Listed food delivery platform Zomato has increased the platform fee to INR 4 per order across key markets from INR 3, according to information on its app.

The new rates are effective from January 1.

According to sources cited in an ET report, New Year’s Eve saw platform fees temporarily upped to as high as INR 9 per order in certain markets.

“These are business calls which we take basis various factors from time to time,” a Zomato spokesperson was cited by ET as saying on the platform fee hike.

Incidentally, Sunday (December 31) was also when Zomato saw its order volume during New Year’s Eve shoot up to all-time high levels. Taking to X, CEO Deepinder Goyal noted that the number was bigger than the combined number of orders the food delivery platform had clocked for New Year’s Eve over the past six years.

Platform Fee Driving Revenue In Food Delivery

Zomato started charging a platform fee on orders on its platform in August last year, starting with INR 2 and increasing to INR 3 across major markets. Zomato’s closest rival Swiggy began charging an INR 2 fee as well, which was later hiked to INR 3.

The two platforms are charging a platform fee beyond the delivery charge, which is waived for customers of their respective loyalty programmes. The platform fee, however, applies to Zomato Gold and Swiggy One members as well.

Incidentally, Zomato’s quick commerce arm Blinkit also charges an INR 2 platform fee per order.

While it might not be a popular decision among users, platform fees have improved the revenues of food delivery startups. For instance, in its July-September quarterly results, Zomato attributed an improvement in the percentage of what it makes (also called a take rate) on each food delivery order to the platform fee.

According to a November research note by Jefferies, Zomato’s take rate in the September quarter of FY24 was 24.1%, improving 28 basis points (0.28 percentage points) from a year earlier and 32 basis points from the previous three-month period.

Platform fee is also being talked about as a major factor in Zomato turning its fortunes around and becoming profitable over the past two quarters. It reported a profit after tax of INR 36 Cr during the quarter ended September 30, 2023. In the April-June quarter, it had reported a net profit of INR 2 Cr.

Shares of the foodtech giant ended trading 0.7% higher at INR 124.50 on the BSE on Monday (January 1).

The post Zomato Hikes Platform Fee To INR 4 Per Order Across Major Cities appeared first on Inc42 Media.

Fresh tax trouble has mounted for foodtech giant Zomato as tax authorities have now slapped a notice of INR 4.2 Cr on the startup for alleged short payment of goods and services tax (GST).

This comes close on the heels of the Gurugram-based listed foodtech giant receiving an INR 401.7 Cr show cause notice from the Directorate General of GST Intelligence, Pune Zonal Unit, over unpaid tax on delivery charges collected from the customers last week.

Zomato has received three orders from Sales Tax Officer, Ward 300, Delhi and Deputy Commissioner, DGSTO-4, Bengaluru, Karnataka alleging short payment of GST along with applicable interest and penalty under Section 73 of the Central Goods and Services Tax Act, 2017 (‘CGST Act, 2017’), Delhi Goods and Services Tax Act, 2017 (‘DGST Act, 2017’) and Karnataka Goods and Services Tax Act, 2017 (‘KGST Act, 2017’), with an amount totalling to INR 4.24 Cr, the company said in an exchange filing.

“The authorities in Delhi and Karnataka seem to have issued the above orders dated December 30 and 31, 2023 without giving due consideration to our response submitted earlier. We believe that we have a strong case on merit and the company will be filing appeals against the orders before the appropriate appellate authorities,” Zomato said in the filing.

The company’s shares opened at INR 124.65 apiece during Monday session, up 0.77% compared to its previous close at INR 123.7.

Earlier also, reports surfaced that the food delivery giants Zomato and Swiggy reportedly received notices for a cumulative goods and services tax (GST) worth INR 1,000 Cr, as the tax authorities now view delivery charges collected by these platforms as their revenue.

It is important to note that in January last year, the Centre added ‘restaurant services’ and cloud kitchens under the purview of Section 9(5) of the CGST Act, 2017, which led to the likes of Swiggy and Zomato paying 5% GST on ‘restaurant services’ they offer.

However, it continued to remain unclear whether delivery services and fees collected from that would also be taxed.

The delivery fees charged by both Swiggy and Zomato have consistently been a subject of debate, drawing controversy from various viewpoints.

In 2016, Swiggy started the practice of implementing food delivery fees. Subsequently, Zomato followed suit by introducing its delivery charges.

Having set a standard for delivery fees, Zomato then introduced a loyalty programme, now acknowledged as Zomato Gold. Under this programme, customers can circumvent delivery fees by subscribing to a monthly plan, which also offers additional perks.

Similarly, Swiggy introduced Swiggy One, adopting the concept of exempting delivery fees through a subscription model and accompanying it with supplementary benefits.

Zomato and Swiggy deliver 1.8 Mn to 2 Mn orders per day across the country. The introduction of a new Goods and Services Tax (GST) could potentially disrupt their cash flow.

Meanwhile, both platforms have started imposing a platform fee on orders, with charges varying between INR 2 and INR 5 per order. Notably, this fee applies universally to all customers, irrespective of whether they are subscribed to any specific loyalty programme.

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

The post Zomato In Hot Soup, Gets GST Demand Notice Of INR 4.2 Cr appeared first on Inc42 Media.

The Data Protection and Privacy Act 2023 (DPDP Act 2023) emerges as a crucial milestone in India’s regulatory framework in the fast-expanding world of data privacy and protection. This comprehensive law can potentially change the way Personally Identifiable Information (PII) is shared, processed, and protected. 

We go into the intricate aspects of the DPDP Act 2023 and examine its potential to bring about transformational changes in the landscape of PII information sharing in India.

Understanding The DPDP Act 2023

The DPDP Act 2023 represents a holistic approach to data protection, outlining stringent measures to ensure the privacy and security of individuals’ personal information. Envisioned as a response to the increasing digitisation of services and the surge in data-driven activities, this legislation is poised to introduce a paradigm shift in the way organisations handle and share PII.

Key Provisions Impacting PII Information Sharing

Explicit Consent Mechanism

One of the fundamental principles of the DPDP Act is the emphasis on obtaining explicit consent for the collection and processing of PII. This explicit consent mechanism places control firmly in the hands of individuals, requiring organisations to seek permission before processing or sharing any personal information with a third party.

Data Minimisation And Purpose Limitation

The DPDP Act advocates for data minimisation, urging organisations to collect only the necessary information for specific, predefined, and legitimate business purposes. This principle not only enhances the efficiency of data processing but also restricts the unnecessary collection and sharing of PII.

Right To Data Portability 

A revolutionary inclusion in the DPDP Act is the Right to Data Portability, which empowers individuals to seamlessly transfer their data between service providers. This provision aims to foster competition and innovation while allowing users greater control over their data.

Data Localisation Requirements

The DPDP Act introduces stringent measures concerning the storage and processing of sensitive personal data, necessitating certain categories of data to be exclusively processed within the country. This provision seeks to enhance data sovereignty and bolster the security of PII.

Mandatory Data Protection Impact Assessment (DPIA)

Organisations engaging in high-risk data processing activities are obligated to conduct a Data Protection Impact Assessment (DPIA) under the DPDP Act. This systematic evaluation helps identify and mitigate potential risks associated with PII information collection, processing, and sharing.

Appointment Of Data Protection Officer (DPO)

To ensure compliance with the act, organisations are mandated to appoint a Data Protection Officer (DPO). This dedicated professional is responsible for overseeing data protection activities, including PII information collection, processing, and sharing in line to collect data within the organisation, as well as engaging with any third parties.

Assessing The Impact On PII Information Sharing

The DPDP Act 2023 is poised to bring about transformative changes in the PII information sharing landscape, with several implications for organisations and individuals.

Heightened Accountability And Transparency

Organisations handling PII are now required to adopt robust data protection measures, fostering a culture of accountability and transparency. The explicit consent mechanism ensures that individuals are informed about the purpose and extent of PII sharing, promoting a transparent data-sharing ecosystem.

Empowerment Of Individuals

The act significantly empowers individuals by granting them greater control over their personal information. The explicit consent model, coupled with the Data Subject Rights, including the Right to Data Portability, allows individuals to make informed choices about how their data is shared, thereby fostering a sense of empowerment and privacy.

Streamlined And Secure Data Flows

While the act introduces restrictions on cross-border data transfers, it also encourages the adoption of mechanisms such as Standard Contractual Clauses (SCCs) and binding corporate rules. This ensures that international PII information sharing is conducted securely and in compliance with the prescribed standards.

Innovative Data Processing Practices

The DPDP Act’s data minimisation and purpose limitation principles encourage organisations to adopt innovative and responsible data processing practices. By restricting the collection and sharing of only necessary information for predefined purposes, organisations can streamline their operations and build trust with users.

Enhanced Data Security Measures

Mandatory DPIAs and the appointment of DPOs underscore the act’s commitment to enhancing data security. Organisations are now compelled to assess and fortify their data protection measures, particularly concerning PII information-sharing activities, minimising the risk of breaches and unauthorised access. This also helps organisations build a resilient framework to deal with the risks and issues arising from any data breaches.

Challenges And Considerations

While the DPDP Act 2023 presents a progressive stance on data protection, several challenges and considerations need attention:

Compliance burden: Organisations may face initial challenges in adapting to the stringent compliance requirements of the act, necessitating investments in infrastructure, training, and technology to ensure adherence.

Impact on cross-border business operations: The data localisation requirements may pose challenges for businesses with extensive cross-border operations. Striking a balance between data sovereignty and global business interests will be crucial.

Implementation of the consent mechanism: Implementing a robust explicit consent mechanism requires organisations to revamp their data collection and sharing practices. Ensuring seamless integration and user-friendly interfaces will be essential for successful implementation.

Investment for technological upgradation: Organisations may need to upgrade their technological infrastructure to accommodate the Right to Data Portability and implement secure data-sharing mechanisms, potentially incurring additional costs.

The Way Forward

To help ensure that this act achieves its intended purpose, it is necessary to establish a governance body at the country level that guides organisations and individuals as well as enforces the protection of PII across the country. 

This could be similar to the European Data Protection Board, which oversees the implementation of the General Data Protection Regulation (GDPR) and ensures that Data Protection Law Enforcement Directives are consistently applied in EU countries.

The DPDP Act 2023 stands as a monumental leap forward in India’s commitment to data privacy and protection. Its impact on PII information sharing is poised to be transformative, ushering in an era of heightened accountability, transparency, and individual empowerment. 

While challenges exist, the act’s potential to reshape the data-sharing landscape is undeniable. As organisations and individuals navigate this new path, a collective commitment and a statutory governance body for responsible and ethical data practices is required to realise the benefit of DPDP Act 2023.

The post Will DPDP Act 2023 Change The Way Personal Information Is Shared In India? appeared first on Inc42 Media.

Nazara Technologies’ esports subsidiary NODWIN Gaming has invested INR 33.26 Cr in Germany-based Freaks 4U Gaming GmbH via convertible note. 

Freaks 4U Gaming GmbH is a marketing services company for gaming and esports, delivering its services across the world.

“Nodwin Gaming International Pte. Ltd. (“Nodwin Singapore”), a wholly owned subsidiary of Nodwin Gaming Private Limited (“Nodwin”), material subsidiary of the company, has on December 28, 2023 signed agreements for subscribing to a Convertible Note of Freaks 4U Gaming GmbH, at a consideration of EUR 3,600,000 (equivalent to approximate INR 33.26 Cr), to be paid in cash,” Nazara said in an exchange filing. 

Nazara further said while both NODWIN Gaming and Freaks 4U Gaming are marketing services experts in gaming and esports, their strengths are respectively in mobile and PC-based games.

While NODWIN dominates in emerging markets like India, Freaks 4U Gaming GmbH leads in developed markets. With the recent investment, NODWIN aims to enhance its expertise in PC games. 

By joining forces, Freaks 4U Gaming GmbH and NODWIN aim to be more appealing to global consumer brands and game publishers, providing a seamless operation across both emerging and developed markets.

“If conversion option of the convertible note is exercised the same will be converted into 7,366 shares at a future date/conversion date. The percentage of shareholding will depend on the terms and conditions of the said convertible no,” Nazara added.

For the uninitiated, convertible notes are a type of debt instrument commonly used by startups to raise capital during their early stages. It involves investors lending money to a startup with the intention of converting it into equity at a later milestone, often the next equity financing round.

Earlier this year, NODWIN Gaming was planning to raise $28 Mn (INR 232 Cr) as part of a strategic funding round from new and existing investors. As per regulatory filings, Nazara has signed definitive and binding documentation for NODWIN to raise the capital from existing as well as new investors.

Back then Nazara said that NODWIN will utilise the fresh capital to expand and incubate new IPs as well as to venture into new territories. 

NODWIN Gaming has been on an acquisition spree this year. It acquired a 51% stake in mediatech startup Branded in an all-cash deal worth $1.3 Mn. In April last year, the esports company also picked up a 35% stake in gaming accessories brand Wings for INR 10.01 Cr. Prior to that, NODWIN acquired a 100% stake in licensed merchandising D2C brand Planet Superheroes in January 2022.

Its parent company also raised a fresh capital of INR 510 Cr from investors including Zerodha’s Nikhil Kamath and SBI Mutual Fund. Speaking to Inc42, CEO Nitish Mittersain had said that the company would invest the fresh funds in gaming studios capable of producing top-tier games tailored for both the Indian and global markets.

The post Nazara’s NODWIN Gaming Invests INR 33 Cr In German Firm Freaks 4U Gaming Via Convertible Note appeared first on Inc42 Media.

I recently had the opportunity to work with a D2C brand that was facing challenges in converting Facebook ad leads into actual sales. Despite generating a significant number of ‘Add-to-Cart’ actions, their overall conversion rate remained disappointingly low. 

Upon closer examination, it became clear that their ad optimisation efforts were primarily focused on attracting exploratory users rather than actively seeking out potential buyers.

This realisation spurred me to share this cautionary note with you, highlighting the importance of carefully considering the nuances of ad targeting and aligning optimisation goals with the actual behaviour of your target audience.

The Challenge With High-Value D2C Brands

Direct-to-consumer (D2C) brands that offer high-value products often find themselves facing a tricky situation. 

With conversion rates typically lower than desired, many opt to focus on optimising for softer conversions such as “Add-to-Cart” or “Checkout Initiated.” However, this strategy can sometimes lead to unexpected changes in funnel behaviour.

The Optimisation Paradox

Focusing on softer conversions, such as adding items to carts, can sometimes lead to a surge in that particular action. However, this doesn’t always translate into actual purchases. 

The reason behind this lies in Facebook’s algorithm, which tends to target users more likely to add items to their carts but not necessarily those who complete the purchase. 

These users, often referred to as ‘explorers,’ generally require a longer period of engagement before making a buying decision.

Understanding The Audience Behavior

This audience, while valuable, behaves differently. They are in the exploration phase, not the commitment phase. They might fill their carts, but the journey from cart to purchase is a longer and more complex one. It requires a different approach, one that nurtures and guides them through the decision-making process.

Striking The Right Balance

The art of optimisation lies in striking a delicate balance between capturing the attention of potential customers and gently steering them towards a purchase decision. This requires a more sophisticated approach that encompasses targeting, content, and follow-up strategies.

Your Role In Navigating This Challenge

As a marketer, you’re not just interested in what users do; you also want to understand why. By unravelling the motivations behind their actions, you can craft strategies that not only pique their interest but also lead to meaningful outcomes.

In conclusion, the journey from a click to a customer is not a straight line but a winding path filled with insights and opportunities. It’s about understanding the subtle art of digital persuasion, where every click, every add-to-cart, is a conversation with a potential customer. 

Our role as marketers is to be the guiding light on this path, turning curiosity into commitment, and interest into investment.

As we continue to navigate the ever-changing digital marketing landscape, let’s remember that the true measure of our success is not in the quantity of leads, but in the quality of conversions. 

The post A Guide D2C Brands’ Guide To Facebook Ad Leads Transformation appeared first on Inc42 Media.

Foodtech giant Zomato has received an INR 401.7 Cr show cause notice from the Directorate General of GST Intelligence, Pune Zonal Unit, over unpaid tax on delivery charges collected from the customers, it said in an exchange filing.

The notice received on December 26 to show cause as to why an alleged tax liability of the said amount for the period between October 29, 2019 and March 31, 2022 should not be demanded from the company.

“The company strongly believes that it is not liable to pay any tax since the delivery charge is collected by the company on behalf of the delivery partners. Further, in view of the contractual terms and conditions mutually agreed upon, the delivery partners have provided the delivery services to the customers and not the company. This is also supported by opinions from our external legal and tax advisors. The company will be filing an appropriate response to the notice,” Zomato said.

The Gurugram-based company’s shares opened at INR 124.90 apiece during Thursday session, 1.7% lower as compared to its previous close at INR 127.05.

Earlier also reports surfaced that the food delivery giants Zomato and Swiggy reportedly received notices for a cumulative goods and services tax (GST) worth INR 1,000 Cr, as the tax authorities now view delivery charges collected by these platforms as their revenue.

It is important to note that in January 2022, the Centre added ‘restaurant services’ and cloud kitchens under the purview of Section 9(5) of the CGST Act, 2017, which led to the likes of Swiggy and Zomato paying 5% GST on ‘restaurant services’ they offer.

However, it continued to remain unclear whether delivery services and fees collected from that would also be taxed.

The delivery fees charged by both Swiggy and Zomato have consistently been a subject of debate, drawing controversy from various viewpoints.

In 2016, Swiggy started the practice of implementing food delivery fees. Subsequently, Zomato followed suit by introducing its delivery charges.

Having set a standard for delivery fees, Zomato then introduced a loyalty programme, now acknowledged as Zomato Gold. Under this programme, customers can circumvent delivery fees by subscribing to a monthly plan, which also offers additional perks.

Similarly, Swiggy introduced Swiggy One, adopting the concept of exempting delivery fees through a subscription model and accompanying it with supplementary benefits.

Zomato and Swiggy deliver 1.8 Mn to 2 Mn orders per day across the country. The introduction of a new Goods and Services Tax (GST) could potentially disrupt their cash flow.

Meanwhile, both platforms have started imposing a platform fee on orders, with charges varying between INR 2 and INR 5 per order. Notably, this fee applies universally to all customers, irrespective of whether they are subscribed to any specific loyalty program.

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

The post Zomato Slapped With INR 402 Cr Tax Notice, But Foodtech Giant Says It’s Not Liable To Pay appeared first on Inc42 Media.

Covid-19 has come and gone and continues to raise its ugly head now and then. But many of the disruptive business models it has effected have not run out of steam, yet. One seismic shift in the retail space is the ubiquity of ecommerce, ensuring safety and convenience in the wake of the pandemic.

Soon enough, India experimented with the ‘rapid’ version of traditional ecommerce and got used to the 10-to-30-minute quick commerce/hyperlocal deliveries. Companies in the q-commerce space typically keep 1,500-2,500 SKUs in strategically located dark stores to ensure swift deployment within a radius of 2 km.

It was not a fad. Between 2021 and 2023, the quick commerce sector in India rode its sudden popularity surge and raised $4.2 Bn, according to Inc42 data. Be it grocery, food or on-demand hyperlocal delivery of non-food items (electronics, jewellery, personal care products and more, plus package pickups), the format seemed so lucrative that food delivery giants Zomato and Swiggy, hyperlocal delivery specialist Dunzo and grocery delivery startup Zepto topped up their capabilities to compete.

Even Rebel Foods, the parent company of famous cloud kitchen brands Faasos and Behrouz Biryani and the master franchisee of American fast-food chain Wendy’s, decided to take the plunge.

