Indian startup ecosystem.

“… By combining Amazon’s ecommerce expertise with Startup India’s role as the Government of India’s flagship initiative for the development of the startup ecosystem, we will provide a robust platform for Indian startups and businesses to scale domestically…” DPIIT joint secretary Sanjiv said. 

Earlier this month, Amazon India also partnered with India Post to facilitate customer deliveries across every pin code in the country.

Last month, the ecommerce platform also signed a memorandum of understanding (MoU) with the ministry of labour and employment to post work opportunities at Amazon’s corporate offices and operations network on the National Career Service (NCS) portal. 

Amazon is among the key players in the Indian ecommerce space and competes with the likes of Flipkart and Meesho. While it is yet to turn profitable in India, the US-based giant continues to bet on India, which is an important market for it.

However, the company continues to be troubled by regulatory and other issues in the country. Recently, the Competition Commission of India (CCI) found Amazon and Walmart-backed Flipkart guilty of violating competition laws. 

The antitrust watchdog has sought turnover details from both ecommerce giants to determine the penalty to be levied on them for flouting antitrust norms.

Besides, Amazon is also facing increasing competition from quick commerce players like Zomato-owned Blinkit, Swiggy Instamart, Zepto as they expand their catalogue.

The post Amazon Partners With Startup India To Help Startups Leverage Ecommerce Opportunity appeared first on Inc42 Media.

Bengaluru-based B2B marketplace startup Zetwerk has joined the growing list of Indian startups eyeing an initial public offering (IPO). The Lightspeed-backed startup has held initial discussions with investment banker JP Morgan for its IPO, sources told Inc42. 

The startup’s top management has also held discussions with 2-3 other banks, the sources said. However, they added that the talks are at a preliminary stage and nothing is finalised yet.

The unicorn, last valued at $2.8 Bn, is looking to go public in the next two years.

Zetwerk didn’t respond to Inc42’s queries on the development. JP Morgan declined to comment. 

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary, Zetwerk connects manufacturing companies with vendors and suppliers for procuring industrial machine components. 

Earlier this year, the startup announced an investment of INR 1,000 Cr to grow its electronics manufacturing capacity across IT hardware, television, mobile phones, hearable and wearable product segments.

In a statement, the unicorn then said that it was aiming to lead the ODM (original design manufacturer) as well as electronics manufacturing services space in the mobile phones, hearable and wearable space categories.

Zetwerk entered the television and display devices business by commissioning one of north India’s largest TV manufacturing facilities with a production capacity of 2.4 Mn units annually to cater to both domestic and international brands.

The startup has raised a total funding of over $700 Mn till date and counts Mars Growth Capital, Greenoaks Capital, Peak XV Partners, among its backers. 

Zetwerk indirectly competes against the likes of Moglix, OfBusiness, among others. 

It is pertinent to note that OfBusiness is also eyeing a $1 Bn IPO in the second half of 2025.

Amid the ongoing IPO boom in the Indian market, a number of new-age tech startups are lining up to go public. While 10 startups, including Ola Electric, Awfis, Go Digit, among others, have gone public so far this year, Swiggy, Ecom Express, MobiKwik, among others, are looking to make their public market debut in the next few months.

The post Exclusive: Zetwerk Begins Talks With JP Morgan, Other Bankers For IPO appeared first on Inc42 Media.

In the run up to its much-awaited initial public offering, foodtech major Swiggy allotted employee stock options (ESOPs) worth over INR 1,748.41 Cr (over $208.2 Mn) to its founder and group CEO Sriharsha Majety. 

As per the startup’s updated draft red herring prospectus (DRHP) filed with SEBI, the company allotted 48.56 Mn shares to Majety as part of its Swiggy Employee Stock Option Plan 2024.

The company’s IPO papers mention that the last selling price of its shares was INR 360, when Ark India sold 210K shares for INR 7.56 Cr. On the basis of this price, Majety was awarded shares worth INR 1,753.27 Cr. 

