StartupTalky

Tag: #news

  • Swiggy Lowers its IPO Valuation Estimate to $12.5–13.5 Billion Owing to Market Volatility

    According to multiple media sources, the Indian food delivery giant Swiggy is lowering its target by 10–16% because of market volatility, with the business aiming internally for a corporate valuation of $12.5 billion–13.5 billion for its impending IPO.

    Prior to this week’s launch by Hyundai India, Swiggy was aiming for a $15 billion valuation for its $1.4 billion November IPO, which will rank as the nation’s second-largest stock offering of the year. Due to recent market volatility and a decline in Indian stock markets, reports further highlighted Swiggy’s consideration of a lower valuation to ensure that bidders leave “a lot of value on the table.”

    Hyundai India’s Flop Debut Triggered Restructuring of IPO Launch

    Due to sustained foreign selling, India’s benchmark Nifty 50 index has fallen 7.15% from record high levels reached on September 27 and is on track to post four consecutive weeks of losses.

    Hyundai India’s shares experienced a 7.2% decline on their market debut on 22 October due to a lacklustre response from retail investors, who were concerned about the company’s high valuation and the potential for an auto industry downturn. According to additional reports, Swiggy is anticipated to list on the Mumbai stock exchange on November 13 and begin accepting subscriptions for its first public offering the week prior, but the exact date may vary.

    India’s IPO Market

    India’s initial public offering (IPO) industry has been booming despite recent tremors; over 270 firms have raised $12.57 billion so far this year, surpassing the $7.4 billion raised in 2023. Swiggy intends to begin holding roadshows for its stock offering in numerous Indian cities on October 30.

    In India’s online restaurant and cafe food delivery market, Swiggy and Zomato are competitors. Both companies have placed significant bets on the so-called rapid commerce boom, which promises to deliver groceries and other goods in ten minutes. Swiggy was valued at $10.7 billion in its most recent fundraising round, which was led by Invesco in 2022.

    Enticing Factors of Swiggy’s IPO

    Swiggy’s IPO might present investors with a potential bargain given the unpredictability and recent declines of Indian markets. Given the escalating competition with Zomato and the rapidly evolving quick commerce landscape, the company’s strategic pricing aims to capitalize on the current market conditions and present a lucrative opportunity amidst a cautious market attitude.

    One of the year’s most anticipated public offerings is Swiggy’s eagerly expected IPO. Investors hold high expectations for Swiggy, especially considering its potential for profitability following the successful stock market launch of its rival Zomato.

    Swiggy intends to invest INR 982.4 crore to support lease and licence payments as well as the expansion of its network of dark stores for the rapid commerce segment, according to its Updated Draft Red Herring Prospectus (UDRHP). With a fresh issue valued at INR 3,750 crore and an offer for sale (OFS) exceeding INR 6,500 crore, the IPO is anticipated to generate approximately INR 10,000 crore.

    Swiggy and Zomato Increase Platform Fees to INR 10 Ahead of Diwali
    Food delivery giants Swiggy and Zomato have raised their platform fees to INR 10 per order, up from INR 7, to support operations and maintain services during Diwali celebrations.
    StartupTalkyNitin Konde

  • Jio Financial and Allianz SE are Negotiating to Establish Joint Ventures for Insurance in India

    According to various media reports, Jio Financial Services Ltd., which is owned by billionaire Mukesh Ambani, has discussed forming an insurance partnership with Allianz SE in India as the German company looks to end two current joint ventures in the nation.

    Jio Financial and Allianz are seeking to open a general insurance and a life insurance business in the South Asian country. Reports further state that the talks are still in their early phases, and either party may decide not to move forward with the idea.

    Allianz to End Partnership with Bajaj

    After a renowned news agency revealed the potential split, Bajaj Finserv Ltd. released a statement on October 22 stating that the Munich-based company has told its present partner that it is “actively considering an exit” from the operations. The statement claims that Allianz “has indicated that it remains committed to the Indian insurance market.” According to the new agency’s report, the split stems from a disagreement about the partnership’s future.