But here is an element of surprise. All the ventures we mentioned assumed that quick commerce in grocery delivery would be the way to go. Imagine the emergence of a convenience economy where consumers can never run out of daily essentials. The wait times are negligible, delivery charges are affordable, and an entire battalion of low-paid riders is ready to vroom through the city traffic to deliver in a few minutes. It became a norm in many countries during the pandemic, and Indian businesses foraying into grocery quick commerce anticipated a similar tailwind for years.    

While Zomato started its full-fledged quick commerce operations via Blinkit (formerly Grofers, which was founded in 2013 and acquired by the foodtech behemoth in 2022 for $569 Mn in an all-stock deal), Swiggy set up Instamart in August 2020 to offer instant grocery delivery. A year later, industry veteran Dunzo launched Dunzo Daily to run its quick commerce business. Finally, there came Zepto, a poster boy creating waves. It was incorporated in September 2020, started operations in April next year and became the first and only unicorn of 2023 after raising $200 Mn in August at a valuation of $1.4 Bn. 

The 10-Minute Delivery Game: Did Indian Players Master It?    

The Covid-induced gold rush subsided when shops reopened and the allure of 10-minute home deliveries started to wear off. The lack of solid business fundamentals was another key reason why many ultra-fast grocery delivery firms failed to corner success in the post-Covid era. 

Essentially, quick commerce companies need to create long-term value for consumers beyond the novelty of speed delivery. For instance, those catering to specific areas or customer groups can accurately estimate the local demand through data analytics, up the personalisation bar and supply products not readily available in local kirana stores. 

Also, the economies of scale work differently for quick commerce players. Unlike regular ecommerce, high order density and good AOV (average order value) may not produce the best results here for two reasons. First, the order flow is continuous and delivery needs to happen immediately. Therefore, each dark store’s productivity and profitability are crucial for business success. Additionally, order margins typically depend on product categories rather than average order value. Hence, a rigorous focus on top-selling categories and unit economics of every dark store is required for sustainable growth.

Given these complex parameters, it is not surprising that profit-making is still a distant dream for many of these quick commerce businesses. A quick look at Dunzo’s numbers also reveals these difficulties. 

Set up in 2014, the on-demand delivery startup has been backed by Reliance Retail (RRL) and a clutch of marquee investors such as Alteria Capital, Google and Lightrock India, among others, amassing $500 Mn in funding. Its backstory also showed resilience and potential. Dunzo was one of the lone flag-bearers in the graveyard of hyperlocal startups that mushroomed during 2015 and 2016 but promptly scaled back and shut shop after facing huge losses.

However, the platform has failed to make good on the quick commerce wave in the wake of the pandemic and seems to stand on the brink with scant survival prospects. 

Even after raising $240 Mn from RRL in January 2022 and undergoing two changes in its business model – an expansion into quick commerce using dark stores in 2020 and subsequently providing logistics services to retail stores on a revenue-sharing basis – Dunzo spent INR 9 to earn INR 1 in FY23. This resulted in a colossal loss of INR 1,801 Cr, nearly 4x the loss of INR 464 Cr recorded in the previous financial year.

Other major players also cut a sorry figure, while a few shut down their quick commerce initiatives shortly after the launch. Among these were JioMart Express from Reliance, Ola Dash (from the house of Ola), Swiggy’s premium grocery delivery pilot Handpicked and ZopNow. Then there was Flipkart Quick, which gradually scaled down its operations and consolidated the business with its next-day grocery delivery platform, Flipkart Supermart. Amazon, too, went for consolidation play and clubbed Amazon Fresh and Amazon Pantry, as pure-play q-commerce did not pay dividends.

Nevertheless, listed food delivery unicorn Zomato’s recent success in grocery delivery and quick commerce segments has kept hope alive. After initial struggles, Zomato’s quick commerce arm Blinkit turned contribution positive for the first time during the quarter ended September 30, 2023 (Q2FY24). Blinkit’s contribution margin as a percentage of gross order value (GOV) in the overall business improved from -7.3% in Q2FY23 to +1.3% during the quarter ended September 30, 2023 (Q2FY24). 

Interestingly, Tata group-backed grocery delivery platform BigBasket is the latest to join the bandwagon with BBNow. It comes alongside the existing BBExpress that offers deliveries in an hour, within a six km radius, offering more than 8K products.

This shows market expectations are now firmly established despite a few below-par performances. For instance, a RedSeer report projects India’s quick commerce growth to surge 10-15x by 2025 to reach $5.5 Bn. Although it indicates huge headroom for growth, consumer loyalty will ultimately determine the final winner in the 2023 quick commerce race. 

Of course, people loved the convenience and comfort of quick commerce in the hours of need. But will they be equally willing to pay for these speedy deliveries? More importantly, will they ditch local kirana stores and supermarkets for good to nurture the 10-minute wonder, often promoted as the future of ecommerce and retail delivery?  

How Blinkit Led The Quick Commerce Race In 2023

Before entering the whistle-stop quick commerce track, Blinkit (then Grofers) weathered two damaging storms in the grocery delivery space. The first occurred during 2015 and 2016 when numerous startups, including Shadowfax, Peppertap (B2C business), Local Banya, TownRush, Paytm Zip, Ola Store and Flipkart’s Nearby, entered the space but met with failure. (As we have already mentioned, Dunzo was a survivor, too, at the time.)  

Next came the Covid-19 crisis, but Grofers managed to enter the coveted unicorn club with a $120 Mn infusion from Zomato in June 2021. It was rebranded as Blinkit in December of that year, marking a strategic shift towards quick commerce.

In its third innings post the Zomato takeover, Blinkit has looked past the typical challenges of quick commerce and secured a leading position in several crucial areas, thus improving its brand image. Here is a deep dive into what the platform has done right in CY23.

Blinkit Emerged As The Top Customer Service Provider

According to a consumer sentiment analysis by Inc42 and Clootrack, customer service is among the topmost criteria for choosing any grocery delivery service. Surprisingly, none of the top quick commerce players could score well on that account.

On a scale of 1 to 10, where 1 is the lowest and 10 means the best customer experience, Blinkit topped the ranking with 2.4 and Swiggy Instamart was bottom with 0.5. Other major deciding factors include app functionality, simple return and refund policies, delivery partners’ behaviour and ease of order cancellation. 

Blinkit Records Maximum App Downloads

The quick commerce platform saw maximum app downloads between January 1 and November 22, 2023. An analysis by Inc42-AppTweak puts Blinkit downloads at 14 Mn+, followed by Zepto (11 Mn+) and Dunzo (3.4 Mn+). Swiggy Instamart data has not been considered here as there is no separate app for Swiggy’s grocery delivery service.

Blinkit saw a maximum spike in app downloads in October, probably due to the festive frenzy. Compared to the previous month (September), it recorded a 62% increase, while Zepto downloads flatlined and Dunzo plunged.

There’s A New Face In Town, But Can It Compete With Blinkit?

Rebranded from Kirana Kart in late 2021, Zepto is a Mumbai-based quick commerce unicorn that rose to prominence within three years of its inception. To date, the startup has raised $592 Mn from Goodwater Capital, Nexus Venture Partners, Glade Brook Capital and Y Combinator, among others. Its founders, Kaivalya Vohra and Aadit Palicha (Stanford dropouts), also led Hurun India’s top 100 under-30 list of 2023, sorted by age. 

A better business environment will go a long way. Interestingly, Zepto’s delivery partners have turned out to be its key strength, according to the Inc42-Clootrack consumer sentiment analysis. The quick commerce startup got the highest rating of 5.7 on a scale of 1 to 10 when it comes to interactions with delivery partners (10 denotes the best customer experience and 1 represents the worst). Next came Dunzo (1.9) and Blinkit (1.2), while Swiggy Instamart bottomed the list with 0.7.  

Although Zepto could not bring in a high score closer to 10, the overall positive sentiment it generated should be lauded compared to other storied players. Gig workers at Swiggy Instamart and Blinkit faced financial challenges in 2023, leading to strikes that lasted for several days. Sometimes, things came to such a head that delivery partners left en masse to join other players. Dunzo, too, delayed salaries and eventually laid off more than 20% of its workforce.   

Zepto, on the other hand, has a proactive approach and focusses on empowering its workforce. For example, the startup has partnered with Yulu and other EV majors to set up an all-electric fleet, enabling cost-effective mobility solutions for its delivery partners. Going forward, such an approach will result in a win-win scenario as 6.7% of the non-agricultural Indian workforce is estimated to join the gig economy by 2030. Their overall welfare will help build a thriving economy.    

Balancing growth and profit will be challenging. Zepto may have the right approach, but to emerge as the industry leader, it must bring home the bacon and grow sustainably, the survival mantra of the ongoing funding winter. Of course, a startup rarely breaches INR 2K Cr revenue in the first two years like this unicorn did. Its revenue from operations ballooned 14.3x to INR 2,024.3 Cr in FY23 from a meagre INR 140.7 Cr in FY22. But it also suffered a net loss of INR 1,272.4 Cr in FY23, a massive 226% jump from the previous financial year. However, its PAT margin improved to -63% from -277%, which means the narrative is not as bleak as it seems.

Unfortunately, this has more to do with the newbie’s low operating leverage. In simple terms, operating leverage is the degree to which a company can increase its operating income through revenue growth while keeping its gross margins high and variable costs low. In the case of quick commerce, the gross margin is typically low, and a newcomer like Zepto will have to burn cash for years for business expansion to push its revenue.

 According to some experts, the startup may have to raise funds every 12-15 months to retain its growth drive and keep its revenue flowing. Locking horns with competitors like Binkit and Instamart won’t be easy either, as their deep-pocketed parent companies enjoy a revenue mix advantage and will adequately fund these quick commerce platforms.

What Lies Ahead Of India’s Quick Commerce Startups In 2024 & Beyond

Now that the frenzy for safe and ultra-fast grocery delivery has declined to a large extent, will the quick commerce bubble burst and vanish in 2024? Not necessarily. Convenience is a habit, and the demand for instant home delivery will continue to drive the quick commerce market, say retail experts. In addition, India’s demographic shift and the subsequent rise in income may help remove the cost constraints hindering the sector’s growth. 

For context, 65% of India’s population will be within the crucial consuming cohort of 15-59 years until 2030. The surge in income is expected to lift 110 Mn households to middle-class consumption of goods these quick commerce platforms are rushing to deliver. Given this scenario, players in this space may find it easy to levy packaging and delivery charges and cut down on discounts and freebies to balance costs with earnings.

There are other ways of making quick commerce more viable and attractive. Platforms are now looking at extensive ad monetisation, promoting thousands of brands to their captive audiences for the best possible outcomes. Blinkit’s CEO, Albinder Dhindsa, is also pushing business growth through service diversification. The platform is now venturing into Urban Company-like at-home handyman services, starting with electricians, plumbers and specialists in AC repair. 

Nevertheless, the exponential rise in online shopping and digital payments has triggered quick commerce growth, so much so that research firms predict robust growth. A 2023 Deloitte report on the future of retail estimates a $40 Bn market by 2030, from $2 Bn in 2022. Another report by MarkNtel expects Indian quick commerce to grow at a CAGR of around 67% during 2023-28.

The model has its merits if it is valued as a premium service but stays within the realms of possibility. Sticking to a 10-minute deadline (or a maximum of 30 minutes) gets difficult in crowded metros, the critical markets for quick commerce. Moreover, given the low gross margins and high delivery costs of q-commerce, unit economics would remain elusive for many players.

Success will depend on processing more orders, pushing the right assortment of products (SKUs with good margins to increase AOV), ensuring efficient deliveries and offering unique value propositions that will encourage customers to top up their carts even after purchasing the required products. Industry players will do well to heed the lessons from Dunzo’s decline or Instamart’s perpetual issues with scaling as it continues to operate in the shadow of its parent app, Swiggy. 

Finally, quick commerce players in the grocery delivery space will soon have a formidable contender in ONDC (Open Network for Digital Commerce), as kirana stores and retailers of all sizes can join the network to provide direct delivery services to their respective customers.

Can quick commerce/q-commerce race past so many hurdles – from getting access to a steady funding flow to optimising execution to building a best-in-class delivery partner network as customer experience (and loyalty) will hinge on it? To say nothing about the criticality of exploring multiple revenue channels to survive and grow? Or will 2024 witness a spate of consolidations as it happened earlier with food delivery? Companies remain bullish about success, but the ground realities may craft a different narrative soon.      

[Edited by Sanghamitra Mandal]

The post India’s Quick Commerce Race: Blinkit On Top After 2023; Can Rivals Catch Up? appeared first on Inc42 Media.

Coworking space provider Awfis filed its draft red herring prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI) last week, joining the list of Indian startups aiming to go public next year.

Awfis’ public issue will comprise a fresh issue of shares worth INR 160 Cr and an offer-for-sale (OFS) component of up to 1 Cr shares.

The OFS component includes the sale of up to 50.11 Lakh equity shares by Peak XV Partners, up to 49.36 Lakh equity shares by Bisque Limited, and up to 75,174 equity shares by Link Investment Trust.

The startup plans to invest INR 52.5 Cr from the net proceeds to set up 15 new coworking spaces in FY25 across Mumbai, Bengaluru, Delhi NCR, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Lucknow, Bhubaneswar, and Jaipur. 

It plans to use INR 68 Cr for its working capital requirements and the remaining proceeds for general corporate purposes.

Now, let’s take a look at the shareholding pattern of the startup.

Zooming Into Awfis’ Shareholding Pattern

According to the draft IPO documents, Awfis has 11 shareholders holding 1% or more of the total equity capital on a fully diluted basis.

Mauritius-based investment firm Bisque Limited is the largest shareholder in the startup, owning 1.57 Cr fully-diluted equity shares, which amount to around a quarter of the total equity capital. 

Peak XV Partners, one of Awfis’ early backers, is the second largest stakeholder. The investment major owns 1.53 Cr shares or nearly 23% of the fully diluted equity capital.

The founder, Amit Ramani, holds around 1.22 Cr fully diluted equity shares of the startup he set up, accounting for an 18.19% stake. Hungama Digital cofounder and ace investor Ashish Kacholia (5.01%) and Jubilant Bhartia Group promoter and Emerge Capital cofounder Arjun Bhartia (1.57%) are the other major individual shareholders in the group. Bhartia also holds a 1.31% stake in Awfis via Emerge Capital.

Early backer QRG Investments is the third largest stakeholder in the company still, as it holds more than 64 Lakh shares worth 9.58% stake on a fully diluted basis. VBAP Holdings is the fourth largest stakeholder in the coworking space provider, owning a 9.35% stake. 

Interestingly, Yadu Hari Dalmia, son of Dalmia Bharat Group’s founder Jaidayal Dalmia and one of India’s most affluent businesspersons, holds a 1.89% stake in Awfis via the Shri Brahma Creation Trust.

The Coworking Space Provider’s Business Model

Founded in 2015 by Ramani, Awfis caters to freelancers, startups, SMEs, large corporates, and MNCs and offers coworking solutions. The startup, which claims to be India’s largest coworking space provider based on the total number of centres, has diversified significantly from just offering coworking centres.

“We provide a wide spectrum of flexible workspace solutions ranging from individual flexible desk needs to customised office spaces for startups, small and medium enterprises as well as for large corporates and multinational corporations,” the startup said in its draft IPO documents.

As such, the startup primarily earns revenue from coworking spaces. As of June 30, 2023, it had 121 operational centres across 16 Indian cities, with 70,242 seats. It also claims to have had 2,139 clients by the same time. These spaces are divided as follows:

• Coworking: The startup has two segments within coworking – its core service, Awfis, and the premium service, Awfis Gold. The coworking spaces comprise fixed desks, flexi desks, and cabins. Flexi desks are the cheapest, starting at around INR 5,000 and going up to INR 12,000 per month, depending on the location and the city. This service allocates a different desk each time a user enters the coworking space. The fixed desk service, on the other hand, allows users to have a single desk throughout the duration. This service starts at INR 8,000 and goes up to INR 18,000 per month, based on the city and the location. Cabins are the most expensive coworking space option Awfis has on its catalogue, with prices starting from INR 9,000 per seat per month and going up to INR 62,000 per seat per month. The cabins can be anywhere between one and eight seaters.

• Mobility: The mobility segment is based on a pay-per-use business model, which allows companies to pay as they use the coworking space day-to-day. The startup also offers meeting rooms, charged hourly. Awfis also offers day passes within its standard and gold service. Awfis also allows companies to have an address at a prime location via its ‘Virtual Office’ service, and with the premium version of that service, a company can also get a GST linked with the said address as well. Virtual offices start at INR 1,499 per month.

The startup also offers several other workspace-related services, such as a renovation and interior design service called Awfis Transform, and a maintenance and upkeep service, Awfis Care.

Awfis reported revenue of INR 545.28 Cr in FY23 as against INR 257.05 Cr a year ago. Its net loss declined slightly to INR 46.64 Cr in FY23. In the first three months of FY24, the coworking services provider reported an operating revenue of INR 187.7 Cr, while its loss stood at INR 8.3 Cr.

The post Awfis IPO: Decoding The Coworking Space Provider’s Shareholding Pattern appeared first on Inc42 Media.

After rebranding itself to X, the microblogging platform started its 2023 India journey by axing more than 90% of its workforce and closing most of its offices in the country.

Nothing changed for Twitter, but name, as legacy issues persisted, throwing a spanner in the social media platform’s progress in 2023.

To the company’s dismay, it remained in conflict with the Indian government as the Centre introduced a wave of new digital regulations.

From the DPDP Act to the Telecom Bill, X found itself amidst a plethora of adverse regulations throughout the year, managing additional compliance mandates imposed by the new laws.

The social media giant’s attempts at legal recourse against the Centre’s “innocuous” takedown orders faltered, with the Karnataka High Court siding with the government, resulting in a hefty penalty.

The Elon Musk-led platform also faced the ire of the government for its failure to crack its whip on fake news and misinformation on the platform. 

Despite the challenges, 2023 turned out to be the year of rapprochement and a turnaround for Twitter, now X. The mass layoffs and excessive cost-cutting exercise yielded results as X’s Indian arm minted a profit even as focus on building alternate revenue channels brought more money into its coffers. 

For a moment, it appeared that Instagram Threads could emerge as a major contender against X but the former fizzled out as quickly as it erupted into fame. 

All in all, 2023 also turned out to be a year of outreach, as X boss Elon Musk met Prime Minister Narendra Modi, hinting at some bonhomie even as Indian authorities and X fought pitched battles back home. 

Will hopes for a confrontation-free 2024 in India, let’s steal a glance at how 2023 turned out for the social media platform.

X’s Sabre-Rattling With The Indian Govt

It was another year of full-blown confrontation between X and the Indian government. At the outset of the year, the two parties were locked in a legal showdown in the Karnataka High Court over a case filed by X over “innocuous” takedown orders issued by the Centre. The saga somewhat culminated as the HC sided with the government and slapped a fine of INR 50 Lakh on the social media platforms. 

However, the company then filed an appeal against the order and the legal tussle is expected to continue well into 2024.

Globally, India continued to be one of the biggest sources of legal notices for the removal of content in the first half of 2023. However, this was just the tip of the iceberg. As the government unveiled a series of reforms to digital laws in the country, Twitter found itself in a regulatory quagmire. These new laws put additional mandates on the company and instituted strict penalties for non-compliance, going as far as bringing safe harbour protections under question. 

