On November 25, Zomato Ltd., a food delivery aggregator, launched its INR 8,500 Qualified Institutions Placement (QIP) offering. The floor price for each equity share was INR 265.91. The indicative price is INR 252.62 per share, which is 7.6% less than the closing market price of INR 272.9 per share on 25 November. 33.65 crore shares, or 3.8% of the total stock, are up for grabs.
On November 23, 2024, the company declared that a plan to raise money through a Qualified Institutions Placement (QIP) had been authorised by its shareholders. Its board authorised a qualified institutions placement (QIP) last month, raising up to INR 8,500 crore. The company stated in a filing that the goal of the fundraising is to enhance the balance sheet at this time.
Levelling Up the Reduced Cash Balance
Due to the INR 2,014 crore agreement consideration for the purchase of Paytm’s entertainment ticketing business, Zomato said that its cash balance had decreased by INR 1,726 crore from the previous quarter.
Zomato has announced that its equity shares, which have a face value of INR 1 apiece, are being issued in accordance with the applicable requirements of the Companies Act of 2013 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. In its announcement, the business also stated that, with shareholder approval, it may provide a floor price discount of up to 5%.
How Zomato Plans to Utilise Proceeds?
Zomato intends to use the money raised mostly for marketing and advertising, as well as for growing the reach of its rapid commerce division Blinkit, according to the QIP’s preliminary placement document. INR 2,137 crore will be used for “expenditure towards setting up and running operations of dark stores and warehouses,” according to the statement. By the conclusion of the current fiscal year, Blinkit plans to have 1,000 dark stores—micro warehouses from which 10-minute deliveries are made—and 2,000 of these stores by the end of 2026. The company is currently engaged in a large expansion exercise. By the end of FY25, Zepto also plans to run more than 700 dark stores, and Swiggy Instamart wants to increase the number of its dark stores from about 557 as of June 30 to 741.
In its prospectus, Swiggy stated that it intended to invest INR 1,179 to grow its rapid commerce business. Additionally, Zomato announced that it would invest INR 2,492 crore in “branding, marketing, and advertising initiatives across our business offerings.”
Staying Ahead in the Race
Zomato operates a business-to-business (B2B) grocery supply division called Hyperpure, a live events and ticketing vertical through its District app, and meal delivery, which is the company’s major business section. This is Zomato’s first fundraising effort since its July 2021 IPO, and it coincides with a period in which its competitors have raised substantial sums of money.
Zepto, a 10-minute delivery service, has acquired more than $1.3 billion in the last four to five months, while its largest rival, Bengaluru-based Swiggy, collected INR 4,499 crore in primary capital through its first public offering (IPO) earlier this month. Deepinder Goyal, the founder and CEO of Zomato, announced last month that the company was gathering funds to fortify itself in the market.
Zomato revealed in its qualified institutional placement (QIP) documentation that its founder and CEO, Deepinder Goyal, has chosen to put his salary on hold for an extra two years, until March 31, 2026. The food delivery giant’s FY24 annual report stated that Goyal has previously waived his pay for 36 months, starting on April 1, 2021. With this most recent extension, he will be unpaid for a total of five years.
According to the QIP document, Deepinder Goyal has voluntarily waived his salary for a period beginning on April 1, 2021, and ending on March 31, 2026, in letters dated March 24, 2021, and April 1, 2024, addressed to Zomato’s Board. During this time, he will continue to carry out his responsibilities as managing director and chief executive officer.
Asking for INR 20 Lakh Donation From the Employee
As of right now, Goyal owns a 4.2% share in Zomato, which is valued at about INR 10,000 crore. In just two years, Zomato’s share price has increased by more than 300%.
Goyal recently made waves for hiring a “hungry” Chief of Staff for the company through a job posting on his X account. The person should be hungry with empathy and common sense, according to the post. Goyal first stated that the candidate would have to contribute INR 20 lakh to Zomato’s Feeding India charity as part of the employment qualifications, but he later clarified that this criterion was merely meant to filter out candidates.
How Zomato Plans to Use its QIP Funds?
In order to set up Blinkit‘s darkish stores and warehouses, Zomato has set aside INR 2,137 Cr. As of September 30, it had 791 dark-coloured stores spread throughout 48 Indian cities. It plans to open more dark stores in order to expand into new Indian cities and grow its existing community across the country. According to the corporate, the darkish retailer’s common built-up space of 3,100 square feet will be worth INR 58 lakh. In addition, Zomato’s total common operating expenses for running a darkish shop come to INR 12 lakh.