    Tensions have grown over time as a result of Bajaj’s resistance to the German insurer’s attempts to extend its ownership in the businesses. Bajaj presently owns 74% of the partnerships, while Allianz has a minority stake.

    Citing an imbalance in corporate interests, Bajaj Finserv stated in a statement that Allianz is considering a withdrawal from the joint ventures. It did point out that Allianz is still dedicated to the Indian insurance industry as a whole.

    The business also stated that both sides would endeavour to guarantee a seamless transition in the event that Allianz moves forward with its exit.

    Both the Firms Not Revealing Details

    According to a Jio Financial representative, the company is unable to address rumours. “As we always do, we will continue to make the required disclosures in line with our responsibilities if and when there are any significant events pertaining to the company,” the representative continued. According to a spokesman from Munich, Allianz does not comment on market rumours. 

    Under the leadership of seasoned banker K.V. Kamath, Jio Financial has partnered with BlackRock Inc. to launch an asset management company in addition to operating a shadow bank and insurance broking. The Ambani unit’s goal of growing into a financial services giant would be aided by the establishment of insurance operations.

    Allianz SE Eyeing Major Stakes in Income Insurance

    Allianz, the insurance giant, has shown a very keen interest in purchasing a controlling share of Income Insurance Ltd., Singapore’s top supplier of health, life, travel, and auto insurance. If the merger goes through, Allianz will join the ranks of Singapore’s most prominent property and casualty (P&C) insurers and become the fourth biggest composite insurer in Asia.

    But the Singaporean government has been opposing the insurance giant, with Minister for Culture, Community, and Youth Edwin Tong saying that the current version of the agreement does not serve the public interest. A modification to the Insurance Act passed by Singapore this month may prevent Allianz from acquiring the bulk stakes in Income Insurance.

    A media source claims that under the revised bill, Singapore’s financial authority will need permission from the relevant government ministry to approve transactions involving insurance businesses that are co-ops or have ties to co-ops.

    Jio Financial and BlackRock in Talks to Establish Private Lending Business
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    StartupTalkyNitin Konde

  • Before Diwali Celebrations, Swiggy and Zomato have Raised Their Platform Fees to INR 10

    According to various reports, food delivery firm Zomato raised its platform charge by almost 43% before Diwali celebrations, from INR 7 to INR 10 per order, in order to “keep Zomato running” and preserve services during the holiday season. Similarly another media report cited that Swiggy, another major competitor in the sector, also raised its fee to INR 10. The current charge for these platforms is 400% higher than the INR 2 per order platform fee that was first implemented in August 2023.

    In places like Delhi and Bengaluru, Zomato raised their platform cost by 20% earlier in July, from INR 5 to INR 6 per order. According to Zomato’s annual report for the fiscal year 2022–2023, 647 million orders were placed overall. According to a rough estimate, the business may make an additional INR 5.7 million a day if the platform raise were implemented nationwide.

    Food Lovers Express Their Disappointment at X

    During the holiday rush, Zomato and Swiggy raised their platform fees, which infuriated foodies. Although the move to raise the platform charge did not sit well with users, the nation’s two largest food delivery apps are aiming to profit from an increase in orders during the holiday season.

    The updated platform charge was the subject of debate on social networking site X. Ordering in has become too costly to be sustainable, as noted by several X users, and meal delivery fees have been steadily rising. 

    In August 2023, Zomato started charging INR 2 per order as a platform charge. Zomato increased the platform fee to INR 4 per order by January 2024. At the moment, each order costs INR 10. All users, including Gold members, are subject to the platform fee, which is in addition to Zomato’s delivery fee.

