Latest news with #MoreRetail
Time of India
20-05-2025
- Business
- Time of India
Online & instant: Reliance Retail, More and Spencer's begin seeing dark stores in good light
HighlightsReliance Retail, More Retail, and Spencer's Retail are opening standalone dark stores to compete with quick commerce platforms like Blinkit, Swiggy Instamart, Zepto, and BigBasket, which have captured significant market share in urban areas. According to NielsenIQ, ecommerce has seen a substantial increase, with a 40% growth rate, while traditional trade has experienced a decline, indicating a shift in consumer purchasing behavior towards online grocery shopping. More Retail has successfully launched 45 dark stores, with plans for an additional 100, while Spencer's Retail is piloting dark stores to enhance its quick commerce capabilities in cities with high demand. Chains such as Reliance Retail , More and Spencer's have started to open standalone dark stores to match the speed of their online competitors, company executives said. They had initially resisted the quick commerce model. Quick commerce platforms such as Blinkit, Swiggy Instamart, Zepto and BigBasket have eaten into the share of kiranas and retail chains in the top eight to 10 cities, as consumers seek instant gratification of what was their monthly grocery shopping. Dark stores are mini warehouses that typically serve a 2-3 km radius, allowing faster deliveries of online orders. Dinesh Taluja, chief financial officer at Reliance Retail, recently told analysts that while the retailer wants to deliver online orders in less than 30 minutes, it has started to set up dark stores in 'some dark pockets' where there's enough volume and which cannot be serviced from its store network in this timeline. He said the country's largest retailer is at present using its 2,000-odd stores to deliver within a 3-km radius, covering 4,000 pin codes. Vinod Nambiar, managing director of More Retail , said the company has just set up 45 dark stores, with 100 more in the pipeline. It has set up some of these in New Delhi. High Shopping Engagement Online The Amazon-Samara Capital-owned retail chain has exited its brick-and-mortar operations in Delhi. It is eyeing Mumbai too, where it has no operations currently. Nambiar said a dark store is viable in high-demand micro markets—with high population density and many high-rises—provided the rent is manageable. 'There are standalone dark stores in cities where we have no operations, while in cities where we have stores—such as Kolkata, Hyderabad, Bengaluru and Cochin—we will convert a hybrid store (which does both store and online business) into a dark store as the market matures into online,' said Nambiar. More is the largest preferred seller in Amazon's food and grocery business, Amazon Fresh, in India. NielsenIQ , FMCG market researcher, in its report for January-March, said there was a shift towards ecommerce in metros, with high shopping engagement impacting share of modern trade and kiranas. NielsenIQ figures show the growth of ecommerce was largely volume-driven — up 40 per cent compared to a 2.2 per cent fall in traditional trade growth rate and 7.7 per cent decline in modern trade. The researcher said this was supported by increasing online shopper penetration, more purchase occasions and increasing basket sizes, or more units purchased per shopper. Spencer's Retail chief executive Anuj Singh told analysts on Friday that though dark stores are not a focus area, it has piloted one in Kolkata, where it felt the store reach was not sufficient for a 30-minute delivery. He said the company's quick commerce service currently processes 1.7 lakh bills per month, which it wants to take up to three lakh per month in this fiscal, with expansion into markets such as Lucknow and Varanasi.