The government also pulled up the platform for the failure to crack the whip on misinformation and fake news on its platform even as GenAI-enabled deepfakes emerged as a new headache for the social media major. 

“X will find it challenging to convince their users that the content they see is human-generated, and not produced by AI bots. Another challenge is to prevent the spread of misinformation and manipulation of narratives propagated by tireless AI bots for and against governments and large corporations or groups,” Shorthills AI cofounder Pawan Prabhat told Inc42.

Piling on top of that was the wave of child sexual abuse material and related content on X that dominated the platform. To curb this menace, the platform suspended more than 98 Lakh accounts for spreading and tweeting such content. 

Such was the clamour that the Centre called the company a ‘habitual non-compliant platform’ that undermined the Indian government. Alongside, MoS for IT Rajeev Chandrasekhar warned the platform of removing Child sexual abuse material (CSAM) or losing safe harbour protections.

Already reeling under the weight of regulatory troubles, comments by the then Twitter CEO Jack Dorsey sparked a major storm for the platform in the country. He claimed that Indian authorities raided the homes of Twitter India employees and shut down its offices in the country.  

This opened up another font of confrontation for X as Chandrasekhar lambasted the platform for violating Indian laws and showing reluctance in removing questionable content from the platform during Dorsey’s tenure.

Such was the fallout that X’s head of policy in India and South Asia, Samiran Gupta, resigned from the company as the legal tussle between the Indian government and the platform intensified. 

Charting A Turnaround

Amid the figurative tug-of-war between the government and X, 2023 turned out to be a positive year for the platform on the financial front. X’s local arm, Twitter Communications India, reported a net profit of INR 30 Cr in the fiscal year ended March 2023 against a net loss of INR 32 Cr in the previous year. 

During the same period, revenue shot up 32% to INR 208 Cr from INR 157 Cr in FY22. 

While the company did not publicly release reasons for its turnaround, the sudden spike in profitability was attributed to a massive cost-cutting exercise that was undertaken at the company after Elon Musk took over the reins of the company in October 2022. 

While 80%-90% of the company’s Indian staff was fired at the fag end of 2022, X also shut down its Delhi and Mumbai offices to streamline operations in early 2023, as it embarked on a mega restructuring exercise. 

While the platform still continues to run without an India head, its focus has now moved towards shoring up revenues. Alongside, X also introduced its premium subscription service, Twitter Blue, (chargeable at INR 650-INR 900) for users in India to spruce up its topline. 

What also took the cake was the company’s interesting strategy to retain users and shore up engagement. As part of a monetisation avenue for creators in 2023, X began rolling out payouts to top creators, which attracted more user eyeballs to the microblogging platform. 

Despite every effort, India continued to be a challenging proposition for the company. 

How Will 2024 Bode For X?

Home to more than 27.3 Mn active users, India is the third-largest market for X. Ironically, the nation’s contribution to Twitter’s total revenue continues to be non-significant, largely marred by razor-thin margins and price-sensitive Indian users and advertisers.  

Stepping in 2024, the company could be looking to fix many of the aforementioned challenges. Further, with consumer spending expected to improve in 2024, X could see more revenues flowing in. 

Meanwhile, the Musk-led platform could also be looking to explore more strategies to resuscitate user engagement and add new users to its kitty as it expands its creator payout initiatives. Alongside, it may continue to ramp up its focus on monetisation. 

But, much more needs to be done. Frequent outages have so far left many users exasperated while the haphazard rollout of Twitter Blue has invited bad press. As 2023 comes to an end, the stage has been set for X to embrace a new tomorrow in the country. 

The post How A Gloomy 2023 Cast A Dark Shadow Over X’s India Journey In 2023 appeared first on Inc42 Media.

“If a business does well, the stock eventually follows.” –  Warren Buffet. There is no better case study for this quote in recent times than foodtech giant Zomato’s journey on the bourses in 2023.

While 2023 has turned out to be a remarkable year for new-age tech startup stocks, Zomato has shone the brightest so far this year. Not to mention, players like Paytm, RateGain, Delhivery, and PB Fintech, too, have witnessed their fair share of rallies after the bloodbath of 2022.

The share price of the foodtech major has more than doubled so far this year. The stock, which was trading in the INR 50-60 range in the first month of 2023, is on course to end the year at above INR 120.

The biggest reason behind its noteworthy performance has been the improvement in Zomato’s financials and the startup finally turning profitable. 

Amid the global economic slowdown, the year 2022 was all about investors questioning Zomato’s various business decisions, the biggest among them being its acquisition of Blinkit. However, to investors’ delight, Zomato figured out the sweet spot and its path in 2023.

The company did this by doing new experiments to increase its revenue and making hard decisions to bring down its expenses. From introducing a platform fee to exiting over 200 Indian cities and several nations, 2023 remained an eventful year for the Deepinder Goyal-led company. 

With that said, let’s take a closer look at Zomato’s noteworthy 2023 journey.

How The Zomato Stock Price Doubled In 2023

While the subdued trend continued in Zomato’s stock during the first few months, the company reporting its first-ever adjusted EBITDA profitability in the fourth quarter of FY23 began a sharp reversal in its fortunes. 

Zomato’s share price jumped 6% in a month following the announcement of its adjusted EBITDA profitability, helping its market capitalisation cross the $7-Bn mark from about $6 Bn at the end of 2022.

Around the same time, it emerged that the government-backed Open Network for Digital Commerce (ONDC) forayed into the food delivery segment. This led to a strong buzz that the network would pose a threat to Zomato. However, investor sentiment had turned positive on the stock by then as the company was chasing profitability aggressively. Therefore, ONDC’s foray into the food delivery space did not have any major impact on the company’s share price.

Amid this, Zomato experiments continued unabated. From piloting B2B logistics services to rolling out its in-house Unified Payments Interface (UPI) service for peer-to-peer (P2P) and merchant transactions, Zomato was on a spree of new announcements. 

Here is a quick look at the company’s new pilots and major launches in 2023:

• The return of the Zomato Gold loyalty programme had a major impact on the company’s overall performance throughout the year.
• The introduction of a platform fee of INR 2-INR 5 on food orders further helped Zomato improve its margins and strengthen investor confidence.
• The company forayed into the logistics space and launched a quick parcel delivery service for merchants with a new app – Xtreme.
• Zomato joined hands with the Indian Railway Catering and Tourism Corporation (IRCTC) for the supply and delivery of pre-ordered meals under a pilot.

Meanwhile, the surge in Zomato’s share prices continued, with the stock soon crossing its IPO price band of INR 72-INR 76 at the beginning of June, for the first time in over 12 months.

Amid its business experiments, the company reporting two consecutive profitable quarters in Q1 and Q2 FY24 proved to be the ultimate game changer. It further boosted the stock price, helping Zomato surpass its listing price of INR 115 at the beginning of November.

Notably, Zomato also undertook multiple restructuring measures to achieve and sustain this growth. Some of these measures are as follows: 

• It exited 225 Indian cities.
• Paused onboarding new customers for Zomato UPI.
• Stopped business in multiple countries, including Indonesia, Jordan, Czech Republic, and Slovakia. 

Zomato’s quick commerce business Blinkit, whose profitability was one of the major concerns for investors, also turned contribution positive for the first time in Q2 FY24. Zomato sees Blinkit achieving adjusted EBITDA breakeven by Q1 FY25, while Dalal Street believes that Zomato is well on track to achieve this target.

As a result of these positive changes, shares of Zomato ended the last trading session (December 22) at INR 128.45 with a market capitalisation of over $13 Bn.

A Shift In Shareholding Pattern

The sharp surge in share prices of Zomato also meant that alternate investment funds, banks, insurance companies, and foreign portfolio investors (FPIs) have started increasing their stakes in the company. 

As per Zomato’s shareholding data for the quarter ended September 2023, as many as 28 mutual funds held a 10.56% stake (almost 91 Cr shares) in the company. A year ago, 20 mutual funds held a mere 4.57% stake in the company.

Meanwhile, many marquee investors sold their stakes in Zomato to book profits. As a result, foreign direct investments (FDI) in Zomato, which comprised the shareholding of Antfin, Alipay, Macritchie Investments, and others, fell to 17.08% in the quarter ending September 2023 from a massive 32.41% in the year-ago period.

Taking advantage of the rally, Alipay exited Zomato with INR 3,336.7 Cr in November. 

Before that Tiger Global also exited Zomato by selling shares worth INR 1,123 Cr via block deals. Recently, SoftBank followed suit and exited the foodtech giant in an INR 1,127 Cr block deal. 

Following Alipay’s exit, the FDI stakeholding in the company is expected to further fall by over 3%. 

The stakes sold by these investors were lapped up by the likes of Axis Mutual Fund, Edelweiss Mutual Fund, Invesco Mutual Fund, and several others.

On the other hand, FPIs, including Canada Pension Plan Investment Board, BNP Paribas Arbitrage, and Kuwait Investment Authority Fund, increased their cumulative stake in Zomato to 37.64% by the end of the September quarter of 2023 from 25.46% a year ago.

Currently, foreign institutional investors hold the largest stake in Zomato at 54.72%. 

Will Zomato’s Bull Run Continue In 2024, Too?

Zomato looks well set on the technical charts to improve its performance on the bourses. Fundamentally, too, the company is expected to improve its profitability, which would further increase its share price.

Out of the 27 analysts covering the stock currently, 23, including Jefferies, Bernstein, Emkay Research, ICICI Securities, and JM Financial, have a ‘buy’ or above rating on Zomato. The stock’s average price target is set at INR 129.7.

Bernstein said in its latest research note that the Zomato flywheel is not just turning but accelerating into a dominant platform across food delivery and commerce.

Even in comparison to its global food delivery peers, Zomato leads the way, along with DoorDash, which has gained 82% year to date (YTD), the brokerage noted.

Despite the sharp rise in the stock YTD, most brokerages expect it to continue to deliver big returns going ahead. 

“We remain positive about the long-term growth opportunity for Zomato,” said Motilal Oswal, adding that competition is not expected to intensify further despite the entry of ONDC in the food and grocery delivery space.

Speaking to Inc42, Kush Ghodasara, CMT and an independent market expert, termed Zomato a “multi-bagger stock”. 

“If anyone wants to buy a new-age IT stock, Zomato is my favourite pick given its other ventures such as Blinkit and Hyperpure (B2B business) are also doing well now. Besides, Zomato has launched a new courier service, which is also expected to be a game-changer,” he said.

Ghodasara sees the stock rallying to about INR 225 in the next six months.

While most brokerages have revised up their gross merchandise value and revenue estimates on Zomato for the coming quarters, it now remains to be seen if the stock can deliver on it. The year 2024 would be about Zomato showing the market if it can sustain and increase its net profit. If this happens, then, as Buffett says, the stock would follow the results. 

[Edited by Vinaykumar Rai]

The post A Year To Remember: How Zomato Made A Roaring Comeback After 2022 Bloodbath appeared first on Inc42 Media.

IPO-bound coworking space provider Awfis reported a little over 18% decline in its consolidated net loss to INR 46.6 Cr in the financial year 2022-23 (FY23), helped by significant growth in its business as the demand for flexible office spaces increased.

The startup had reported a loss of INR 57.1 Cr in FY22 on an operating revenue of INR 257 Cr. Awfis’ operating revenue, that is revenue from contracts with customers, jumped 112% year-on-year (YoY) to INR 545.3 Cr in FY23.

In fact, Awfis stated in its draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) that its revenue from contract with customers grew at a CAGR of 74.85% from FY21 to FY23.

“… due to the COVID-19 pandemic, there has been a reverse migration of workers to some extent, due to which employees are seeking increased flexibility, and as a result, several organisations have decentralised operations and the demand for hub and spoke model and flexible workspaces have increased… As a result, the demand for flexible workspaces increased,” the startup said in its regulatory filing.

Founded in 2015 by Amit Ramani, Peak XV Partners-backed Awfis has evolved from just being a coworking network to a tech-enabled workspace solutions platform, catering to freelancers, startups, SMEs, large corporates, and MNCs. The startup earns revenue from rental income, sale of food items, as well as sale of furniture and work-from-home solutions.

Awfis noted that 67.24% of its rental income from coworking spaces was derived from centres located in four major cities – Bengaluru, Mumbai, Pune, and Hyderabad, as of June 30, 2023.

However, the boom in coworking rentals also entails the possibility of a rise in expenses.

“This rapid growth places a significant strain on our existing financial resources. We expect our capital expenditures and operating expenses to increase on an absolute basis as we continue to invest in additional centres, launch additional solutions, products and services, hire additional employees and increase our marketing efforts,” said Awfis in its DRHP.

Awfis’ Rising Expenses

In line with the overall business growth, Awfis reported an over 82% jump in its total expenses to INR 612.4 Cr in FY23 from INR 335.9 Cr in the previous year. However, a large portion of the expenses were non-operating expenses such as finance costs and depreciation and amortisation expenses.

In fact, Awfis remained profitable at the EBITDA level, which is calculated as earnings before tax, finance costs, depreciation and amortisation expenses. In FY23, its EBITDA increased to INR 176 Cr from INR 90 Cr a year ago.

Sub-Contracting Expense: Awfis saw its sub-contracting cost jump 116% YoY to INR 90.5 Cr in FY23.

As per its disclosure, the startup’s sub-contracting cost includes design fees and material cost associated with providing construction and fit-out services under the brand Awfis Transform.

Employee Costs: The startup reported a 77% surge in its total employee benefit expenses to INR 95.8 Cr in the year under review from INR 54.1 Cr in FY22. 

In that, INR 84 Cr was spent towards salaries, wages, and bonuses. Meanwhile, the startup also spent around INR 4 Cr on ESOPs in FY23.

Depreciation and Amortisation Expenses: Awfis spent almost INR 150 Cr in this bucket in FY23, which jumped from INR 98.4 Cr in the prior year.

Finance Cost: Awfis’ finance cost jumped over 49% YoY to INR 72.7 Cr in FY23, with interest paid on lease liabilities accounting for the biggest portion.

Rent & Electricity: The startup spent INR 39.1 Cr and INR 50.7 Cr towards electricity and rent, respectively, in FY23

Outlook

Awfis said in its DRHP that while the Covid-19 pandemic has led to a major surge in demand for flexible workspaces in recent days, its historical growth rates might not be indicative of the future growth.

“We cannot assure you that such instances will occur in the future. The market for our solutions, products and services may not continue to grow at the rate we expect or at all, and our client base may decline because of increased competition in the space-as-a-service sector or the maturation of our business, or the abatement of the effects of the Covid-19 pandemic in respect of reverse migration,” the DRHP noted. 

Besides, Awfis also warned of significantly rising competition in its space.

“The flexible workspace industry in India is intensely competitive and we compete in both the organised and unorganised sectors with large multinational and Indian companies, as well as regional and local companies in each of the regions that we operate,” said Awfis.

As per the DRHP, Awfis is looking to raise INR 160 Cr through a fresh issue of shares during its IPO. The public issue will also comprise an offer-for-sale component of up to 1 Cr shares. 

The post IPO-Bound Awfis’ Net Loss Narrows To INR 46.6 Cr In FY23 appeared first on Inc42 Media.

Social media platform ShareChat, which has been on a cost-cutting spree, is in advanced stages of discussion to raise around $60 Mn in a funding round from its existing investors, including Google, Lightspeed, and Temasek, sources told Inc42. 

The funds will be raised via convertible notes at a discounted valuation of $2.8 Bn, people aware of the development said. 

The startup was last valued at about $4.9 Bn in March last year. 

“The funding round will close by the end of January, and can also see participation from many other existing investors of ShareChat,” one of the sources said.

A convertible note is a form of short-term debt that converts into equity in a future funding round or during an initial public offering (IPO). Convertible notes offer a way to secure funding without immediately determining a startup’s valuation. Instead, valuation is determined when the note converts into equity. Amid the ongoing funding winter, a number of new-age tech startups, including Udaan and Dunzo, have resorted to raising funds via convertible notes.

ShareChat declined to comment on Inc42 queries on the development.

The latest development comes a day after Inc42 exclusively reported that ShareChat laid off 15% of its workforce, or about 200 employees. It was the second retrenchment exercise undertaken by ShareChat in 2023. Earlier in January, it laid off around 500 employees, or 20% of its workforce.

Sources said that the latest restructuring exercise has brought down ShareChat’s burn rate to below INR 40 Cr ($4.8 Mn) per month. The startup is currently clocking a monthly revenue of about INR 65 Cr ($7.8 Mn). 

The sources also claimed that ShareChat’s contribution margin has now turned positive.

It is pertinent to note that ShareChat’s operating revenue rose 62% to INR 540.21 Cr in FY23 from INR 332.69 Cr in the previous fiscal year, while net loss grew 38% to INR 4,064.3 Cr from INR 2,941.5 Cr in FY22.

Late last year, ShareChat’s parent Mohalla Tech shut its fantasy gaming platform Jeet11, which resulted in 100 employees losing their jobs.

Besides the layoffs, two cofounders of the startup – Bhanu Pratap Singh and Farid Ahsan – also resigned. Following this, they founded a robotics startup General Autonomy and raised $3 Mn seed funding for it last month from venture capital firms India Quotient and Elevation Capital.

Overall, ShareChat has raised a funding of over $1 Bn till date and counts the likes of Google, X (erstwhile Twitter), Tiger Global, and Tencent among its backers.

The post ShareChat To Raise $60 Mn Via Convertible Notes From Google, Lightspeed At $2.8 Bn Valuation appeared first on Inc42 Media.

Coworking space provider Awfis, which counts Peak XV Partners (erstwhile Sequoia Capital India and Southeast Asia) as among marquee investors, has filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI). 

Its IPO comprises a fresh issue of INR 160 Cr and an offer-for-sale component of up to 1 Cr shares. 

The OFS component includes the offer for sale of up to 5.01 Mn equity shares by Peak XV, up to 4.94 equity shares by Bisque Limited, and up to 75,174 equity shares by Link Investment Trust.

The startup will utilise INR 52.5 Cr from the net proceeds towards setting up new coworking setups. The startup will open 15 new centers under the ‘Awfis’ format in Fiscal 2025, in Mumbai, Bengaluru, the National Capital Region of Delhi, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Lucknow, Bhubaneswar and Jaipur. The startup has estimated that it will spend INR 3.5 Cr to open a centre. 

The rest of the net proceeds which amounts to INR 68 Cr will be utilised as a working capital.

Founded in 2015 by Amit Ramani, Awfis has evolved from just being a coworking network to a tech-enabled workspace solutions platform, catering to freelancers, startups, SMEs, large corporates, and MNCs. To date, the startup has raised nearly $90 Mn across multiple rounds. It directly competes against the likes of WeWork, 91Springboard, OYO’s Innov8, BHive, among others. 

As of June 30, 2023, the startup had 121 operational centres across 16 Indian cities, with a total of 70,242 operational seats. It also claims to have had 2,139 clients by the same time. 

ICICI Securities, Axis Capital, IIFL Securities and Emkay Global Financial Services are the book runners to the issue.

Awfis reported revenue of INR 545.28 Cr in FY23, compared to Rs 257.05 Cr a year ago. Its net loss declined slightly to INR 46.64 Cr in FY23. In the first three months of FY24, the coworking services provider reported an operating revenue of INR 187.7 Cr, while its loss stood at INR 8.56 Cr.

The post Peak XV-Backed Awfis Files DRHP, Plans To Raise INR 160 Cr Via Fresh Share Issue appeared first on Inc42 Media.