    The Platform Fee Does Not Have a Set Formula

    Zomato’s Chief Financial Officer, Akshant Goyal, stated during the company’s first quarter earnings call for FY25 that the platform charge is being changed “step by step” in order to determine how sensitive customers are to price adjustments. There is no set formula for the platform fee, Goyal had stated at the time, in reference to the likelihood of greater fees on days when there are more orders.

    Zomato’s Current Financial Performance

    On October 22, Zomato, headed by Deepinder Goyal, released its September quarter results. The company’s operating revenue increased 68% year over year to INR 4,799 crore. The fastest-growing quick commerce sector was the main driver of the total growth, although Zomato’s biggest source of income and profits, the meal delivery company, had a 21% increase in gross order value year over year to INR 9,690 crore.

    Because it was a seasonally bad quarter, Zomato’s food delivery company saw take rates drop sequentially by 20 basis points to 24.1% during the July–September period. According to industry observers, there is little chance that the rise in platform fees imposed by food delivery businesses will affect customer behaviour. According to Zomato’s fiscal 2024 annual report, platform fees brought in INR 83 crore for the company.

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    StartupTalkyNitin Konde

  • Former Ola CBO Sidharth Shakdher Becomes CMO and Business Head at Paytm

    According to reports, Sidharth Shakdher has been named the new Chief Marketing Officer (CMO) and Business Head of Paytm, a fintech company.

    Within nine months of joining the company run by Bhavish Aggarwal, Shakdher left Ola. Among other accomplishments, he was instrumental in the establishment of the consumer loans section, the Ola Loyalty programme, and the ONDC food delivery service.

    Shakdher’s New Role

    Shakdher will collaborate closely with Vijay Shekhar Sharma, the CEO of Paytm, in his new position to grow the company and increase profitability. Shakdher has over 25 years of experience and has held important executive positions at Disney+Hotstar, Samsung, Canon, HP, Xerox, and Amazon, among other large corporations.

    He served as Disney+ Hotstar’s EVP and CMO prior to joining Ola, where he helped with the platform’s global expansion and direct-to-consumer approach.

    Before that, Shakdher oversaw Amazon’s US category marketing and third-party marketplace. In addition to his many responsibilities, he spearheaded innovation for Reckitt’s main brand, Dettol, in North America. He launched and successfully established Dettol in the US personal care market.

    Shakdher oversaw marketing, category operations, growth, and revenue in both India and foreign markets in his capacity as CBO at Ola. With international teams directly answering to him, he also led new business endeavours in e-commerce, financial services, and AI cloud services.

    Paytm’s Current Financial Report Card

    The parent company of the digital payments platform Paytm, One 97 Communications Ltd., announced a notable improvement in its financial results for the second quarter that concluded in September 2024. In sharp contrast to the INR 290 crore loss reported a year earlier, the company reported a profit of INR 930 crore during the period.

    The company’s one-time gain of INR 1,345.4 crore from the sale of its event and movie ticketing services to Zomato Limited was the main driver of its profitability. With a loss of INR 495 crore, Paytm’s core business operations remained negative, excluding this extraordinary item. The company’s revenue from operations decreased by 34% year-on-year to INR 1,659 crore, a modest increase from the INR 1,501 crore reported in the previous quarter.

    Paytm Receives NPCI Approval to Onboard New UPI Customers

    Nearly nine months after the Reserve Bank of India (RBI) imposed a ban on the addition of new customers, One97 Communications (OCL), the firm that runs the Paytm brand, announced on 22 October 2024 that it has been given permission by the National Payments Corporation of India (NPCI) to onboard new UPI users. In a letter to Vijay Shekhar Sharma, the founder and CEO of the Noida-based company, NPCI chief Dilip Asbe gave the company permission to start onboarding new users. The NPCI’s procedural rules and agreements with Payment Service Provider (PSP) banks govern the permissions.