Entrepreneur
13-05-2025
- Business
- Entrepreneur
More Retail Prepares for ₹2000 Crore IPO, Aims 3000 Stores by 2030
The report said that the listing will be mostly through a fresh capital infusion and most likely no offer for sale (OFS) component, as the Amazon-Samara's investment entity based in Singapore is unlikely to offload its shares as part of the IPO. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. More Retail, owned by the Amazon-Samara Capital partnership, is reportedly planning an INR 2,000 crore initial public offering (IPO) in the upcoming 12-18 months, with a dilution of approximately 10 per cent of its equity, said Vinod Nambiar, More Retail's managing director Vinod Nambiar, according to the Economic Times. The report said that the listing will be mostly through a fresh capital infusion and most likely no offer for sale (OFS) component, as the Amazon-Samara's investment entity based in Singapore is unlikely to offload its shares as part of the IPO. Amazon and Samara currently hold 51 percent and 48 percent of More Retail, respectively, with the remaining 1 percent held by high-net-worth individuals (HNIs) and various family offices. Initially, More Retail was a part of Aditya Birla Group, and then sold to its investors Samara Capital and Amazon, in 2019 for INR 4,300 crore. Since the purchase, the promoters have brought in INR 900 crore in capital, which was mainly used towards reducing its debt, according to Nambiar. According to the report, the company's remaining debt is part term loan and part non-commercial borrowings. Nambiar also told ET that the current business model is not capital hungry, as opening a More Retail store only costs INR 30 lakh because of the company's leasing model with all its real estate. Nambiar also said that the company will use the fresh capital through IPO to bolster its business operations and reduce some of its INR 500 crore debt. More Retail is also planning to expand its physical store presence to 3,000 by 2030. Currently, the company operates more than 800 stores across the country. More Retail enjoys a strong presence in South India, Haryana, NCR, Punjab, and West Bengal, while actively expanding to the eastern front through Jharkhand and Odisha this financial year. The retail chain has also exited saturated areas such as Mumbai.
Time of India
13-05-2025
- Business
- Time of India
More Retail plans Rs 2,000-cr IPO in 2026 to aid expansion, reduce debt
Amazon and Samara Capital-backed supermarket chain More Retail is planning to raise around Rs 2,000 crore through an initial public offer (IPO), which is expected to hit the market in the calendar year 2026, a top company official said on Monday. The proposed fund-raise plan will be mostly through fresh capital infusion, with no significant offer-for-sale component, as promoters, Samara Capital and Amazon, who hold 51 per cent and 48 per cent stake respectively, are unlikely to offload their shares, he said, adding that the remaining stake is held by family offices. "We are looking at an IPO in 12-18 months, depending on valuation and market conditions. We hope to raise Rs 2,000 crore, and the current promoter dilution could be about 10 per cent," More Retail Managing Director Vinod Nambiar said. He said the funds will be used primarily to expand the store count to 3,000 by 2030 and to make the company nearly debt-free. The current debt stands at about Rs 500 crore, consisting of loans and non-convertible debentures (NCDs), the company official said. Both promoters have a long-term commitment to the business and pumped in Rs 900 crore over the past five years in addition to the acquisition cost of Rs 4,300 crore. "More Retail raised Rs 150 crore in the last 120 days from family offices to benchmark valuation," Nambiar said. The retail chain, which is expanding aggressively, is set to cross 1,100 stores soon and aims to become EBITDA-positive with Rs 60 crore profit in FY'26, he said. The company reported a Rs 65 crore EBITDA loss in FY'24, as per Ind AS accounting standards. "It will take two years to achieve PAT-level profitability," he added. The retailer is also deepening its partnership with Amazon Fresh. Currently, 270 of its stores serve Amazon Fresh, and this number is expected to rise to 370 by July, and further to 500-600 stores by the end of the current fiscal year, Nambiar said. The company's offline and hybrid store count is projected to exceed 1,100 by FY'26, while the number of 'dark' outlets will also grow from the existing 40 to 100 by then. 'Dark' stores only cater to online orders. Most of the expansion will take place in smaller towns, and during the current fiscal, Jharkhand and Odisha will be added to its footprint, Nambiar said. More Retail currently has a strong presence in South India, West Bengal, Punjab, Haryana, and the NCR, having exited from Delhi city and Mumbai. Meanwhile, Nambair said West Bengal is a key market and the company is the largest in West Bengal in terms of the number of stores. The company has 109 stores in Bengal and will add 90 outlets in the next two years.>
The Hindu
12-05-2025
- Business
- The Hindu
More Retail plans ₹2,000-crore IPO in 2026 to aid expansion, reduce debt