Zomato plans to spend INR 2,492 Cr on activities related to model construction and promotion. It anticipates spending INR 2,492 Cr on promotional actions by March 31, 2028, at the latest, and intends to increase its advertising expenditures in the near future.
Zomato would invest INR 1,769 Cr to build its tech capabilities and cloud infrastructure in order to maintain and upgrade the expertise infrastructure as needed to meet business needs. The remaining funds may be set aside for essential business operations.
Zomato Closes Stores in Qatar
Zomato also disclosed in a change submission that it was closing its operations in Qatar. When Zomato Web LLC (ZIL) submitted its pink herring prospectus (RHP) in July 2021, the company claimed that its step-down subsidiary had no active enterprise operations and was under liquidation.
According to the RHP, on December 28, 2016, ZIL joined the Qatar Monetary Centre Corporations Registration Workplace as a restricted legal responsibility firm under the Corporations Rules. It worked for a number of knowledge-based businesses, including desk reservations, online restaurant ordering, and commercial enterprises. The closing legal responsibility and amount charged to restate the consolidated monetary claim for ZIL was INR 2.3 Lakh, according to Zomato’s RHP.
Despite the frantic efforts of rapid commerce enterprises to introduce and expand their fashion portfolios, fashion companies appear to be retaliating.
With its new quick-commerce programme, Myntra promises to deliver goods to customers in as little as 30 minutes. The service, called M-Now, is being tested in a few pin codes in Bengaluru. Myntra is now the first significant e-commerce platform to introduce a quick-commerce solution.
Myntra Express
Previously, Myntra has tried experimenting with quicker delivery times. Myntra Express, which offered 24-48 hour product delivery, was introduced in 2022. M-Now, on the other hand, strives to be even quicker and will deliver goods to clients in between 30 minutes to 2 hours.
Myntra’s entry into the quick-commerce space follows many quick-commerce businesses that have been quickly adding fashion items to their portfolios in recent months. Zepto has partnered with Puma, Swiggy Instamart has partnered with FabIndia, and Blinkit has partnered with Decathlon. All of these companies are rapidly expanding their fashion categories. Blinkit has even introduced a 10-minute return policy for fashion items, which may be important for the vertical. Fashion items are returned far more often than other types due to fit and size problems, so enabling returns for these items could encourage quick commerce platforms to gain traction.
It has Become Need of the Hour for Myntra
Due to all these recent developments in the quick commerce domain, it is now essential for established e-commerce companies to start their own businesses. It wouldn’t make sense for customers to wait days for deliveries through conventional e-commerce channels if fast commerce startups could deliver goods at the same costs in ten minutes. Additionally, more impulsive purchases would result from faster deliveries, which would open up demand that traditional e-commerce wasn’t fully meeting.
It appears that traditional e-commerce companies have recognised this and are taking steps to expedite the delivery of their products to consumers. Nykaa has introduced a three-hour cosmetic delivery service called Nykaa Now. Additionally, Flipkart has introduced Flipkart Minutes, a quick-commerce platform that offers a variety of things for delivery in ten minutes. Additionally, it looks like rapid commerce may be the next battleground for India’s several e-commerce businesses, as Myntra has joined the game with M-Now.
Currently, M-Now offers consumers the ability to access a variety of brands, including Mochi, Wrangler, Metro, Being Human, and Lavie, at an unprecedented pace. Myntra is stepping up its Gen Z-focused initiatives in tandem with M-Now. In 2024, Myntra’s Gen Z user base has already doubled to 16 million, thanks to the FWD fashion segment, which caters to trend-savvy young consumers. Myntra has positioned itself as a major player in youth-centric fashion with aims to gain an additional 20–25 million users from this group.
Price sensitivity seems to be higher among Indian consumers than private telecom corporations had anticipated. Following the announcement of rate increases in July, Reliance Jio, Airtel, and Vodafone have continued to lose customers. With the addition of new subscribers for the second consecutive month, state-owned BSNL, which had not hiked its tariffs, seems to be benefiting at their expense. A number of years of price battles came to an end in July when India’s telecom companies jointly announced price hikes.