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    StartupTalkyShikha Tyagi

  • Blinkit Launches Seller Hub to Facilitate Vendors’ and Brands’ Onboarding

    In a LinkedIn post, Blinkit Chief Technology Officer Sajal Gupta announced the debut of Seller Hub, the seller programme for Zomato’s rapid commerce platform, on October 23, 2024. This business structure is based on Fulfilled by Amazon (FBA), which is an e-commerce service offered by Amazon.

    Brands and Sellers Can Onboard Hassle Free

    Brands and sellers will be able to onboard the rapid commerce platform without interacting with a middleman thanks to the Blinkit Seller Hub. It provides services including advertising, catalogue and pricing management, dark store-wise availability, and inventory tracking. 

    According to Gupta, the company’s goal was to develop a seller programme in fast commerce that was far superior to all others, and the original FBA Amazon has always served as its benchmark. In order to achieve this, the firm has introduced Blinkit Seller Hub, which allows brands to sell through Blinkit entirely on their own without interacting with the company or any middlemen (though Blinkit is available if companies require it). “We think that by developing technology that offers companies greater authority and control over their online presence, we can better serve the community of brands.” According to Gupta, more than 200 companies currently have access to their Seller Hub, and the firm wants to expand that number as soon as the necessary document verifications are completed.

    The Recent Developments of Blinkit

    In order to solve the crucial problem of size and fit that online buyers encounter, Blinkit recently launched a new service that permits returns and exchanges for apparel and footwear within ten minutes in a few Indian cities.

    Blinkit currently has 791 dark stores, which are micro-warehouses that allow for 10-minute delivery, as of September 30. At the end of June, the company had 639 stores. By the end of this fiscal year, the company aims to have 1,000 dark stores and, by the end of 2026, 2,000. It is attempting to reach Tier-II and Tier-III cities with its services. According to reports, Blinkit fulfilled 92.9 million orders during the July–September quarter, generating a gross order value (GOV) of almost INR 6,000 crore.

    Blinkit’s EMI Option

    Customers may now divide payments for purchases over INR 2,999 thanks to Blinkit’s EMI (Equated Monthly Installments) option. All orders, with the exception of those that contain gold and silver coins, will have this option.

    The goal of Blinkit’s new EMI feature is to increase the number of users on its site and encourage larger transactions. This option can facilitate larger orders since more and more customers rely on rapid commerce for household goods, groceries, and other commodities. According to specialists monitoring this market, allowing customers to stretch payments over time may also result in higher-value transactions.

    Adding EMI as a payment option fits with Blinkit’s strategy of growing its clientele and fostering customer loyalty. Companies like Blinkit, Swiggy Instamart, and Zepto are fighting for market share in the fiercely competitive world of quick commerce. Blinkit aims to raise its average order value—a crucial indicator of its growth strategy—by enabling these kinds of transactions.

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  • Uber Will Soon Test its Bus Service in Hyderabad and Mumbai

    After Delhi and Kolkata, the ride-hailing app Uber plans to test its bus (shuttle) service in Hyderabad and Mumbai. The company is currently negotiating with a number of local stakeholders to obtain approval to launch in the nation’s IT hub.

    In an interview with the media, Prabhjeet Singh, president of Uber India and South Asia, stated that the firm currently operates Uber buses in two cities and that two more cities—Mumbai and Hyderabad—are set to follow. Regretfully, Bengaluru is not yet included in this list.

    Bengaluru Being a Dream Project

    According to Singh, Uber is actively negotiating with various parties to launch bus service in Bengaluru. “It’s my passion project to make sure we can bring Uber buses to Bengaluru, assuming the regulators allow us to do so,” he said, adding that it demonstrates the localisation process and how we are evolving to meet customer preferences.

    Singh further added that Uber needs regulatory approval to proceed to introduce such a service, and we have failed to obtain it. According to him, company is actively negotiating with a number of parties in the hopes of receiving approval to proceed, but as of right now, company has not been able to strike a positive chord.