Besides the CEO, the company also awarded ESOPs to other executives. Overall, the company granted 85.35 Mn ESOPs worth over INR 3,072 Cr  (over $365.9 Mn) under ESOP 2024 scheme.

The company said that no options have vested and no options have been exercised. 

Other prominent names that were recipients of the stock options were CFO Rahul Bothra (2.09 Mn), CTO Madhusudhan Rao Subbarao (2.09 Mn), head HR Girish Menon (2.09 Mn), Ashwath Swaminathan (1.39 Mn), CGO and cofounder Phani Kishan Addepalli (2.09 Mn), cofounder Lakshmi Nandan Reddy Obul (2.09 Mn), Swiggy food marketplace CEO Rohit Kapoor (2.37 Mn), and Swiggy Instamart CEO Amitesh Jha (3.24 Mn). 

It is pertinent to mention that Swiggy filed its updated DRHP last month. Swiggy’s public issue was to comprise a fresh issuance of shares worth INR 3,750 Cr and an offer for sale (OFS) component of 18.53 Cr equity shares. 

In the run up to its IPO, the foodtech major also received approval from its shareholders to increase the size of the fresh issue in its IPO to INR 5,000 Cr.

The OFS will see Majety selling up to 1.74 Mn equity shares in the IPO. Investors such as Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will also sell shares as part of the OFS component. While Accel India IV (Mauritius) Ltd will offload 1.05 Cr shares, Alpha Wave Ventures will dump 55.73 Lakh shares as part of the OFS component. 

The post Swiggy Allots ESOPs Worth INR 1,748 Cr To Founder Sriharsha Majety Pre-IPO appeared first on Inc42 Media.

Listed beauty marketplace Nykaa is reportedly looking to jump into the quick commerce fray in a bid to recapture market share from the likes of Blinkit, Zepto, Swiggy Instamart and others. 

An ET report claims Nykaa has launched a 10-minute delivery pilot in select parts of Mumbai covering 5% of its SKU base. 

In September, Nykaa had stated its intention to accelerate next-day and same-day deliveries to cater to the growing demand for quick commerce-like models. Nykaa chairperson, MD and CEO Falguni Nayar had said at the company’s AGM that currently next-day deliveries comprise 60% of all orders from the marketplace’s top 110 cities.

Quick commerce platforms, including Blinkit, Zepto, Swiggy Instamart, BigBasket and Flipkart Minutes, have looked to capitalise on the festive season demand by bulking up the beauty and personal care SKUs. 

For many D2C beauty brands, listing on these quick commerce platforms means moving closer to the consumer base. Plus, QC platforms cater to impulse shopping, a big draw for new-age beauty brands. 

“We have seen a very fast adoption of skin care and beauty products by quick commerce platforms which will only increase in coming months. This might hit the niche players like Nykaa, Purplle and others that have been market leaders. We expect small-ticket purchases and non-make up product orders to spike during this festive season on quick commerce platforms,” Satish Meena, adviser at market intelligence firm Datum Intelligence, told Inc42 earlier this month. 

Several of Nykaa’s private labels are listed on Blinkit, Zepto and Swiggy Instamart, which would undoubtedly have shown Nykaa what quick commerce offers. But on the flipside, Nykaa’s core marketplace business has suffered from the rise of quick commerce. 

Ahead of its Q2FY24 results, Nykaa claimed to have registered consolidated revenue growth in the mid-twenties in the second quarter of the ongoing financial year 2024-25 (FY25). 

The company said its beauty vertical saw strong performance, while the fashion vertical continues to lag behind. 

Nykaa is not alone in wanting a taste of the quick commerce magic. In recent times, the model is being extended beyond grocery to fashion and lifestyle categories such as beauty and personal care.

The post Nykaa Pilots 10-Minute Deliveries In Mumbai To Fight Quick Commerce Onslaught appeared first on Inc42 Media.

Hyperlocal delivery startup magicpin said that it is clocking 1.5 Lakh daily food and logistics orders on the state-backed Open Network for Digital Commerce (ONDC).

In a statement, magicpin said that the number of orders on its platform surged 1500X in the past 16 months to 1.5 Lakh from 100 orders in May 2023. 

