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Amazon, Samara Capital purchase Aditya Birla Group’s retail chain More

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Amazon, Samara Capital purchase Aditya Birla Groups retail chain More

In order to boost its retail market in India, Amazon along with private equity firm Samara Capital has have signed a deal to acquire Aditya Birla Group’s retail chain More.

As per the sources, Samara Capital associating with Amazon will purchase More at an enterprise value of $581.4M (approximately Rs 4,200 Cr), with Samara Capital having 51% stake in More and Amazon purchasing the remaining stake.

According to some reports, Amazon creating an association in order to purchase the food and grocery chain More was also observed a month ago. It was also indicated that Amazon along with Goldman Sachs and Samara Capital, would build an association in order to purchase More. It was also proclaimed that the agreement would value More at $644.09M to $715.66M (approx. Rs 4,5000 to Rs 5,000 Cr).

Preferably, the new agreement will successfully clear out the full debt in the Aditya Birla’s Retail Ltd, which is about $565.3M (Rs 4000 Cr) as of March 2018.

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The latest deal will be very much beneficial to Amazon, as it will provide Amazon a big push in the grocery space which is just gearing up in India.

As per Indian regulations, foreign retailers can purchase only a 51% stake in multi-brand retail firms due to which Amazon is holding the lower stake.

In India, Amazon is competing with Softbank owned Grofers and Alibaba-funded BigBasket in the grocery sector.

Why Amazon acquired More?

Even though reporting continuous losses, More is the 4th largest supermarket chain operator in India. It consists of total 493 supermarkets and 20 hypermarkets spread all around the country.

In the Financial year 2017, ABRL reported a 20% increase in sales to $600.52M, decreasing its net loss to $92.21M (Rs 644 Cr). But, the firm had an overall debt of $941.1M on its records and financing costs made a total of $67.43M in that year.

In the past few months, some of the reports suggest that Amazon is in talks with Future Retail and Spencer Retail.

Also Read: Anil Ambani said Telecom soon to be monopoly

Amazon has also got an approval to invest $500M in a subsidiary in which it can sell locally produced as well as packaged foodstuff, both online and offline.

Hence, Amazon is taking all the effective steps required in order to expand its services in India.

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Startups

Delivery Startup DailyNinja acquires Hyderabad-based WakeUpBasket

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Delivery Startup DailyNinja acquires Hyderabad-based WakeUpBasket

Bengaluru-based delivery startup DailyNinja has acquired Hyderabad-based WakeUpBasket in cash and equity deal as the firm wants to expand its services in the city.

Similar to DailyNinja, WakeUpBasket also offers early morning delivery of household products such as milk and groceries along with various other products. The latest acquisition comes just after DailyNinja has acquired 4amShop just a few months ago. From this, it seems that the firm is constantly thriving to expand its services in different cities across India.

WakeupBasket was founded by Satendra Pratap along with Sai Varaprasad in 2016. The startup completes around 2,500 orders per day in Hyderabad. WakeUpBasket has been functioning since last two & a half years in Hyderabad. After this acquisition, all the employees along with founders will shift to the DailyNinja platform.

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Anurag Gupta, Co-founder of DailyNinja said, “Both of these acquisitions have helped us in scaling fast and understanding the local market. We loved the execution skills and passion of WakeUpBasket’s founding team, thus made them Hyderabad City heads and a part of our core team.”

DailyNinja was founded by Sagar Yarnalkar and Anurag Gupta. The firm offers early delivery of everyday products. The firm currently reaches to around 40,000 households daily and has 55,000 subscribers.

Anurag further said, “We are growing at 20% MoM. This has been made possible by launch in three new cities – Chennai, Mumbai and Pune where we are seeing excellent response. We are looking to reach 20,000 daily transactions from Hyderabad in the next six months, as we currently stand at 5000 transactions a day.”

The latest acquisition by DailyNinja has acquired by two sequential rounds of funding. One was $3M in June and then obtained undisclosed amount of funding from venture capital Matrix Partners. The firm main goal is to implement its business model in different cities across India and reach over 1.5 lakh people in the next six months.

Also Read: Foodpanda to seize 2 lakh sq ft working space in Delhi

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Flipkart teams-up with Bajaj Allianz to provide mobile insurance

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Flipkart teams-up with Bajaj Allianz to provide mobile insurance

E-commerce giant Flipkart on Sunday said it entering into the insurance segment after securing a corporate agent license.

“Flipkart has teamed up with Bajaj Allianz General Insurance to provide customized insurance solutions to power our complete mobile protection programme for all leading mobile brands sold on our platform with Bajaj Allianz,” said Flipkart in a statement.