With 79.7 lakh members lost in September, Jio experienced the most subscriber loss. In the meantime, Vodafone Idea lost 15.5 lakh customers, and Airtel lost 14.3 lakh. The customer base of state-owned BSNL increased by 8.5 lakh, in contrast.
BSNL Growing its Subscribers’ Network
These tendencies are consistent with August’s events. Airtel lost 24 lakh customers, Vodafone Idea lost 18 lakh customers, and Reliance Jio lost 40.1 lakh customers in August. During that time, BSNL added 25 lakh new customers. 2.5 lakh consumers were said to have switched from other providers to BSNL in July.
In September, 1.33 crore applications for mobile number portability (MNP) were submitted, representing a spike in demand. In the wake of increasing tariffs, the surge highlights growing customer unhappiness and shifting loyalties.
These actions come after Indian telecom firms announced pricing increases in June of this year, the first such action in about 30 months. Whereas Airtel had raised pricing by 10–21%, Jio had raised prices by 12–25% for its plans. VI’s various plans now have pricing that has increased by 11–24%. As a result, the most affordable 28-day monthly package with phone and data perks started at INR 189 for Jio and INR 199 for Bharti Airtel and Vodafone Idea. For just INR 108, state-owned BSNL was providing a plan with comparable benefits.
BSNL’s New Initiatives to Attract More Subscribers
BSNL has been searching for ways to leverage its price advantage since that time. Direct-to-device services, automated SIM kiosks, and spam blockers are some of the new initiatives that BSNL has introduced. Positive social media buzz has also been generated about it; a video of BSNL staff members revealing a SIM in a dilapidated government building has been contrasted favourably to the flashy debuts of private telecom firms. The advantages of having a state-run telecom operator are becoming clear in the era of privatisation; even if their service isn’t the best, it gives customers an alternative in the event that private companies decide to band together and raise prices at the same time.
A month after receiving board permission, foodtech giant Zomato has received shareholder approval to raise INR 8,500 Cr (about $1 billion) through a qualified institutional placement (QIP). The resolution was approved by about 99.79% of the shareholders. This follows the company’s announcement last month of a postal ballot requesting Zomato’s shareholders’ approval.
Zomato stated in an exchange filing on November 23 that the aforementioned notice was sent electronically on October 23, 2024, to all of the company’s members whose names are listed in the depositories’ register of members/register of beneficial owners as of October 18, 2024 (“Cut-off date”) and whose email addresses are on file with the company.
The Move is Aligned with the Regulations of Ministry of Corporate Affairs and SEBI
The business also stated that it complied with Securities and Exchange Board of India (SEBI) and Ministry of Corporate Affairs rules. In addition, other special resolutions, such as the implementation of multiple ESOPs (2018, 2021, 2022, and 2024) and interest-free loans to the Foodie Bay Employees ESOP Trust, were approved in the scrutiniser’s report, which summarises the results of Zomato‘s postal ballot on November 22.
According to reports earlier this month, the foodtech company plans to launch its INR 8,500 Cr QIP in December. Morgan Stanley has been chosen as the investment bank for the QIP, and it is still looking to add one or two other investment banks to the fundraise.
Establishing Fund Raising Committee
Zomato added that in order to determine the QIP’s structure, issuance method, pricing, discounts, and terms and conditions, the board established a fund-raising committee. Given that its cash reserve dropped to INR 1,726 Cr at the end of the September 2024 quarter due to an INR 2,048 Cr investment for the purchase of Paytm’s entertainment ticketing business, the company is hoping to improve its cash balance with this given the competitive environment and the significantly larger scope of the company’s operations today, the company feels that it needs to improve its cash balance. Deepinder Goyal, the founder and CEO of Zomato, went on to say that the company wants to make sure it is on an even playing field with its rivals, who are constantly raising more money, but it also believes that capital alone does not grant anyone the right to win (and that service quality is the key determinant of success).
According to Goyal, the business does not intend to use the money for acquisitions or minority investments. For the September quarter of 2024, Zomato’s consolidated net profit increased 389% year over year (YoY) to INR 176 Cr, driven by strong growth in its rapid commerce division, Blinkit. Zomato is anticipated to use the money raised from its QIP fundraising to grow Blinkit’s network of dark stores at a time when competition in the rapid commerce space is getting fiercer. In the meantime, its rivals in the industry have adequate funding as well. After an initial public offering (IPO) valued at more than INR 11,000 Cr, Zomato’s competitor Swiggy, which runs Instamart, went public on November 13. In less than three months earlier this year, Zepto raised almost $1 billion to expand its network.