Streaming giant YouTube has begun rolling out its branded content platform, YouTube BrandConnect, in India.

The platform will be open to eligible creators and select advertisers in the country and will connect creators, brands, and agencies for direct collaboration. Through this, brands will be able to zero in on the ‘right mix and profile’ of creators while the latter will get access to a new discovery avenue. 

“… We have begun rolling out BrandConnect, YouTube’s branded content platform, to eligible creators and select advertisers in India. This will help brands execute their branded content campaigns more seamlessly by identifying the right mix and profile of creators to work with, while creators will have a new avenue to be discovered and earn more from their content,” said parent Google in a blog post. 

The streaming major also announced new features on YouTube including ‘Podcast shelves’ on the YouTube Music homepage to improve discoverability and increase engagement for creators. It also introduced new features on YouTube Studio to make it ‘easier’ for creators to publish podcasts.

The company also said that creator podcasts will now be available for offline, on-demand and background listening on YouTube Music in the country. This, the streaming major said, would enable podcasters on the platform to ‘earn more via ads and subscriptions.’

Citing a report by Oxford Economics, YouTube said that more than 7 Lakh creators and partners in India received some form of income from their presence on the platform. 

It also said that the number of channels that earned a majority of revenue from fan funding features (which include channel memberships and Super Chats during live streams) rose 10% year-on-year in December 2022 without disclosing the actual number.

Channel memberships include subscription plans offered by creators in lieu of exclusive content. On the other hand, super chats enable viewers to highlight their messages during a live stream for a specified duration.

This comes amid a host of creator-focussed offerings launched by YouTube in recent months. Earlier this year, it expanded eligibility for the YouTube Partner Program (YPP) and brought YouTube Shorts creators under the initiative. It also rolled out an ad revenue sharing feature for short form videos as competition began to mount from Meta-owned Instagram Reels. 

YouTube also recently announced upcoming creative tools on YouTube Shorts and is said to be testing new GenAI features that would allow users to create music tracks based on a text prompt or even a simple hummed tune. 

However, the platform has also come under the spotlight of the government to crack the whip on deepfakes and  misinformation. YouTube India’s senior executive, last month, dubbed deepfakes as being antithetical to its interests, saying that viewers, creators and advertisers want to steer clear of platforms that allow fake news or misinformation.

The company then also said that it was compliant with all local laws and was continuously actively engaging with the government on all emerging issues.

The post YouTube Launches Branded Content Platform In India To Connect Brands With Creators appeared first on Inc42 Media.

Have you ever felt like you’re throwing everything at your Facebook ads, but they just don’t stick? I’ve been there. It’s like shooting arrows in the dark, hoping one hits the bullseye.

But here’s the good news: mastering Facebook ads for your D2C business isn’t about luck; it’s about strategy. 

Let me share some insights that turned my campaigns around.

Start With Your Best Sellers

When you’re at the starting line, it’s all about reducing variables. Your best sellers are your secret weapon. They have proven appeal, giving you a head start. If you’re starting from scratch with no sales data, focus on the product category with the highest sell-through rate. Use this as your ad’s star player, then iterate based on performance.

Messaging Over Design

It’s tempting to get caught up in design details. Pink or yellow? Bold or subtle? But here’s the thing: it’s the messaging that drives buying behaviour. What position does your product hold in the customer’s mind? Your goal is to become the go-to product for their specific needs. While design can optimise the buying experience, it’s the messaging that will drive the sale.

Capturing Attention The Right Way

Ads are your spotlight. They’re there to grab attention and lead customers to checkout. Focus on how your product fits into their life, the problems it solves, and the ‘wow’ factor it brings. But remember, attention should be rooted in value, not gimmicks. Authenticity wins the race.

The Power Of The Offer

Attracting visitors is one thing, but converting them is another. If your traffic is high but conversions are low, it’s time to revamp your offer. How can you present it more compellingly? Consider:

• Comparing with other products
• Offering discounts
• Highlighting customer reviews

These strategies can enhance perceived value and nudge visitors towards making a purchase.

Your Role In This Journey

As a marketer, your role is to guide potential customers through a journey where each step feels natural and inevitable. It’s about creating a narrative that resonates, engages, and ultimately convinces.

Let’s embrace these strategies and transform our Facebook ads from shots in the dark to targeted arrows hitting their mark. 

The post Mastering The Art Of Creating Impactful D2C Facebook Ads appeared first on Inc42 Media.

India’s direct-to-consumer (D2C) market, which is likely to reach a size of $100 Bn by 2025, has grown exponentially in the last few years. Several factors including the Covid pandemic, higher internet penetration, growth of digital infrastructure and rise in the number of millennials, among others, have shored up the D2C brands. 

Home to more than 190 Mn digital shoppers, India has the world’s third-largest online shopping base in the world. It is this burgeoning ecosystem that the new-age D2C brands aim to capitalise on, on the back of the growing appetite of Indian consumers for innovation and waning loyalty towards traditional players. 

Of this, fashion and clothing startups have the highest potential and are expected to grow to $43.2 Bn by 2025, according to an Inc42 report.

Some of the emerging D2C brands including Mamaearth, CaratLane and Nua merely took a couple of years to reach INR 100 Cr revenue mark. This is a testament to the success of D2C brands in the country.

Let’s take a look at some of the popular D2C brands in the country. 

The list is not meant to be a ranking of any kind. We have listed the Indian D2C startups in alphabetical order.

1. 82°E

Founded in 2021 by Bollywood Actress Deepika Padukone and Jigar Shah, 82°E is a direct-to-consumer (D2C) personal care brand. 

It sells four skincare products – moisturisers, face oil, cleanser and sunscreen – in the price range of INR 1,200 and INR 2,900, as per the company’s website. 

In December 2022, it secured $7.5 Mn in seed funding from DSG Consumer Partners, IDEO Ventures, Padukone’s family office, and some ultra-high net worth individuals (UHNIs). 

It also has a research and development lab in Bengaluru city.

2. Anveya Living

Founded in 2018 by serial entrepreneur Saurav Patnaik and a former FirstCry executive Vivek Singh, Anveya Living sells sustainable hair and skin care products.

In 2022, the D2C startup launched its flagship products Colorisma and Curlvana and added a gold acne kit to its offerings. The startup clocked a revenue of about INR 11.7 Cr in the fiscal year 2021-22 (FY22).

The Bengaluru-based startup aims to clock a revenue of INR 45 Cr in 2023. It has added more hair care products to its offerings.  

In February 2022, Anveya raised INR 8 Cr in a seed funding round from Venture capital firm Rukam Capital.

3. Arata

Founded in 2017 by Dhruv Madhok and Dhruv Bhasin, ARATA’s first-ever product, a homemade hair gel, came to being around Madhok’s wedding. Madhok had made the chemical-free hair gel for Bhasin. 

24 months later, the D2C brand’s first product was sold on its website and the company took shape. The startup derives its name from the Japanese word ‘Arata’, which means ‘fresh and new.’  

ARATA finds its differentiation in the chemical-free beauty and skincare segment, and its range includes products such as hair gels, hair creams, shampoos, conditioners, toothpaste, face wash and serums. 

The D2C brand procures ingredients globally and locally from certified organic farms, which are developed into finished products after extensive research and development (R&D). The startup claims to offer zero-chemical and toxic-free personal care products that use only recycled plastic for packaging as part of its sustainability promise.

The D2C brand currently has 26 SKUs and a user base of more than 5 Lakh customers. It claims to have sold more than 7 Lakh products by mid-2022. However, a majority of its sales, around 70%, take place from ecommerce marketplaces such as Amazon, Nykaa, Flipkart, and BigBasket.

4. Atomberg 

Set up in 2012 by Manoj Meena and Sibabrata Das, Atomberg manufactures energy-efficient fans and allied equipment, along with mixer grinders. Its product portfolio includes pedestal, wall and ceiling fans, among others.

In 2021, Deepika Padukone-led family office KA Enterprises invested in Atomberg’s Series B funding round. In May 2023, the startup raised a further $86 Mn in a Series C round.

Besides Padukone, its cap table also includes A91 Partners, Survam Partners, Trifecta Capital, and Whiteboard Capital Fund, Temasek, Steadview Capital, among others.

During the time of its last fundraising, the startup was said to have 400 service centres throughout India and clocked an annual revenue rate of INR 300 Cr.

5. Bacca Bucci

Much before the Gen Z lingo acquired buzzwords such as sneakers or running shoes, the duo of Anuj Nevatia and Natwar Agrawal was quietly working on setting up something of their own in the footwear industry.

For Nevatia, the decision to focus on footwear was primarily driven by factors such as business seasonality, the organized nature of the market, and the timeless demand for shoes, which laid the groundwork for the inception of Bacca Bucci, a direct-to-consumer (D2C) footwear brand established in 2015.

As a bootstrapped startup, Bacca Bucci leverages artificial intelligence (AI) in its backend processes for shoe manufacturing. Beyond footwear, the platform also offers a range of complementary products, including belts, wallets, and toiletry bags.

Presently, Bacca Bucci markets its products through its official website and various ecommerce platforms.

6. Beco

Founded in 2019 by Aditya Ruia, Akshay Varma, and Anuj Ruia, Beco is a sustainable kitchen, home, and personal care brand. It sells biodegradable and combustible products such as tissue rolls, bamboo facial tissues, dishwashing liquid, toothbrushes, and garbage bags.

In September 2022, the startup secured $3 Mn in its Series A round led by Rukam Capital along with  Prashant Pittie, Titan Capital, Priyavrata Mafatlal and Better Capital. 

While announcing its Series A fundraise, it claimed that it would expand its retail stores to 10K across India.

Prior to this, it had raised INR 4 Cr in its seed funding round from Climate Angels Fund, Rukam Capital, Sequoia Sprout, and Zivame founder Richa Kar, among others. 

7. Bewakoof

Founded in 2012 by Prabhkiran Singh and Siddharth Munot, Bewakoof sells a wide variety of clothes, stationery items, footwear and mobile accessories on its website. The D2C brand also sells a host of merchandise clothes and accessories in partnership with Marvel, F.R.I.E.N.D.S, Star Wars, Disney, DC and Looney Tunes.

In August 2021, it secured $8.09 Mn in its Pre-Series B funding round and in December 2022, Aditya Birla Group’s house of brands business TMRW invested INR 200 Cr in the D2C startup Bewakoof. 

In total, Bewakoof has raised a total funding of INR 23.6 Mn to date. Its cap table includes IvyCap Ventures, Spring Marketing Capital, Investcorp and Klub-led accelr8 fund, among others. 

At the time of its last fundraising activity, it was said to have sold more than 1 Cr products and served 60 Lakh customers. It also aimed to record INR 2000 Cr in sales by 2025.  

8. BlissClub

Set up in 2020 by Minu Margeret, BlissClub sells a host of women’s activewear including bottom wear, sports bras, tops, tees and co-ords, among others. Under the BlissQueen Royalty Program, the D2C startup offers reward points to its loyal customers. 

In May, the Bengaluru-based D2C startup secured $15 Mn in its Series A funding round. It has raised a total funding of $17.25 Mn to date.

The startup claims to have grown its sales by 25X over the last year. It aims to attain an annualised revenue of INR 100 Cr by the end of 2022.

Eight Roads Ventures, Elevation Capital, Swiggy’ Sriharsha Majety, Mamaearth’s Ghazal Alagh, Licious’ Vivek Gupta and Abhay Hanjura, SoftBank’s Munish Varma and Sumer Juneja, Shopify’s Brennan Loh are among its investors.

9. Bluestone

Set up in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, Bluestone offers more than 8000 jewellery designs in rings, pendants and other allied products. It follows an omnichannel approach to selling its products. 

In March this year, the D2C jewellery brand secured $30 Mn from Hero Enterprise’s Sunil Kant Munjal and other investors at a post-money valuation of $410 Mn. So far, it has raised $87.8 Mn from investors including Ratan Tata, Accel, IvyCap, Saama Capital, Kalaari and Iron Pillar, among others. 

In the financial year 2020-21, it narrowed its consolidated losses by nearly 43% to INR 13.8 Cr. Meanwhile, its revenue from operations grew by 5% year-on-year to INR 269 Cr in the corresponding period.

10. boAt 

Launched in 2016 by Aman Gupta and Sameer Mehta, boAt is an audio direct-to-consumer brand that manufactures a host of audio products such as earphones, headphones and speakers, among others. It retails these products on its website and ecommerce marketplaces. 

In October 2022, boAT secured nearly $61 Mn from Warburg Pincus and Malabar Investments. With this fundraising, the startup also decided to delay its IPO plans. 

Its cap table includes InnoVen Capital, Qualcomm Ventures and Fireside Ventures, among others. 

In the financial year 2021-22 (FY22), its profit dipped 20% YoY to INR 68.7 Cr in FY22 against INR 86.5 Cr in FY21. Revenue of the New Delhi-based D2C electronics brand surged 117.5% YoY to INR 2,886.4 Cr in FY22. 

11. Bold Care

Founded in 2020 by Rajat Jadhav, Rahul Krishnan, Harsh Singh, and Mohit Yadav, Bold Care is an end-to-end men’s health and wellness platform that centres around sexual health, hair care and daily nutrition. 

It sells sexual wellness kits, complete hair care packs, and natural supplements to boost immunity, sleep, haircare, and sexual health. 

Accelerated by Huddle, the health and wellness D2C brand has so far catered to 2.3 Lakh men and sells its products on marketplaces and its own website. The startup has secured $3 Mn in funding to date.

Bold Care is backed by names such as Sharrp Ventures, Anthill Ventures, Stanford Angels & Entrepreneurs and Shiprocket, NB Ventures, among others. 

12. BoldFit 

Fitness startup BoldFit, which was founded in December 2018 by Pallav Bihani, sells nutritional supplements and fitness equipment to consumers. 

The startup sells Food Safety and Standards Authority of India-certified (FSSAI) products in the market and works with WHO-GMP-approved manufacturing firms to implement quality checks at every stage. 

The fitness startup has created more than 400 SKUs across health and ayurvedic supplements, healthy foods, home gym equipment and accessories in the last three years. 

In the financial year 2022, it reported a revenue of INR 63 Cr and sold over 5 Mn products.

With an annual revenue rate (ARR) of 205%, BoldFit has served more than 2.5 Mn customers to date. 

13. Bombay Shirt Company

Founded in 2012 by Akshay Narvekar, Bombay Shirt Company is an online clothing brand. The startup sells bespoke apparel for men and women. It presently leads four brands–Bombay Shirt Company, cityof_, Pause and Korra. It has a presence in India, Dubai and New York.

In 2019, the Mumbai-based clothing startup reportedly raised $9 Mn in its Series B funding round. It has raised a total of $11 Mn in funding to date. 

Its cap table includes venture capital firm Lightbox and individual investors Amit Patni and Arihant Patni.

14. Bombay Shaving Company

Founded in 2016, Bombay Shaving Company initially started as a men-focussed D2C personal care brand but later started offering a range of products in hair removal and hair care categories. It has a portfolio of over 100 SKUs including shaving regimens, trimmers, beard products, razors for women, wax strips, hair removal creams, and other allied personal care products.

Earlier in 2022, it secured INR 30 Cr in its then-ongoing Series C funding round. So far, it has a total of $45.6 Mn in funding. It counts Gulf Islamic Investments, Malabar Investments, Patni Advisors, Singularity AMC and Reckitt Benckiser as its investors.

It claims to have served over 3 Mn customers till date and has clocked INR 150 Cr annual revenue rate, expanding 35% on a quarter-on-quarter basis.

15. CaratLane

Founded in 2008 by Mithun Sacheti and Srinivasa Gopalan, CaratLane offers a host of jewellery, right from bracelets to kids-focussed pendants to customised pieces of jewellery. It retails its products through an omnichannel marketing strategy.

In 2019, Tata Group-led Titan Company infused INR 99.9 Cr in CaratLane thereby, increasing its stakeholding to 66.39% in the startup.  Subsequently, the conglomerate, in August 2023, announced plan to acquire an additional 27.18% stake in CaratLane for INR 4,621 Cr.

Once the deal goes through, Tata will effectively own 98.28% of the company with the jewellery startup acquiring a valuation of INR 17,000 Cr ($2 Bn).  

The jewellery brands reported a consolidated revenue of INR 2,169 Cr in FY23. Besides, CaratLane’s net sales value (NSV) also surged to INR 571 Cr in FY23, up 56.7% compared to FY22. 

16. Chaayos

Founded in 2012 by Nitin Saluja and Raghav Verma, Chaayos sells a wide variety of tea and packaged food products. It sells tea at its physical stores while other packaged food products are sold via ecommerce marketplaces and physical stores.

In June 2022, it secured $53 Mn in its Series C funding round from investors including Elevation Capital, Think Investments, Tiger Global and Alpha Wave Ventures. It has raised $85.5M in funding to date. 

17. Chai Point 

Set up in 2010 by Amuleek Singh Bijral and Professor Tarun Khanna, Chai Point follows an omnichannel approach to selling tea varieties and other snacks. It opened its first retail store in 2010 followed by introducing home delivery of its flagship teas in 2014 and rolling out tea and coffee vending machines in 2016.

In 2018, the D2C F&B brand secured $20 Mn in its Series C funding round. So far, it has raised $36 Mn in funding from investors including Paragon Partners, Eight Roads, Saama Capital and DSG.  

In the financial year 2020-21, it reported revenues from operations at INR 55.64 Cr and loss after tax stood at INR 78.49 Cr, according to Tofler.

18. Chumbak 

Founded in 2010 by husband-wife duo Vivek Prabhakar and Shubhra Chadda, Chumbak is a home and lifestyle brand that sells furniture, home decor items, jewellery and footwear, among others. It has an omnichannel presence across India, particularly in Tier-1 cities.

In 2019, the Bengaluru-based D2C brand secured INR 7.39 Cr in its Pre-Series E funding round from Gaja Capital Fund. So far, it has bagged $23.5 Mn in funding from investors. 

It looks to set up over 50 physical retail stores across India and further aims to have more than 100 retail stores in the country in the next one to two years.

19. ClearDekho

In a space that is populated by big names such as Lenskart, and Titan Eye Plus, ClearDekho found a niche in the country’s D2C eyewear segment. Building on his prior experience in the space, ClearDekho founder and CEO Shivi Singh is tapping the burgeoning eyewear market in Tier III & IV cities of India. 

In a chat with Inc42, Singh said that the company aims to standardise eyewear accessibility for consumers in smaller towns and cities while offering value for money. 

Founded in 2017, the startup has so far raised $7 Mn in funding. It counts names like Venture Catalysts, Jaipuria Family Office, and Dholakia Ventures as its investors. 

With more than 100 franchisee stores across India, ClearDekho has a presence in Punjab, Haryana, Madhya Pradesh, and Rajasthan. 

20. Clensta

During his eight-year-long stint with the Indian defence startup ecosystem, Puneet Gupta came across a peculiar problem — soldiers stationed at the high-altitude areas of Drass and Siachen would go for months without a bath due to freezing weather conditions and extreme water scarcity. 

Gupta, an IIM-Calcutta alumnus, developed a waterless body bath and shampoo that can be used by people to take baths sans water while maintaining proper personal hygiene. 

Featured in the 2022 edition of Inc42’s Fast42 list, Clensta claims to offer more than 14 SKUs and sold more than 3.8 Mn products in 2022. It clocked revenues to the tune of INR 13.3 Cr in FY21. Clensta claims to have seen a 100% increase in its FY23 top line, which its plans to further grow 3X in FY24. 