It also said that the number of restaurants under its belt surged to 70,000 at the end of September 2024 as against 22,000 when it made its debut on ONDC in March last year. 

“In the last 15 months, we have touched double-digit market share in major cities, with more than 10% market share in key markets like Delhi or Bengaluru in terms of overall food delivery. At the same time, we are thrilled with magicpin’s success on ONDC, where we have reached 1.5 Lakh daily orders for food delivery and logistics on the network…,” said magicpin cofounder and CEO Anshoo Sharma.

Sharma said magicpin fulfils 90% of food orders from major buyer apps such as Paytm, Tata Neu, and Ola. He added that the company plans to onboard 1 Lakh new restaurants and cloud kitchens on ONDC.

“We offer a great assortment, demand-side integration, and competitive price points that benefit both customers and merchants alike,” the CEO Sharma while elaborating on magicpin’s unique selling proposition.

Founded in 2015 by Sharma and Brij Bhushan, magicpin started off as a restaurant discovery and user savings platform. Later, the company became one of the first platforms to join ONDC and assist sellers and restaurants in adopting the open protocol. 

magicpin has been working to scale its operations on the back of the increasing popularity of ONDC. Earlier this year, the company said that it would invest INR 100 Cr to bolster its presence on the state-backed network, offer incentives such as zero commission, and free home delivery for customers.

Besides, the company also offers SaaS tools to buyer apps. In March this year, the hyperlocal delivery startup also forayed into the logistics aggregation space with the launch of its new vertical Velocity, and caters to brands such as KFC, Burger King, IGP, among others. 

The post magicpin Clocks 1.5 Lakh Daily Food & Logistics Orders On ONDC appeared first on Inc42 Media.

Audio products and smartwatch maker boAt managed to reduce its net loss by 47% to INR 53.6 Cr in the financial year 2023-24 (FY24) from INR 101 Cr in the previous fiscal year.

As per internal documents accessed by Inc42, boAt also managed to turn EBITDA profitable in FY24. It posted an EBITDA of INR 14.04 Cr during the year under review as against an EBITDA loss of INR 50.21 Cr in FY23.

It is pertinent to note that the D2C unicorn slipped into loss for the first time in FY23, which it attributed to investments for its smartwatch category and setting up manufacturing infrastructure in India. The startup had posted a net profit of INR 68.7 Cr in FY22.

Meanwhile, boAt’s revenue declined 5% to INR 3,121.6 Cr in FY24 from INR 3,284.7 Cr in the previous fiscal year.

The financial disclosure comes at a time when the startup is gearing up for its initial public offering. It is looking to list on the exchanges in 2025.

This is the startup’s second attempt at going public. In May 2022, markets regulator Securities and Exchange Board of India (SEBI) approved boAt’s INR 2,000 Cr IPO. However, it didn’t proceed ahead with the IPO plans. Later in that year, boAt raised INR 500 Cr from Warburg Pincus and Malabar Investments in October. 

Founded in 2015 by Sameer Mehta and Aman Gupta, boAt operates in the larger audio and wearables markets and sells products such as headphones, smart watches and speakers. It is backed by the likes of Qualcomm Ventures, Ranveer Singh, Warburg Pincus, among others, and has raised about $177 Mn in funding till date.

Update | October 8, 10:37 PM: This story has been updated to rectify the name of Aman Gupta.

The post boAt’s FY24 Loss Nearly Halves To INR 54 Cr appeared first on Inc42 Media.

The Jammu & Kashmir authorities have fined Honasa Consumer, the parent entity of D2C unicorn Mamaearth, after flagging a mismatch in unit sale prices on its product.

In an exchange filing yesterday (October 7), the company said it received an order from the Office of the Assistant Controller Legal Metrology Kulgam, Jammu & Kashmir, regarding a compounding fee of INR 50,000 which has been imposed on the company and its nominated director / executive.

“Unit sale price on the product is not calculated to correct place of decimal as prescribed under Rule 6(11) of Legal Metrology (Packaged Commodities) Rules, 2011,” the filing read.