Murugavel Janakiraman, the CEO of Matrimony.com, launched India’s first matchmaking website more than 20 years ago, and now he’s entering the job search sector. Manyjobs.com, the newest of Matrimony.com’s stables, aims to link recruiters and job seekers seeking entry-level or “frontline” positions in this “grey-collared” sector, as Janakiraman refers to it.
In an exclusive interview with a media channel, Janakiraman stated that the company recognised a market opportunity in the grey-collar job-search market. Manyjobs.com is a dedicated job portal for the grey-collar workforce, which makes up 45% of India’s total workforce. The company asserts that this is not just another job portal.
Entering at the Right Time
According to the matchmaking tech expert, there is a gap that has to be filled, so now is the ideal moment to enter the job-search market. He noted that while there weren’t many job openings nearly 20 years ago, there are now openings because job openings have also gone up. The firm’s challenge is to bridge the gap in the grey-collar job market by connecting recruiters and job seekers.
According to Janaikraman, manyjobs.com will focus on filling openings in industries including customer service, retail, sales, business process outsourcing (BPO), and healthcare. He is of the opinion that the website’s primary distinguishing feature is that incumbent employment portals, such as Monster.com and Naukri, do not exclusively focus on entry-level or front-line positions.
Not Monetising Manyjobs.com
It’s interesting to note that Janakiraman has no plans to make money off of Manyjobs.com for at least the next two quarters: Revenue is not the company’s goal; instead, it recognises the current need for a dedicated grey-collar job portal. He went on to say that the company would start making money from it in a few quarters. Some companies are willing to subscribe, but it’s too early to discuss that at this time, he noted.
Now, it is hoped that Manyjobs.com would reach its benchmarks and start placing applicants as well. If everything goes according to plan, Matrimony.com will expand its new website into new Indian markets by Q1FY26 and intensify its ambitions to build a dedicated job platform for grey-collar occupations.
Matrimony.com Introduces a Financial Platform to Provide Financing for Weddings
On 15 November, Matrimony.com, a matchmaking service provider, announced the launch of weddingloans.com, a financial technology platform with the goal of assisting with marriage-related expenses.
To provide a full lending solution, the company has worked with top financial institutions like Larsen and Toubro Finance, Tata Capital, and IDFC. According to an official statement released by Matrimony.com, this platform will do more than just provide wedding loans; it will assist clients in making the best choice possible, paying particular attention to their financial security.
Since wedding costs have increased over the past ten years and extravagant weddings have become more popular due to social media, many couples are choosing to take out personal loans for their union, according to the WeddingLoans website.
In an attempt to join the rapidly growing industry, which saw gross sales of over $5.5–6 billion this month, headed by Blinkit, Zepto, and Swiggy Instamart, Amazon India is rushing to deploy its quick commerce delivery service, codenamed Tez, by late December or early next year, according to a media report.
The US giant had previously planned to launch the service in the first quarter of 2025, but they now want to go more quickly. Especially since it is the only sizable e-commerce company that is not present in the fastest-growing online sector in India. Tez, which is merely a working name for the projected company, will begin in India, marking Amazon’s first international entry into the rapid commerce space.
Amazon is on the Hiring Spree
According to the report, a lot of work is being done with different stakeholders both inside and outside the company.
The e-commerce company has a core team of workers focusing on the high-priority project, but it is also hiring new staff for it. According to a job posting, the project is a “greenfield, grounds-up initiative for an upcoming and fast-growing ecommerce space in India,” according to Amazon‘s India grocery and basics team. According to the news article, the rapid commerce service’s ultimate name has not yet been determined.
Amazon hopes to introduce it in India by the end of the first quarter. If one runs a significant consumer online platform, quick commerce is the hub of activity. The company is also using the same approach as others, which consists of establishing logistics infrastructure, determining the specifics of stock-keeping units (SKUs) and categories, and setting up dark shopfronts. It is anticipated that the business will begin the service with everyday necessities and food.
