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Nearly 86% of online grocery buyers look at product quality, says report

YourStoryYourStory · 1y ago
Nearly 86% of online grocery buyers look at product quality, says report
Medial

A study by LocalCircles reveals that product quality is the top priority for 86% of online grocery buyers. Factors like value for money and delivery time are crucial as well. The study also shows a change in purchasing patterns, with more consumers ordering groceries as needed instead of in bulk. Quick delivery platforms like Zepto and Blinkit, offering delivery within 30 minutes, have gained popularity. The study also highlights consumer preferences for different delivery timeframes. Gen Z consumers are more willing to pay for faster delivery. Automated refunds and efficient processes are also preferred by consumers. The study evaluated platforms based on various factors, with Amazon Fresh, Zepto, and Flipkart leading in different categories. Challenges like expired products and quality issues were also observed. The study suggests that established platforms need to speed up delivery times, while quick delivery services need to improve value and quality. The online grocery sector is rapidly evolving, with broad demographic participation and adoption in Tier III and IV districts.

Exclusive: Emami set to acquire 100% stake in The Man Company

EntrackrEntrackr · 1y ago
Exclusive: Emami set to acquire 100% stake in The Man Company
Medial

Fast moving consumer goods company Emami is set to acquire 100% stake in men’s grooming brand The Man company, two sources familiar with details told Entrackr. While the group has backed several companies in the direct to consumer segment, this would be the first complete acquisition by the group in the D2C space. “The acquisition was inevitable and a matter of time as Emami already has a controlling stake in The Man Company,” said one of the sources requesting anonymity. “The deal will be worth around Rs 400 crore.” Emami already owned a little over 50% in The Man Company as of July 2022. According to startup data intelligence platform TheKredible, co-founders Hitesh Dhingra, Parvesh Bareja, and Bhisam Bhateja collectively own around 35% of the company. Emami acquired a 33.09% stake in The Man Company across two tranches which materialized in December 2017 and February 2019. “The discussions are in the final stages, and if nothing goes wrong at the last moment, the transaction will be completed in a few weeks from now,” said the source quoted above. Queries sent to Emami and The Man Company didn’t elicit any immediate response. We will carry their comments in case they do. For the fiscal year ending March 2024, The Man Company posted a revenue of Rs 185 crore. As per the firm, 70% of its revenues came from e-commerce channels, including major marketplaces and its website. It claimed EBITDA level profitability with Rs 14 crore in FY24. It’s worth highlighting that the firm has raised only Rs 75 crore ($9 million) to date. The Gurugram-based firm majorly competes with Beardo which was acquired by Marico in July 2020 in around Rs 350 crore. Beardo is yet to disclose its FY24 numbers but it did more than Rs 100 crore revenue in FY23. Its other peer Ustraa also posted similar revenue in FY23.

Cosmix by the numbers: What Marico gets in its latest D2C acquisition

EntrackrEntrackr · 20d ago
Cosmix by the numbers: What Marico gets in its latest D2C acquisition
Medial

Continuing its acquisition spree, Mumbai-based multinational consumer goods company Marico has announced the purchase of a 60% majority stake in plant-based protein supplements brand Cosmix, shortly after acquiring snacking brand 4700BC. Cosmix more than doubled its operating scale in the fiscal year ended March 2025 while its profit nearly tripled and has remained profitable since its inception. With this acquisition, Marico has added another brand to its growing D2C portfolio, which includes plant-based nutrition brand Plix, True Elements, Just Herbs, and men’s grooming brand Beardo. To understand the financial drivers behind the acquisition, Entrackr analysed Cosmix’s numbers based on its regulatory filings, along with market signals that appear to have reinforced Marico’s conviction. Cosmix’s revenue from operations more than doubled to Rs 50.93 crore in FY25 from Rs 24.2 crore in FY24. Founded in 2019, Cosmix operates as a digital-first nutrition brand focused on plant-based protein and wellness products, including protein bars, protein pancakes, multivitamins, and immunity boosters. The startup sells its products through its own website and third-party online marketplaces. Sales of these products were the sole source of Cosmix’s operating revenue in FY25. In addition, the company earned Rs 25 lakh as interest on deposits in the last fiscal, which pushed its total income to Rs 51.18 crore. Cosmix is a bootstrapped company and claims to have scaled to an ARR (Annual Recurring Revenue) of Rs 100 crore. Advertising was the largest expense for the D2C firm, accounting for 34% of total expenditure, and doubled year-on-year to Rs 13.52 crore in FY25. The cost of materials was another major expense at Rs 11.2 crore and also doubled during the year, in line with revenue growth. Importantly, the firm’s employee benefits expenses stood at Rs 3.45 crore in the last fiscal which formed only 8.72% of its total costs. Other overheads including marketplace management, transport and courier charges, service retention fees, and software maintenance pushed total expenses to Rs 39.52 crore in FY25. The Bengaluru-based company’s revenue growth outpaced its expenses and led its profit to nearly triple to Rs 8.21 crore in FY25 from Rs 2.83 crore in FY24. The seven-year-old firm has remained profitable since inception, unlike most D2C companies. Its ROCE and EBITDA margin stood at 99.395 and 22.48%, respectively. On a unit level, Cosmix spent Rs 0.78 to earn a rupee. Its current assets were recorded at Rs 16.45 crore, with cash and bank balances of Rs 4.69 crore at the end of FY25. Like Marico, several legacy fast-moving consumer goods (FMCG) companies are increasingly acquiring digital-first (D2C) startups to expand into high-growth categories such as health supplements, grooming, and personal care. Hindustan Unilever (HUL) acquired skincare brand Minimalist, ITC has bought healthy snacking company Yoga Bar, VLCC has picked up men’s grooming brand Ustraa, and Emami has acquired The Man Company, which highlights a broader shift by established FMCG players towards premium, online-native brands. A buy like Cosmix indicates strong conviction at a promoter level or high up in Marico (FY25 revenues of Rs 10,800 crores, PAT of Rs 1,593 crore), considering the relatively small size of the business. It’s not exactly the kind of purchase that will move the stock price either way. Cosmix founders would be expected to leverage Marico’s scale and resources to scale up faster than they would have, besides use their appreciated skills to support other businesses perhaps. One can only hope that Marico will be able to offer the flexibility and space for the Cosmix team to spread out without feeling the constrictions of large firm processes and bureaucracy, an affliction that has laid low expectations from many an acquisition over the years, when it is a large firm acquiring a startup.

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