Honasa said that barring the amount of the fine imposed on it, it does not expect any additional impact on the financials or operations of the company due to the order.

At the time of writing, shares of Honasa were trading at INR 431.7 apiece on the BSE, up 0.05% from the previous close.

Founded in 2016 by the husband-wife duo Varun and Ghazal Alagh, Honasa’s product portfolio comprises six beauty and personal care brands which include Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s.

The company posted a 63% jump in its profit after tax (PAT) to INR 40.2 Cr in the June quarter of the financial year 2024-25 (FY25) from INR 24.7 Cr in the same quarter of previous year on the back of increase in the sales of its beauty products. 

Operating revenue grew 19.3% on a year-on-year (YoY) basis to INR 554 Cr in the reported quarter.

However, shares of Honasa have been under huge selling pressure lately, with the stock having tanked almost 17% over the last month.

Last month, investors Peak XV Partners, Fireside Ventures, Stellaris Venture Partners, among others, dumped Honbasa shares worth INR 1,601.68 Cr via bulk deals. 

The post Honasa Fined By J&K Authority Over Discrepancy On Product Price appeared first on Inc42 Media.

This festive season will be all about the need for speed, as ecommerce majors have now entered the paradigm of swift deliveries (same day or next day), pivoting from their earlier timeline of 4-5 days.

Making the game of deliveries insanely difficult to play will be quick-commerce players that are expected to capture the majority of the customer base seeking instant gratification. All in all, ecommerce platforms will be seen upping the ante in staying ahead of the delivery curve and ensuring that no shopper is left craving amid the festive rush.

However, this shift in ecommerce behaviour has been in the making for some time, and the trigger has been the maturity of the Indian quick delivery ecosystem, which currently drives 40% of online grocery sales.

Over the past year, ecommerce marketplaces have made significant strides in enhancing delivery speed, introducing same-day and next-day services to cater to customer demands. A vibrant example is Flipkart, which, at the start of the year, announced that it would offer same-day delivery across multiple product categories at no additional cost.

With the market at stake, Amazon followed suit, while beauty platform Nykaa and fashion site Myntra began testing same-day delivery options. Witnessing this, many D2C brands are also adapting to remain competitive.

While they may not match online marketplaces in order volume, they’re eager to offer quicker delivery options to stay competitive. A case in point is GenZ-focussed fashion startup NEWME, which recently launched 90-minute delivery for its products in select Delhi NCR areas.

Speaking with Inc42, logistics experts said that the demand for fast delivery has surged dramatically compared to last year’s festive sales. Same-day and next-day deliveries have grown 4-5X during peak periods of festive sales, now accounting for 12-15% of total ecommerce deliveries, which is a big leap from almost zero just 18 months ago.

This surge comes as ecommerce firms like Amazon, Flipkart, and Meesho are expected to register a 20% year-on-year rise in gross merchandise value, generating sales in the range of INR 1 Lakh Cr to 1.2 Lakh Cr this festive season, according to Redseer Strategy Consultants. Quick commerce is anticipated to contribute around 8% to this overall growth.

Festive Rush Paves The Way For 5X Surge In Same-Day Delivery

Speaking with Inc42, COO of Ecom Express, Vishwachetan Nadamani, said that during the festive season, the speed of deliveries naturally improves due to increased demand, with line-haul trucks operating more frequently. However, the surge in fast delivery requests is more pronounced this year.

Therefore, the executive added that the company has rolled out same-day delivery and next-day deliveries in India’s top 10 metro cities, with the infrastructure fully established to support these services.

Meanwhile, Shadowfax’s cofounder and chief business officer, Praharsh Chandra, said that the company is well prepared to tackle the same or next-day delivery rush.

“We started focussing on fast delivery with both brands and marketplaces about a year and a half ago. Back then, the industry had 0% same-day delivery, but now 10-14% of all intra-city orders are delivered the same day,” Chandra said.

Chandra noted that this trend is gaining momentum as we are nearing the peak sales season. “In fact, our same-day delivery channel saw five times growth in just one day, on the second day of the sales. We experienced some very high peaks,” he said.