Locking Horns with Flipkart and Other Players
Before the start of this year’s festive sales in September and October, Flipkart, Amazon’s fiercest rival in India, introduced its rapid service, Minutes, and has since expanded the service throughout key cities.
BigBasket, owned by Tata, is also involved in the competition. According to various media reports, the company switched to the fast model and generated over INR 900 crore in revenue last month.
Tata Digital, the company that operates Tata Neu, has also launched its own fast commerce solution, Neu Flash. Before Swiggy Instamart went public on the stock exchanges in early November, Amazon had already talked about a possible partnership with the food delivery service.
All of the platforms are actively increasing their operations as a result of the flood of cash into the fast commerce sector. In addition to Zomato, the parent company of Blinkit, obtaining shareholder approval to raise an additional $1 billion through QIP, Zepto raised an additional $350 million last week, boosting its cash pile of over $1 billion.
Apple’s request to stop the investigation of a report that claimed the tech giant had broken Indian competition laws was denied by the Competition Commission of India (CCI). According to a media report, this permits the lawsuit, which has been being investigated since 2021, to proceed.
The investigation focusses on claims that Apple hurt app developers, consumers, and alternative payment processors by abusing its market dominance in the iOS app store. Apple has refuted the accusations, claiming that its market share is negligible in India, where Google’s Android dominates with 96.5% of the smartphone market.
How it all Started?
A previous disagreement over how to handle probe reports was linked to Apple’s most recent request. The CCI recalled its original reports, issued amended versions, and ordered the destruction of the old copies after the corporation claimed in August that the CCI had contained sensitive commercial information in those reports. Apple asserted, however, that the case’s first complaint, Together We Fight Society (TWFS), did not follow this instruction. The business asked that the updated reports be withheld and filed a regulatory action against TWFS. This request was denied by the CCI, which declared it “untenable.”
The CCI has requested that Apple provide its audited financial accounts for the last three fiscal years as the case moves forward. If the corporation is found to have violated competition laws, these records will assist the regulator in determining possible fines. After reviewing the updated inquiry report, senior CCI authorities are anticipated to render a final decision.
Apple’s App Store Policies Face Strong Criticism
The increased scrutiny of large tech companies in India and around the world coincides with Apple’s difficulties with the CCI. Apple’s App Store policies have drawn criticism from developers, especially the demand that developers use its in-app payment mechanism and pay a percentage of sales. The CCI’s inquiry and subsequent decision may have a big impact on Apple’s business operations in India, even if the company insists it doesn’t have enough market dominance there to hurt competition.
Apple Expanding its Footprints in India
To assist with the research, creation, and testing of new products, Apple has established a wholly owned company in India called Apple Operations India. In its regulatory filing, the company specified the following proposed activities: hiring engineers for hardware development, leasing facilities, purchasing engineering equipment, and offering failure analysis services to group companies. In a letter of consolation, Apple promised to continue to provide “operational and financial support” for the “foreseeable future.” The Macintosh PC manufacturer is establishing a direct subsidiary of the US parent company in India for the first time.
With fixed assets of INR 36.8 crore and capital work-in-progress of INR 38.2 crore, the company’s operations in India are making major strides. Through the provision of hardware, software, and other services, the new business will assist independent contractors and manufacturers.
Top international electronics companies like Samsung, LG, and Sony currently have research and development (R&D) facilities in India; however, these are primarily restricted to software development for international launches and hardware localisation of products. Vivo and Oppo, two Chinese phone manufacturers, operate similarly. To ensure tech and back office services and to carry out research and development, numerous multinational corporations from the United States and Europe have established global capability centres (GCCs) in India.
New Delhi [India], November 25: The refurbished mobile phone sector is expanding and playing a crucial role in promoting sustainability by reducing electronic waste and conserving resources. It provides affordable access to quality smartphones, making technology accessible to a broader audience. Additionally, it supports circular economies by reusing devices, lowering environmental impact, and extending the lifecycle of mobile phones, contributing to eco-friendly practices. Grest, based in Gurgaon, was founded with the vision of tackling environmental challenges and reducing e-waste. In a candid chat with Nitin Goyal, Co-Founder, and COO of Grest, he shared how Grest is refurbishing mobile phones with its ‘Make-in-India’ machine and offering renewed premium iPhones at affordable prices.
Tell us about Grest. What differentiates Grest from its peers?