    Urging Civil Society and Policy-Making to Open Up to “Such Innovations”

    Singh also called on those involved in policy making and civil society to be more receptive to “such innovations.”

    “I would encourage a significant number of individuals in civil society to participate to make the working class’ daily travel hassle-free with such innovations. Numerous businesses are eager for Uber Shuttle to be introduced. From Hebbal and ORR (Outer Ring Road), you could take a shuttle. Air-conditioned shuttles with reserved seats that run every two to three minutes. These are situations that might coexist with the city’s other public transportation options. I hope policymakers are much more receptive to innovations like this,” he opined.

    Uber India’s Vision

    The goal of Uber’s public transportation integration strategy in India is to provide a smooth system that enhances city efficiency while saving passengers money and time. High-capacity vehicles (HCVs) are available for Uber Shuttle service, and reservations can be made using the Uber app. Before the shuttle arrives, riders can track it. Mumbai, Hyderabad, Kolkata, and Delhi NCR all offer Uber Shuttle service.

    Uber has more than one million drivers, according to a media source, which CEO Dara Khosrowshahi revealed on the company’s March quarter earnings call. According to Khosrowshahi, bookings and transactions show that India is one of the company’s fastest-growing regions. Larger markets tend to grow more slowly, but India stands out as a major market that is expanding quickly, he added further.

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  • Infosys and Meta Deepen Their Strategic Partnership to Promote Generative AI Innovation

    The multinational technology company Meta and Infosys, a pioneer in next-generation digital services and consulting, bolstered their partnership on October 23, 2024, to promote generative AI innovation through open-source projects. Infosys is a firm believer in democratising AI and is a major supporter of open-source software. By utilising Meta’s Llama stack, a collection of open-source big language models and tools, Infosys is propelling notable progress in artificial intelligence and encouraging creativity in several sectors.

    Infosys has announced a Meta centre of excellence (COE) aimed at boosting enterprise AI integration while facilitating internal adoption and contributions to open-source communities in order to promote innovation and hasten the implementation of Meta’s Llama stack. In order to facilitate customers’ smooth adoption of the Llama stack, this centre will create use cases tailored to the industry, enable a sizable skill pool on the Llama stack, and work closely with Meta.

    Integrating the Llama Models With Infosys Topaz

    As a pioneer in open-source AI innovation, Infosys is a launch partner and early adopter of the Llama 3.1 and 3.2 models. By combining the Llama models with Infosys Topaz, an AI-first suite of platforms, services, and solutions that use generative AI technology, Infosys is developing cutting-edge AI solutions to boost business value for companies all around the world.

    One such innovation is the Llama-powered document assistant service, which, when compared to conventional ways, helps evaluate contracts more quickly and effectively, yielding notable productivity increases.

    AI Experience Zone for Meta

    Additionally, Infosys built a special AI Experience Zone for Meta at its Bengaluru campus as part of the COE. Customers will be able to witness firsthand cutting-edge enterprise AI innovations created by Infosys Topaz in partnership with Meta’s Llama technology in the state-of-the-art zone.

    According to Balakrishna D. R. (Bali), Executive Vice President, Global Services Head, AI and Industry Verticals, Infosys, open-source innovation is essential to developing significant digital solutions that boost productivity and growth while levelling the playing field for all companies. The partnership with Meta demonstrates the company’s steadfast dedication to advancing corporate AI technology, including Gen AI, and encouraging cross-industry innovation. By incorporating Meta’s Llama family of models into Infosys Topaz, Infosys is utilising transparency and teamwork to make AI impactful and accessible for all types of enterprises.

    According to Sandhya Devanathan, Vice President and Head of Meta India, the company is excited to expand its partnership with Infosys, which is a prime example of the strategic significance of open-source AI development. The incorporation of Llama into Infosys Topaz is evidence of the innovative potential of AI to spur innovation and enable companies to fully utilise AI to revolutionise their operations. Enterprises will undergo a revolution thanks to open-source models like Llama, which will accelerate their digital transformation and allow them to grow, innovate, and compete on a global scale.