Founded in 2016, the startup is backed by the likes of IAN Fund, N+1 Capital, IPV Fund, HEM Securities and Venture Catalysts. It has so far raised INR 105 Cr in a mix of debt and equity across multiple rounds.

21. Clovia

Founded in 2013 by Suman Choudhary and husband-wife duo Neha Kant and Pankaj Vermani, Clovia is a women’s lingerie brand that offers over 3,500 intimate wear styles. Recently, it has added Soumya Kant and Abhay Batra to its founding team.

In March 2022, Reliance Retail invested INR 950 Cr in Clovia’s parent company Purple Panda Fashions for an 89% stakeholding in the startup. So far, Clovia has raised $24.7 Mn from investors.

Its cap table includes AT Capital, IvyCap Ventures, Singularity Ventures and Ravi Dhariwal, Ex-CEO of Bennett, Coleman and Company Ltd, among others.

22. Country Delight 

Founded in 2013 by Chakradhar Gade and Nitin Kaushal, Country Delight sources milk and other food products such as ghee, cottage cheese, fruits and vegetables from farmers and delivers them to customers’ doorstep.

In May 2022, it secured $108 Mn in its Series D funding round from Venturi Partners, Temasek, SWC Global, Trifecta Capital and a slew of other investors. Prior to this, it had also raised $25 Mn in a Series C round led by Elevation Capital. So far, it has raised a total of $133 Mn in funding.

It claims to have grown 10x in the past three years and has served more than 1.5 Mn customers across the country. It further asserts to be delivering over 8 Bn orders every month across 11 Indian states.

Its cap table includes Matrix Partners, Orios Venture Partners, Elevation Capital, and IIFL PE Fund, among others.

23. Curefoods

Founded in 2020 by Ankit Nagori, Curefoods is a cloud kitchen aggregator that houses several brands–EatFit, Sharief Bhai, Aligarh House Biryani and CakeZone, to name a few. It manages over 150 cloud kitchens in 15 Indian cities.

In 2023, it raised  $37 Mn from Binny Bansal’s fund Three State Ventures. In addition, Bollywood actress Nora Fatehi invested in Curefoods and, also, became the brand ambassador of its sub-brand CakeZone. 

Its cap table includes Iron Pillar, Chiratae Ventures, Accel Partners, Sixteenth Street Capital, Iron Pillar and Bollywood Actor Varun Dhawan, among others.

In the financial year 2021-22, it reported revenue from operations at INR 1.3 Cr while its consolidated losses were INR 7.4 Cr, according to Tofler.

24. DaMENSCH

Founded in 2018 by Anurag Saboo and Gaurav Pushkar, DaMENSCH is a men’s clothing brand that sells a range of clothing styles such as odour-cancelling men’s underwear, polo-t-shirts, t-shirts, hoodies, joggers, tank tops, and chino shorts, among others.

In February 2022, it raised $16.4 Mn from A91 Partners, Matrix Partners, Whiteboard Venture Partners, and Saama Capital. So far, it has raised a total of $23.1 Mn from investors.

In the financial year 2021, it reported losses of INR 5.8 Cr whilst its revenue from operations stood at INR 22 Cr, as per Tofler.

25. Desi Farms

Set up in 2016 by Prateek Gupta and Sunil Shahi, D2C startup Desi Farms sells dairy products such as Malai Dahi, whole buffalo milk, Shrikhand, and Amrakhand, among others. 

To eliminate intermediaries, the dairy startup partners with local farmers and procures fresh milk and milk products from them. Later, these products undergo rigorous quality checks at the processing unit, wherein the milk is treated without using chemical preservatives. 

It delivers dairy products to customers without levying any charges and also provides customised subscription services to its users.

The startup currently offers 48 SKUs and claims to have more than 10K paid-up customers. In 2022, it set up over 50 offline outlets in Pune and Navi Mumbai, while in fiscal year 2022, it generated a revenue of INR 8.8 Cr.   

26. Dogsee Chew

Founded in 2015 by Bhupendra Khanal and Sneh Sharma, the Bengaluru-based pet food startup offers vegetarian dog treats that are prepared from yak milk, sourced from villagers residing in Nepal, Sikkim, and Darjeeling.

Dogsee Chew raised $6.7 Mn in its Series A funding round in 2021, and in 2022, it raised $60.59 Mn from Mankind Pharma along with the existing backers. In total, the startup has raised funding of $67.29 Mn so far. 

It claims to be the fourth-largest pet food exporter in India and currently operates in more than 30 countries. 

27. Dr. Vaidya’s 

Founded in 2016 by Arjun Vaidya, Dr. Vaidya’s is an Ayurvedic products startup. It claims to sell over 100 FDA-certified products and has a manufacturing facility in Silvassa, Mumbai. Its offerings include LIVitup, HERBOfit, Chakaash. 

The Mumbai-based startup also manufactures products to cure chronic ailments such as diabetes, asthma and arthritis, among others. It sells products through its website and ecommerce marketplaces such as Amazon, Flipkart and Snapdeal. 

In 2021, the startup reportedly got acquired by RP-Sanjiv Goenka Group’s venture capital arm for $6.9 Mn. Following this, its valuation soared to nearly INR 144 Cr.

28. Drink Prime

Founded in 2016 by software engineer Vijender Reddy Muthyala and corporate executive Manas Ranjan Hota, DrinkPrime is a watertech startup that allows users to rent IoT-enabled water purifiers via the platform’s app and website. 

Operating on a monthly and daily subscription basis, DrinkPrime came into being after the duo failed to find a reliable and affordable water purifier. Since inception, the startup’s purifiers have installed more than 72,000 water purifiers and has more than 1 Lakh subscribers. 

Backed by names such as Omidyar Network India, Sequoia Surge and 9Unicorns, DrinkPrime has so far raised capital in excess of $11.5 Mn across multiple rounds. It competes directly with homegrown startups in the watertech arena, including names such as Swajal and OwO.

The startup was also featured in the 2023 edition of Inc42’s Fast42 list. 

The startup is looking to turn EBITDA-positive and gain more than 3 Lakh subscribers in 2023. With an eye on pan-India expansion, the startup is targeting 1 Mn households in the country. 

29. Earth Rhythm

Founded in October 2020 by Harini Sivakumar, Earth Rhythm is a beauty and personal care brand that sells a host of haircare, skincare and body care products. It also sells zero-waste products including toothbrushes, vanity bags, combs and soap dishes, among others.

The Delhi NCR-based claims to have 160 stock-keeping units (SKUs) and has served over 150K users to date. It has raised a total of $1.2 Mn in funding from Anicut Capital. It aims to reduce the carbon footprint and at the same time, use sustainable ingredients in making its products. 

In the financial year 2021-22, it posted earnings from operations at INR 6 Cr. It asserts to have witnessed a 3x rise in its customer orders since its inception. In January this year, it received 15K orders.

30. Ecosoul

Rahul Singh and Arvind Ganesan first met each other during their stint at the American furniture goods company, Wayfair, where they worked on the sustainable product categories. Realising that there was a huge gap in the market for eco-friendly products, the duo left their high-paying jobs in the US and founded EcoSoul in 2020.

EcoSoul Home sells eco-friendly home products such as crockery, cutlery, garbage bags, and tableware. Headquartered in the US, with operational presence in countries like China and Vietnam, the company forayed into India earlier this year.

The D2C eco-friendly home essentials brand sells its products primarily through its website as well as ecommerce platforms. It currently offers 43 product varieties and 1,800 SKUs.

Since its inception, EcoSoul has secured more than $15 Mn in funding from notable investors, including venture capital firm Accel. Furthermore, actor Bhumi Pednekar recently made an undisclosed investment in the startup.

31. FableStreet 

Founded in 2016 by Ayushi Gudwani, FableStreet is a women-focused clothing brand. It offers readymade as well as bespoke clothes for female working professionals. It claims to use a three-body measurement algorithm for creating customised apparel.

In 2019, it raised $2.95 Mn in its Series A funding round. Prior to that, it secured an undisclosed amount of seed funding in 2017.

Its cap table includes Fireside Ventures, Pradeep Parameswaran from Uber India and South Asia, Dilip Khandelwal from Deutsche Bank, Suhail Sameer from RP-Sanjiv Goenka Group, and Fusiontech Ventures, among others.

32. FabAlley 

FabAlley, founded in 2012 by Shivani Poddar and Tanvi Malik, is a brand of High Street Essentials (HSE). It sells a wide range of women’s Western apparel via online marketplaces, physical retail stores, multi-brand outlets (MBOs), and its own website. 

In May, FabAlley’s parent company HSE secured INR 40 Cr from Stride Ventures. So far, HSE has raised $14.02 Mn in funding from investors including Elevational Capital, India Quotient, Dominor Holding, Trifecta Capital Advisors, SenseAI Venture, Baird Capital, and Institutional Venture Partners. 

In the financial year 2020-21, FabAlley reported a profit of INR 27.5 Cr, while its revenue from operations stood at INR 105 Cr, according to Tofler. 

33. Flistaa 

Founded in 2021 by CA Harshvardhan Chhatbar, Flistaa is a beverage brand that offers premix beverages in sachets. It offers a wide range of Indian beverages such as street juices, milkshakes and sharbat, etc. 

In December 2021, the Ahmedabad-based D2C startup reportedly received an undisclosed amount of investment from ah! Ventures’ First Gear Platform.

34. Flo Sleep Solutions

With an aim to offer good quality mattresses and other sleep essentials to Indian consumers, Gaurav Zatakia founded D2C startup Flo Sleep Solutions in 2018.

Flo primarily sells varied types of mattresses and pillows such as ortho mattresses, ergo mattresses, anti-gravity latex mattresses, baby mattresses, fibre pillows and memory foam pillows. It counts Mistry Ventures as its investor.

Flo’s founder Zatakia is also leading a B2B firm Hush for over 13 years now. Hush mainly supplies mattresses and allied sleep essentials to luxury hotel chains such as Taj Hotels, JW Marriott and the Hyatt Group. 

35. Freakins

Back in 2018, Puneet Sehgal, Sachin Shah and Shaan Shah experimented with the idea of building a desi women-centred denim wear brand. Investing INR 10 Lakh of their capital, the duo first designed and manufactured a few denim wear samples to see if they were headed in the right direction .

They received overwhelming response, setting the stage for launch of their D2C denim wear brand Freakins in 2019. However, the startup forayed into the men’s category in February 2023 to emerge as a full-fledged Gen-Z denim wear brand.

The startup raised $4 Mn in July 2023 in a seed funding round led by Matrix Partners India and Blume Ventures. Freakins is also backed by the likes of angel investors such as Revant Bhate of Mosaic Wellness, Meesho’s Utkrishta Kumar, and OfBusiness’s Asish Mohapatra.

The D2C brand’s product portfolio currently spans more than 35 categories and 1,500 styles.

Freakins sells its denims via online marketplaces such as Amazon, Flipkart, and Myntra. The company clocked a gross revenue of INR 22 Cr in FY23 and is eyeing to become an INR 100 Cr brand by the end of 2024.

36. FreshToHome

FreshToHome was incorporated in 2015 by serial entrepreneur Shan Kadavil and Mathew Joseph. The inspiration to venture into the direct-to-consumer (D2C) meat and fish industry struck Kadavil when his personal fish supply was disrupted due to the impending closure of Sea To Home, an ecommerce platform based in Kerala.

Collaborating with Joseph, one of the cofounder of Sea To Home and an angel investor, Kadavil embarked on his new venture. Since then, the direct-to-consumer (D2C) meat startup has significantly expanded, now serving 160 cities in India and all seven emirates in the UAE.

With investors such as Amazon Sambhav Venture Fund, E20 Investment, Mount Judi Ventures, Investcorp and Iron Pillar in its kitty, the D2C meat startup has so far raised $256 Mn in funding across multiple rounds. 

The company competes with the likes of Licious, Zappfresh, and Meatigio, among others. To fuel its growth, FreshToHome plans to expand its store count to 100 across all major metros by 2024-end. 

37. GIVA

Founded in 2019 by Ishendra Agarwal, Nikita Prasa and Sachin Shetty, GIVA is a D2C brand that sells budget-friendly fine jewellery to its customers — both men and women. The startup largely prices its offerings in the price range of INR 1,000 to INR 20,000. 

Competing with the likes of homegrown brands such as CaratLane, Melorra, Tanishq and BlueStone, the omnichannel brand derives 90% of its revenue from online channels. 

The startup’s revenue saw a 100% YoY rise in FY22. GIVA claims to have a customer base of 1.2 Mn. The D2C brand, which currently operates more than 40 exclusive brand outlets in the country, aims to launch 100 retail outlets in tier II and tier III Indian cities by FY24. 

The startup has raised INR 130 Cr in equity funding since its inception. In March this year, it secured INR 40 Cr in debt from Alteria Capital. 

38. Good Health Company (GHC)

Founded in 2021 by Samarth Sindhi and Saurav Panda, Good Health Company (GHC) is a subsidiary of Raksha Health. 

GHC sells a range of men-focussed wellness and personal care products, including anti-hair thinning kits, hair regrowth, beard care kit, and glowing skin kits, among others. 

It also offers free consultations to customers regarding their skincare, haircare and sexual health problems.

So far, it has raised $20.7 Mn funding from a number of investors, including Left Lane Capital, Khosla Ventures, Quiet Capital, and Weekend Fund, among others. 

39. Gynoveda

After suffering from lifestyle disorders for more than a decade, Vishal Gupta eventually found respite in the ancient science of Ayurveda. During his research, Gupta discovered effective remedies for a host of gynaecological problems such as PCOS (polycystic ovary syndrome), abnormal discharge, and umpteen, among other issues. 

Realising a prevailing gap in the market, Gupta, along with his wife Rachana and Dr Aarati Patil, founded Gynoveda in 2019, blending the age-old science with modern technology and content. 

Gynoveda sells products ranging from moisturisers to Ayurvedic capsules via its website and ecommerce marketplaces. Of its total revenue, 80% comes from its own website while the rest comes from ecommerce websites. 

With a customer base of 3 Lakh women, the startup is eyeing scaling this number to 10 Lakh in the next three years. It claims to have annualised revenue of INR 100 Cr. 

The startup has so far raised funding in excess of $11 Mn and counts names such as India Alternatives Fund, Fireside Ventures, Wipro Enterprises, Alteria Capital and RPG Ventures as its backers. 

40. Happilo 

Founded in 2016 by Vikas Nahar, Happilo sells a host of healthy snacks such as nuts, dry fruits, seeds and dry roasted snacks, among others, via its website and offline stores. It also offers an option to pay through EMIs.

In February, the Bengaluru-based D2C brand secured $25 Mn from Motilal Oswal Private Equity. The startup then claimed that it had expanded over 4x in the previous 24 months. It also said that it was aiming for a revenue of INR 2,000 Cr over the next four years. 

So far, Happilo has bagged total funding of $38 Mn.  

41. Happy Nature

Founded in 2022 by Sahil Chopra, Parth Birendra, Vikas Singh and Vishal Rastogi, Happy Nature is a farm-to-fork dairy startup. It runs a dairy farm in Jhajjar, Haryana. 

The startup has developed its standard operating procedures (SOPs) to keep aflatoxin levels low in cow’s milk, without adding chemical preservatives and antibiotics. It currently sells more than 35 SKUs to over 80K customers across Delhi-NCR, Punjab and Haryana.  

In the fiscal year 2021-22 (FY22), it reported a 69% YoY rise in its revenue to INR 14.4 Cr. Further, it plans to generate INR 150 Cr in annual revenue by 2025. 

42. Heads Up For Tails 

Founded in 2008 by Rashi Narag, Heads Up For Tails sells a wide range of pet products such as preservative-free pet treats, organic supplements, and orthopaedic beds. It aims to increase awareness among pet parents regarding the need for pet care and wellness. 

In August 2021, the Delhi-based pet care brand secured $37 Mn in its Series A funding round led by Verlinvest and Sequoia Capital India. It had a headcount of 350 employees then. Back then, it was looking to launch new product offerings across India and expand its product portfolio in international markets.

The startup has raised $50.3 Mn in aggregate to date. 

43. Himalayan Organics

Himalayan Organics is a D2C nutraceutical startup that was founded in 2018 by Vaibhav Raghuwanshi and Suditi Sharma. The company offers a variety of products across several categories, including beauty, skincare, immunity boosters, and haircare.

To provide the best service to its customers, Himalayan Organics collaborates with nutritionists and dieticians to offer free consultations. The company mainly sources raw materials from the Himalayan region and uses natural ingredients such as fruits, vegetables, herbs, seeds, and nuts to manufacture its products.

In FY22, Himalayan Organics achieved revenue growth of 37%, increasing from INR 24 Cr in FY21 to INR 33 Cr. 

44. iD Fresh Food

Set up in 2005 by PC Musthafa, Abdul Nazer, Shamsudeen TK, Jafar and Noushad TA, iD Fresh Food offers a slew of ready-to-make food – dosa and idli batter, rice rava idli batter – in India as well as abroad. 

In January 2022, the Bengaluru-based D2C startup raised $68 Mn in its Series D funding round, thereby accumulating a total funding of $104 Mn. 

Currently, it is operating in more than 45 cities across the world such as Mumbai, Bengaluru, Pune, Hyderabad and Dubai, among others.

Its investors include NewQuest Capital Partner, Premji Invest, Sequoia Capital, Helion Ventures and Azim Premji.

45. Innovist

Innovist (formerly known as Onesto Labs), set up in 2018 by Rohit Chawla, Sifat Khurana, and Vimal Bhola, sells personal care products under three brands – Bare Anatomy, Chemist at Play, and SunScoop.

In June 2022, Innovist secured $3.5 Mn in its pre-series A funding round led by Accel Partners and 72 Ventures. Manu Chandra from Sauce.vc, Jani Ventures Inc, CRED founder Kunal Shah and Alok Mittal from Indifi Technologies, among others, also participated in the round. 

In 2021, the startup had raised $2.5 Mn from 72 Ventures, Ramakant Sharma of Livspace, Suhail Sameer of BharatPe, and Sauce.vc. 

The startup mainly sells products via its website and ecommerce marketplaces. It also has an offline presence. 

46. Juicy Chemistry

Set up in 2014 by Megha Asher and Pritesh Asher, clean beauty startup Juicy Chemistry sells organic skin, hair and body care products. 

To manufacture these products, it procures ingredients from organic farmers in 20 countries. It develops these products at its ECOCERT-certified manufacturing unit, where it conducts rigorous quality checks to ensure that everything complies with ECOCERT’s organic standards.

To date, it has raised $7 in funding from a bunch of investors, including Verlinvest, Spring Marketing Capital, and Manoj Lifestyle. 

In November 2022, it launched an organic makeup range viz Color Chemistry. In FY22, it generated INR 29 Cr in revenue and sold nearly 75K products every month. 

In 2023, it aims to open 10 retail outlets and nearly 20 kiosks in major Tier-1 cities. It further aims to enter international markets like the Middle East, the UK and the US by 2025.

47. Kapiva

When the pandemic locked millions of Indians indoors back in 2020, the ancient Indian science of health Ayurveda suddenly turned into the flavour of the season. For Ameve Sharma, Ayurveda was never relegated to the margins. 

Hailing from the iconic 103-year-old Baidyanath family, the INSEAD and New York University-educated scion grew up witnessing how the age-old science helped people from all walks of people. After being inundated with queries from friends about ayurvedic medications, Sharma realised that there was a huge whitespace in the market and he sat down to build Kapiva. 