Chandra sees a clear shift in consumer behaviour here, with more and more customers now wanting instant gratification. “Even for nearby zones, like orders from Bangalore to Mysore, which used to take two days, people now expect next-day deliveries,” he said.

The sentiment is being echoed across the industry. For instance, Zippee’s founder & CEO, Madhav Kasturia, sees registering 6-8X growth as all its partner brands continue to scale during the festive season.

Fast Delivery Fever Grips All Categories

Fast delivery demand has risen across categories this festive season. Electronics, beauty and personal care, fashion, and home goods have seen strong interest, with mobile phones being the most popular choice. Interestingly, on the first day of sales, Shadowfax delivered 15,000 iPhones.

However, the demand landscape is not solely dominated by electronics. Categories such as beauty and personal care, fashion, and home goods are also seeing high demand, with brands like Decathlon experiencing increased sales of sports goods, showing that consumers are diversifying their purchases.

“There’s demand in various categories. However, it’s crucial to focus on where the concentration of that demand is and whether brands have optimised their supply chains with warehouses in these top metros,” the Ecom Express COO said.

So far, demand for fast delivery is highest in metro cities like Bangalore, Mumbai, and Delhi. However, this trend is not limited to urban areas. Brands are now stocking inventory in Tier II and Tier III cities like Patna, Jaipur, and Guwahati to offer faster delivery options in these regions as well.

Navigating The Complexities Of Fast Delivery

While fast delivery services are in high demand, they come with operational challenges. One of the biggest hurdles is optimising inventory placement. Quick deliveries not only require faster transportation but also strategic positioning of inventory closer to customers.

This requires maintaining fewer pin codes per dark store, which complicates logistics, Zippee’s Kasturia said, adding that the logistics startup was addressing it by establishing localised inventory hubs, enabling quicker access and more streamlined delivery routes.

Additionally, the rising demand for same-day deliveries translates to an increased need for delivery riders, resulting in escalating costs month after month. During peak seasons, the volume can increase by 4-5X, necessitating supplementary capacity through hyperlocal delivery fleets.

“Historically, logistics have a rigid model where shipments from multiple clients are picked up, sent to a central sortation centre, and then dispatched to last-mile hubs. That entire process used to take around 16 hours. But for same-day delivery, we can’t afford that kind of delay. So, we have restructured the supply chain to bypass certain nodes when possible. This is both a technology and operational shift,” Shadowfax’s Chandra said.

While same and next-day deliveries typically carry a premium — around 25% higher than express delivery — logistics startups are actively working to optimise operational costs. By increasing order volumes and refining their processes, many have reduced the cost difference to approximately 5-10% compared to regular delivery.

Now, as the industry stands at the precipice of super-fast deliveries, building an efficient supply chain will be the most critical element for the long-term sustainability of India’s quick delivery realm.

[Edited By Shishir Parasher]

The post Festive Rush Sparks Speed War: Quick Commerce & Ecommerce Battle For Fastest Deliveries appeared first on Inc42 Media.

Zomato-owned Blinkit has rolled out a new functionality that allows businesses to add goods and services tax identification number (GSTIN) while making purchases on the quick commerce platform.

This will effectively enable businesses to claim input tax credit (ITC) on the GST paid to Blinkit for buying products. For the uninitiated, ITC allows businesses to reduce their tax liability by claiming GST paid on purchases.

“We’ve rolled out the ability to add GSTIN for businesses purchasing on Blinkit. A lot of our customers have been asking for GST invoices as it is a big decision-making factor, especially for high-value purchases,” said Blinkit CEO Albinder Dhindsa in a LinkedIn post.

The company has likely launched the new offering to streamline bulk buying experience on the platform. Besides, businesses will be easily able to claim their ITC on the GST portal without having to separately feed the data on the tax portal. 

The new offering comes at a time when Blinkit has aggressively diversified its product mix from merely offering grocery items. Last month, the company began selling the newly launched iPhone 16 on its platform and has been adding more electronics products to the offerings listed on the platforms. 

