D2C cos join offline legacy brands; The story of a new Assam

Hello,

The quick commerce wars are heating up.

While Zepto, Blinkit, and Swiggy Instamart are engaged in the battle for domination, many others are feeling the FOMO.

Delhivery has launched Rapid Commerce—a two-hour delivery service for brands looking to fulfil the increasing demand for faster order deliveries. Meanwhile, Reliance Retail has piloted express deliveries across 4,000 pincodes.

This comes as companies are cashing in on quick deliveries. Zepto has tripled its annualised gross order value to $3 billion within just eight months, the company announced. According to Goldman Sachs, the figure was $1 billion in April last year.

Also, Zomato has invested Rs 500 crore in its quick commerce arm Blinkit, taking its total investment in the platform to Rs 2,800 crore since its acquisition in August 2022. Blinkit is scaling operations with a target of 2,000 micro-warehouses by December 2026.

ICYMI: Meet ‘Swiggy’, a rescued German Shepherd named after the service’s Pawlice feature for finding missing pets.

Quick commerce is also forcing brands to change strategies. Now, the Rs 10 packet of Parle-G may soon disappear from these apps as it and other FMCG companies will leave certain products to only be sold offline to protect kirana stores.

The times they are a-changin'.

In today’s newsletter, we will talk about 

• D2C cos move towards mergers
• The story of a new Assam 
• Building a full-stack femtech platform

Here’s your trivia for today: At which four places in India is the Kumbh Mela held alternatively?

Ecommerce

Competition drives D2C towards mergers

A growing list of D2C consumer startups are seeking to merge with offline legacy brands as they wake up to the challenges of scaling beyond digital channels. The move aligns with a growing trend of private market investors seeking exit opportunities amid subdued consumer demand and intense competition.

Several brands in the D2C beauty and personal care segment are exploring strategic options, including Wow Skin Science, which is reportedly seeking buyers at $250 million, down from its previous $400 million valuation.

Mergers:

• Emami took full ownership of The Man Company last August, while Marico completed acquisitions of Just Herbs and plant-nutrition brand Plix. The Parachute oil maker had previously also acquired Beardo in 2020 at an undisclosed valuation.
• For D2C brands, the push toward mergers comes amid a growing recognition of digital-only companies and their limitations.
• Mamaearth parent Honasa Consumer's recent woes highlight the challenges of offline expansion. The company's shares tumbled after its second-quarter results and traded below IPO price, after it showed unexpected losses from inventory corrections.

<Top Funding Deals of the Week>

Startup: Impetus Technologies

Amount: $350M

Round: Equity

Startup: Netradyne 

Amount: $90M

Round: Series D

Startup: Foxtale

Amount: $30M

Round: Series C

Interview

The story of a new Assam

Assam has had a few turbulent decades. However, the story is different now. In today’s Assam, traditional industries anchor the new. The state contributes 14% of India’s crude production and houses four refineries. Its famed tea gardens and golden muga silk remain cultural touchstones. 

But alongside these heritage sectors, new ambitions such as Tata’s Rs 27,000-crore semiconductor plant take shape. CM Himanta Biswa Sarma, the architect of this “new Assam” speaks to YourStory’s Founder and CEO Shradha Sharma about this journey.

Into the future:

• The state that once witnessed widespread violence has seen more than 10,000 former militants lay down their arms and join the mainstream.
• Guwahati’s airport ranks as India’s seventh busiest, a far cry from when visitors would hesitate to venture into the state.
• For 75 years, Guwahati’s north and south banks were connected by a single bridge across the Brahmaputra. Now multiple bridges span the river, with a fourth under construction and a fifth in tender.

Health and wellness

Building a full-stack femtech platform

Newmi Care, founded by Aditi Mittal and Sanchit Agarwal in 2022, works as a full-stack femtech platform with three broad verticals. These include retail services, clinics, and offerings for corporate organisations and insurers. 

The company operates 10 women’s health clinics in the Delhi-NCR region, offering a full-stack model where all services are integrated under one roof.

Holistic care:

• Newmi plans to expand to cities like Jaipur, Mohali, and Indore, making specialised care accessible to women in non-metro areas.
• The company has partnered with major hospital chains like Cloud 9, Motherhood, Rainbow, Miracles, and others. It has a pharmacy licence, its warehouse, and medicine inventory.
• Newmi has developed a partnership model with corporate giants such as American Express, Deloitte, Philips, and Siemens to offer women-focused healthcare benefits. 

News & updates

• Erroneous: Apple has suspended a new AI feature that drew criticism and complaints for making repeated mistakes in its summaries of news headlines. The tech giant had been facing mounting pressure to withdraw the service, which sent notifications that appeared to come from within news organisations' apps.
• Handshake: Seven Indian private companies have been chosen for a first-of-its-kind India-US space and defence collaboration programme, unlocking a lucrative and strategic market for Indian firms, according to Reuters.
• Musk vs the world: The European Commission said it was stepping up its investigation into whether Elon Musk’s social media network X breached EU rules on content moderation with requests for information and an order for it to retain relevant documents.

At which four places in India is the Kumbh Mela held alternatively?

Answer: Haridwar, Prayagraj, Ujjain, and Nashik.

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