With more than 100 SKUs in its kitty, Kapiva sells Ayurvedic consumables and products such as juices, Shilajit, hair oil, shampoos, and resins, among others. 

At the heart of Kapiva’s operations is sourcing high-quality raw materials and ensuring global-standard processing. The startup is betting big on raising awareness, scaling product categories and enhancing quality for large-scale adoption. As a result of these, the startup claims to have seen 7.5X growth over the last three years.

Sharma recently told Inc42 that the company achieved revenue of INR 115 cr in the last financial year from its India business, while it is eyeing an annual revenue of INR 850 Cr by FY26 from its consolidated global operations, including India. 

Backed by names such as Vertex Ventures, Fireside Ventures, and 3one4 Capital, Kapiva has so far raised $15.77 Mn across multiple rounds. 

48. Koparo Clean

When the use of chemical-laden sanitisers for groceries and home cleaning saw an uptick during the pandemic, Simran Khara realised that these products could harm kids, pets and even adults.

Responding to the challenge, Khara, who hails from Delhi, launched a range of natural, toxin-free cleaning products under the brand name Koparo Clean in 2020. The D2C brand sells more than 15 products across categories such as core cleaning, speciality cleaning, and accessories.

It claims its products to be free of volatile organic compounds (VOCs), synthetic dyes, ammonia, and parabens, among others. 

Opting for an omnichannel strategy, the company sells the products through ecommerce marketplaces, its website and more than 70 retail stores of Reliance Retail and Modern Bazaar.

The D2C brand recently disclosed plans to grow 8X by mid-2025. It is also looking at expanding its distribution points and introducing products.

In July 2023, the D2C brand raised a Pre-Series A funding of $1.5 Mn led by Saama Capital.

49. Lahori

Lahori, founded in 2017 by Saurabh Munjal, Saurabh Bhutna and Nikhil Doda, sells Indian beverages in four flavours – Zeera (cumin), Nimboo (lemon), Kacha Aam (raw mango) and Shikanji (lemonade) – across India. 

Lahori’s parent company Archian Foods creates approximately 1 Mn bottles in its manufacturing facility that are certified by FSSAI, ISI, HACCP, RoHS and Make In India. 

In January 2022, the Punjab-based startup received its first institutional funding of $15 Mn from Verlinvest for a minority stake in it. 

50. Lenskart 

Founded in 2010 by Peyush Bansal, Amit Chaudhury, and Sumeet Kapahi, Lenskart is an omnichannel eyewear brand. It has nearly 750 retail outlets in more than 175 cities. It claims to serve over 7 Mn customers annually. 

The eyewear unicorn has been on a spree of fundraising this year. In June, it secured a $100 Mn investment from private equity player ChrysCapital. This followed a capital infusion of $500 Mn from the Abu Dhabi Investment Authority for a 10% stake. Overall, Lenskart has raised nearly $850 Mn in the past year.

The unicorn is backed by marquee investors such as Chiratae Ventures, TPG, Premji Invest and Unilazer Ventures, among others.

Lenskart reported a consolidated loss of INR 102.3 Cr in FY22 versus a profit of INR 28.9 Cr in FY21. On the other hand, the startup’s revenue from operations zoomed 66% YoY to INR 1,502.7 Cr in the year ended March 2022, compared to INR 905.3 Cr in FY21.

51. LetsShave

Founded in 2015 by Sidharth Oberoi, LetsShave is a grooming brand that sells shaving kits, trial kits, blades and shaving foams.

The D2C grooming brand supplies razors to high-end hotels and hospitality brands such as Marriott, St. Regis, and Ritz Carlton.

Backed by South Korean razor giant Dorco Korea, LetsShave recently raised an undisclosed amount from its existing investor Wipro Consumer Care. The startup has raised more than $6 Mn till date.

The Chandigarh-based startup has a workforce of 57 employees and caters to clients in the UAE, the US, Canada, the UK, Australia and Europe.

52. Licious 

Licious, founded in 2015 by Abhay Hanjura and Vivek Gupta, sells a wide range of meat and seafood products such as mutton, prawns and kebabs. 

In March, the Bengaluru-based unicorn raised $150 Mn from Amansa Capital, Kotak PE, Axis Growth Avenues AIF – I, Nithin and Nikhil Kamath of Zerodha, Aman Gupta from boAt and Haresh Chawla from True North. So far, it has raised a total funding of $488 Mn from investors.

53. Mamaearth 

Mamaearth, founded in 2016 by Ghazal Alagh and Varun Alagh, started as a baby care products brand but later pivoted to become a personal care brand. Its product offerings include haircare, skincare and body care products.

The IPO-bound startup counts Fireside Ventures, Sequoia India, Rishabh Mariwala from Marico and Kunal Bahl and Rohit Bansal from Snapdeal among its investors. It has so far raised $111 Mn in funding across multiple rounds.

54. mCaffeine 

mCaffeine, founded in 2016 by Tarun Sharma, Mohit Jain, Saurabh Singhal, Vikas Lachhwani and Vaishali Gupta, sells a host of caffeine-based skin and hair care products ranging from soaps to scrubs to oil through its website and physical retail outlets.

In March 2022, the D2C startup secured over $31 Mn in its Series C funding round led by Paragon Partners. Singularity Growth Opportunities Fund, Sharrp Ventures, Amicus Capital Partners and RPSG Capital Ventures also participated in the round.

The startup has raised a total funding of $37.5 Mn to date. 

55. Melorra

Founded in 2016 by Saroja Yeramilli, Melorra sells a wide variety of gold jewellery for women via its website and offline stores. It claims to have a presence in 718 districts and over 2,800 towns in the country. 

In May 2022, it raised $16 Mn in its Series D funding round from Axis Growth Avenues AIF-I, SRF Family Office, N+1 and a slew of existing investors. The startup has so far raised a funding of $66.9 Mn.  

Mellora reported an operational revenue of INR 364.4 Cr in FY22, up 4.6X from INR 78.6 Cr during the previous fiscal year. Alongside, losses spiked 73.5% YoY to INR 106.7 Cr in FY22.

56. Minimalist 

Founded in 2020 by Mohit and Rahul Yadav, the Jaipur-based D2C startup sells a host of skin care products ranging from serums to moisturisers to toners. It retails products via its website and ecommerce marketplaces. 

In 2021, Minimalist secured $15 Mn in its Series A funding round led by Sequoia Capital India and Unilever Ventures. A bunch of international investors also participated in the funding round. 

57. Mosaic Wellness

Mosaic Wellness, founded in 2020 by Revant Bhate and Dhyanesh Shah, sells men and women-focused health and wellness products under the brands Manmatters and Bodywise. Both brands offer telemedicine services along with medicines, supplements and other allied products. 

The Mumbai-based D2C startup has built a content community for people to confer about their health and other related subjects. 

In 2021, it secured $24 Mn in its Series A funding round from Sequoia Capital India, Elevation Capital and Matrix Partners India. In total, it has raised a capital of $35.2 Mn to date. 

58. Mylo

Mylo, founded in 2018 by Vinit Garg, started as a community-based platform for new and expecting mothers and gradually turned into a personal care brand. Last year, it pivoted into a personal care startup offering over 100 stock-keeping units of ayurvedic products. 

In April, Mylo secured $17 Mn in its Series B funding round led by W Health Ventures, ITC Ltd and Endiya Partners. Riverwalk Holdings, Alteria Capital and Innoven Capital also participated in the funding round.

The D2C personal care startup has raised a funding of $24 Mn so far. 

59. Neemans

Founded in 2018 by Taran Chhabra and Amar Preet Singh, Neemans aims to upend the Indian shoe industry with natural, renewable, recycled and biodegradable fibres in its shoes. 

The company claims that its products have a considerably lower carbon footprint and lower impact on the water table compared to conventional products, which are dominated by synthetic fibres.

The startup has so far raised $9.8 Mn in funding and is backed by names such as Anicut Capital and Sixth Sense Ventures. With more than 3 Lakh users under its belt, the omnichannel brand prices its products anywhere between INR 2,999 and INR 6,999.

Earlier this year, the company also ventured into the apparel industry with the launch of its collection of clothes. 

The Hyderabad-based startup locks horns with the likes of international giants in the shoe industry such as Skechers, Nike, Adidas, Reebok, Puma, AJIo, among others.

60. Nestasia

Home decor brand Nestasia is the brainchild of Anurag Agarwal and Aditi Murarka Agarwal, whose passion for decorating and designing homes spawned the rise of the startup in 2019.

The D2C brand sells a range of home decor products such as crockery garden accessories, and kitchen utilities, among others. Unlike other marketplaces, which connect buyers and sellers, Nestasia operates a full-fledged D2C business that buys products from Indian artisans and then sells them directly to customers.

The startup last raised $4 Mn as part of its Series A funding round in December 2021, which saw participation from Stellaris Venture Partners, Mamaearth’s Varun Alagh, Delhivery’s Sahil Barua, and Livspace’s Anuj Srivastava and Ramakant Sharma, among others. 

The D2C brand currently lists more than 6,000 products across eight key product categories and has so far fulfilled more than 1 Lakh orders. 

61. Noise

Founded in 2014 by Amit Khatri & Gaurav Khatri, Noise is a smart wearable and wireless headphones brand. It sells products on its website and ecommerce marketplaces such as Amazon and Flipkart. 

The bootstrapped startup reported a 8% year-on-year (YoY) rise in net profit to INR 35.5 Cr in the financial year 2021-22 (FY22) against a total income of INR 804.9 Cr during the same period, up over 2.2X YoY.

62. Nua 

Founded in 2017 by Ravi Ramachandran, Nua is a women-focused wellness brand. Its offerings include sanitary pads, skin care and intimate hygiene products. 

So far, it has raised $12.5 Mn in aggregate from the last four funding rounds. Its cap table includes Lightbox VC, Kae Capital and actor Deepika Padukone, among others. 

It claims to have served more than 5 Mn customers so far. It further asserts to have 10 SKUs and witnessing 50% of its customer base revisiting its website.

63. NutriGlow

Set up in 2011 by Aditi Suneja and Ashish Aggarwal, Nutriglow sells men and women-focused haircare, skincare, body care and make-up products via its website and ecommerce platforms. 

The Noida-based direct-to-consumer (D2C) startup claims that its beauty products have natural and certified organic ingredients and vegan-friendly and paraben-free formulations.

In June 2022, it secured an undisclosed amount of funding from ecommerce rollup GOAT Brand Labs for developing its infra and research and development (R&D). 

64. Organic Harvest

Founded in 2013 by Rahul Agarwal, Organic Harvest is an organic personal care brand that offers plant-based skincare, haircare, body care products and essential oils via online and offline channels.

According to its website, It claims to use ingredients and raw materials that are approved by international organisations – EcoCert, OneCert, and Natrue.  

At the beginning of 2022, it received a capital infusion of INR 75 Cr from Good Glamm Group in exchange for a majority equity. In March 2023, it was reported that the content-to-commerce unicorn was all set to buy out the entire 100% stake in Organic Harvest and would give an exit to the D2C brand’s founders by the end of next year.

It said that it operated 25K retail outlets as of October 2022 and looked to increase the number of its retail outlets to 1 Lakh by 2024.

65. Perfora

Jatan Bawa and Tushar Khurana crossed paths during the Jagriti Yatra, a two-week long entrepreneurship train journey, in 2016. With a wealth of experience garnered from startups such as OYO, Cure Fit, and Vahdam Teas, the two found common ground during the journey and eventually conceived the idea for an oral care brand, Perfora, in 2021.

Perfora offering a diverse range of oral care products, including electric toothbrushes, toothpaste, mouthwashes, flossers, teeth whitening products, and more.

This direct-to-consumer (D2C) oral care brand distributes its products through its official website and various e-commerce platforms like Amazon, Flipkart, Nykaa, Blinkit, and others. Since its incorporation, Perfora boasts of serving over 2 Lakh customers.

Backed by notable investors such as RPSG Capital Ventures, Sauce.VC, Lotus Herbals Family Office, Huddle, and others, Gurugram-based Perfora has successfully raised a total of $3.7 Mn in funding through multiple rounds.

66. Pilgrim

After a combined experience of over two decades in the beauty and wellness industry, Anurag Kedia joined forces with fellow IIT Bombay alumni, Gagandeep Makker, to embark on an entrepreneurial journey.

At the core of their mission was the vision to craft vegan, cruelty-free, and toxin-free beauty products that would be accessible to the Indian market at affordable prices.

Together, they established Pilgrim in 2019. This D2C beauty brand distinguishes itself through the use of carefully sourced ingredients from around the world, spanning from South Korea to France. Pilgrim’s product range comprises items like hair growth serums, night serums, day creams, night gel creams, facial masks, and more.

With a portfolio of over 90 SKUs, Pilgrim earned recognition as one of the fastest-growing D2C brands, earning a place on the 2022 edition of Inc42’s FAST42 list. Pilgrim claims to have served more than 50 Lakh customers and add over 5 Lakh new customers every month.

Supported by prominent investors such as Fireside Ventures, Temasek, and Rukam Capital, Pilgrim has successfully secured nearly INR 214 crore in funding to date.

67. Pluckk

Incorporated in 2021 by Pratik Gupta, Pluckk is a D2C fruit and vegetable brand, which distinguishes itself by offering users a diverse selection of over 400 products spanning 15+ categories. These offerings include salads, dips, juices, cuts, mixes, and exotic fruits and vegetables.

Currently, Pluckk operates in major cities such as Mumbai, Delhi, Bengaluru, and Pune. It has plans to extend its presence to more cities in the coming years. The brand distributes its products through its dedicated app, website, and quick commerce platforms like Amazon, Swiggy, Dunzo, Zepto, and Reliance Signature Stores. 

In early 2023, Pluckk secured $5 Mn in seed funding from Exponentia Ventures. It has also secured an undisclosed amount of funding from actor Kareena Kapoor Khan.

68. Plum

Founded in 2013 by Shankar Prasad, Plum sells a wide variety of beauty products in skin care, hair care, personal care and makeup categories via its website and ecommerce marketplaces. It claims to operate nearly 1,500 assisted retail outlets and over 15,000 unassisted outlets throughout India.

In March 2022, the D2C beauty brand secured $35 Mn in its Series C funding round from A91 Partners, Unilever Ventures and Faering Capital. 

The startup generated revenue to the tune of INR 250 Cr in FY22 and has set its eyes on doubling its revenues in FY23 to INR 500 Cr. 

69. Power Gummies 

Founded in March 2018 by Divij Bajaj, nutraceutical startup Power Gummies sells flavoured and chewable vitamins for hair, nail and skin problems. Its products are gluten-free and certified by the Food Safety and Standards Authority of India (FSSAI).

Its revenue soared by over 6X to INR 54 Cr in FY22 as compared to INR 8.8 Cr a year ago. So far, it has sold over 40 Lakh products to more than 10 Lakh customers.

It plans to launch 40+ SKUs in the next five years, including a dedicated range for kids. It also looks to ramp up its presence in the UK and other international markets and build more manufacturing facilities to regulate production, daily operations and logistics.

To date, the startup has raised a total of INR $12.9 Mn in funding. Power Gummies’ cap table includes 9Unicorns, Venture Catalysts, DSG Consumer Partners, Wipro Consumer Care Ventures, and Sharpp Ventures.

70. Rage Coffee

Founded in 2018 by Bharat Sethi, Rage Coffee sells a host of coffee-based products across India. Certified by FDA, FSSAI and ISO, Rage Coffee claims to have so far served more than 7.5 Lakh customers and has 18 SKUs in its kitty.

In March, this Delhi-based food and beverage D2C brand received an undisclosed investment from Indian cricketer Virat Kohli. Prior to that, it secured nearly $5 Mn in its Series A funding round. 

In total, it has raised $7 Mn in capital from marquee names such as Sixth Sense Ventures, 9Unicorns, Refex Capital and Keiretsu Forum Chenna. 

Rage Coffee logged revenues of INR 23.5 Cr in FY22 and is targeting a revenue of INR 92 Cr by FY23-end. Earlier, it had also underlined plans to double down on its physical presence and scale its number of outlets to 10,000 by March 2023. 

71. Revour Consumers

Revour Consumers was founded in 2019 by Jaideep Singh Gaur and Ranjit Singh and specialises in selling kitchen and home-based electrical appliances. 

The startup partners with various OEMs to produce consumer electronics, including light bulbs, electric kettles, fans, and irons. 

Revour Consumer clocked a  revenue of INR 17.5 Cr FY22 and has so far served more than 30 Lakh customers across the length and breadth of the country. 

The startup has so far raised $1 Mn in funding and counts Oriano Clean Energy as its key investor. Going forward, the D2C brand plans to deepen its focus on consumer electronics and intends to introduce new product lines.

72. Sanfe

Founded in 2018 by Archit Aggarwal and Harry Sehrawat, Sanfe is a D2C femtech brand that started with the vision of addressing the stigma around women’s health and hygiene. After debuting with a roll-on to tackle period pain, the brand has now forayed into the beauty segment. 

In addition to sanitary and hygiene products, the company sells skin and hair products. The company claims to have catered to more than 10 Mn customers and sold 28 Mn-plus products by the end of FY21. 

Targeting Gen-Z and millennials, the company sells its products through its website and other ecommerce marketplaces. Backed by S Chand Family Office, Seeders and Lets Venture,  the D2C brand has raised $4.5 Mn in funding since its inception. 

73. Slurrp Farms

A dearth of healthy snacking options in the market for their kids brought two mothers —   Meghana Narayan and Shauravi Malik — to the discussion table. The duo found a big gap staring right at them in the kids’ snacks market. 

To fill in this gap, they founded Slurrp Farm in October 2016. The D2C brand sells a range of healthy products from ready-to-mix pancakes and dosas to noodles and pastas.

Slurrp Farms, which sells its products via its website and ecommerce marketplaces, caters to users in countries such as the UAE, the US, and the UK, apart from India.

Backed by the likes of the Investment Corporation of Dubai, Fireside Ventures and actor Anushka Sharma, Slurrp Farms has so far lapped up a total of around $9 Mn in funding. 

Building on its current growth momentum, the D2C snacks brand is eyeing a revenue of INR 500 Cr by 2025.

74. Soothe Healthcare

Set up in 2012 by Sahil Dharia, Soothe Healthcare sells sanitary napkin products and baby diapers under the brand Paree and Super Cute, respectively. It retails its products through various distribution channels including direct selling and selling through intermediaries.

In October 2022, Soothe Healthcare secured INR 175 Cr as part of a strategic funding round from the US International Development Finance Corporation (DFC) and other existing investors. With the funding round, the startup’s cumulative fundraise reached INR 301 Cr. 

Symphony International Holdings, Sixth Sense Ventures and badminton player Saina Nehwal are among its investors. 

75. SUGAR Cosmetics

SUGAR Cosmetics, founded in 2015 by Vineeta Singh and Kaushik Mukherjee, is an omnichannel D2C brand that sells products in lips, skin, eyes and nail care categories. It claims to operate more than 45,000 multi-brand stores spread across 500+ cities in the country. The D2C brand also has 125+ exclusive outlets in its kitty.

In May, the Mumbai-based D2C brand closed its $50 Mn Series D fundraising round led by L Catterton’s Asia fund. Existing investors A91 Partners, Elevation Capital and India Quotient also participated in the funding round.

The startup has so far raised a cumulative funding of $87.5 Mn from investors.

In the financial year 2021-22 (FY22), it widened its loss to INR 75 Cr, while revenue from operations stood at INR 221.1 Cr during the same period.