In August, the company rolled out “10-minute” delivery of passport-size photos in Delhi and Gurugram. In the same month, it also allowed users from select countries to send rakhis and gifts to their siblings in India during Raksha Bandhan.

The latest development comes at a time when Blinkit is seeing strong growth and almost achieved adjusted EBITDA breakeven in Q1 FY25. It clocked a gross order value (GOV) of INR 4,923 Cr during the quarter, up 130% from INR 2,140 Cr in the corresponding quarter last year. Sequentially, GOV rose 22.2% from INR 4,027 Cr. 

The quick commerce juggernaut operated 639 dark stores across the country at the end of June 2024. Besides, its average daily GOV throughout per store rose to INR 10 Lakh from 639 stores as of Q1 FY25 as against INR 6 Lakh from 383 stores in Q1 FY24. 

The company has set its eyes on increasing the number of dark stores under its belt to 2,000 by the end of 2026. 

The post Blinkit Enables Businesses To Add GSTIN While Making Purchases appeared first on Inc42 Media.

Beauty and fashion ecommerce major Nykaa said its consolidated net revenue grew in “mid-twenties” in the second quarter of the ongoing financial year 2024-25 (FY25).

In its quarterly update, Nykaa said that the beauty division saw strong performance, with both net revenue and net sales value (NSV) rising in the mid-20% range. It added that the growth in gross merchandise value (GMV) was even higher.

“Strong overall performance was seen across omnichannel retail business, owned brands as well as eB2B distribution business, ahead of the festive season. Dot & Key, a new age skincare brand, continues to experience rapid growth, with Nykaa expanding ownership to 90% at the beginning of this financial year,” the Falguni Nayar-led company said 

However, Nykaa’s fashion vertical continues to lag behind. The NSV of the fashion segment grew in the low teens. Its overall revenue growth reached low 20%, which, the company said, was partly driven by the acquisition of its content platform Little Black Book (LBB). 

It is pertinent to note that Nykaa decided to merge LBB with Nykaa Fashion earlier this year.

The company said that there was a slight slowdown in consumption in the first half of FY25, but it remains optimistic about demand rebounding in the second half, supported by festive and wedding seasons.

Nykaa’s fashion vertical has been proving to be a laggard for the last few quarters amid rising competition. In Q1 FY25, the GMV of the fashion segment rose only 15% year-on-year (YoY) to INR 774.1 Cr

Overall, the company’s consolidated net profit jumped almost 152% to INR 13.6 Cr in the first quarter of FY25 from INR 5.4 Cr a year ago. Operating revenue grew 22.8% to INR 1,746.1 Cr in the reported quarter from INR 1,421.8 Cr in Q1 FY24.

Nykaa is looking to further shore up its revenue by expanding to the Middle East. As part of this push, it recently incorporated two new subsidiaries in Qatar and Saudi Arabia under the brand name Nysaa. 

Shares of Nykaa ended Monday’s (October 7) trading session 0.9% higher at INR 193.95 on the BSE amid a bloodbath in new-age tech stocks.

The post Nykaa Sees Revenue Growth In Mid-Twenties In Q2, Fashion Division Slows Down appeared first on Inc42 Media.

In an effort to bolster its footprint ahead of the initial public offering (IPO), foodtech major Swiggy has now launched a bulk order service called ‘Swiggy XL EV’ fleet in Gurugram, designed to serve large groups.

According to the company, the new initiative was under pilot run for the past few weeks, and has now entered the market on the day of Haryana elections.

Last month, Inc42 exclusively reported about Swiggy’s pilot phase of the large order fleet in Delhi NCR region. Back then, the Invesco-backed startup partnered with a three-wheeler EV maker for the initiative.

As part of its launch, Swiggy XL EV fleet delivered 3,500 meals to electoral officials at more than 580 polling booths in Gurugram and Badshahpur constituencies. This service was provided free of cost to the district administration.

“The festival season is perhaps the best time to launch this service, when there is gaiety and joy all around, and everyone celebrates with their loved ones. Swiggy XL will ensure that there is no interruption in parties and gatherings and no delay in large orders,” said Sidharth Bhakoo, national business head of Swiggy Food Marketplace.