In the latest initiative, it will provide both cash payout or free pick up, service and drop convenience to customers.

The mobile insurance plan will be valid for a year. The plan will cover accidental screen, liquid damage, and theft for phones. For claims, customers will either have to return the phone for fixing or choosing for a cash payout which will be deposited in his/her bank account.

The complete mobile protection plan starts at Rs 99 and it will be activated from the day on which device is delivered. The insurance plan for the customers will be available from October 10, the same day on which The Big Billion Day starts.

Also Read: Zomato leads in food delivery space with 21 million monthly order run rate

“Insurance is the next initiative in offering customers with excellent after-sales care for their phones. The plan, from purchase to claim, will be completely incorporated into our online platform,” said Ravi Garikipati, who is the senior vice president and head of Fintech.

As per one report, there are about 36% of mobile phone users in India which possess smartphones. As per IDC, the smartphone market in India will reach double-digit growth in 2018.

Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance said, “Bajaj Allianz General Insurance has always been at the forefront in exploring new avenues for our customers and being there for them wherever they are, and this partnership with Flipkart is a step in that direction.”

According to the financial year 2017-18, Flipkart’s Gross-Merchandise Value (GMV) is $7.5 billion and net sales of $4.6 billion, showing 50% year-on-year growth.

Also Read: Indian IT Industry revenue will reach $167 billion in financial year 2018-19

Flipkart consists of one-lakh sellers and it offers 80 million products in 80 categories, along with smartphones, electronics, sports goods, fashion, furniture, etc.

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Gurgaon based Burger Singh plans to launch 40 new franchise stores

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Gurgaon based Burger Singh plans to launch 40 new franchise stores

Burger Singh is one of the popular fast food restaurants in the New Delhi NCR. It is also the largest chain of homegrown Indian flavour burgers in the QSR category, declared today its plans to provide investment in forty franchises for shop owners across the country.

The investment model which is also referred to as franchise-owned-company-operated is simple and provides guaranteed returns for shop owners with just shop set-up investment. The branch is growing at a rate of 600% YoY with an effective presence in North and West India with 23 outlets is welcoming new franchises in order to expand its services.

Kabir Jeet Singh said, “We are looking to target shop owners only right now. The idea fits our vision to make Burger Singh synonymous with QSR globally. Having established a strong foothold in the Northern and Western region of the country, the franchise model makes sense to expand the business further. It is a win-win for all involved since we get the space, and the shop owners get guaranteed returns on their investment.”

He further added, “Along with the benefits to shop owners, Burger Singh will ensure the highest quality and standards are met and maintained in all upcoming franchises. Our customers are the top priority and there are no compromises there.”

Also Read: Alibaba planning to bring its new retail concept in India

About Burger Singh

Kabir Jeet Singh along with its partner Nitin Rana launched Burger Singh in 2014. The Gurgaon based startup has quickly expanded into a chain of quick service restaurants (QSR) with 25 outlets – 20 in Delhi NCR, one in Dehradun, Pune and Nagpur and 2 in the UK.

Burger Singh specialties include vegetarian Keema Pao, the Pao Bhaji Burger, Malabar Express Chicken Burger & Channa Burger for the vegetarians, Amritsari Murgh Makhani Burger, Jaatputt Chicken Burger, Udta Punjab Burger, Bunty Pappeh Da Aloo Burger and the United States of Punjab Burgers in both vegetarian & non-vegetarian options, amongst others.

It was launched with an investment of 1 Crore, put in by the founders, their families, and friends, the startup has obtained Rs 7.5 Crore in two rounds of funding, one in October 2015 and other in December 2016. Funding has helped the startup to launch new restaurants in different cities across India.

The main purpose of the company is to build the technology to manage the company’s supply chain, and fluent communication between vendors, employees, and customers were some of the main challenges of Burger Singh. Burger Singh was awarded the Most-admired Food Services Chain 2017 in QSR category by India Retail Forum and Best Emerging QSR Chain 2017 by the Indian Restaurant Congress.

Also Read: Govt plans to mix Methanol with LPG to cut subsidy bill by 30%

What are the future plans of Burger Singh?

The Startup currently has a staff of 370 members, gained Rs 9 Crore in revenue in 2017-18 and it is optimistic to tripling its growth by 2018-19. Singh said, “We are expecting a three-fold growth and seek to increase Burger Singh’s outlet count to 38 by the end of this financial year. The idea is to do to the burger space what Domino’s did to the pizza market.” The firm has also signed a contract to launch 18 outlets in the UK, two of which are already started.

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