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  • WeWork Intends to go Public in India at a Valuation of More Than $2 Billion

    According to reports, WeWork India, a joint venture between the American co-working giant WeWork and the Bengaluru-based real estate company Embassy Group, is considering preparations for an initial public offering (IPO). WeWork India is looking to go public with a target valuation of $2 billion to $2.5 billion. JM Financial has been designated as the book-running lead manager for the issue by the company, according to reports.

    The IPO is expected to increase the valuation of WeWork India, which was valued at less than $400 million in its most recent investment round in 2020. According to the report, the company hopes to collect $350 million to $475 million through its first public offering.

    WeWork’s IPO Offerings

    Depending on the state of the market, the exact figures will be decided closer to the IPO date. Both a primary capital raise to assist corporate expansion and a secondary stake sale by current shareholders, including WeWork US, will be part of the offering.

    The South Korean automaker Hyundai Motor Company, whose Indian unit is listed at a little discount after the nation’s largest IPO, had a disastrous Indian market debut. Now, WeWork’s intention to go public in the Indian stock market is a very interesting development for market observers to look forward to.

    Plans to Launch the IPO in 2025

    By year’s end, the corporation is supposed to submit the required paperwork. The Embassy Group is also hoping to shore up liquidity through the issuance; therefore, the firm is aiming for a listing by the first half of 2025. WeWork US came out of bankruptcy earlier this year with a $750 million equity valuation, and Anant Yardi, a digital entrepreneur of Indian descent, became the new majority owner. According to reports, the Embassy, supported by the Virwani family, attempted to purchase a 27% share in WeWork India from WeWork Global, but those plans were unsuccessful.

    WeWork India sought to raise approximately $150 million from a group of investors, including Mithun Sacheti, the creator of CaratLane, the family office of Enam Group, and venture fund A91 Partners, in order to finance this transaction. The deal ultimately fell through, despite the company’s goal of a $550 million valuation.

    About WeWork

    With the goal of establishing spaces where individuals and businesses can collaborate and perform at their highest level, WeWork was established in 2010. Since establishing its initial office in New York City, the company has expanded to become a global provider of workplace solutions dedicated to offering adaptable solutions, motivating, secure environments, and unparalleled community experiences. Since that’s how the future operates, WeWork is always rethinking how the workplace can make everyone—from Fortune 500 companies to independent contractors—more driven, effective, and content.

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  • Paul Davison, a SoftBank Executive, Departs From the FirstCry Board

    SoftBank Vision Fund partner Paul Davison has stepped down from his position as a non-executive director of the board of Brainbees Solutions, the company that runs the omnichannel children’s clothing line FirstCry. The Pune-based business said in a stock exchange filing on September 22 that the resignation was due to SoftBank’s internal compliance commitments.

    “Unfortunately, given that FirstCry is now a publicly traded company, SoftBank’s internal compliance policies require that I resign and no longer hold the position of board director,” Davison wrote in his letter of resignation. Since July 15, 2019, Davison has been a member of FirstCry’s board.

    SoftBank’s Internal Compliance

    SoftBank’s internal governance and compliance requirements usually cause it to leave board positions in firms once they go public. This method enables the company to control risks, concentrate on investment strategies, and have flexibility when it comes to exiting investments.

    In the similar move, after the fintech company Paytm and the insurance marketplace Policybazaar were listed on Indian stock markets, Munish Varma, a former managing partner of SoftBank Investment Advisors, resigned from the boards of both companies in 2022.

    India is a Top Performing Market

    In an interview with a well-known news source on October 22, Alex Clavel, co-chief executive of SoftBank Investment Advisers, said that India is one of the best markets for the firm’s portfolio companies, as most of them are going public. In the June quarter of this year, SoftBank sold off its stake in Paytm, suffering a loss of almost $150 million, and finished its exit from PB Fintech, the parent company of Policybazaar.