Swiggy XL EV fleet will be extended to new cities in the coming weeks, confirmed Bhakoo.

He went on to add, “The service has an important environmental angle as well since the entire fleet is electric and it saves multiplicity of order trips.”

This development comes at the heels of its recent launch of a new service called Swiggy Bolt, to deliver quick-to-prepare dishes in 10 minutes. This new offering is currently operational in six cities – Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune. 

Furthermore, the company is currently experimenting on a high-priced concierge membership that offers subscribers purchase access to high-end experiences and events that are not available to the general public, as per reports.

With the startup set to go public, Swiggy has reportedly received approval from its shareholders, earlier this week, to increase the size of the fresh issue in its initial public offering to INR 5,000 Cr from INR 3,750 Cr earlier.

The post Now, Swiggy Rolls Out Electric Fleet For Larger Orders In Gurugram appeared first on Inc42 Media.

Honasa Consumer has clarified that it does not own any asset in the UAE, a day after the Dubai court upheld its previous order directing attaching assets of the Mamaearth’s parent in the region.

In an exchange filing today (October 5), Honasa Consumer also pointed out that its Dubai subsidiary has been exempted from the attachment order. 

This comes a day after Honasa said that the Court of Merits at Dubai rejected the grievance filed by Honasa and its former distributor RSM General Trading. 

These grievances included RSM General Trading’s demand to cancel the trading licence of Honasa’s subsidiary and Honasa’s objection to the attachment of its assets in UAE. 

The Dubai court’s initial ruling came on June 6 and both parties filed their appeals against the order.

The D2C brand’s parent reiterated today that it will file contempt against RSM in Delhi court for non compliance with the Delhi HC’s order of August. 

For the uninitiated, the Delhi HC’s order in August not only asked RSM General Trading to revoke its execution proceedings in Dubai against Honasa but also deposit INR 57.17 Cr along with added interest in the registry of Delhi HC until the withdrawal of execution proceedings in Dubai against Honasa. 

The order then pointed out that if the Dubai court still enforces the order against Honasa, the Delhi High Court will release the money to the D2C brand.

At the heart of this fiasco is Honasa severing its ties with RSM General Trading, with the latter alleging Honasa of abruptly terminating the distributorship agreement.

RSM General Trading was Honasa’s distributor in the Middle East and African region between July 30, 2020 and January 17, 2023.

Earlier, in May UAE’s Court of full Commercial Jurisdiction ordered Honasa to pay a compensation of AED 25.07 (around INR 57 Cr) Mn as damages to RSM General Trading. 

Apart from this, it also directed the company to pay legal interest at a rate of 5% (from the date the judgement becomes final until full payment is made) and AED 1,000 (INR 22,665) as attorney fees. 

Founded in 2016 by the husband-wife duo Varun and Ghazal Alagh, Honasa’s product portfolio comprises six beauty and personal care brands which include Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt and Dr. Sheth’s.

The post Honasa Vs Distributor: D2C Brand Says It Has No Assets In UAE appeared first on Inc42 Media.

IPO-bound foodtech major Swiggy has launched a new service to deliver quick-to-prepare dishes in 10 minutes. 

Called Swiggy Bolt, the new offering is currently operational in six cities – Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune. 

In a statement, Swiggy said that the new offering will deliver food from popular restaurants and QSR chains within two kilometre radius of the consumer. 

Bolt will feature dishes such as burgers, hot and cold beverages, breakfast items, and biryani that require minimum preparation time. The new offering will also focus on ready-to-pack dishes like ice cream, sweets and snacks. 

“Customers can choose from a mix of well-known national brands like KFC, McDonald’s, Burger King, Baskin Robbins, Starbucks, Chaayos, and EatFit, alongside local favourites… “ the statement added. 

The company also claimed that the delivery partners will not be informed of the distinction between Bolt and regular orders, adding that they will not be penalised or incentivised based on delivery time.