76. Super Bottoms

Pallavi Utagi’s tryst with entrepreneurship started when she, as a new mom, struggled to find quality diapers for her newborn baby. While conventional cloth diapers had absorbency issues, synthetic nappies left her baby with rashes.

Realising that there was a huge gap in the space, Utagi leveraged her years of research experience in the pharma space to launch her new venture Superbottoms – an eco-friendly and baby skin-friendly nappy brand – in 2016.

SuperBottoms’s range of products includes cotton ‘langots’, potty training pants, and kid’s clothing, among more.

In August 2023, the D2C brand secured $5 Mn as part of its Series A1 funding round led by Lok Capital and Sharrp Ventures. SuperBottoms is also backed by DSG Consumer Partners and Saama Capital.

The startup retails its products via its website as well as Amazon and Flipkart. Leveraging its online presence, SuperBottoms doubled its revenues YoY to INR 40 Cr in the fiscal year ended March 2022.

77. Sweet Karam Coffee

Brainchild of Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman and Veera Raghavan, Sweet Karam Coffee sells preservative-free South Indian sweets and snacks. Its range of offerings also includes the ubiquitous filter coffee and ready meal mixes, catering to audiences across the country.

Founded in 2015, the D2C brand aims to solve the problem of poor availability and accessibility of well-packaged traditional sweets and snacks, which are free from palm oil.

The brand SKC sells its products via its website and app and has customers in more than 32 countries. SKC competes with the likes of new-age startups such as id Fresh Food, DropKaffe, Chaayos, TagZ, among others.

Backed by Fireside Ventures, the startup picked up $1.5 Mn funding in October 2023. 

78. TagZ

The D2C snack brand came into the limelight after featuring in the maiden season of the TV show Shark Tank India and has not looked back since then. Founded in 2019 by Anish Basu Roy and Sagar Bhalotia, the company sells popped chips, which are neither baked nor fried.

The idea came from Roy’s experiences during his international travels, which pushed him to tinker around in the healthy snacks category. 

From the cricketer Shikhar Dhawan to 9 Unicorns, the backers of TagZ have pumped in over $4.2 Mn in the startup to date. The growth has also seen an uptick as the D2C brand claims to have logged a 30X increase in volumes in the past 18 months, ending May 2023. 

Retailed through 5,000 stores across 22 cities and via quick commerce platforms, TagZ also sells its products overseas in markets such as Kuwait, Dubai, Maldives and Australia.

79. Tailor And Circus

Back in 2016, Vasanth Sampath, Gaurav Durasamy and Abishek Elango came together to explore the idea of making antimicrobial, self-cleaning underwear for astronauts. In the subsequent months of research, they found that the homegrown men’s and women’s undergarment segment was plagued by basic issues such as lack of comfort and style.

After much deliberations, the idea of Tailor and Circus took shape and the startup was launched in 2016. The D2C brand manufactures underwear for both men and women, offering products such as trunks, bralettes and maternity undies. The startup also sells tops for both men and women and allows users to customise their products and build a matching underwear cart. 

The startup last raised seed funding of $241K from multiple angel and institutional investors in April 2021. It competes with the likes of homegrown brands such as Freecultr, XYXX, and DaMensch, among others.

The startup sells its products on marketplaces such as Amazon India and Myntra and through its own website. 

80. TenderCuts

Founded in 2016 by Nishanth Chandran, TenderCuts sells a wide variety of meat and seafood products such as chicken, mutton, eggs and frozen food products via its website and offline stores.

The startup last raised INR 110 Cr in a round led by Paragon Partners in February 2021. To date, it has raised $29.1 Mn in funding from marquee names such as Stride Ventures and Nabventures. 

In August 2023, the D2C meat delivery brand was acquired by omnichannel meat brand Good To Go in what appeared to be a distress sale for an undisclosed amount.

81. The Ayurveda Co. (T.A.C)

Founded in 2021 by Param Bhargava and Shreedha Singh, The Ayurveda Company manufactures and retails products across multiple categories such as haircare, wellness, skincare, immunity boosters and health supplements.

Opting for an omnichannel strategy, its 5,000 physical touchpoints traverse 18 cities across 15 Indian states, including Delhi NCR, Uttar Pradesh, Punjab and Rajasthan. The startup is targeting to grow these retail points to more than 20,000 by FY25.

In March 2023, the D2C ayurvedic beauty and personal care brand raised INR 100 Cr in a Series A funding round led by consumer-centric venture fund Sixth Sense Ventures. 

Since its inception, T.A.C has raised $16 Mn in funding, across debt and equity, from marquee names such as Sixth Sense Ventures, Wipro Consumer Care Ventures and Vector NXG. 

82. The Beauty Co

Founded in 2018 by Suraj Raj Vazirani, The Beauty Co is a D2C personal care startup, which sells toxin-free body care, haircare, skincare and essential oils via its website and ecommerce marketplace such as Nykaa, Myntra, Amazon, Flipkart, Paytm Mall, BigBasket and Snapdeal.

The startup’s founder claims that at least 99% of the ingredients used in The Beauty Co’s products are natural. It operated more than 40 stock keeping units as of 2022.

83. The Divine Foods

Founded in 2019 by Kiru Maikkapillai, The Divine Foods is a D2C superfoods brand that sells packaged products centred on Indian kitchen staples such as turmeric, moringa, millet, and others. 

Its products primarily encompass four categories, including women care, immunity boosters, diabetic care and kids. The D2C brand’s range of offerings include skincare products, mil mixes, powdered superfoods, and spreads.

Incubated under the Tamil Nadu government’s flagship seed funding scheme, TANSEED 4.0, the startup counts names such as superstar Nayanthara and her husband-director Vignesh Shivan as its investors. The Chennai-based D2C brand secured an undisclosed amount of funding from the celebrity duo in October 2023.

The startup claims to have so far served more than 25,000 customers and is available in five nations across the globe. 

84. The Moms Co

The Moms Co, founded in 2016 by Malika Sadani, sells organic products for expecting mothers and babies in the face, hair, pregnancy, and body care categories. It claims to have catered to more than a million customers since its inception. 

In 2021, the Delhi-based D2C brand was acquired by beauty unicorn Good Glamm Group. In March 2022, Inc42 reported that Good Glamm Group had increased its stake in The Moms Co to 90% from 75%.

At the end of September 2022, the brand claims to have had an offline presence in 5,000 retail outlets spanning 20,000 pin codes across the country.

85. The Pant Project

The Pant Project was founded by siblings Dhruv and Udit Toshniwal and offers customised bottom wear for both men and women, with free alterations and monogramming services provided to customers. 

Its products are primarily sold through its website and other e-commerce marketplaces, including Amazon.

In the fiscal year 2021-2022 (FY22), The Pant Project reported a revenue of INR 7.3 Cr, a significant increase compared to the INR 1 Cr earned in the previous fiscal year FY21.

86. The Sleep Company

The story of The Sleep Company starts with a baby. After taking care of their newborn at odd hours, entrepreneur couple Priyanka Salot and Harshil Salot were left aghast when their multiple attempts to buy a new mattress met a dead end. 

Realising the prevailing gaps in the sleep market, especially the lack of innovation, the duo decided to start their own venture and that’s how The Sleep Company was born. 

Since the startup’s inception in 2019, the Salots have scaled up the platform, grabbing the interest of multiple investors, including Fireside Ventures, Premji Invests and Alteria Capital.

The Sleep Company has so far raised INR 190 Cr and is eyeing to create an INR 1,000 Cr brand. With two state-of-the-art manufacturing facilities in Maharashtra and Karnataka, the D2C brand claims to produce 1.2 Lakh mattresses daily. 

The Sleep Company clocked a revenue of INR 58 Cr in FY22 and plans to open more than 100 stores across the country by March 2024. 

87. The Souled Store

Founded in 2013 by Vedang Patel, Harsh Lal, Aditya Sharma and Rohin Samtaney, The Souled Store is a casual wear and pop-culture D2C startup. It is said to have over 180 licences–Disney, Warner Bros, WWE, and Viacom18, to name a few. 

The omnichannel lifestyle brand recently raised INR 135 Cr in a strategic funding round led by Xponentia Capital. To date, the company has raised a total of INR 220 Cr from multiple investors.

Its cap table includes Elevation Capital, Sahil Barua from Delhivery, Gunjan Soni from Zalora, Revant Bhate from Mosaic Wellness and Ramakant Sharma from Livspace, among others. Its product offerings include top wear, bottom wear, innerwear and activewear.

88. The Woman’s Company

The moment Anika Parashar’s daughter hit puberty, she was gripped by questions about which feminine products were good enough. While researching, Parashar found that there was a huge gap in the market for female hygiene products, and it was this epiphany that set the ball rolling for her new venture, The Woman’s Company. 

After working as the COO of Fortis La Femme Hospitals for decades, she founded the startup in 2020, along with Roopam Gupta. The D2C brand operates in the women’s hygiene space and sells products such as sanitary pads, tampons, menstrual cups, and bamboo razors, among others. 

The D2C startup last raised $1.4 Mn in 2021 from marquee names such as Pradip Burman of Dabur. 

The startup sells its products through its website and marketplaces such as Amazon, Flipkart, and Nykaa, among others. 

89. Vahdam Teas

Vahdam, founded in 2015 by Bala Sarda, is an online tea brand. It sells its products in domestic as well as international markets.

In September 2021, Vahdam reportedly secured INR 174 Cr in its Series D round led by IIFL AMC’s PE Fund. After the round, the startup claimed that it had raised INR 290 Cr in total funding from investors.

In FY22, it clocked a revenue of over INR 200 Cr, up from INR 161 Cr in FY21. However, the D2C brand slipped into the red as it reported a loss of INR 16 Cr in FY22 against a profit of INR 1.94 Cr in profit in FY21.

The startup aims to clock a net revenue of INR 500 Cr by 2024.

90. Voylla  

Voylla, founded in 2011 by Vishwas Shringi, is an online artificial and silver jewellery brand. It sells jewellery and other allied products through its website and ecommerce marketplaces. 

In 2021, Voylla was acquired by Thrasio-style D2C aggregator GOAT Brand Labs. Besides Voylla, GOAT Brand Labs also acquired 14 other brands, including Label Life, trueBrowns & Abhishti, Frangipani, Neemli and Nutriglow, among others.

Prior to the acquisition, Voylla had raised a total of $16.9 Mn funding in Series B and Series A funding rounds. Its cap table includes Peepul Capital, Snow Leopard Technology Ventures and a slew of other angel investors.

91. Wakefit 

Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit sells a host of sleep and home decor products such as mattresses, pillows, bed frames, comforters, and back cushions, among others. It sells these products via its website and ecommerce marketplaces.

The Bengaluru-based startup manufactures products at its facilities in Bengaluru, Jodhpur and Delhi. In FY23, the startup launched 22 physical stores across 15 cities in the country. The brand clocked a revenue of INR 825 Cr in FY23 and is eyeing a revenue of INR 1,000 Cr by FY24. 

Wakefit has raised a total funding of $145 Mn so far. Its cap table includes Sequoia Capital, Verlinvest and SIG. 

92. Wellbeing Nutrition

An avid runner, Avnish Chhabria used to rue the lack of homegrown options for organic and plant-based nutritional supplements in India, which were necessary for him to stay at the top of his game. 

His dependence on global brands ignited the idea of building a desi plant-based vitamin and mineral supplements brand. With an eye on offering a better-priced alternative to a majority of Indians who could not afford to import plant-based supplements, Chhabria founded Wellbeing Nutrition at the fag end of 2019. 

Since then, it has rapidly scaled operations. It currently offers more than 53 SKUs and deploys an omnichannel strategy to woo customers. The brand manufactures plant-based vitamin and mineral supplements in the form of capsules, oral strips, and effervescents, among others. 

The startup partners with a global team of gastroenterologists to nutritionists to build its line of products. Besides, it sources its raw materials from more than 200 organic farms and certified companies from across 19 countries.

Its multi-pronged omnichannel strategy helped it clock a revenue of INR 19.5 Cr in FY22. The Mumbai-based D2C brand is eyeing 100 Mn customers and INR 100 Cr revenue in 2023. It plans to foray into the US, the UK and the UAE by 2025. 

Backed by the likes of Hindustan Unilever Limited (HUL) and Fireside Ventures, Wellbeing Nutrition has so far raised $10Mn from multiple investors. Last year, HUL acquired a 19.8% equity in the startup.

93. Wellversed 

Founded in 2018 by Aanan Khurma, Aditya Seth and Ripunjay Chachan, Wellversed is a health and wellness brand. Its products are sold via its website and ecommerce marketplaces.

On an acquisition spree, the umbrella brand has acquired three startups – Sportfit, Rimoy Naturals and Ketofy – in the past four years to strengthen its house of brands. It claims to have offered over 12K health plans for weight loss, skin nourishment and other ailments to customers. 

It has raised a total of $3.2 Mn in funding from investors such as Jubilant Foodworks, Yuvraj Singh, KLUB Works and Velocity.

In the financial year 2021, it reported earnings from operations at INR 20 Cr.

94. Wingreens Farms 

Founded in 2011 by Anju Srivastava and Arun Srivastava, Wingreens Farms sells packaged food products such as sauces and spreads, spice mixes, breakfast cereals, non-dairy milk, and protein shakes, among others. It sells these products via its website and offline distribution network in more than 200 Indian cities.

In May 2022, the D2C food brand acquired Postcard’s parent company Dharmya Business Ventures for about $2.1 Mn in a cash and share swap deal.

In December 2021, it raised $17 Mn in its Series C funding round led by Investcorp. Subsequently, it also reportedly bagged INR 22 Cr in funding from Anicut Capital. So far, it has secured a total funding of $49.8 Mn from investors. 

95. WishCare

Founded in 2019 by Stuti Kothari, Ankit Kothari and Ayush Kothari, WishCare is a sustainable beauty care brand that sells a range of sustainable skincare and haircare products.

WishCare’s portfolio spans products such as hair treatments, hair growth serums, face serums, and body lotions. The company claims that its products are formulated with clinically proven ingredients.

The D2C brand sells its products through its own website as well as more than 15 ecommerce platforms such as Nykaa, Amazon, and Flipkart, among others. It currently claims to serve more than 10 Lakh customers. 

WishCare recently secured INR 20 Cr ($2.4 Mn) in its first round of funding from Unilever Ventures. 

96. Wonderchef 

Wonderchef, founded in 2009 by Ravi Saxena and celebrity chef Sanjeev Kapoor, offers cookware, kitchen appliances, bakeware, and other allied culinary tools. It claims to operate 22 exclusive retail outlets and has served over 3 Cr customers so far.

In 2021, it secured INR 150 Cr in a funding round led by Sixth Sense Ventures. Godrej Family Office, Malpani Group, and other high-net-worth individuals also participated in the funding round.

It claims to have over 500 SKUs and a presence in India, the US, the UK, Australia, and Canada, among others. It is looking to increase the count of its exclusive outlets to 100 by 2025.

97. Wooden Street 

Wooden Street, founded in 2015 by Lokendra Ranawat, Dinesh Pratap Singh, Virendra Ranawat and Vikas Baheti, sells furniture and home decor products such as modular furniture, kitchen and wardrobe, lighting and office furniture, among others, via its website.

It operates over 100 experience stores and 30+ warehouses across the length and breadth of the country. With 30,000 home furniture products in its kitty, the D2C brand claims to have served more than 15 Lakh customers in more than 300 Indian cities. It has several manufacturing facilities and R&D units in the country.

In April 2022, it secured around $30 Mn in its Series B funding round led by Westbridge Capital. Wooden Street then claimed that it grew its business 100% year-on-year over the previous three years, and aimed to attain a turnover of INR 600 Cr in the next two years. 

98. Wow Skin Science

Founded in 2014 by Manish Chowdhary and Karan Chowdhary, WOW Skin Science is a beauty and personal care brand. It sells a host of skincare, haircare, body care and nutraceutical products via its website. It claims to have 400 SKUs and has a presence in 30,000 general trade stores across the country.

In June 2022, the Bengaluru-based D2C skincare brand secured $48.02 Mn from Singapore-based GIC at a post-money valuation of $280 Mn. Prior to that, it raised $50 Mn from ChrysCapital.

In the financial year 2021-22, it reported losses of INR 135.83 Cr while its revenues grew 3.4X YoY to INR 343.94 Cr.

99. XYXX

Founded in 2017, XYXX is a D2C menswear brand that sells a range of products across categories such as underwear, loungewear and athleisure. It is also the brainchild of Yogesh Kabra. 

What works in favour of the brand is its fashionable touch and skin-friendly fabrics that it claims is suitable for India’s humid climate. The idea germinated after Kabra realised that there was a big gap in the Indian men’s innerwear market, which suffered across the board from style to comfort. 

Leaving aside his father’s textile business, Kabra jumped into the fray and pursued his entrepreneurial talent, the result of which is XYXX. 

The D2C brand has also seen a warm response from investors. It recently bagged INR 110 Cr as part of its Series C funding round led by Amazon Smbhav Venture Fund. Since its inception, the startup has raised INR 390 Cr in multiple rounds of funding. 

With 1,000-plus SKUs, XYXX sells its products online on 14 ecommerce platforms as well as its website. It also claims to operate multi-brand outlets (MBOs) and exclusive brand outlets (EBOs) across more than 18,000 touchpoints in 150+ Indian cities. The startup closed FY22 with a revenue of INR 57 Cr.

100. Zappfresh

Founded in 2015 by Deepanshu Manchanda and Shruti Gochhwal, ZappFresh is a Gurugram-based D2C meat delivery startup. The startup grew in prominence as customers preferred online avenues to order their meat as pandemic locked people indoors. 

Backed by names such as SIDBI Venture Capital, Dabur Family Office, LetsVenture and Keiretsu Forum, ZappFresh has so far raised $7.9 Mn in funding. The startup recently acquired Dr. Meat for an undisclosed amount to mark its foray into Bengaluru. 

Banking on its growth numbers, Zappfresh is targeting INR 300 Cr in overall revenue by end of FY24 as it eyes deeper penetration in Southern India. It competes with the likes of players such as Licious as well as quick commerce players such as Swiggy Instamart, and Blinikit, among others.

101. Zivame 

Zivame, founded in 2011 by Richa Kar and Kapil Karekar, sells lingerie, activewear, shapewear and sleepwear via its website and offline retail stores. 

The startup had earlier claimed that nearly 42% of its sales come from Tier-2 and 3 cities in India. 

In 2020, Reliance Brands acquired a 15% stake in Zivame. Following this, the conglomerate also announced the acquisition of an 89% stake in the lingerie brand for a consideration of INR 950 Cr last year.

Zivame claims to have built an offline presence in more than 30 retail stores and more than 800 partner stores across the country.

This is a running article, we will keep adding more names to the list.

Last Updated:  December 21, 2023. The listicle has been updated to add three new brands.

The post 101 D2C Brands That Are Disrupting India’s Consumer Market appeared first on Inc42 Media.

Social media platform ShareChat today fired around 200 employees in a second round of layoffs this year to cut costs, sources told Inc42.

The startup confirmed the development with Inc42. In a statement, it said that the “comprehensive restructuring effort”, which resulted in reduction in its team size by about 15%, was aimed at streamlining operations, enhancing productivity, and positioning the company for sustainable growth.

“ShareChat, today undertook a strategic restructuring as part of its annual planning for the year 2024. The decision reflects the company’s commitment to streamlining its cost base and achieving profitability within the next 4-6 quarters,” the statement said. 