Amazon and Samara Capital-backed supermarket chain More Retail is planning to raise around ₹2,000 crore through an initial public offer (IPO), which is expected to hit the market in the calendar year 2026, a top company official said on Monday. The proposed fund-raise plan will be mostly through fresh capital infusion, with no significant offer-for-sale component, as promoters, Samara Capital and Amazon, who hold 51% and 48% stake respectively, are unlikely to offload their shares, he said, adding that the remaining stake is held by family offices. "We are looking at an IPO in 12–18 months, depending on valuation and market conditions. We hope to raise ₹2,000 crore, and the current promoter dilution could be about 10%," More Retail Managing Director Vinod Nambiar said. He said the funds will be used primarily to expand the store count to 3,000 by 2030 and to make the company nearly debt-free. The current debt stands at about ₹500 crore, consisting of loans and non-convertible debentures (NCDs), the company official said. Both promoters have a long-term commitment to the business and pumped in ₹900 crore over the past five years in addition to the acquisition cost of ₹4,300 crore. "More Retail raised ₹150 crore in the last 120 days from family offices to benchmark valuation," Nambiar said. The retail chain, which is expanding aggressively, is set to cross 1,100 stores soon and aims to become EBITDA-positive with ₹60 crore profit in FY'26, he said. The company reported a ₹65 crore EBITDA loss in FY'24, as per Ind AS accounting standards. "It will take two years to achieve PAT-level profitability," he added. The retailer is also deepening its partnership with Amazon Fresh. Currently, 270 of its stores serve Amazon Fresh, and this number is expected to rise to 370 by July, and further to 500–600 stores by the end of the current fiscal year, Nambiar said. The company's offline and hybrid store count is projected to exceed 1,100 by FY'26, while the number of 'dark' outlets will also grow from the existing 40 to 100 by then. 'Dark' stores only cater to online orders. Most of the expansion will take place in smaller towns, and during the current fiscal, Jharkhand and Odisha will be added to its footprint, Nambiar said. More Retail currently has a strong presence in South India, West Bengal, Punjab, Haryana, and the NCR, having exited from Delhi city and Mumbai. Meanwhile, Nambair said West Bengal is a key market and the company is the largest in West Bengal in terms of the number of stores. The company has 109 stores in Bengal and will add 90 outlets in the next two years.
Time of India
12-05-2025
- Business
- Time of India
More Retail plans Rs 2,000 crore IPO, targets expansion and debt cut
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Amazon-Samara Capital owned food and grocery supermarket chain, More Retail is planning a Rs 2,000 crore initial public offering (IPO) in the next 12-18 months by diluting about 10% of the equity, the company's managing director Vinod Nambiar proposed IPO will be mostly through fresh capital infusion, with no significant offer-for-sale component, as the promoters, Samara Capital and Amazon's investment entity in Singapore, who hold 51% and 48% respectively are unlikely to offload their shares, Nambiar told newspersons here on balance 1% is held by high net worth individuals and family offices. More Retail is the wholly-owned subsidiary of the holding company, More Consumer Brands where these companies own the stake.'Both Samara and Amazon believe in the asset and they want to build the business long term. The IPO proceeds will be used for expansion and retire a significant part of the debt. More Retail has plans to expand its 775 store network to 3,000 stores by 2030 and halve its debt from Rs 500 crore as of today by the time it will go public,' said Retail's current debt is partly term loan and partly non-commercial borrowings. Nambair said the business is not capital sucking as a supermarket costs Rs 30 lakh to set up since it takes the real estate on said Amazon and Samara have together infused Rs 900 crore capital in the company in the last five years which was majorly used to reduce losses. The company has recently raised another Rs 150 crore by selling 1% stake to family offices in the last two Retail's sales in 2024-25 was Rs 4985 crore, which went up 14% year-on-year. Around 25% of its sales is from online since the company is the prefered seller for Amazon's grocery retail venture in India, Amazon Fresh. The company's EBITDA (earnings before interest, taxes, depreciation, and amortization) loss has come down from Rs 260 crore in FY23 to Rs 65 crore last fiscal, it expects to rake in an EBITDA profit of Rs 60 crore, Nambiar said. 'In about two years, we expect to be net profit positive. We should not lose cash from the operations. This fiscal we are also targeting Rs 6,000 crore revenue,' he has rationalized its store network by shutting unprofitable stores and exiting geographies like Maharashtra including Mumbai, New Delhi and Indore. It has also exited from lifestyle categories to focus only on food and grocery. The company has a presence in the South, Punjab, Haryana, Gurgaon and Noida, West Bengal and Uttar Pradesh. It has plans to enter Jharkhand and Odisha this year.