    FirstCry’s Financial Report Card Prior Going to Public

    On August 13, 2024, FirstCry debuted on the stock market, launching at a 34.4% premium over the INR 465 price of its initial public offering (IPO).

    The company raised INR 1,885.8 crore in an anchor round prior to the IPO, and 4,055,428 equity shares were distributed to 71 anchor investors, including Norges Bank, Government of Singapore, Abu Dhabi Investment Authority (ADIA), Fidelity Funds, Nordea Asset Management, Max Life, Nomura Funds, SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, and Goldman Sachs.

    Compared to the same period last year, when it recorded a consolidated net loss of INR 90 crore, FirstCry posted a loss of INR 57 crore for the quarter ending June 30. Compared to the equivalent quarter of the previous fiscal year, when revenue from operations was INR 1,407 crore, it increased by 17% to INR 1,652 crore.

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  • Several Rapid Commerce Companies Receive Notices from the CCPA for Disclosure Issues

    Companies like Zepto, Blinkit, and nine others have received notices from the Central Consumer Protection Authority (CCPA) as part of a significant crackdown on a number of e-commerce and quick-commerce operators. According to media reports, complaints regarding suspected breaches of the Legal Metrology Act’s Mandatory Declaration Rules prompted the issuance of these notices.

    For these offences, the CCPA has issued notices to eleven businesses operating in this domain. Some vendors have listed goods for human consumption without mentioning the best before or expiration dates, or without including the manufacturing date. In several cases, items were marketed without following proper labelling or packaging guidelines. These are grave offences. According to a CCPA official, the regulatory agency has requested that these businesses reply to the notices. 

    According to sources, Swiggy, Instamart, Meesho, MyGlamm, and Snapdeal are among the other businesses that have received these notifications. The Ministry of Consumer Affairs oversees the Central Consumer Protection Authority, or CCPA.

    Consumer and Consumer Forums Highlighted the Matter

    Consumer forums, including LocalCircles, and consumer concerns prompted these notifications. According to Sachin Taparia, the founder of LocalCircles, hundreds of customers have complained on their website regarding these violations. Most of them mentioned that they have received goods that are nearing their best before or expiration date through fast commerce and other e-commerce platforms.

    Following the required validation and due diligence, LocalCircles authorities discovered that numerous online platforms are in violation of the 2017 Legal Metrology Packaged Commodity Rules Amendment, which mandates that online platforms reveal the best before date of packaged goods.

    Additionally, LocalCircles polled internet shoppers nationwide to see if they could see the best-before dates on products intended for human consumption displays. According to the poll, 57% of these customers had trouble finding this information, up from 50% in 2023.

    Who is Central Consumer Protection Authority?

    Established under the Consumer Protection Act, 2019, the CCPA went into effect on July 24, 2020, and is designed to regulate issues pertaining to consumer rights violations, unfair trade practices, and deceptive or false advertisements that harm consumers’ interests and those of the general public.

    The CCPA maintains regional offices throughout India in addition to its headquarters in Delhi, the nation’s capital. A Chief Commissioner and other Commissioners chosen by the Central Government oversee the CCPA.

    The rule mandates that important product facts, such as the maximum retail price, weight, manufacturer information, expiration date, and consumer grievance addresses, be shown on packaged goods by both online and physical merchants.

    In India’s largest cities, quick commerce—which provides incredibly quick delivery of groceries and everyday necessities—has become immensely popular, drawing both venture capital investment and customers. The regulatory action comes after CCPA Chief Commissioner Nidhi Khare recently stated that authorities were looking into whether rapid commerce platforms were complying with disclosure laws. As part of larger initiatives to safeguard consumer interests in digital commerce, the Consumer Affairs Ministry had previously hinted that it would take action against businesses deemed to be in violation of these rules.

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