However, the startup did not disclose the severance pay that will be paid to the impacted employees.

As per the sources, the employees were informed about the restructuring exercise today in a one-on-one call with the management team. 

The layoff exercise came almost 11 months after ShareChat fired around 500 employees, or about 20% of its workforce.

As per the EPFO portal, the startup credited PF amount for 1,281 employees in November 2023 as compared to 2,346 employees in November 2022.

The retrenchments in January this year came on the back of ShareChat parent Mohalla Tech shutting down its fantasy gaming platform Jeet11 in December 2022, which resulted in 100 employees losing their jobs.

In January this year, two of ShareChat’s cofounders – Bhanu Pratap Singh and Farid Ahsan – also resigned. Following this, they founded a robotics startup General Autonomy and raised $3 Mn seed funding for it last month from venture capital firms India Quotient and Elevation Capital.

Besides, the founder exits and employee layoffs, ShareChat is also struggling to raise capital. As per a TechCrunch report, the startup is in talks to raise a much needed $50 Mn at a valuation under $1.5 Bn. In March last year, the startup touched the peak valuation of $5 Bn after adding Temasek to its captable. As of date, ShareChat has raised a total of $1.7 Bn in funding across multiple rounds and counts the likes of Lightspeed Ventures, Twitter, and Google among its backers. 

ShareChat’s net loss jumped 38.17% to INR 4,064.31 Cr in FY23 from INR 2,941.51 Cr in the previous fiscal year. The bottom line took a hit despite its operating revenue surging 62% to INR 540.21 Cr from INR 332.69 Cr in FY22.

Meanwhile, its total income increased 54.90% to INR 628.85 Cr from INR 405.96 Cr in FY22. Effectively, it spent INR 7.46 to earn every rupee in FY23.

The post Exclusive: ShareChat Fires Nearly 200 Employees In Second Layoff Exercise This Year appeared first on Inc42 Media.

Gaming unicorn Nazara Technologies has announced its partnerships with four Indian game studios to publish five casual and mid-core games in India.

In an exchange filing on Wednesday (December 20), Nazara said that this initiative is part of its new publishing division, focusing on promoting the ‘Make in India’ vision in the gaming sector.

The company is planning to publish ‘Gravity Shooter’ by Smash Head Studios, ‘World Cricket League’ from Wandermind Labs’, ‘Hacked: Password Puzzle’ by Pixcell Play and ATG Studios’ ‘Laser Tanks’ and ‘Paperly’.

Since its inception a month ago, Nazara Publishing has received a remarkable response from both Indian and international game developers, the company said in its statement. The Indian gaming major offers financial investment as well as comprehensive support, including mentorship, user acquisition, and live operations expertise. 

Nazara has allocated a substantial fund for the publishing division and aims to publish 20 games within the next 12 to 18 months by investing in a range of INR 1 Cr-INR 3 Cr per game.

Speaking on the new partnerships, Nitish Mittersain, joint managing director and chief executive of Nazara Technologies said that the Nazara Publishing division, enriched with innovative AI-led tools from the new Nazara SDK, is set to foster the growth and development of game creators.

As a gaming and sports media platform, the company has a footprint in India and other emerging and global markets such as Africa and North America. Over the last few years, Nazara Technologies has bolstered its offerings by making multiple strategic acquisitions in companies including NODWIN, SportsKeeda and others. 

Earlier this year, the company also increased its majority stake in mobile gaming studio Nextwave.

Nazara Technologies’ consolidated profit after tax (PAT) jumped 53% year-on-year (YoY) to INR 24.2 Cr in Q2 FY24 on an operating revenue of INR 297.2 Cr, which grew 13% YoY.

Recently, the company also raised a fresh capital of INR 510 Cr from investors including Zerodha’s Nikhil Kamath and SBI Mutual Fund. Speaking to Inc42, Mittersain had said that the company would invest the fresh funds in gaming studios capable of producing top-tier games tailored for both the Indian and global markets.

The post Nazara’s Publishing Division Partners With Four Indian Gaming Studios appeared first on Inc42 Media.

In a first-of-its-kind initiative for India, tech giant Google has rolled out a host of artificial intelligence (AI)-powered features for maps, which include address descriptors, lens integration and live-view walking navigation.

These features were designed to offer a more tailored and localised map experience for Indian users, Google said in a statement.

“In India, Google Maps has mapped Mns of kilometres of roads and 300 Mn buildings, serving Mns of users with over 50 Mn daily searches. AI technology enhances commute decisions, providing traffic predictions for over 2.5 Bn kilometres of directions daily. Google Maps features information on 30 Mn businesses, fostering over 900 Mn monthly connections between consumers and businesses,” the statement added.

Let’s take a look at the new features: 

A Comprehensive Map Localised For The Needs Of Indian Users

In the past few years, Google Maps has focused on adding key places like worship centres, medical facilities, and government services to better serve Indian users. Address Descriptors, a new India-first innovation, enhances address understanding by automatically identifying up to five relevant landmarks and area names around a pinned location. This feature simplifies location sharing, making it easier for users to navigate unfamiliar areas. 

“We launched this capability earlier this year for developers in India on Google Maps Platform to help them benefit from more intuitive addressing solutions. We’re now expanding this to developers across over 75 cities in the country,” as per a Google report.

More Visual And Immersive Maps For Navigation

The company has introduced Lens in Maps and Live View walking navigation. A year after Street View was launched, Google Maps now allows its users to view and explore over 3,000 cities and towns.

Lens in Maps allows instant identification of nearby restaurants and cafes through the camera, launching in 15 cities by Jan 2024. Live View walking navigation, featuring arrows and distance markers, will cover over 3,000 cities in India, starting with Android. These innovations combine Street View imagery with advanced AI and AR technologies to provide immersive experiences.

Catering To India’s Diverse Mobility Needs

Google Maps is introducing a fuel-efficient routing feature in India for both four-wheelers and two-wheelers by January next year, promoting sustainability. This feature, already estimated to have prevented 2.4 Mn metric tons of CO2e globally, considers real-time traffic data, road elevation, and vehicle type. 

“Over the years, we have partnered with numerous local authorities towards this goal, enabling Mns of users to find information about various modes of public transport including metros, trains, and buses in over 20 Indian cities.”

For public transport users, the Where Is My Train app, used by over 80 Mn people monthly, is expanding to cover Mumbai and Kolkata Local Trains, offering information on schedule changes, delays, and platform numbers. 

In December 2018, Google acquired Bengaluru-based startup Sigmoid Labs, the company behind the app “Where is My Train”. The app was created to improve the experiences of millions of Indian train travellers through technology. 

On Tuesday, Google also announced partnerships with ONDC and Namma Yatri, which aims to bring metro schedules and bookings to users. It is expected to launch by mid-next year with Kochi Metro on Google Maps powered by Namma Yatri, followed by other metros as they join the ONDC Network. 

As per Future Market Insights, the digital map market is expected to be valued at $18.3 Bn in 2023, with a projected growth of $73.1 Bn by 2033. The market is anticipated to achieve a CAGR of 14.8% during the period from 2023 to 2033. 

Meanwhile, Google Maps rival MapmyIndia is looking to raise INR 500 Cr by issuing equity shares through a qualified institutional placement (QIP).

The post Google Unveils AI-Powered Features For Maps In India appeared first on Inc42 Media.

Bengaluru-based coworking space provider BHIVE has acquihired product-engineering firm Praemineo to bolster its support for the fast-growing coworking and fintech businesses.

However, the company did not disclose the financial terms of the deal.

“The transaction comprises a composite structure involving both cash and equity. As part of this acquihire, BHIVE will absorb a 10-member team along with cofounders Rohit Parab and Gaurav Gandhi, who will support growth and business management at BHIVE Group,” the company said in a statement.

Commenting on the acquihire, Shesh Rao Paplikar, founder & CEO of BHIVE Group said, “As a new age organisation, BHIVE is always on the lookout to identify occupiers’ pain points and solve it through our business and technology offerings while joining hands with companies in the ecosystem where we find synergies.”

The acquihire will enhance BHIVE’s capabilities in financial management, approvals processing, issue identification, lead generation, and understanding decision-making processes. This strategic move aims to streamline the efficient management of the company’s 1.5 Mn square feet of coworking space across 25 locations and strengthen the fintech arm of the group.

Rohit Parab and Gaurav Gandhi, cofounders of Praemineo said, “With an ever-expanding portfolio of coworking spaces across Bengaluru, it becomes imperative to efficiently manage the various associated activities related to the business which is where the Praemenio team will play an active role.”

In 2023, BHIVE expanded by one million square feet, transforming its offerings. The recent acquihire is set to boost BHIVE’s business efficiencies and enhance fiscal prudence. 

In June, BHIVE unveiled India’s largest shared office space in the city, spanning 2 acres with over 8,000 seats.

In August BHIVE also announced its decision to wind up the AIF managed by Gupta and launch a new coworking-focussed category II alternative investment fund (AIF) of INR 400 Cr.

Founded in November 2014, BHIVE Group manages BHIVE Workspace and Bhive Alts. BHIVE Workspace is among the largest coworking space providers in Bengaluru and currently houses over 1000 SMEs and startups.

Currently, BHIVE operates exclusively in Bengaluru but plans to expand to six major cities in India by June 2024.

Bhive Alts, as per the company’s website, oversees assets under management (AUM) exceeding 160 Cr, with a platform that caters to over 45,000 investors. This business focuses on granting retail investors access to alternative investments.

According to a Mordor Intelligence report, the current size of the India coworking office spaces market is $1.78 Bn. It is expected to exhibit a Compound Annual Growth Rate (CAGR) of over 7% during the forecast period from 2023 to 2028.

The post Coworking Space Provider BHIVE Acquires Praemineo For Tech Boost appeared first on Inc42 Media.

Bengaluru-based cloud kitchen startup Curefoods, which counts Binny Bansal’s fund Three State Ventures, IronPillar, Chiratae Ventures, ASK Finance and Winter Capital among its marquee investors, has infused INR 10 Cr ($1.2 Mn) into food discovery platform Hogr in its seed funding round.

Curefoods’ latest investment comes within a week of it appointing former Tata Starbucks chief executive officer Avani Davda to its board.

Hogr will use the fresh capital to expand its outreach, refining its features and unveiling updates to elevate the overall user experience.

Founded by Jugul Thachery and Harish Harshan in June this year, Hogr allows users to discover restaurants and dishes through personalised recommendations from contacts, family, friends and fellow food enthusiasts with similar tastes. It provides tailored suggestions for informed dining choices and facilitates building a diverse food network through an easy recommendation system.

Bengaluru-based Hogr aims to revolutionise traditional dish and restaurant discovery. The app streamlines the process, making it easy for users to discover new culinary experiences and share recommendations with a social network of food enthusiasts, Curefoods said in a statement.

“We see Hogr as more than just an app. We strive to create a community where food enthusiasts come together to share the joy of discovering new dishes and places to eat, fostering social connections through this platform,” said Thachery. 

Commenting on the funding, Ankit Nagori, founder of Curefoods, said, “We have noticed that Hogr addresses and streamlines the challenge of discovering new dishes and restaurants, as well as forms a food community via peer-to-peer recommendations. This aspect intrigued us and motivated our decision to invest in this app.” 

Founded by Nagori in 2020, Curefoods houses brands such as EatFit, Cakezone, Nomad Pizza, Sharief Bhai Biryani and Frozen Bottle. The startup claims to be running over 200 cloud kitchens and offline stores that cater to over 10 cuisines across 15 cities in India.

Curefoods has so far raised around $220 Mn in funding from more than 25 investors. It is also on an expansion spree in the food sector. 

It recently acquired foodtech startup Yumlane for an undisclosed amount.

In July this year, Curefoods also made a strategic investment in Hyderabad-based millet startup Millet Express to help it expand and reach a wider audience for millet-based products. 

The investment in Millet Express came two months after Curefoods raised INR 300 Cr ($37 Mn) in a funding round led by Three State Ventures. The round was a mix of primary and secondary equity and debt.

Earlier, Curefoods acquired startups such as subscription-based home-cooked meals startup Masala Box, Indian breakfast startup Paratha Box, online confectionery chain CakeZone, biryani brand Ammi’s Biryani, pizza brands Olio and Crusto’s and online chaat brand Chaat Street.

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The Supreme Court has refused to grant an interim relief against Goods and Services Tax (GST) demand notices to e-gaming companies Games24x7 and Head Digital Works.

As per Monecontrol’s report, the court, however, indicated that it will consider a case on the constitutional validity of the government’s decision to impose 28% GST on online gaming companies retrospectively on the full value of the bets placed, and not on the gross gaming revenue, from October 1.

Harish Salve, senior advocate for online gaming companies, urged the court to direct the government not to take action on the demand notices until the Supreme Court reviews the case. He informed the court about the constant probes by the GST department, putting pressure on the companies. 

Salve told the court that while they are providing the requisite details, any adverse order will put these companies under further pressure.

Additional Solicitor General (ASG) Venkatraman, representing the government, requested a deferral of the case hearing, citing a lack of proper instructions. Consequently, the court postponed the hearing to January 8.

This comes at a time when the online gaming space has been reeling under the impact of the recent GST changes, as per which a 28% tax would be levied on the full value of bets placed in online games, regardless of whether it involves games of skill or chance.

The online gaming industry in India is currently facing a multitude of challenges. In addition to ongoing concerns related to the Goods and Services Tax (GST) in the real money gaming sector, online gaming companies have reportedly received show-cause notices for suspected tax evasion amounting to a significant sum of INR 1 Lakh Cr.

In light of the evolving tax and regulatory environment, several online gaming platforms have taken the step to temporarily suspend their operations. Platforms such as Quizzy, OWN, and Fantok have opted to halt their operations in response to these changing dynamics.

Meanwhile, Bengaluru-based Gameskraft made a similar strategic decision by shelving its fantasy gaming offering, Gamezy Fantasy, in September.

Earlier, the parent entity of Games24x7 also received a notice amounting to INR 21,000 Cr from tax authorities.

It is pertinent to note that besides facing financial and other troubles after the implementation of the new GST regime for real money gaming in October, online gaming firms have also been receiving show-cause notices from the tax authorities for alleged GST evasion.

Further, the Indian government is thinking about creating a Group of Ministers (GoM) to set up rules for the online gaming industry and address related issues.

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Mobile Premier League (MPL)-backed Web3 fantasy gaming platform Striker has reportedly become the latest casualty of the GST Council’s decision to levy 28% GST on the online gaming sector. 

The gaming platform is winding up its operations, Moneycontrol reported citing sources. However, there was no clarity on the timeline for the shut down and what will happen to the company’s existing employees. Even cofounder Krishna Mohan Vedula has reportedly left the company. 

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

Founded in 2022 by former MPL employees Vedula and Nitesh Jain, Striker allows users to collect and trade digital collectibles and cards centred around cricket. Users also have the option of redeeming and trading these cards on Striker marketplace to earn money. It also allows customers to make fantasy cricket teams and compete in contests and win prizes. 

MPL provided tech and infrastructure support to the startup. 

Meanwhile, Striker has been in the eye of the storm for quite some time. The 28% GST only added to its woes. The MPL-backed startup was locked in a full-fledged legal case earlier this year with Dream Sports-backed Rario over the former’s non-fungible token (NFT)-focussed fantasy gaming offerings. 

In a petition before the Delhi High Court (HC), Rario had alleged that Striker’s collectibles used identifiers and caricatures of nearly 170 cricketers that the Dream Sports-backed company had exclusive licences for. 

Eventually in April this year, the HC threw out Rario’s plea seeking interim injunction, noting that the data used by Striker was publicly available and could be used by anyone.

A few months later in October, 28% GST on real money gaming came into effect and left the entire ecosystem in troubled waters. Striker too was badly hit. This piled on top of 30% tax levied on profits from trading of virtual digital assets and 1% TDS that took away users from Striker and left it further deep in trouble. 

As crypto and gaming space became less attractive bets for investors, waning user numbers, a major legal case and funding winter set Striker on a downward path. 

However, Striker is not alone in this. The 28% GST has also hit its peers hard in the online gaming ecosystem. While many such as Fantok and Quizzy have temporarily shut down operations, others such as MPL and Hike have resorted to mass layoffs to cut costs and streamline operations.

Striker’s competitor Rario, earlier this year, saw a full-scale internal tussle between cofounders Ankit Wadhwa and Sunny Bhanot and investors. After a tug of war, the two were said to be reportedly exiting the company while investor Dream11 began exerting more control over the operations of the firm.

MPL Acquires Good Game Exchange

Meanwhile, the crypto sector continues to see a consolidation wave. MPL has reportedly acquired NFT marketplace Good Game Exchange (GGX) for $12.75 Mn. 

As per Entrackr, the MPL board has passed a special resolution to acquire the business and assets of GGX Protocol and is buying out the tokens of the startup’s existing investors. The deal, however, involves the issuance of 25.19 Lakh Series E preference shares to the existing investors of GGX as payout for the acquisition.

It is pertinent to note that MPL acquired a 20% stake in GGX in 2022 while the majority of ownership still lay in the hands of investors and staff members. 

As the entire ecosystem braces for a meltdown and increased compliance, it remains to be seen how the Indian online gaming ecosystem emerges from the shadow of this regulatory quagmire and the raging funding winter. 

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Cloud kitchen startup Curefoods, floated by Cure.fit cofounder Ankit Nagori, has appointed former Tata Starbucks chief executive officer Avani Davda to its board.

The Bengaluru-based startup, which counts Binny Bansal’s fund Three State Ventures, IronPillar, Chiratae Ventures, ASK Finance and Winter Capital as among its marquee investors, aims to strengthen the depth of proficiency and leadership at hand with this appointment, it said in a statement on Thursday (December 14).

Davda, who currently serves as an independent director in Mahindra Logistics and JSW Paints, has over 20 years of experience across multiple companies, especially in the food and beverage (f&b) space.

Currently, she also serves as a strategic advisor to Bain Advisory Network and had served as the managing director and CEO at Godrej Nature’s Basket. Prior to that, she served Tata Global Beverages as the vice president and eventually moved on to lead Starbucks as its CEO. 

“Avani’s expertise and years of experience in the f&b industry adds a fresh perspective of thought and direction to the brand and its strategy,” Nagori said.

Founded in 2020, Curefoods houses brands like EatFit, Cakezone, Nomad Pizza, Sharief Bhai Biryani and Frozen Bottle among others. The startup claims to be running over 200 cloud kitchens and offline stores that cater to over 10 cuisines across 15 cities in India.

The startup said in a statement that it will continue to focus on growth, expansion in offline restaurant category and the overall initial public offering (IPO) preparedness.

It added that this onboarding marks a significant milestone, as it looks at onboarding more experts on their leadership in 2024 and plans further growth strategy.

Curefoods has so far raised around $220 Mn in funding from more than 25 investors. It is also on an expansion spree in the food sector. 

The startup recently acquired foodtech startup Yumlane for an undisclosed amount. As a part of this acquisition, Yumlane will leverage the reach of Curefoods to boost its proprietary pizza technology.

In July 2023, it also made a strategic investment in Hyderabad-based millet startup Millet Express to help it expand and reach a wider audience for millet-based products.

This investment was followed by a $37 Mn funding round led by Three State Ventures. 

It has earlier acquired startups such as subscription-based home-cooked meals startup Masala Box, Indian breakfast startup Paratha Box, online confectionery chain CakeZone, biryani brand Ammi’s Biryani, pizza brands Olio and Crusto’s and online chaat brand Chaat Street.

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