“Bolt is the next evolution in our mission to provide unmatched convenience. Ten years ago, Swiggy revolutionised food delivery by cutting average wait times to 30 minutes. Now, we’re reducing that wait even further for frequently ordered items… ,” Swiggy’s food marketplace division’s CEO Rohit Kapoor said. 

In a post on LinkedIn, Kapoor said that Swiggy is eyeing a pan-India roll out of the service in the near future. 

This comes nearly a month after Inc42 reported that the IPO-bound foodtech launched ‘Cafe’ in a few localities in Bengaluru to deliver snacks and beverages in 15 minutes. At the time, it was reported that Swiggy Cafe had curated a few beverage options such as coffee, milkshakes, and protein bars from brands like Blue Tokai and The Whole Truth under the new offering.

Earlier today, it was also reported that the foodtech major has started piloting a high-priced concierge membership that offers subscribers purchase access to high-end experiences and events that are not available to the general public.

However, the 10-minute delivery space is not something new for the IPO-bound startup. In 2022, it launched Swiggy Instacafe in a pilot mode under its quick commerce arm Swiggy Instamart. It was said to be making deliveries of pre-made food and snacks, along with groceries, through its dark stores in certain pockets of Bengaluru back then. 

Swiggy’s competitor Zomato also launched a similar service ‘Zomato Instant’ in Gurugram in April 2022 but “rebranded” the vertical due to “not getting the daily volume required to even meet the fixed costs”. 

Meanwhile, a new competitor in the 10 minute food delivery space emerged recently. Swish, founded in August, began delivering select fast food in the HSR layout area of Bengaluru and is planning to expand its operations soon.

For Swiggy, the pilots come ahead of its much-anticipated IPO. The startup filed its updated draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI). On Thursday, the company got approval from its shareholders to increase the size of the fresh issue of shares in the IPO to INR 5,000 Cr. The IPO will also comprise an offer for sale of 18.53 Cr equity shares.

The post Swiggy Launches 10-Minute Food Delivery Service Bolt appeared first on Inc42 Media.

Goldman Sachs Asset Management has increased its stake in online classifieds and auto auction platform CarTrade to 7.19% from 5.15% at the end of the June quarter.

Goldman Sachs, along with its associated entities, acquired an additional 9.78 Lakh shares of CarTrade via open market transactions, it said in an exchange filing. 

This comes a week after private equity (PE) firm Warburg Pincus exited CarTrade by offloading over 40.76 Lakh shares or divesting the entire 8.64% in CarTrade. 

In June, Highdell Investment Limited and Macritchie Investment Private Limited also sold around 40.65 Lakh shares and 20.32 Lakh shares of CarTrade, respectively. 

In the same month, Temasek, JP Morgan and Warburg Pincus cumulatively offloaded 64.57 Lakh shares of CarTrade via separate bulk deals. 

Founded in 2009 by Vinay Sanghi and Rajan Mehra, CarTrade sells new and old vehicles. It counts brands like OLX India, CarWale, BikeWale, CarTradeExchange, Shriram Automall, Adroit Auto, and Autobiz under its umbrella and sells technology solutions for OEMs and dealers.

It competes with the likes of CarDekho, Droom, CARS24, among others, in the growing online automotive classifieds market in India.

This comes at the heart of CarTrade looking to incentivise and retain its talent through its latest ESOP offerings. It expanded its employee stock option plan (ESOP) pool by allocating 50,000 stock options in August. 

In July, it allotted 28,000 and 1 Lakh stock options. Before that in April, the company set aside an additional 3.04 Lakh equity shares under its ESOP schemes.

On the financial front, CarTrade reported a 69.4% increase in its consolidated net profit to INR 22.89 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25) from INR 13.51 Cr in the year-ago period. Revenue from operations jumped 64% to INR 141.17 Cr in Q1 FY25 from INR 86.06 Cr in the corresponding quarter last year.

Shares of CarTrade ended Friday’s trading session 2.76% lower at INR 907.75 on the BSE. 

The post Goldman Sachs Ups Stake In CarTrade To 7.19% appeared first on Inc42 Media.