Grest, founded in 2018, is a tech-enabled full-stack reverse commerce company specializing in refurbished electronic devices primarily focused on smartphones and laptops with a strong emphasis on sustainability and the principles of circular economy. By extending the lifecycle of electronics and reducing e-waste, Grest actively contributes to a circular system where resources are reused rather than discarded.
Our robust expertise across the entire refurbishment process sets us apart from our peers. From sourcing devices through our self-developed C2B price discovery application from our 20+ partners to conducting advanced in-house repairs and refurbishment, we manage every step and process. Our 20,000-square-foot state-of-the-art facility is equipped to handle even the most complex repairs, including intricate chip-level and deepest motherboard issues. We have a PAN India distribution channel for selling as well with an active and growing online presence.
We take pride in offering customers high-quality, aspirational, affordable, and reliable products that are refurbished to ‘like new’ condition, complete with peace-of-mind warranties and hassle-free returns. At the heart of the Grest brand are four key pillars—availability, affordability, accountability, and accessibility—that ensure a seamless & trusted experience for our customers and value in their purchase.
What is the scope for Grest in the B2B space of the refurbished mobile phone sector, and how are you planning to capture the B2C space?
The B2B space for refurbished devices presents immense potential, and Grest has carved out a strong foothold with over 500 distributors and active retail partners across 26 states and 5 UTs in India, enabling us to meet the growing demand for reliable refurbished smartphones at scale. We’ve cultivated long-term relationships with large retail chains, independent dealers, and retailers, ensuring our devices are readily available in urban, Tier-1/2/3, and rural markets.
Our in-house innovation is a key differentiator, with a custom-built Make-in-India machine at our facility designed to handle advanced repairs and refurbishment processes, ensuring precision and efficiency. This capability allows us to restore devices to like-new condition, meeting the highest quality standards. With this robust infrastructure, we are not only delivering aspirational premium devices to consumers but also empowering businesses with a steady supply of trusted, high-quality refurbished smartphones.
Similarly, the B2C space is equally promising, with our recently launched online platform exclusively focused on Apple products, offering individual consumers high-quality refurbished iPhones with peace-of-mind warranty and hassle-free returns. Our plan is to provide a seamless & trusted shopping experience that combines affordability, reliability, and accessibility for customers across India.
What inspired you to found Grest?
We saw a huge gap in the market for an organized and trustworthy refurbished products company, particularly in the premium segment. With the rising cost of new smartphones and the growing demand for affordable options, it was clear that a professionally managed solution could benefit both consumers and the environment. India is a huge smartphone re-commerce market of around $10 Bn and currently with no dominant player, there is a huge scope to capture this blue ocean. We wanted to build a brand that stands for quality and trust, and that’s how Grest was born—to make refurbished devices a viable, mainstream choice for customers.
How does it work with your stakeholders? Tell us about the latest developments.
Our business thrives on strong partnerships with OEMs, Apple Premium Resellers, Large Format Retail chains, and localized players. Recently, we onboarded an IT expert and highly experienced CTO, Mr. Sanjeev Aggarwal, to lead our tech developments. His expertise will help us drive innovations, especially with our in-house technology systems and processes.
Additionally, we’re advancing our ‘Make in India’ initiative with these developments, aiming to make our machines and processes more efficient and technology-driven.
How has the journey been so far, and what is your long- and short-term vision?
It’s been a very rewarding journey since we started in 2018. Initially, we focused on B2B repair services to our clients, and over time understanding the market and whole supply chain, we shifted towards building a product brand and catering to both B2B and B2C segments. Our short-term goal is to strengthen our online B2C presence and expand our operations across more regions in India. In the long run, we aspire to lead the refurbished electronics market in India and aim to achieve revenue of ₹2,000 crores within the next five years along with our global aspirations and vision. With our vast experience and dedication, we’re confident in making Grest a household name in the refurbished tech space.
Please brief us on the business and revenue model? What is the revenue currently?
At Grest, we’ve built our business on a hybrid model that allows us to source devices directly from consumers through a trusted network of partners. Each device undergoes rigorous quality checks before being repaired and refurbished to meet the highest quality standards. Once restored, these smartphones are distributed through our online and offline channels across 26 states and 5 UTs in India, ensuring accessibility for businesses and individual consumers.
Our focus has always been on delivering high-quality products and a seamless trusted experience, and this approach has fuelled our consistent growth. We’ve seen strong momentum across both B2B and B2C segments, with our recently launched online platform for Apple products driving significant interest among individual buyers. As we expand operations and work towards scaling further, we’re confident to meet the growing demand for aspirational, affordable, reliable refurbished devices while building a sustainable and profitable business. With 5X growth in the last financial year as compared to the previous one, we are aiming at a revenue of Rs 2000 crore over the next five years.
Tell us about yourself and the other co-founders. What is your background?
I’m Nitin Goyal, Co-Founder of Grest. I am B.Tech. from YMCA and MBA from MDI Gurgaon. My professional background includes nearly a decade in corporate leadership roles across multinational corporations in the telecommunication sector, having worked with major telecom brands like Nokia, Ericsson and ZTE. I was a part of team to launch the first 4G services in India by Airtel and headed some big projects in North America and Latin America markets as well. Along with my 22 years old friend and now Co-founder Shrey Sardana, we bring a diverse set of skills and a shared passion in the re-commerce industry. Our combined expertise has helped us navigate and grow in the competitive refurbishment market and fulfilling our customer needs.
What are your expansion and future plans to take Grest to the next level? Any fundraising plans?
Having mastered the supply chain, expansion is a primary focus for us as we look to scale our business. We’re constantly growing our distribution network, strengthening our online sales channels, planning for COCO-based, offline experience centers and further establishing our presence in the refurbished smartphone and laptop market. We’re a funded company and also actively pursuing additional fundraising to support this growth. Our goal is to leverage and utilize these funds to build even more robust infra and facilities, hire additional talents, and continue to invest in brand building and our in-house technology roadmap. Ultimately, we’re aiming for significant growth in revenues and market share in the coming years along with notable profitability.
On November 22, shares of Zinka Logistics Solutions, the parent company of logistics giant BlackBuck, went public on the NSE for INR 280.90, a slight premium of 2.89% over the IPO issue price of INR 273. BlackBuck’s shares debuted on the BSE at INR 279.05, which was 2.21% higher than the issue price.
Due to the Maharashtra Assembly elections, BlackBuck’s November 21 market debut was postponed by one day. BlackBuck’s INR 1,115 Cr initial public offering (IPO) was oversubscribed by 1.8X, with offers for 4.19 Cr shares compared to the 2.25 Cr shares available. The IPO took place between November 13 and November 18.
The Growth of the Company
BlackBuck was established in 2015 as a truck aggregator by Rajesh Yabaji, Chanakya Hridaya, and Rama Subramaniam. Since then, the business has expanded and currently provides a wide range of services, including truck financing, fuel payments, FASTag or toll costs, load management, and telemetry. BlackBuck is a business-to-business marketplace that specialises in full truckload (FTL) transportation between cities. BlackBuck’s initial public offering (IPO) consisted of both a new share issuance of INR 550 Cr and an offer for sale (OFS) component of over 2.06 Cr shares.
The retail investor quota was subscribed 1.65 times, whilst the qualified institutional buyers (QIBs) part was booked 2.76 times. While non-institutional investors (NIIs) subscribed to the issuance by 24%, BlackBuck employees oversubscribed their quota by 9.86X.
The Current Valuation of the Company
BlackBuck set its valuation at INR 4,800 Cr in the run-up to the INR 1,115 Cr IPO, which is more than 32% less than its peak valuation of INR 7,100 Cr in 2021. For its IPO, BlackBuck proposed a price range of INR 259 to INR 273 per share. Accel and Flipkart, two early investors, could realise up to five times their gains at the upper price range of INR 273. Nevertheless, companies such as Swedish investment firm VEF AB and Peak XV Partners would record losses on the sale of their fractional stakes.
IPO is Getting Popular Among Startups
With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.
This remarkable expansion coincides with a slowdown in the global IPO markets, which has seen a 16% drop in capital raised and a 12% drop in listings. India has distinguished itself on the international scene with its distinct blend of economic stability, a flourishing digital economy, and a developing private equity (PE) and venture capital (VC) ecosystem.
This year, there has also been a lot of fundraising activity for SME IPOs. A record INR 7,700 crore has been raised through 215 SME IPOs so far. In contrast, 182 businesses raised a total of more than INR 4,686 crore when they went public last year.
Nitin Konde
